Profits Test definition
Profits Test means:
Profits Test means that the Landlord is satisfied that any proposed assignee of this Lease has net profits (before tax) of at least three times the Rents then reserved and payable under this Lease at the time of any proposed assignment as shown by audited accounts of such proposed assignee during each of the three accounting periods (none of which is to be a period of more than one year) immediately preceding the date of application to the Landlord for consent to any proposed assignment;
Examples of Profits Test in a sentence
As soon as practicable after December 31, 2001 (but no earlier than January 18, 2002), the Seller shall give the Buyer full access to its premises and the books, records, financial statements, and related documents of the Company for both the year and quarter ending December 31, 2001 for purposes of determining whether the Gross Profits Test and the Client Test have been met.