Subsequent Working Capital Clause Samples
The 'Subsequent Working Capital' clause defines how additional working capital requirements will be addressed after the initial transaction or agreement has been executed. Typically, this clause outlines the process for determining if further funds are needed to support ongoing operations, and specifies the responsibilities of the parties for providing or sourcing such capital. By establishing clear procedures for handling future working capital needs, this clause helps prevent disputes and ensures the business remains adequately funded post-closing.
Subsequent Working Capital. Apple may make available to the Orthodontic Entity loans for subsequent working capital requirements in amounts not to exceed Excluded Orthodontic Entity and Orthodontic Expenses. Such loans shall accrue interest beginning on the day of the advance at an interest rate equal to the prime rate then in effect, plus 1%. The loans, if any, shall be repaid to Apple out of the Net Operating Amount generated in subsequent months and become immediately due and payable if the Orthodontist terminates his employment with the Orthodontic Entity, for any reason. Any principle or interest paid to Apple by the Orthodontic Entity pursuant to Sections 6.3(a) or 6.3(b) are Excluded Orthodontic Entity and Orthodontist Expenses.