Minimum Tangible Net Worth Covenant Clause Samples
A Minimum Tangible Net Worth Covenant is a contractual provision that requires a borrower to maintain a specified minimum level of tangible net worth throughout the term of a loan or credit agreement. This covenant typically applies to the borrower's financial statements, ensuring that the value of their tangible assets, minus liabilities, does not fall below an agreed threshold. For example, a lender may require the borrower to maintain at least $10 million in tangible net worth, calculated quarterly. The core practical function of this clause is to protect the lender by ensuring the borrower remains financially stable and capable of repaying the loan, thereby reducing the lender's risk of default.
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Minimum Tangible Net Worth Covenant. WLH will maintain at all times, on a consolidating basis, a minimum Tangible Net Worth equal to or greater than $175,000,000.00.
Minimum Tangible Net Worth Covenant. Guarantor shall maintain a Tangible Net Worth of at least $175,000,000.00 plus fifty percent (50%) of Guarantor’s net profit after tax on a cumulative basis, commencing as of December 31, 2007.”
Minimum Tangible Net Worth Covenant. “Minimum Tangible Net Worth” shall be an amount equal to or greater than the sum of the following: (i) eighty five percent (85%) of Tangible Net Worth as of June 30, 2018, (ii) fifty percent (50%) of Net Income reported in each successive Fiscal Quarter with no deduction for operating losses reported for such Fiscal Quarter, (iii) one hundred percent (100%) of the net proceeds from any additional equity offering in excess of Five Million and 00/100 Dollars ($5,000,000.00), and (iv) fifty percent (50%) of any incremental additive equity associated with any Acquisition, less the Merger Shareholder Equity Reduction and less Fleet Renewal Expenses.
Minimum Tangible Net Worth Covenant. The minimum Tangible Net Worth of Borrower, on a consolidated basis but without duplication, is ;
Minimum Tangible Net Worth Covenant. The minimum Tangible Net Worth of WLH, on a consolidated basis but without duplication, is ;
Minimum Tangible Net Worth Covenant. Borrower shall maintain a minimum Tangible Net Worth of Two Million Five Hundred Thousand Dollars ($2,500,000) at the end of fiscal year 2000, and shall increase said Tangible Net Worth by One Hundred Thousand Dollars ($100,000) at each successive fiscal year end thereafter, tested annually. The term "Tangible Net Worth" shall be defined as net worth less intangible assets. Intangible assets shall be defined as copyrights, patents, trademarks and goodwill.
Minimum Tangible Net Worth Covenant. Section 6.15.4 of the Loan Agreement is hereby amended by deleting the phrase "March 31, 2010" and replacing it with the phrase "December 31, 2011".
Minimum Tangible Net Worth Covenant. Section 9.9(a) of the Credit Agreement is hereby deleted and restated as follows:
(a) Tangible Net Worth on the last day of any fiscal quarter to be less than the sum of (i) the amount equal to eighty nine and eight tenths percent (89.8%) of Borrower's consolidated Tangible Net Worth computed as of September 30, 2002, plus (ii) as of the end of each fiscal quarter commencing with December 31, 2002, the product of (A) ninety percent (90%) times (b) the consolidated net income of Borrower for the immediately preceding fiscal quarter, provided, that in no case shall such sum be less than the minimum Tangible Net Worth calculated hereunder for the previous quarter.
Minimum Tangible Net Worth Covenant. As of March 31, 1997, Borrower will have minimum Tangible Net Worth, computed in accordance with the provisions of this Agreement, equal to or greater than $95,000,000. On each Test Date, commencing with the June 30, 1997 Test Date, Borrower will have minimum Tangible Net Worth equal to or greater than $95,000,000 plus the cumulative Adjusted Net Increase.
Minimum Tangible Net Worth Covenant. Minimum Tangible Net Worth" shall be an amount equal to or greater than the sum of the following: (i) eighty five percent (85%) of Tangible Net Worth as of September 30, 2014, (ii) fifty percent (50%) of Net Income reported in each successive Fiscal Quarter with no deduction for operating losses reported for such Fiscal Quarter, (iii) one hundred percent (100%) of the net proceeds from any additional equity offering in excess of Five Million and 00/100 Dollars ($5,000,000.00), and (iv) fifty percent (50%) of any incremental additive equity associated with any Acquisition.”
6.13 Section 6.15.5 of the Loan Agreement titled “No Net Loss” is hereby amended by adding the following at the end of last sentence of the Section: provided further that for purposes of any add-backs to income on account of any such non-cash impairment charges for such events are calculated at the tax rate of thirty-five percent (35%).