Effective Tangible Net Worth Clause Samples
The 'Effective Tangible Net Worth' clause defines the minimum level of tangible net worth that a party, typically a borrower, must maintain during the term of an agreement. This clause usually specifies how tangible net worth is calculated, often by subtracting intangible assets and liabilities from total assets, and may require regular financial reporting to demonstrate compliance. Its core practical function is to ensure the financial stability and solvency of the obligated party, thereby reducing the lender's risk and providing assurance that the party remains financially sound throughout the contractual relationship.
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Effective Tangible Net Worth. Maintain an Effective Tangible Net Worth (defined as total assets, less intangible assets, loans to shareholders/affiliates/officers/employees, minus total liabilities, plus subordinated debt) of not less than $20,000,000.00, on a quarterly basis.
Effective Tangible Net Worth. Borrower shall maintain a minimum Effective Tangible Net Worth of (a) <$5,400,000> on December 31, 2013 and (b) on the last day of each fiscal quarter thereafter, the sum of <$5,400,000> plus 75% of Borrower’s cumulative positive net income commencing on January 1, 2014 and continuing through the date of calculation. The term “Effective Tangible Net Worth” means Borrower’s total assets excluding all intangible assets (i.
Effective Tangible Net Worth. Permit Effective Tangible Net Worth, as of the end of any fiscal quarter of the Borrower, to be less than the sum of (i) $5,600,000, (ii) on a cumulative basis, on the date the Administrative Agent receives (or should have received) the financial statements referred to in Section 5.1(b) with respect to any quarter (beginning with such statements delivered for the fiscal quarter ended December 31, 2004), 75% of the Net Income of the Borrower and the Subsidiaries (disregarding any loss) in such fiscal quarter and (iii) on a cumulative basis, 100% of the Net Issuance Proceeds of any Equity Offering consummated by the Borrower or any Subsidiary during such fiscal quarter (excluding (1) the approximately $8,200,000 Equity Offering consummated on the closing date of the Boston Biomedica Acquisition, and (2) any Equity Offering consummated prior to the Closing Date).
Effective Tangible Net Worth. Maintain Effective Tangible Net Worth of not less than Thirty Million Dollars ($30,000,000.00) plus fifty percent (50%) of Quarterly Net Earnings, plus fifty percent (50%) of the net cash proceeds of any offering of equity interests by Borrower or any Subsidiary to a Person other than Borrower or a wholly-owned Subsidiary of Borrower.
Effective Tangible Net Worth. Permit Effective Tangible Net Worth, as of the end of any fiscal quarter of the Borrower, to be less than the sum of (i) $12,500,000, (ii) on a cumulative basis, on the date the Lender receives (or should have received) the financial statements referred to in Section 5.1(b) with respect to any quarter (beginning with such statements delivered for the fiscal quarter ended September 30, 2003), 75% of the Net Income of the Borrower and the Subsidiaries (disregarding any loss) in such fiscal quarter and (iii) on a cumulative basis, 100% of the Net Proceeds of any Equity Offering consummated by the Borrower or any Subsidiary during such fiscal quarter.
Effective Tangible Net Worth. The Borrowers will not permit its Consolidated Effective Tangible Net Worth to be less than a negative $ 750,000.00 for the quarter ending March 31, 2009, or less than $ 700,000.00 for the quarter ending June 30, 2009, and each quarter thereafter, tested at the end of each fiscal quarter, beginning with the quarter ending March 31, 2009.
Effective Tangible Net Worth. Maintain at all times a consolidated Effective Tangible Net Worth (defined as (a) stockholder's equity (including without limitation preferred stock) less any value for goodwill, trademarks, patents, copyrights, leaseholds, organization expense and other similar intangible items, and any amounts due from stockholders, officers and affiliates plus (b) subordinated debt including, without limitation, the $15,000,000.00 offering of senior subordinated notes with detachable warrants offered pursuant to the Note and Warrant Purchase Agreement and the Common Stock Purchase Warrant, each dated as of August 25, 1998) of not less than thirty-six million dollars ($36,000,000).
Effective Tangible Net Worth. The words "Effective Tangible Net Worth" mean the Borrower's stated net worth plus Subordinated Debt but less all intangible assets of the Borrower (i.
Effective Tangible Net Worth. Total assets minus Senior Liabilities. For purposes of this computation, the aggregate amount of any intangible assets of Borrower including without limitation, goodwill, franchises, licenses, patents, trademarks, trade names, copyrights, service marks, and brand names, shall be subtracted from total assets.
Effective Tangible Net Worth. Maintain on December 31, 1999 and on a quarterly basis thereafter, a consolidated Effective Tangible Net Worth (defined as stockholder's equity less any value for goodwill, trademarks, patents, copyrights, leaseholds, organization expense and other similar intangible items, and any amounts due from stockholders, officers and affiliates, other than the Tekelec Airtronic Companies, of not less than Twenty Million Dollars ($20,000,000).