Covenant Calculation Clause Samples

The Covenant Calculation clause defines the method and process for determining whether a party is in compliance with specific financial or operational covenants set out in an agreement. Typically, this clause outlines the formulas, accounting standards, and timeframes to be used when calculating ratios such as debt-to-equity or interest coverage, and may specify the required documentation or reporting intervals. Its core practical function is to ensure consistency and transparency in measuring compliance, thereby reducing disputes and providing clear benchmarks for both parties to monitor ongoing obligations.
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Covenant Calculation. The financial covenant calculations or definitions in this Agreement will be amended to exclude non-recurring accounting adjustments that may arise from the implementation of recent and future accounting rule changes.
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Covenant Calculation. All calculations shall be based upon the financial statements submitted by the Borrower that are acceptable to Lender and Affiliate Counterparty; provided, however, that if Borrower’s financial statements as reported by Borrower do not, in the view of Lender and/or Affiliate Counterparty, accurately reflect Borrower’s operations, and Lender and Affiliate Counterparty make an independent, good faith determination of Borrower’s Net Income, assets or liabilities, such determination will be conclusive.
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Covenant Calculation. (a) Stockholders' equity of Borrower and its Subsidiaries as determined in accordance with GAAP consistently applied: $ (b) Effect of FASB 115: $ (c) Debt subordinated to Bank: $ (d) Licenses: $ (e) Trademarks: $ (f) Trade names: $ (g) Goodwill: $ (h) Organization expenses: $ (i) Other intangible assets excluding deferred policy acquisition costs: $
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Covenant Calculation. All year end calculations shall be based upon the audited financial statements provided by Borrower to Lender at year end, and all quarterly calculations shall be based upon internally prepared financial statements submitted by the Borrower to the Bank that are acceptable to the Bank; provided, however, that if Borrower’s financial statements as reported by Borrower do not in Lender’s view accurately reflect Borrower’s operations, and Lender makes an independent, good faith determination of Borrower’s Net Income, assets or liabilities, Lender’s determination will be conclusive.
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Covenant Calculation. The parties hereto hereby agree that the financial covenants under each of Sections 9.24, 9.25 and 9.26 and shall be calculated in a manner consistent with the calculation thereof on the Financial Covenant Calculation Worksheet attached hereto as Exhibit D.
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Related to Covenant Calculation

  • Financial Covenant Calculations The parties hereto acknowledge and agree that, for purposes of all calculations made in determining compliance for any applicable period with the financial covenants set forth in Section 6.7 and for purposes of determining the Applicable Margin, (i) after consummation of any Permitted Acquisition, (A) income statement items and other balance sheet items (whether positive or negative) attributable to the target acquired in such transaction shall be included in such calculations to the extent relating to such applicable period (including by adding any cost saving synergies associated with such Permitted Acquisition in a manner reasonably satisfactory to the Agent), subject to adjustments mutually acceptable to Borrowers and the Agent and (B) Indebtedness of a target which is retired in connection with a Permitted Acquisition shall be excluded from such calculations and deemed to have been retired as of the first day of such applicable period and (ii) after any Disposition permitted by Section 6.8), (A) income statement items, cash flow statement items and balance sheet items (whether positive or negative) attributable to the property or assets disposed of shall be excluded in such calculations to the extent relating to such applicable period, subject to adjustments mutually acceptable to Borrowers and the Agent and (B) Indebtedness that is repaid with the proceeds of such Disposition shall be excluded from such calculations and deemed to have been repaid as of the first day of such applicable period.

  • Payment Calculation District shall pay Contractor at a rate of $ per . District shall pay Contractor as described in attached Exhibit A

  • Covenant Compliance Certificate Along with each delivery pursuant to clauses (iii) and (iv) above, a completed and executed Covenant Compliance Certificate.

  • Interest Calculation Interest on the outstanding principal balance of the Loan shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year by (c) the outstanding principal balance.

  • Covenant Compliance the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Sections 9.7, 10.4(b), 10.4(c) and 10.6 and any Additional Covenant incorporated herein pursuant to Section 9.9 during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and