Covenant Requirement Actual Compliance Clause Samples
The "Covenant Requirement Actual Compliance" clause establishes that a party must not only agree to certain covenants but must also demonstrate actual, ongoing compliance with those obligations. In practice, this means the party is required to perform specific actions or maintain certain standards, such as meeting financial ratios, adhering to operational guidelines, or fulfilling reporting duties, rather than merely promising to do so. This clause ensures that the party's compliance is measurable and verifiable, thereby reducing the risk of non-performance and providing assurance to the other party that contractual obligations are being actively met.
Covenant Requirement Actual Compliance. Minimum Revenues (trailing six months) Trailing 6-month period ending 10/31/2018 11/30/2018 12/31/2018 [Thereafter, at least 80% of projections] Minimum trailing 6 months revenue ([***]% of plan) $[_______] $[_______] $[_______] [__%] Yes No [$_________] [$________] Liquidity Ratio* for Prior [***] Months [***] ________:1.00 Yes No
Covenant Requirement Actual Compliance. Minimum Product Revenue(trailing six months) See Section 6.8(a) $ Yes No
Covenant Requirement Actual Compliance. Minimum Revenues (trailing twelve months) At least 80% of projections __% Yes No
Covenant Requirement Actual Compliance. Trailing Minimum trailing 3-month 3 months revenue period ending ([***] of plan) Minimum Revenues (trailing three months) 6/30/2019 9/30/2019 12/31/2019 $$7,646,880.00 $$7,596,081.00 $$8,014,761.00 [$ ] Yes No 3/31/2020 $11,062,938.00 6/30/2020 $15,110,788.00 9/30/2020 $15,661,698.00 12/31/2020 $14,372,737.00 Thereafter, at least [***]% of projections Minimum Liquidity Ratio At least 2.00 to 1.00 [ ] to 1:00 Yes No [***] Bank Account Not above $[***] as of the end of any Business Day [$ ] Yes No
Covenant Requirement Actual Compliance. Minimum Aggregate Available Unrestricted Cash Balance in Collateral Accounts at Bank or its Affiliates $7,500,000 [$ ] Yes No
Covenant Requirement Actual Compliance. Net cash proceeds in connection with the ▇▇▇ ▇▇▇▇▇ Transaction Documents on or before July 31, 2019 At least $45,000,000.00 $ Yes No
Covenant Requirement Actual Compliance. Subject to Section 6.10, once $[***] has funded, minimum cash in Collateral Accounts subject to a Control Agreement $[***] $_____________ Yes No
Covenant Requirement Actual Compliance. Trailing Six Month Revenue in excess of Net Indebtedness (Section 6.12) [$_________] [$________] Yes No Aggregate cash on deposit with SVB and SVB’s Affiliates (Section 6.13) [$_________] [$________] Yes No
Covenant Requirement Actual Compliance. Liquidity Ratio At least 1.30:1.00 :1.00 Yes No
Covenant Requirement Actual Compliance. Minimum sales (trailing twelve (12) months) At least 50% of projections % Yes No N/A