Average Expenses definition
Average Expenses means, as of any date of determination, an amount equal to the quotient of (i) the aggregate dollar amount of operating and other expenses paid and accrued and cash expended (without duplication) by Borrower during each of the three (3) full calendar months most recently ended prior to such date of determination, divided by (ii) three (3). For the avoidance of doubt, “Average Expenses” shall not include non-cash expenses relating to amortization of stock compensation.
Average Expenses means, as of any date of determination, an amount equal to the quotient of (i) the aggregate dollar amount of operating and other expenses paid (excluding non-cash expenses, amortization, depreciation, and deferred rent) by Borrowers during each of the four (4) full calendar months most recently ended prior to such date of determination, divided by (ii) four (4). For the avoidance of doubt, “Average Expenses” shall exclude extraordinary expenses related to the closure (prior to the date hereof) of the business in Mexico (including accounting and legal expenses) and extraordinary expenses related to Parent’s initial public offering process.
Examples of Average Expenses in a sentence
If thereafter Borrower’s Unrestricted Cash is greater than 1200% of Average Expenses, then so long no Event of Default has occurred and is then continuing, Lender agrees upon written request of Borrower, to release its Lien with respect to that portion of the Collateral consisting of Intellectual Property, and upon such release of Lien the provisions of Section 3(a) above shall become applicable and Borrower shall again be subject to the Ratio.