Burn Down Requirements Clause Samples

Burn Down Requirements. The “Burn Down Requirements” shall be as follows: 30.3.3.1 Tenant’s then-existing average “Cash on Hand,” as of the closing date of Tenant’s then most current Audited Financial Statement, has averaged $100,000,000.00 or more during the preceding twelve (12) calendar month period or, in the event that Tenant no longer utilizes or publishes such Cash on Hand amounts, this requirement shall be reasonably determined based on an equivalent or corresponding measure established using generally accepted accounting principles. 30.3.3.2 Tenant has achieved its projected 2019 revenue target of $2,000,000,000.00 30.3.3.3 Tenant has been “cash flow positive,” on an EBITDA (earnings before interest, taxes, depreciation and amortization) basis with an EBITDA margin of 8.5% or better, during each financial quarter on a trailing basis during the immediately preceding twelve (12) month period, as shown on Tenant’s then most current Audited Financial Statement; and 30.3.3.4 Tenant provides Landlord with a representation, reasonably acceptable to Landlord and certified by Tenant’s chief financial officer, that based on Tenant’s then most current Audited Financial Statement and to the best of Tenant’s knowledge, there has not been, and there will not be, any adverse material change(s) to Tenant’s ability to remain “cash flow positive” for the twelve (12) month period immediately following the date of any reduction in the L-C Amount. In the event that Tenant desires to reduce either the L-C Amount as set forth in Sections 30.3.2 above, then no later than six (6) months prior to the scheduled date of such reduction, concurrently with Tenant’s delivery of the written representation and certification required under Section 30.3.3.4, above, Tenant shall deliver to Landlord a copy of Tenant’s then most current Audited Financial Statement evidencing compliance with the Burn Down Requirements. Notwithstanding anything to the contrary set forth in this Section 30.3.3, in no event shall the L-C Amount as set forth above decrease during any period in which Tenant is in default under this Lease, but such decrease shall take place retroactively after such default is cured, provided that no such decrease shall thereafter take effect in the event this Lease is terminated early due to such default by Tenant.