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<br />capacity of the Plant, including engmeenng, testing, construction, equipment, <br /> <br />legal services, contractor claims expenses, construction management, cost of <br /> <br />services performed by the Managing Participant's employees, and auditing <br />expenses. (Reference Exhibit Cl "Firm 200 MGD" Columns, herein these <br />expenses are "Pirm 200 MGD Expenses"). <br />b. Costs for the upgrades to the facilities built to enhance the operation of the Plant <br />for the benefit of all Participants, including engineering, testing, construction, <br />equipment, legal services, contractor claims expenses, construction management, <br />cost of services performed by Managing Participant's employees and auditing <br />expenses. (Reference Exhibit Cl columns labeled "Enhancements (existing 120 <br />MGD capacity only)", herein those expenses are "Enhancement Expenses"). <br />c. Cost for the additional 55 MGD high service pump station to benefit only the <br /> <br /> <br />Participants sharing in the increased 80 MGD capacity of the Plant, including <br /> <br /> <br />engineering, testing, construction, equipment, legal services, contractor claims <br /> <br /> <br />expenses, construction management, cost of services performed by Managing <br /> <br />Participant's employees and auditing expenses. Reference Exhibit Dl, column <br /> <br />"High Service Treated Water Pumping" with rows labeled "Cost per Gallon New <br />Pump less Old Pump", "Incremental Cost-Original Capacity" and "Purchase of <br />Original Capacity" with details shown in Exhibit D2, columns labeled "200 MGD <br />Costs Purchased Capacity" and :'Increased $", herein these expenses are "Pump <br />Station Expenses"). <br /> <br />H:\EWBISOUTHE.DOC <br /> <br />3 <br /> <br />9/19/2006 <br />