Common use of Effective Tangible Net Worth Clause in Contracts

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. 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). The Effective Tangible Net Worth as of December 31, 1998 was approximately $29,752,000 which is below the minimum.