03-10-10 Regular Meeting of the La Porte Area Water Authority

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the interest income from the investment or deposit of money in any Fund created by this Resolution to the extent described in this Resolution; and revenues derived from the ownership or operation of other enterprises which the Authority may lawfully own or operation in the future. "Holder" when used with respect to any Bond means the Person in whose name such Bond is registered in the Bond Register. "Houston Contract" means that certain Amendment to Cost Sharing Agreement Southeast Water Purification Plant (Restated and Amended), by and between the Authority of Houston, Texas, the Participants and certain other entities named therein, as amended from time to time. "Initial Bond" means the Bond initially delivered to the Purchaser. "Interest Payment Date" means the Stated Maturity of an installment of interest on the Bonds. "Maturity," when used with respect to any Parity Bond, means the date on which the principal of such Parity Bond becomes due and payable as therein or herein provided, whether at the Stated Maturity or call for redemption. "Net Revenues" means Gross Revenues less Operating Expenses. "Operating Expenses" means the necessary and reasonable expenses of operation and maintenance of the System, including all costs incurred by the Authority in providing potable water to the Participants under the Water Sales Contracts; all operation and maintenance costs billed to the Authority by the Authority of Houston, Texas; all operating and maintenance costs incurred by the Authority related to the System; all administrative costs incurred by the Authority; the cost of all insurance maintained by the Authority; and all salaries, labor, materials, and payments under contracts for facilities shared with other entities; provided, however, that repairs and extensions, as in the judgment of the Board, reasonable and fairly exercised, that are necessary to keep the System in operation and render adequate service to the Authority and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the Parity Bonds shall be considered Operating Expenses. Depreciation and payments into and out of the Bond Fund and the Reserve Fund shall never be considered as expenses of operation and maintenance. "Outstanding," when used with respect to Parity Bonds, means, as of the date of determination, all Parity Bonds theretofore authenticated and delivered under this Resolution or any resolution authorizing the issuance of Additional Bonds, except, without duplication: (1) Parity Bonds theretofore cancelled or delivered to the Authority or any paying agent therefor for cancellation; (2) Parity Bonds for whose payment or redemption money in the necessary amount has been theretofore deposited with any paying agent therefor in trust for the registered owners of such Parity Bonds, provided that, if such Parity Bonds are to be redeemed, notice of such redemption has been duly given pursuant to the resolution 4 HOU:3003369.1