{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "flow-of", "type": "definition", "offset": [26, 33]}, {"key": "borrower-and-its-subsidiaries", "type": "clause", "offset": [66, 95]}, {"key": "consolidated-basis", "type": "clause", "offset": [101, 119]}, {"key": "twelve-months", "type": "definition", "offset": [129, 142]}, {"key": "fiscal-quarter", "type": "clause", "offset": [170, 184]}, {"key": "of-the-borrower", "type": "clause", "offset": [185, 200]}, {"key": "reference-to", "type": "definition", "offset": [218, 230]}, {"key": "covenant-compliance-certificate", "type": "clause", "offset": [246, 277]}, {"key": "pursuant-to-section", "type": "definition", "offset": [293, 312]}, {"key": "period-ending", "type": "definition", "offset": [385, 398]}, {"key": "maximum-amount", "type": "definition", "offset": [399, 413]}], "samples": [{"hash": "e6EB5XyBTb7", "uri": "/contracts/e6EB5XyBTb7#minimum-operating-cash-flow", "label": "Term Loan Agreement (Entravision 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permit Operating Cash Flow as at the end of any Reference Period ending during any period described in the table set forth on SCHEDULE 6.11, annexed hereto to be less than the amount set forth opposite such period in such table.", "size": 2, "hash": "495a001022480cbce323ab935929b576", "id": 3}, {"snippet_links": [{"key": "period-ending", "type": "definition", "offset": [18, 31]}, {"key": "flow-of", "type": "definition", "offset": [66, 73]}, {"key": "the-administrative-borrower", "type": "clause", "offset": [74, 101]}, {"key": "stated-amount", "type": "definition", "offset": [112, 125]}, {"key": "designated-period", "type": "definition", "offset": [169, 186]}, {"key": "credit-extended", "type": "definition", "offset": [219, 234]}, {"key": "any-letter-of-credit", "type": "clause", "offset": [322, 342]}, {"key": "for-the-purposes-of", "type": "clause", "offset": [469, 488]}, {"key": "section-57", "type": "clause", "offset": [494, 505]}, {"key": "borrower-shall", "type": "clause", "offset": [549, 563]}, {"key": "consistent-with-the", "type": "clause", "offset": [613, 632]}, {"key": "weekly-cash-flow-budget", "type": "definition", "offset": [633, 656]}, {"key": "asset-sale-proceeds", "type": "definition", "offset": [665, 684]}, {"key": "bank-receivables", "type": "definition", "offset": [691, 707]}, {"key": "debt-service", "type": "definition", "offset": [712, 724]}, {"key": "financing-fees", "type": "definition", "offset": [729, 743]}, {"key": "fees-paid", "type": "clause", "offset": [755, 764]}, {"key": "in-connection-with", "type": "clause", "offset": [765, 783]}, {"key": "amendment-of-the-loan-documents", "type": "clause", "offset": [788, 819]}, {"key": "first-lien-term-loan-documents", "type": "definition", "offset": [828, 858]}, {"key": "section-61", "type": "clause", "offset": [866, 877]}, {"key": "the-credit-agreement", "type": "clause", "offset": [881, 901]}], "samples": [{"hash": "eOXNuoBbcE2", "uri": "/contracts/eOXNuoBbcE2#minimum-operating-cash-flow", "label": "Revolving Credit Agreement (Tousa Inc)", "score": 21.0, "published": true}, {"hash": "bGtAYnUR6e3", "uri": "/contracts/bGtAYnUR6e3#minimum-operating-cash-flow", "label": "Revolving Credit Agreement (Tousa Inc)", "score": 21.0, "published": true}], "snippet": "For the five week period ending November 30, 2007, operating cash flow of the Administrative Borrower minus the stated amount of any Letters of Credit Issued during the Designated Period (other than existing Letters of Credit extended or renewed during the Designated Period but including any increase in stated amount of any Letter of Credit during the Designated Period) in a stated amount in excess of $5,000,000, shall not be less than Minimum Operating Cash Flow. For the purposes of this Section 5.7, operating cash flow of the Administrative Borrower shall mean operating cash flow (determined in a manner consistent with the Weekly Cash Flow Budget) before Asset Sale proceeds, land bank receivables and debt service and financing fees (including fees paid in connection with any amendment of the Loan Documents and the First Lien Term Loan Documents).\u201d\n(p) Section 6.1 of the Credit Agreement is hereby amended by adding the following as subsection (n):", "size": 2, "hash": "91396c97453f6f1f412ab31e14966eca", "id": 4}, {"snippet_links": [{"key": "the-borrower", "type": "definition", "offset": [0, 12]}, {"key": "the-parent", "type": "clause", "offset": [22, 32]}, {"key": "fiscal-quarter-ending", "type": "definition", "offset": [173, 194]}, {"key": "article-vi", "type": "definition", "offset": [379, 389]}, {"key": "the-credit-agreement", "type": "clause", "offset": [393, 413]}, {"key": "is-amended-by-adding", "type": "clause", "offset": [414, 434]}, {"key": "a-new-section", "type": "definition", "offset": [435, 448]}], "samples": [{"hash": "9d08eWNz2H6", "uri": "/contracts/9d08eWNz2H6#minimum-operating-cash-flow", "label": "Credit Agreement (Atx Communications Inc)", "score": 18.0, "published": true}], "snippet": "The Borrower, CCI and the Parent will not permit Operating Cash Flow for any fiscal quarter set forth below to be less than the amount set forth below opposite such period: Fiscal Quarter Ending Minimum Operating Cash Flow --------------------- --------------------------- March 31, 2003 $ (832,000) June 30, 2003 364,000 September 30, 2003 487,000 December 31, 2003 596,000 (l) Article VI of the Credit Agreement is amended by adding a new Section 6.28 to read as follows:", "size": 2, "hash": "c95da0f66ae88ff3f390101d3807b88b", "id": 5}, {"snippet_links": [{"key": "implementation-phase", "type": "definition", "offset": [11, 31]}, {"key": "the-borrower-shall", "type": "clause", "offset": [33, 51]}, {"key": "operating-cash-flow", "type": "clause", "offset": [67, 86]}, {"key": "fiscal-quarter", "type": "clause", "offset": [108, 122]}, {"key": "quarter-ending", "type": "definition", "offset": [200, 214]}], "samples": [{"hash": "hSzEsNimPMC", "uri": "/contracts/hSzEsNimPMC#minimum-operating-cash-flow", "label": "Loan Agreement (Cellnet Data Systems Inc)", "score": 18.0, "published": true}], "snippet": "During the Implementation Phase, the Borrower shall not permit its Operating Cash Flow as of the end of any fiscal quarter times four (4) to be less than the amounts set forth below for such quarter: QUARTER ENDING AMOUNT -------------- ------ September 30, 1998 $759,000 December 31, 1998 $1,000,000 March 31, 1999 $2,100,000 June 30, 1999 $2,950,000 September 30, 1999 $4,050,000 December 31, 1999 $4,800,000", "size": 2, "hash": "9c1181c12b5541d9fb404ec7dde3ab58", "id": 6}, {"snippet_links": [{"key": "borrower-shall", "type": "clause", "offset": [0, 14]}, {"key": "operating-cash-flow", "type": "clause", "offset": [30, 49]}, {"key": "commencing-with-the", "type": "clause", "offset": [125, 144]}, {"key": "for-the-purposes-of", "type": "clause", "offset": [207, 226]}, {"key": "the-officer", "type": "definition", "offset": [297, 308]}, {"key": "with-respect-to", "type": "clause", "offset": [333, 348]}, {"key": "the-applicable", "type": "clause", "offset": [349, 363]}, {"key": "an-independent", "type": "clause", "offset": [421, 435]}, {"key": "determination-of", "type": "clause", "offset": [448, 464]}, {"key": "determination-by-lender", "type": "clause", "offset": [712, 735]}, {"key": "in-accordance-with", "type": "definition", "offset": [760, 778]}, {"key": "the-foregoing", "type": "definition", "offset": [779, 792]}, {"key": "the-definition-of", "type": "definition", "offset": [807, 824]}, {"key": "in-this-agreement", "type": "clause", "offset": [847, 864]}, {"key": "for-purposes-hereof", "type": "definition", "offset": [877, 896]}], "samples": [{"hash": "3f6YN64m0Sw", "uri": "/contracts/3f6YN64m0Sw#minimum-operating-cash-flow", "label": "Revolving Credit and Term Loan Agreement (Falconite Inc)", "score": 18.0, "published": true}], "snippet": "Borrower shall not permit its Operating Cash Flow to be less than $8,500,000.00 for any consecutive twelve (12) month period commencing with the consecutive twelve (12) month period ended December 31, 1996. For the purposes of this Section, Borrower's \"Operating Cash Flow\" shall be that shown on the officer's certificate delivered with respect to the applicable twelve (12) consecutive month period unless Lender makes an independent, good faith determination of Operating Cash Flow for such consecutive twelve (12) month period. If Lender's determination of Operating Cash Flow for any consecutive (12) month period is less than Operating Cash Flow as stated in the applicable officer's certificate: (i) such determination by Lender shall be, if determined in accordance with the foregoing provision and the definition of \"Operating Cash Flow\" in this Agreement, conclusive for purposes hereof and (ii) Lender shall promptly advise Borrower of its determination.\"", "size": 2, "hash": "53908c081fc3d40cf07e3ab272e626e6", "id": 7}, {"snippet_links": [{"key": "combined-operating-cash-flow", "type": "definition", "offset": [48, 76]}, {"key": "period-ending", "type": "definition", "offset": [162, 175]}, {"key": "after-the-closing-date", "type": "clause", "offset": [176, 198]}], "samples": [{"hash": "ibepKxgAT16", "uri": "/contracts/ibepKxgAT16#minimum-operating-cash-flow", "label": "Credit Agreement (Vitro Sa De Cv)", "score": 18.0, "published": true}], "snippet": "Comercial and Vitrocrisa shall not permit their Combined Operating Cash Flow to be less than U.S.$24,000,000 as of the end of any consecutive four fiscal quarter period ending after the Closing Date.", "size": 1, "hash": "e24cfc3e1ef6b577904a8f22411eed65", "id": 8}, {"snippet_links": [{"key": "day-of", "type": "clause", "offset": [12, 18]}, {"key": "of-the-borrower", "type": "clause", "offset": [67, 82]}, {"key": "commencing-with-the", "type": "clause", "offset": [84, 103]}, {"key": "fiscal-quarter-ending", "type": "definition", "offset": [104, 125]}, {"key": "operating-cash-flow", "type": "clause", "offset": [160, 179]}, {"key": "period-ending", "type": "definition", "offset": [201, 214]}, {"key": "operating-period", "type": "clause", "offset": [321, 337]}], "samples": [{"hash": "9oJoZn0657A", "uri": "/contracts/9oJoZn0657A#minimum-operating-cash-flow", "label": "Credit Agreement (College Television Network Inc)", "score": 18.0, "published": true}], "snippet": "On the last day of each fiscal --------------------------- quarter of the Borrower, commencing with the fiscal quarter ending on September 30, 1999, permit the Operating Cash Flow for the twelve-month period ending on the last day of such fiscal quarter to be less than the amount set forth opposite such period: Minimum Operating Period Cash Flow ------ ----------------- September 30, 1999 $2,700,000 December 31, 1999 2,900,000", "size": 1, "hash": "8e5b55cd055bd03ab2fa491f18d7e359", "id": 9}, {"snippet_links": [{"key": "borrower-shall", "type": "clause", "offset": [0, 14]}, {"key": "operating-cash-flow", "type": "clause", "offset": [30, 49]}, {"key": "fiscal-year-of-borrower", "type": "clause", "offset": [92, 115]}, {"key": "for-the-purposes-of", "type": "clause", "offset": [222, 241]}, {"key": "annual-officer", "type": "definition", "offset": [316, 330]}, {"key": "with-respect-to", "type": "clause", "offset": [355, 370]}, {"key": "an-independent", "type": "clause", "offset": [408, 422]}, {"key": "determination-of", "type": "clause", "offset": [435, 451]}, {"key": "fiscal-year-end", "type": "definition", "offset": [551, 566]}, {"key": "the-applicable", "type": "clause", "offset": [613, 627]}, {"key": "determination-by-lender", "type": "clause", "offset": [660, 683]}, {"key": "in-accordance-with", "type": "definition", "offset": [708, 726]}, {"key": "the-foregoing", "type": "definition", "offset": [727, 740]}, {"key": "the-definition-of", "type": "definition", "offset": [755, 772]}, {"key": "in-this-agreement", "type": "clause", "offset": [795, 812]}, {"key": "for-purposes-hereof", "type": "definition", "offset": [825, 844]}], "samples": [{"hash": "hI78KR0aggn", "uri": "/contracts/hI78KR0aggn#minimum-operating-cash-flow", "label": "Revolving Credit and Term Loan Agreement (Falconite Inc)", "score": 18.0, "published": true}], "snippet": "Borrower shall not permit its Operating Cash Flow to be less than (i) $7,000,000.00 for the fiscal year of Borrower ending December 31, 1996, or (ii) $7,500,000.00 for the fiscal year of Borrower ending December 31, 1997. For the purposes of this Section, Borrower's \"Operating Cash Flow\" shall be that shown on the annual officer's certificate delivered with respect to such fiscal year unless Lender makes an independent, good faith determination of Operating Cash Flow for such fiscal year. If Lender's determination of Operating Cash Flow for any fiscal year end is less than Operating Cash Flow as stated in the applicable officer's certificate: (i) such determination by Lender shall be, if determined in accordance with the foregoing provision and the definition of \"Operating Cash Flow\" in this Agreement, conclusive for purposes hereof and (ii) Lender shall promptly advise Borrower of its determination.", "size": 1, "hash": "dc3e99c092232b1c771aac5fc7fd19c1", "id": 10}], "next_curs": "CmQSXmoVc35sYXdpbnNpZGVyY29udHJhY3RzckALEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiRtaW5pbXVtLW9wZXJhdGluZy1jYXNoLWZsb3cjMDAwMDAwMGEMogECZW4YACAA", "clause": {"parents": [["negative-covenants", "NEGATIVE COVENANTS"], ["financial-covenants", "Financial Covenants"], ["erisa-reporting-requirements", "ERISA Reporting Requirements"], ["financial-condition-covenants", "Financial Condition Covenants"], ["covenants", "Covenants"]], "children": [], "title": "Minimum Operating Cash Flow", "size": 31, "id": "minimum-operating-cash-flow", "related": [["net-cash-flow", "Net Cash Flow", "Net Cash Flow"], ["net-operating-income", "Net Operating Income", "Net Operating Income"], ["excess-cash-flow", "Excess Cash Flow", "Excess Cash Flow"], ["consolidated-capital-expenditures", "Consolidated Capital Expenditures", "Consolidated Capital Expenditures"], ["minimum-consolidated-ebitda", "Minimum Consolidated EBITDA", "Minimum Consolidated EBITDA"]], "related_snippets": [], "updated": "2025-07-07T12:37:40+00:00", "also_ask": ["What are the most effective negotiation levers for setting the minimum operating cash flow threshold?", "Which financial metrics and definitions must be precisely drafted to avoid ambiguity or manipulation?", "What are the most common risks or loopholes that could undermine enforceability of this clause?", "How does this clause compare to similar provisions in industry-standard agreements?", "What evidence and arguments are most persuasive in court when enforcing a minimum operating cash flow requirement?"], "drafting_tip": "Define the calculation method for minimum operating cash flow to ensure clarity; specify adjustment mechanisms for extraordinary items to prevent manipulation; set review periods to maintain relevance over time.", "explanation": "The Minimum Operating Cash Flow clause sets a required threshold for the amount of cash flow that a business or project must generate during a specified period. This clause typically applies to financial agreements, such as loan covenants or partnership contracts, where maintaining a certain level of cash flow is essential for ongoing operations or debt servicing. By establishing this minimum, the clause helps ensure the financial stability of the entity and provides assurance to stakeholders that sufficient funds will be available to meet obligations, thereby reducing the risk of default or operational disruption."}, "json": true, "cursor": ""}}