Definition of Tenant's Financial Threshold Requirements


Tenant's Financial Threshold Requirements means Tenant's satisfaction of the following as evidenced in any year's publicly-filed 10K/Annual Report: Tenant attaining a positive net income of at least Two Million and 00/100 Dollars ($2,000,000.00) for two consecutive years. In the event Tenant is required to obtain and deliver the Letter of Credit, such Letter of Credit shall be permanently terminated and released on the first day on which Tenant satisfies Tenant's Financial Threshold Requirements and no letter of credit shall thereafter be required. Within ten (10) business days following Landlord's receipt of Tenant's invoice (which invoice shall include reasonable evidence of such charges) Landlord shall reimburse to Tenant fifty percent (50%) of Tenant's reasonable transaction costs associated with the issuance of the Letter of Credit, including by way of example but without limitation, the fees and charges assessed by the bank or lender issuing the Letter of Credit. On each anniversary of the issuance of the Letter of Credit, the then-existing amount of the Letter of Credit shall be reduced by ten percent (10%). Landlord agrees that, subject to the conditions listed below, the Initial Security Deposit will be released from the Temporary Lease and applied to the Permanent Lease within forty-five (45) days of vacancy of the Temporary Lease. Tenant agrees that the Initial Security Deposit and the Additional Security Deposit may not be applied by Tenant as rent and that the full monthly rent will be paid on or before the first day of every month, including the last month of occupancy. Landlord agrees that, subject to the conditions listed below, the Initial Security Deposit will be returned in full within forty-five (45) days of vacancy. The Initial Security Deposit may only be applied to cure defaults by Tenant, or used by Landlord to repair property damage caused by Tenant beyond reasonable wear and tear; provided, however, it is understood and agreed that the Additional Security Deposit may only be used to cure financial defaults by Tenant and applied by the Landlord in the event Landlord properly terminates the Permanent Lease as a result of Tenant's defaults of said lease (to the extent the Letter of Credit has not already been terminated and released as a result of Tenant's satisfaction of Tenant's Financial Threshold Requirements). Tenant further agrees that a mortgagee of the property demised by the Lease to which this Security Deposit Agreement is appended and/or a mortgagee thereof in possession of said property and/or a purchaser of said property at a foreclosure sale shall not have any liability to Tenant for a security deposit, except to the extent such party actually receives the Security Deposit. RELEASE/TERMINATION PREREQUISITES FOR THE INITIAL SECURITY DEPOSIT (such prerequisites do not apply to the Additional Security Deposit):