Adequate Working Capital Clause Samples
The Adequate Working Capital clause requires a party, typically a business or contractor, to maintain sufficient financial resources to meet its ongoing operational expenses and obligations. In practice, this means the party must ensure it has enough cash flow or liquid assets to cover payroll, supplier payments, and other short-term liabilities throughout the duration of the contract. This clause helps prevent disruptions in service or project delivery due to financial shortfalls, thereby protecting the interests of the other party and ensuring the smooth execution of contractual commitments.
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Adequate Working Capital. Sellers shall have delivered to Buyer evidence, satisfactory to Buyer in Buyer's sole discretion, that as of the Closing Date, the Net Working Capital of the Company is not less than $5,100,000.
Adequate Working Capital. Each Investor shall be satisfied that, ------------------------ after giving effect to the use of the proceeds from the purchase of the Securities hereunder as described in Section 2.4 hereof, the Company shall have sufficient working capital to continue to conduct its business in the ordinary course without incurring additional Indebtedness or issuing additional equity securities.
Adequate Working Capital. On the Closing Date, all of Borrower's assets supporting the Loans shall be sufficient in value, as determined by Lender, to provide Borrower with adequate working capital and to enable Borrower to operate its business profitably.
Adequate Working Capital. The Lenders shall be satisfied that the Borrower and its Subsidiaries will have adequate working capital and capital expenditure funds and availability immediately after the Closing Date after giving effect to the Transactions.