Asset Test Sample Clauses
The Asset Test clause defines the criteria or thresholds that certain assets must meet for a party or transaction to qualify under an agreement. Typically, this clause specifies minimum asset values, types of assets, or financial ratios that must be maintained, and may require periodic verification or reporting to ensure compliance. Its core practical function is to ensure that only parties or transactions with sufficient financial backing or stability are eligible, thereby reducing risk and protecting the interests of the parties involved.
Asset Test. The Board shall have determined that the Company satisfied the "5% asset test" of Section 856(c)(5) of the Code, or such successor provision as may be applicable, for the most recently ended calendar quarter as required by the Code.
Asset Test. The ratio of the sum of consolidated accounts receivable and inventories subject to a first priority perfected security interest in favor of the Collateral Agent pursuant to the Guarantee and Collateral Agreement (and, in any event, exclusive of any then outstanding amounts secured by a security interest on inventory permitted by Section 6.3(f)) to Consolidated Funded Indebtedness as at the end of any Fiscal Quarter to be less than the amount set forth in the table below: FISCAL QUARTER ENDING RATIO ----------------------------------------------------------- ------------ December 31, 2003, March 31, 2004, June 30, 2004 and September 30, 2004 1.10 to 1.0 December 31, 2004, March 31, 2005 and June 30, 2005 1.20 to 1.0 September 30, 2005 and any Fiscal Quarter ending thereafter 1.35 to 1.0"
Asset Test. Holdings will not permit the ratio of the sum of Holdings' consolidated accounts receivable and inventories subject to a first priority perfected security interest in favor of the Collateral Agent pursuant to the Guarantee and Collateral Agreement (and, in any event, exclusive of any then outstanding amounts secured by a security interest on inventory permitted by Section 6.02(f)) to Consolidated Funded Indebtedness at the end of any Fiscal Quarter to be less than the amount set forth in the following table: Quarter Ending Ratio -------------- ----- 12/31/03 1.10:1 3/31/04 1.10:1 6/30/04 1.10:1 9/30/04 1.10:1 12/31/04 1.20:1 3/31/05 1.20:1 6/30/05 1.20:1 9/30/05 1.35:1 12/31/05 1.35:1 3/31/06 1.35:1 6/30/06 1.35:1 9/30/06 1.35:1 12/31/06 1.35:1 3/31/07 1.35:1 6/30/07 1.35:1 9/30/07 1.35:1 12/31/07 and thereafter 1.35:1
Asset Test. The Borrower will not permit the ratio of the sum of its consolidated accounts receivable and inventories subject to a first priority perfected security interest in favor of the Collateral Agent pursuant to the Guarantee and Collateral Agreement (and, in any event, exclusive of any then outstanding amounts secured by a security interest on inventory permitted by Section 6.02(f)) to Consolidated Funded Indebtedness at the end of any Fiscal Quarter to be less than 1.35 to 1.
Asset Test. At the Closing, the Purchased Assets shall have Asset Value of at least $13,500,000 (the "Minimum Asset Value"). "Asset Value" means, with respect to the Purchased Assets: (i) the sum of the value of (A) accounts receivable, and (B) inventories, as of the date immediately preceding the Closing Date (ii) appropriate reserves to be established on the Closing Balance Sheet as finally determined by the parties pursuant to this Section 1.5. Any excess or deficiency in the Minimum Asset Value (the "Asset Value Adjustment") will be paid as follows:
Asset Test. Consolidated assets of BGSI (excluding assets of entities who are not Borrowers and Guarantors) Divided By Consolidated assets of BGSI (including assets of entities who are not Borrowers and Guarantors) = = _____%
Asset Test. Holdings will not permit the ratio of (a) the sum of (i) Holdings' consolidated accounts receivable (including accounts receivable sold or otherwise transferred under Permitted Securitizations permitted by Section 6.01(k)) and (ii) Holdings' consolidated inventories which inventories are subject to a first priority perfected security interest in favor of the Collateral Agent pursuant to the Guarantee and Collateral Agreement (and, in any event, exclusive of any then outstanding amounts secured by a security interest on inventory permitted by Section 6.02(f)) to (b) Consolidated Funded Indebtedness at the end of any Fiscal Quarter to be less than the amount set forth in the following table: Quarter Ending Ratio -------------- ----- 9/30/05 1.20:1 12/31/05 1.20:1 3/31/06 1.20:1 6/30/06 and thereafter 1.25:1
Asset Test. 65 SECTION 6.12. Disclosure.............................................................................. 66 SECTION 6.13. Sale of Assets.......................................................................... 66
Asset Test. The ratio of the sum of consolidated accounts receivable and inventories subject to a first priority perfected security interest in favor of the Collateral Agent pursuant to the Guarantee and Collateral Agreement (and, in any event, exclusive of any then outstanding amounts secured by a security interest on inventory permitted by Section 6.3(f)) to Consolidated Funded Indebtedness as at the end of any Fiscal Quarter to be less than the amount set forth in the table below: Exhibit A-3 FISCAL QUARTER ENDING RATIO --------------------- ----- September 30, 2005, December 31, 2005 and March 31, 2006 1.20 to 1.0 any Fiscal Quarter ending thereafter 1.25 to 1.0"