Material CF Subsidiaries Clause Samples
The 'Material CF Subsidiaries' clause defines which subsidiaries of a company are considered significant for the purposes of a contract, particularly in relation to cash flow or financial covenants. Typically, this clause sets specific thresholds—such as revenue, assets, or EBITDA—that a subsidiary must meet to be classified as 'material.' For example, only subsidiaries contributing more than a certain percentage of the group's consolidated cash flow may be included. The core function of this clause is to focus contractual obligations, reporting, or restrictions on the most financially relevant subsidiaries, thereby streamlining compliance and ensuring that minor entities do not trigger disproportionate consequences under the agreement.
Material CF Subsidiaries. The Company hereby represents and warrants that (a) the Material CF Subsidiaries are the only Subsidiaries that, together with their own Subsidiaries, accounted for 5% or more of Consolidated EBITDA for the period of four fiscal quarters ended on March 31, 2011, and (b) no Event of Default in respect of the Material CF Subsidiaries exists under Section 7.02 on the date of this Agreement.
Material CF Subsidiaries. The Administrative Borrower hereby represents and warrants that (a) the Material CF Subsidiaries are the only Subsidiaries that, together with their own subsidiaries, accounted for 5% or more of the Administrative Borrower’s Consolidated EBITDA for the Reference Period ended on March 31, 2008, and (b) no Event of Default in respect of the Material CF Subsidiaries exists under Section 6.2, or under the corresponding covenant in the Existing Credit Agreement, on the date of this Agreement.