Common use of Adequate Capital Clause in Contracts

Adequate Capital. 8.1 Golden Ridge shall maintain a ratio of Indebtedness to Equity Capital of 2:1 or such other higher ratio as may be permitted by Law, excluding for these purposes any Indebtedness that is non-interest bearing (any non-interest bearing Indebtedness and other Indebtedness within the permitted ratios is referred to as “Permissible Debt”). The penalty for failure to maintain a 2.1 ratio of Indebtedness to Equity Capital shall be that any interest or currency exchange losses accrued and attributable to the excess Indebtedness other than Permissible Debt shall not be deductible for the purposes of determining its taxable income. 8.2 Notwithstanding Section 8.1, Golden Ridge shall have up to December 31st of the fourth calendar year after the Effective Date to achieve a 2:1 ratio of Indebtedness to Equity Capital or such higher ratio as may be permitted by Law (the “Transition Period”). During the Transition Period any Indebtedness to Equity Capital that does not exceed 4:1 (or that is otherwise permitted by Law) shall be Permissible Debt. The ratio shall be determined annually by reference to the most recent audited financial statement of Golden Ridge and if the audited financial statement should reveal that Golden Ridge is not in compliance with the requirements of this Section 8.2, then the penalty set forth in Section 8.1 shall apply.

Adequate Capital. 8.1 Golden Ridge NGGL shall maintain a ratio of Indebtedness to Equity Capital of 2:1 or such other higher ratio as may be permitted by Law, excluding for these purposes any Indebtedness that is non-interest bearing (any non-interest bearing Indebtedness and other Indebtedness within the permitted ratios is referred to as “Permissible Debt”). The penalty for failure to maintain a 2.1 ratio of Indebtedness to Equity Capital shall be that any interest or currency exchange losses accrued and attributable to the excess Indebtedness other than Permissible Debt shall not be deductible for the purposes of determining its taxable income. 8.2 Notwithstanding Section 8.1, Golden Ridge NGGL shall have up to December 31st of the fourth second calendar year after the Effective Effective Date to achieve a 2:1 ratio of Indebtedness to Equity Capital or such higher ratio as may be permitted by Law (the “Transition Period”). During the Transition Period any Indebtedness to Equity Capital that does not exceed 4:1 (or that is otherwise permitted by Law) shall be Permissible Debt. The ratio shall be determined annually by reference to the most recent audited financial financial statement of Golden Ridge NGGL and if the audited financial financial statement should reveal that Golden Ridge NGGL is not in compliance with the requirements of this Section 8.2, then the penalty set forth in Section 8.1 shall apply.

Adequate Capital. 8.1 Golden Ridge shall maintain a ratio of Indebtedness to Equity Capital of 2:1 or such other higher ratio as may be permitted by Law, excluding for these purposes any Indebtedness that is non-interest bearing (any non-interest bearing Indebtedness and other Indebtedness within the permitted ratios is referred to as “Permissible Debt”). The penalty for failure to maintain a 2.1 ratio of Indebtedness to Equity Capital shall be that any interest or currency exchange losses accrued and attributable to the excess Indebtedness other than Permissible Debt shall not be deductible for the purposes of determining its taxable income. 8.2 Notwithstanding Section 8.1, Golden Ridge shall have up to December 31st of the fourth calendar year after the Effective Effective Date to achieve a 2:1 ratio of Indebtedness to Equity Capital or such higher ratio as may be permitted by Law (the “Transition Period”). During the Transition Period any Indebtedness to Equity Capital that does not exceed 4:1 (or that is otherwise permitted by Law) shall be Permissible Debt. The ratio shall be determined annually by reference to the most recent audited financial financial statement of Golden Ridge and if the audited financial financial statement should reveal that Golden Ridge is not in compliance with the requirements of this Section 8.2, then the penalty set forth in Section 8.1 shall apply.