Tangible Net Worth Clause Samples
The Tangible Net Worth clause defines the minimum amount of net assets a party must maintain, excluding intangible assets such as goodwill, patents, or trademarks. In practice, this clause is often used in loan agreements or commercial contracts to ensure that a company’s financial health is measured based on assets that can be readily valued and liquidated, such as cash, inventory, and property. By focusing on tangible assets, the clause provides lenders or counterparties with greater assurance of a party’s solvency and ability to meet obligations, thereby reducing credit risk and promoting financial transparency.
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Tangible Net Worth. The Seller will not permit its tangible net worth, at any time, to be less than $10,000,000.
Tangible Net Worth. A Tangible Net Worth of at least $10,000,000.
Tangible Net Worth. The words “Tangible Net Worth” mean Borrower’s total assets excluding all intangible assets (i.e., goodwill, trademarks, patents, copyrights, organizational expenses, and similar intangible items, but including leaseholds and leasehold improvements) less total debt.
Tangible Net Worth. The Borrower shall at all times maintain its Tangible Net Worth to be greater than or equal to the sum of (x) $392,000,000 and (y) 25% of the positive Net Income, if any, for each Fiscal Quarter after the Fiscal Quarter ended March 31, 2011 and shall calculate such ratio as at each Calculation Date.
Tangible Net Worth. To maintain as of the end of each fiscal quarter, based on the financial results of each Borrower as reported on SEC Form 10-Q or 10-K, as applicable, of each entity comprising Borrower, a combined Tangible Net Worth of not less than Five Hundred Million Dollars ($500,000,000.00)
Tangible Net Worth. During the term of the Agreement, Seller, or Seller’s Guarantor, if applicable, shall be required to provide Buyer written financial information to determine the Seller’s, or Seller’s Guarantor’s Tangible Net Worth. Financial information shall include an audited “Annual Report”, containing, but not limited to, a balance sheet prepared in accordance with generally accepted accounting principles, a schedule of long term debt including maturity dates, and all notes to the financial statement that apply to long term debt, short term borrowing, and liquidity and capital resources. The Seller, or Seller’s Guarantor, shall also provide the Buyer written financial information on a quarterly basis containing a balance sheet prepared in accordance with generally accepted accounting principles. However, if Seller’s, or Seller’s Guarantor’s, if applicable, equity is publicly traded on the New York Stock Exchange, NASDAQ National Market, or American Stock Exchange, the Buyer will waive the requirement to provide written financial information.
Tangible Net Worth. Borrower shall maintain, as of the last day ------------------ of each calendar month, a Tangible Net Worth of not less than Three Million Dollars ($3,000,000).
Tangible Net Worth. The Borrower shall maintain at all times a positive Tangible Net Worth.
Tangible Net Worth. The Borrower will not permit Tangible Net Worth at any time to be less than $113,000,000 plus the sum of (i) 75% of positive Net Income in each fiscal quarter commencing with the fiscal quarter ended September 30, 2002 and (ii) 75% of the Net Proceeds from the issuance and sale of equity securities after the date hereof.
Tangible Net Worth. Section 8.12 of the Credit Agreement is hereby amended to read in its entirety as follows: