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1 letters of credit delivered by K&L and Safeway pursuant to Paragraph 4 (d) below are still held by the City, the City shall draw against such letters of credit to fund construction of the Alternative Means and such draws shall be made in accordance with the provisions of Paragraph 4 (d) . The City acknowledges and agrees that the maximum contribution required of K&L and Safeway with respect to the design and construction of the Alternative Means and/or the Hansen Line (whether drawn from the letters of credit or paid by K&L or Safeway) shall be an aggregate amount equal to Four Million Dollars ($4 , 000, 000) less the Credit. (b) Assignment and Assignment Pro ert . The parties acknowledge and agree that K&L owns seventy-two and twenty-six hundredths percent (72 . 25%) (the '"K&L Percentage") of the Discharge Rights and that Safeway owns twenty-seven and seventy- four hundredths percent (27 . 74%) (the "Safeway Percentage") of ' the Discharge Rights, and that the Discharge Rights are held by K&L and Safeway in connection with the contemplated development of the Property. Subject to retention for the benefit of the Property of a minimum wastewater disposal capacity as required by the applicable City ordinance in effect at the time of assignment, which the parties acknowledge and agree is currently an amount equal to one thousand three hundred seventy-five (1, 375) gallons per day per acre, either K&L or Safeway may assign all or a portion of its interest in the Discharge Rights to the owners or users of (or the successors in interest of either K&L or Safeway to) the Property or the Assignment Property. Such assignment shall be completed by delivery of written notice to the City by the current holder of a portion of the Discharge Rights .identifying the transferee of the interest (who shall be an owner or user of the Property.- or the Assignment Property) and setting forth: (i) the exact number of gallons per day of wastewater disposal capacity and related characteristics of waste strength so assigned, (ii) the portion of the obligation to pay the Discharge Rights capital charge delegated to such } assignee, and (iii) the written assumption by such assignee of its obligations to pay its pro rata share of capital charges, connection fees, sewage use fees and similar charges of general application. In the event such assignment is to a purchaser of a fee interest in a portion of the Property or the Assignment Property, such instrument shall be in recordable form and shall be recorded upon transfer of title to such assignee. No assignment by a party which is in default of its obligation under this Agreement shall be permitted. The Assignment Property consists of approximately three hundred seventy-eight (378) acres and is owned by K&L (or its affiliates) and Safeway, and is more particularly described on Exhibit B attached hereto. (c) Payment of Costs. K�&L and Safeway (or their successors or assigns) shall each pay for the Sewage Services provided to such parties by the City in accordance with the sb\mhw\watersup.agr 5