Common use of Financial Ratios Clause in Contracts

Financial Ratios. ensure that: (a) Free Available Cash at all times the Free Available Cash shall not be less than the Minimum Free Available Cash at the relevant time. The Lessor agrees that for the purpose of satisfying this covenant the requirement to evidence Minimum Free Available Cash for amounts or Free Available Cash in excess of fifteen million Dollars ($15,000,000) may be satisfied by the Lessee providing evidence to the Lessor that the Lessee Parent has made available to the Lessee an unconditional on demand loan in an amount equal to such excess amounts and which loan is capable of being drawn down on an unqualified and unrestricted basis by the Lessee at any time; (b) Working Capital as at the end of each quarterly period during and at the end of each financial year of the Lessee, the ratio of Current Assets to Current Liabilities (excluding the current portion of long-term debt) shall not be less than one point five (1.5) to (1); and (c) Leverage as at 31 March 2003 and as at the end of each subsequent quarterly period during and at the end of each financial year of the Lessee, the ratio of Net Debt as at the end of such period to Annualised EBITDA calculated by reference to such quarter shall not exceed: (i) six point five (6.5) to one (1) for quarterly periods ending during or at the end of 2003; (ii) six (6) to one (1) for quarterly periods ending during and at the end of 2004; and (iii) five (5) to one (1) for all subsequent quarterly periods;