Minimum Tangible Clause Samples
The "Minimum Tangible" clause sets a required threshold for the tangible net worth or tangible assets that a party, typically a borrower or contractor, must maintain throughout the duration of an agreement. In practice, this means the party must ensure their financial statements reflect at least the specified minimum value of tangible (physical and financial) assets, excluding intangible items like goodwill or intellectual property. This clause is used to provide assurance to the other party—often a lender or client—that the obligated party remains financially stable and capable of fulfilling their obligations, thereby reducing the risk of default or non-performance.
Minimum Tangible. Net Worth The Guarantor shall maintain a Consolidated Tangible Net Worth of not less than $500,000,000 plus (a) 25% of the Guarantor's cumulative, positive consolidated net income for each fiscal quarter commencing on or after 31 December 2013 and (b) 50% of the value of the equity proceeds realized from any issuance of equity interests in the Guarantor occurring on or after 31 December 2013.
Minimum Tangible. Net Worth: Borrower shall maintain a Tangible Net Worth of not less than $3,500,000 plus 100% of all consideration received after the date hereof for equity securities and subordinated debt of the Borrower less the current principal amount outstanding of Term Loan #2. Increases in the Minimum Tangible Net Worth Covenant based on consideration received for equity securities and subordinated debt of the Borrower shall be effective as of the end of the month in which such consideration is received, and shall continue effective thereafter.
Minimum Tangible. Net Base Net Worth--computed as of Worth the end of the quarter preceding the date of such Permitted Acquisition, Consolidated Tangible Net Worth- -computed as of the end of the quarter preceding the Acquisition Date, but adjusted for transactions on the Acquisition Date
Minimum Tangible. Effective Net Worth of $3,000,000 at closing, increasing to $5,000,000 at October 31, 2000 and thereafter, tested quarterly.
Minimum Tangible. Net Worth: Borrower shall maintain a Tangible Net Worth of not less than $40,000,000 plus (i) 60% of all consideration received after the date hereof for equity securities and subordinated debt of the Borrower, plus (ii) 50% of the Borrower’s net income in each fiscal quarter ending on or after September 30, 2005. Increases in the Minimum Tangible Net Worth Covenant based on consideration received for equity securities and subordinated debt of the Borrower shall be effective as of the end of the month in which such consideration is received, and shall continue effective thereafter. Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the last day of the fiscal quarter in which said net income is realized, and shall continue effective thereafter. In no event shall the Minimum Tangible Net Worth Covenant be decreased.
Minimum Tangible. Net Worth: Borrower shall maintain a Tangible Net Worth of not less than the following For each of the months ending April 30, 2003 and May 31, 2003: $20,000,000. For the month ending June 30, 2003 and each month thereafter (unless reset as provided for below): $20,000,000 plus 50% of the Borrower’s net income in each fiscal quarter ending after the date hereof (commencing with the fiscal quarter ending June 30, 2003). Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the last day of the fiscal quarter in which said net income is realized, and shall continue effective thereafter. In no event shall the Minimum Tangible Net Worth Covenant be decreased. On or before June 27, 2004, the Minimum Tangible Net Worth Financial Covenant will be reset for the compliance periods subsequent to June 27, 2004 by Silicon based on Borrower’s projected financial statements for such periods, such projected financial statements to have been approved by the Borrower’s Board of Directors and accepted jointly by Borrower and Silicon in their respective discretion.
Minimum Tangible. Net Worth: Borrower shall maintain a Tangible Net Worth of not less than $9,000,000.
Minimum Tangible. Base Net Worth--computed as of Net Worth the end of the quarter preceding the date of such redemption payment, but decreased by the amount of such redemption payment Consolidated Tangible Net Worth- -computed as of the end of the quarter preceding the Redemption Payment Date, but decreased by the amount of such redemption payment
Minimum Tangible. Net Worth: Borrower shall maintain a Tangible Net Worth of not less than the following: For the month ending June 30, 2004: <$2,500,000>; For each of the months ending July 31, 2004, August 31, 2004 and September 30, 2004: <$3,500,000>; For each of the months ending October 31, 2004, November 30, 2004 and December 31, 2004: <$4,250,000>; and For each month ending thereafter: <$5,500,000>.
Minimum Tangible. Net Base Net Worth--computed as of Worth the end of the quarter preceding the date of the dividend Consolidated Tangible Net Worth- -computed as of the end of the quarter preceding the Dividend Payment Date, but decreased by the amount of such dividend