Net Operating Income Test Clause Samples

Net Operating Income Test. Subject to the cure rights set forth below, it shall be an immediate Event of Default if the Net Operating Income is less than $1,000,000, to be tested as of the end of each calendar quarter. Borrower may cure a default under this Section 3.1(n) upon payment to the Lender, within 45 days of the end of the calendar quarter upon which the default occurs, of (i) in the case of the first such default, (x) $100,000, which amount shall be applied to reduce the outstanding principal balance of the Note (as defined in the Security Instrument), in such order as Lender shall determine, and (y) $10,000, which amount shall be paid to Lender as a waiver fee and shall not be applied to payment of the Note, and (ii) in the case of the second such default, (x) $500,000, which amount shall be applied to reduce the outstanding principal balance of the Note (as defined in the Security Instrument), in such order as Lender shall determine, and (ii) $20,000, which amount shall be paid to Lender as a waiver fee and shall not be applied to payment of the Note. No cure shall be available in the case of the third such default. Borrower will provide Lender with satisfactory evidence confirming compliance with the provisions of this Section 3.1(n) within forty-five (45) days after the close of each calendar quarter in the form of the Compliance Certificate attached hereto as Schedule I. No Make-Whole Breakage Amount shall be due on account of the payments under this Section 3.1(l).