Funded Debt to Adjusted Tangible Net Worth Ratio. The Partnership Guarantor shall at all times maintain a ratio of Funded Debt to Adjusted Tangible Net Worth of no more than 3.5:1.0.
Funded Debt to Adjusted Tangible Net Worth Ratio. As of the end of each calendar month, a Funded Debt to Adjusted Tangible Net Worth Ratio of not more than 3.00 to 1.00. Notwithstanding the foregoing, (x) Borrowers’ failure to comply with Section 6.4(c) or Section 6.4(e) shall not, in itself, constitute an Event of Default so long as such shortfalls or losses are deducted, as contemplated by the terms of this Agreement, in the determination of the other financial covenants contained herein, (y) the determination of the covenants contained in this Section 6.4 shall exclude any asset or liability associated with Statement of Financial Accounting Standard No. 133 and (z) Borrowers’ failure to comply with (i) Section 6.4(a) as a result of maintaining an EBITDA Ratio of no more than 25 basis points less than the required EBITDA Ratio, (ii) RESERVED, (iii) Section 6.4(f) as a result of maintaining a minimum Tangible Net Worth of not less than 99% of the required minimum Tangible Net Worth or (iv) Section 6.4(g) as a result of maintaining a Funded Debt to Adjusted Tangible Net Worth Ratio greater than 3.00 to 1.00 but not more than 3.25 to 1.00, shall not constitute an Event of Default under Section 8.3(b) unless such failure continues for more than 1 consecutive calendar month; provided, however, clause (z) shall not in any event be effective as an exception to the Event of Default described in Section 8.3(b) more than 2 times per calendar year.
Funded Debt to Adjusted Tangible Net Worth Ratio. The Guarantor shall at all time maintain a "Funded Debt" to "Adjusted Tangible Net Worth" ratio of no more than 3.5 to 1 until December 31, 1992 and thereafter of no more than 3.25 to 1. "Funded Debt" is defined as long term debt, but excluding Subordinated Debt, notes payable, current maturities of long term debt, plus capitalized and operating leases, plus all guaranties. "Adjusted Tangible Net Worth" is defined as total equity of the Guarantor, plus approximately Fifteen Million Seven Hundred Forty-Five Dollars ($15,745,000) in deferred income resulting from the profit on the sale of nursing home properties [National] as equity (which amount shall decrease in accordance with the Guarantor's books and records that comply with generally accepted accounting principles), plus "Subordinated Debt", minus good will and unamortized loan costs in excess of One Million Four Hundred Thousand and No/100 Dollars ($1,400,000.00). "Subordinated Debt" is defined as any indebtedness of the Guarantor which is approved by the Bank and to the extent applicable is calculated in accordance with that certain Loan and Security Agreement dated December 16, 1988 between the Guarantor, the National Health Corporation Leveraged Employee Stock Ownership Trust, Third national Bank in Nashville and certain other parties and that certain Guarantee and Contingent Purchase Agreement dated December 16, 1989 between the Guarantor, Third National Bank in Nashville, and certain other parties.
