Common use of Minimum EBIT Clause in Contracts

Minimum EBIT. Only to the extent that such is needed to achieve an annualized $3,000,000 run-rate minimum earnings before interest and taxes ("EBIT") level, Purchaser shall have received evidence to Purchaser's satisfaction that up to $800,000 of the combined total of (i) annualized direct expense compensation payroll and related direct payroll fringe cost and (ii) corporate administrative overhead (without giving effect to any consolidation into Purchaser) has been identified by Seller for elimination ("DIRECT EXPENSE COMPENSATION AND G&A REDUCTION") by the Closing Date without impairing the integrity or revenue stream of the related programs. This Direct Expense Compensation and G&A Reduction must be detailed program, by specific employee, etc. and may not include reductions from changes in benefit programs (i.e., insurance, retirement, paid-days-off, etc.) related to non-terminated employees or any reductions in real estate taxes, but may include reductions in other out-of-pocket direct operating expenses. Prior to Closing, Seller shall have implemented at least $250,000 of the Direct Expense Compensation and G&A Reduction, without impairing the integrity or profitability of the Seller's operations.