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e e (9) Code - the Internal Revenue Code of 1986, as amended. (10) CWA - the Coastal Water Authority, previously known as the Coastal Industrial Water Authority. (11) Demand Allocation Factor- the percentage of the production capacity of the Southeast Plant which the Authority is entitled to use at any given time, The initial Demand Allocation Factor for the authority will be the percentage of the actual production construction cost paid by the Authority divided by the total actual production construction cost, as specified in Section 2,01 of the Houston Contract. The initial Demand allocation Factor is 6.5%. (12) Distribution System - those facilities used to transport treated surface Water from the termination of the transmission facilities shown on Exhibit "C", attached hereto, and fully incorporated by reference herein, to each Participant's take point. (13) Excess Production Fee - the rate to be charged to the City by the Authority for use of production capacity above the City's share of committed capacity from the Southeast Plant which shall be payable in the amounts and at the times as set forth in Section 4.05 of the Houston Contract. (14) Excess Pumoaae Fee - the rate to be charged to the City by the Authority for use of pumping facilities associated with the Southeast Plant in excess of the City's share of committed capacity for the Project, which shall be payable in the amounts and at the times as set forth in Section 4.05 of the Houston Contract. (15) Fiscal Year - the Fiscal Year of the Authority, as designated in Section 16(b) of the Act, which is from October 1, to September 30 of the following year, unless and until changed by the Board. (16) Houston - the City of Houston, Harris County, Texas. (17) Houston Contract - the contract between the Authority and Houston, which shall be in all material respects in accordance with the terms and provisions of the contract attached to this Contract as Exhibit "A", incorporated by reference herein as if recited in this Contract verbatim, providing for the purchase by the Authority of: an undivided interest in the Southeast Plant as well as potable treated surface Water from the Southeast Plant. (18) Houston Director - the Director of the City of Houston's Department of Public Works and Engineering or any other person designated as such Director. (19) La Porte - the City of La Porte, Harris County, Texas. (20) "MGD" - an abbreviation for million gallons per day. As used in this Contract, "MGD" refers to the quantity of Water during a period of time expressed for convenience in terms of an average daily quantity during a calendar month (unless a different period of time is specified). The volume of two MGD for a calendar month, for example, is calculated as follows: Two million gallons multiplied by the number of days in such calendar month. 4