Minimum EBTIDAR Sample Clauses
The Minimum EBTIDAR clause sets a required threshold for Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent that a business or tenant must maintain over a specified period. Typically, this clause is used in commercial leases or loan agreements to ensure the financial health of the tenant or borrower, with the minimum level often reviewed periodically and sometimes tied to financial covenants. By establishing a baseline for operational profitability, the clause helps protect landlords or lenders from the risk of default due to declining business performance.
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Minimum EBTIDAR. It is a condition of this Agreement and the Loan that for each fiscal quarter commencing with the fiscal quarter ending June 30, 2015, the EBITDAR/Management Fee Adjusted for New Operator shall be not less than 450,000. “EBITDAR/Management Fee Adjusted” means for any period, an amount equal to EBITDAR for Tenant for such period, except that the Net Income for Tenant used in calculating EBITDAR/Management Fee Adjusted for any period, shall be computed by taking into account management fees equal to the greater of Tenant’s actual management fees for such period or imputed management fees equal to 5% of such Tenant’s gross income for such period as determined in accordance with GAAP.