Liabilities/Tangible Net Worth Sample Clauses
The Liabilities/Tangible Net Worth clause sets financial thresholds that a party, typically a borrower, must maintain regarding its total liabilities relative to its tangible net worth. In practice, this clause requires the party to ensure that its debts do not exceed a specified ratio compared to its tangible assets, excluding intangible items like goodwill or intellectual property. By imposing these requirements, the clause helps protect the other party—often a lender—by ensuring the borrower's financial stability and reducing the risk of default.
Liabilities/Tangible Net Worth. Borrower will maintain, at all times, a ratio of (i) total liabilities (excluding any Subordinated Debt), to (ii) Tangible Net Worth of not greater than 1.50 to 1.0.
Liabilities/Tangible Net Worth. Consolidated Borrower will ------------------------------ maintain, at all times, a ratio of (i) total liabilities, to (ii) Tangible Net Worth of not greater than 1.5 to 1.0, which ratio shall be tested quarterly.
Liabilities/Tangible Net Worth. Permit the ratio of ------------------------------ liabilities (other than Subordinated Debt) of GSI and its consolidated Subsidiaries to Consolidated Tangible Net Worth at the end of any fiscal quarter of GSI to be greater than 1.75 for any fiscal quarter ending prior to GSI's fiscal quarter ending September 30, 1995; greater than 1.65 for any fiscal quarter ending prior to GSI's fiscal quarter ending September 30, 1997; greater than 1.50 for any fiscal quarter ending prior to GSI's fiscal quarter ending September 30, 1998; or greater than 1.20 for any fiscal quarter thereafter.
Liabilities/Tangible Net Worth. Debtor will maintain (i) as of December 31, 2006, a ratio of (1) Adjusted Debt, to (2) Tangible Net Worth of not greater than 2.50 to 1.00, and (ii) as of December 31, 2007, a ratio of (1) Adjusted Debt, to (2) Tangible Net Worth of not greater than 2.25 to 1.00.
Liabilities/Tangible Net Worth. Debtor will maintain a ratio of (i) total liabilities (as determined by GAAP) minus Subordinated Debt, to (ii) Tangible Net Worth plus Subordinated Debt of not greater than 1.25 to 1.00 (as of the end of each calendar quarter). As soon as available and in any event within FORTY-FIVE (45) days of the end of each calendar quarter, Debtor shall provide Lender with a certificate of compliance together with such supporting information as Lender may reasonable require. “Subordinated Debt” means any indebtedness owing by Debtor which has been subordinated by written agreement to all indebtedness now or hereafter owing by Debtor to Lender, such agreement to be in form and substance acceptable to Lender. Tangible Net Worth” means, as of any date, Debtor’s total asset excluding all intangible assets, less total liabilities excluding any Subordinated Debt.