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2 <br /> Capacity Rights. The assignment and assumption agreement will include a provision <br /> acknowledging and agreeing that the Capacity Buyer may only use the District Capacity Rights <br /> by discharging sewage into the Everett sewer system at Connection Point(s) approved by <br /> Everett. <br /> (6) Everett reasonably . determines that the Capacity Buyer's financial <br /> condition is sufficient to support the assumption of District's obligations under this Agreement. <br /> (7) The sale of the District Capacity Rights does not cause Everett to pay for <br /> any capital cost or consultant expense. <br /> (8) If requested by Everett, the Capacity Buyer is the lead agency for the <br /> purpose of SEPA review of the sale of District capacity if the Parties determine that SEPA <br /> applies to such sale. <br /> 5. CHARGES,PAYMENTS,AND FEES <br /> A. Capacity Right Charge. <br /> After the Effective Date of this Agreement, except as provided in Section 4. C. (2) <br /> (b) and (c), if the District desires to acquire additional District Capacity Rights from Everett and <br /> such capacity is available or may be made available, at the sole discretion of Everett,the District <br /> shall pay a capacity right charge to Everett for such additional District Capacity Rights, as <br /> calculated by Everett in accordance with the methodology set forth in Exhibit D attached to this <br /> Agreement. Everett agrees that the capacity right charge set forth in Exhibit D includes all <br /> compensation to Everett for Everett's capital costs related to the additional District Capacity <br /> Rights up to the date of purchase of the additional District Capacity Rights. After such purchase <br /> date, the District shall pay the District's increased share of capital costs, as calculated in <br /> accordance with Section 5.B of this Agreement <br /> B. Payments for Capital Costs. <br /> (1) District Share of Capital Costs Incurred Before Effective Date. For any <br /> capital cost related to an Everett Capacity Facility incurred by Everett before the end of the <br /> calendar quarter that immediately follows the Effective Date of this Agreement,the District shall <br /> pay Everett in accordance with the terms of the 1982 Sewage Agreement. <br /> (2) District Share of Capital Costs Incurred After Effective Date. <br /> (a) Calculation of District Share. For any capital cost related to an <br /> Everett Capacity Facility incurred by Everett after end of the calendar quarter that immediately <br /> follows the Effective Date of this Agreement, the District shall pay to Everett an amount equal <br /> to the capital cost multiplied by District's percentage share, which percentage share is calculated <br /> by dividing the then-current District Capacity Right for the Everett Capacity Facility by the <br /> Agreed Capacity of the Everett Capacity Facility. Capital costs include Design and <br /> Construction Costs for capital improvement, protection, or replacement of any portion of any <br /> Everett Capacity Facility (including without limitation any upgrade mandated by regulatory <br /> it <br /> 20 <br />