Liabilities to Tangible Net Worth Clause Samples
The 'Liabilities to Tangible Net Worth' clause sets a financial covenant that limits the ratio of a company's total liabilities to its tangible net worth. In practice, this means the borrower must maintain a certain level of equity relative to its debts, excluding intangible assets like goodwill or intellectual property from the calculation. This clause helps lenders ensure that the borrower remains financially stable and does not become over-leveraged, thereby reducing the lender's risk of loss.
Liabilities to Tangible Net Worth. Maintain at all times a Liabilities --------------------------------- to Tangible Net Worth Ratio not to exceed 1.
25:1. Except as specifically otherwise provided, all financial covenants shall be calculated in accordance with GAAP consistently applied.
Liabilities to Tangible Net Worth. The ratio of Versar’s and its Consolidated Subsidiaries’ Total consolidated Liabilities to its Tangible Net Worth will not, as of the end of each fiscal quarter, exceed 2.0 to 1.0.
Liabilities to Tangible Net Worth. Borrower and Sun Dental Holdings, LLC will maintain a combined ratio of total liabilities to tangible net worth of 3:00 to 1.00 or less. For purposes of this subsection, “total liabilities” shall mean all liabilities of Borrower and Sun Dental Holdings, LLC, less any subordinated debt due to members; and “tangible net worth” shall mean the sum of the net worth of Borrower and Sun Dental Holdings, LLC, less any intangible assets, including, without limitation, good will, patents, trademarks, trade names, copyrights, franchises, licenses, service marks and brand names, plus any subordinated debt due to members. Calculation date for covenants and ratios. The effective date for determining compliance with the foregoing financial covenants and ratios shall be as of the end of each fiscal period Borrower and Sun Dental Holdings, LLC, are obligated to provide ▇▇▇▇▇▇▇ with financial statements.
Liabilities to Tangible Net Worth. Borrower shall maintain a maximum ratio of total liabilities to tangible net worth of 2.5 to 1 (as those terms are defined in GAAP).
Liabilities to Tangible Net Worth. Debtor will maintain, as of the last day of each calendar quarter, a ratio of (i) total liabilities (as determined by GAAP) minus Subordinated Debt, to (ii) Tangible Net Worth plus Subordinated Debt, of not greater than 1.00 to 1.00 (as of the end of each calendar quarter). “Subordinated Debt” means any indebtedness owing by Debtor which has been subordinated by written agreement to all indebtedness now or hereafter owing by Debtor to Lender, such agreement to be in form and substances acceptable to Lender, and subject to Lender’s approval of any additional borrowed money Debt required under Section 7(r) of this Agreement. “Tangible Net Worth” means, as of any date, all amounts which, in conformity with GAAP, would be included in shareholders’ equity on the balance sheet of the Debtor; provided, however, there shall be excluded therefrom: (a) any amount of equity of Debtor which appears as an asset on the balance sheet, (b) goodwill, including any amounts, however designated, that represent the excess of the purchase price paid for assets or stock over the value assigned thereto, (c) patents, trademark, trade names, and copyrights, (d) loans and advances to any stockholder, director, officer, or employee of Debtor, (e) all other assets which are properly classified as intangible assets, and (f) deferred expenses, provided, however, that any expenses incurred by Debtor on behalf of Debtor’s client(s) that are owed by Debtor’s client(s) to Debtor shall be excluded from and will not be considered deferred expenses for the purposes of determining Tangible Net Worth.
Liabilities to Tangible Net Worth. Lessee will not permit its ratio of Total Liabilities to its Tangible Net Worth to exceed .75 to 1 at any time during the term of the Lease.
Liabilities to Tangible Net Worth. A ratio of Total Liabilities to Tangible Net Worth (as defined above) which is not at any time more than the following: Dates CLC CLTL On or before June 29, 1997 7.0:1 3.6:1 June 30, 1997 through December 30, 1997 6.5:1 3.6:1 December 31, 1997 through June 29, 1998 5.8:1 3.6:1 June 30, 1998 through December 30, 1998 5.5:1 3.6:1 On or after December 31, 1998 5.0:1 3.6:1"
Liabilities to Tangible Net Worth. The ratio of Versar’s and its Consolidated Subsidiaries’ Total consolidated Liabilities to its Tangible Net Worth will not, as of the end of each fiscal quarter, exceed 2.50 to 1.00.
(b) Section VI(A)(4) is hereby replaced in its entirety with the following:
Liabilities to Tangible Net Worth. A ratio of Total Liabilities to Tangible Net Worth of the Company and Chemical ▇▇▇▇▇▇ Corporation, respectively, which is not at any time more than 3.97:1, and 3.82:1.
Liabilities to Tangible Net Worth. Debtor will maintain, as of the last day of each calendar quarter, a ratio of (i) total liabilities (as determined by GAAP) minus Subordinated Debt, to (ii) Tangible Net Worth plus Subordinated Debt, of not greater than 1.00 to 1.00 (as of the end of each calendar quarter). “Subordinated Debt” means any indebtedness owing by Debtor which has been subordinated by written agreement to all indebtedness now or hereafter owing by Debtor to Lender, such agreement to be in form and substance acceptable to Lender. “Tangible Net Worth” means, as of any date, all amounts which, in conformity with GAAP, would be included as stockholders’ equity on a balance sheet of Debtor; provided, however, there shall be excluded therefrom: (a) any amount of equity of Debtor which appears as an asset on the balance sheet, (b) goodwill, including any amounts, however designated, that represent the excess of the purchase price paid for assets or stock over the value assigned thereto, (c) patents, trademark, trade names, and copyrights, (d) deferred expenses, (e) loans and advances to any stockholder, director, officer, or employee of Debtor, and (f) all other assets which are properly classified as intangible assets.