Operating loss. Suffer or permit any of its Subsidiaries to suffer any aggregate operating loss for two consecutive fiscal quarters which exceeds $400,000; provided, however, that (a) for purposes of determining whether the Borrower and its Subsidiaries have suffered such a loss, any Project Costs incurred by the Borrower or its Subsidiaries shall be excluded, (b) any non-cash extraordinary or non-recurring charges (not to exceed $1,000,000 in the aggregate) shall be excluded, and (c) the results of operations of any Subsidiary established for purposes of opening a new restaurant shall be excluded from any calculation related to compliance with this Section 7.11 for any fiscal quarter which includes at least one full month of the first twelve calendar months following the commencement of operations of the new restaurant operated by such Subsidiary.
Appears in 2 contracts
Sources: Loan Agreement (New York Restaurant Group Inc), Loan Agreement (Smith & Wollensky Restaurant Group Inc)