Common use of Series EA Annual Budget Clause in Contracts

Series EA Annual Budget. (a) Fifteen days prior to the beginning of each fiscal year beginning after December 31, 2012, the Managing General Partner of the Series EA shall cause to be prepared and submitted to the Series EA Partners a budget and forecast setting forth the anticipated revenues and expenses for the Series EA for the following fiscal year, including any anticipated Series EA Maintenance Capital Expenditures, operating expenses, revenues, Capital Contributions and distributions (the “Series EA Annual Budget”). (b) After the Series EA Annual Budget has been approved by a Supermajority Interest of Series EA Partnership Interests, the Managing General Partner of the Series EA shall implement the Series EA Annual Budget and shall be authorized to make the expenditures and incur the obligations provided for therein. The Series EA Annual Budget may be revised at any time during a fiscal year subject to the approval of a Supermajority Interest of Series EA Partnership Interests. (c) If a Supermajority Interest of Series EA Partnership Interests fails to adopt on or before December 31 of any year a Series EA Annual Budget that has been properly submitted for approval by the Managing General Partner of the Series EA, then a Supermajority Interest of Series EA Partnership Interests shall be deemed to have approved as the Series EA Annual Budget for the next calendar year the last Series EA Annual Budget that was approved by a Supermajority Interest of Series EA Partnership Interests (the “Series EA Prior Budget”) adjusted as follows: (i) all operating expense items (including Series EA Maintenance Capital Expenditures) set forth in the Series EA Prior Budget shall be increased by 5% from the Series EA Prior Budget and (ii) all expenditures related to the construction of the Eastern Access Project set forth in the Series EA Prior Budget shall be replaced with the estimated expenditures related to the construction of the Eastern Access Project for the next calendar year; provided, however, that if a Series EA Annual Budget subsequently is approved by a Supermajority Interest of Series EA Partnership Interests, such subsequently approved Series EA Annual Budget shall be effective for the remainder of the applicable fiscal year.