Net Worth Covenant. Guarantors will maintain a tangible aggregate net worth at least equal to Fifteen Million Dollars ($15,000,000). For purposes of this Guaranty, “tangible aggregate net worth” means, as of a given date, Guarantors’ equity calculated in conformance with generally accepted accounting principles by subtracting total liabilities from the fair market value of Guarantors’ total tangible assets, excluding Guarantors’ interest in Developer.
Net Worth Covenant. Xxxxx Realty shall, at all times throughout the term of the Loan, maintain a minimum Net Worth of at least $35,000,000.00. As used herein, the term "Net Worth" shall mean, on any applicable date of determination, (i) the net book value of all assets of Xxxxx Realty (excluding, however, receivables from Affiliates, patent rights, trademarks, trade names, franchises, copyrights, licenses, goodwill and other intangible assets), after all appropriate deductions in accordance with Acceptable Accounting Standards (including, without limitation, reserves for doubtful receivables, obsolescence, depreciation and amortization), less (ii) all liabilities of Xxxxx Realty (including, without limitation, liabilities for taxes and a fair valuation of contingent or indirect liabilities), all as determined in accordance with Acceptable Accounting Standards and otherwise in Lender's sole discretion.
Net Worth Covenant. Until the Loan is paid in full, Guarantor shall maintain at all times a Net Worth (exclusive of any direct or indirect interest in the Property) at least equal to $20,000,000, and, within ten (10) Business Days of Lender’s request, Borrower shall demonstrate in writing and to Lender’s reasonable satisfaction, compliance with this Section.
Net Worth Covenant. Section 9.14 of the Loan Agreement is hereby amended to read as follows:
Net Worth Covenant. Permit at any time its Net Worth to be less than the sum of (i) $30,000,000 plus (ii) an amount equal to 50% of the consolidated net income (but not loss) of the Borrower determined in accordance with Section 1.3(b) of this Agreement for each fiscal year of the Borrower commencing with the Borrower's fiscal year ending December 31, 1998, each increase to be effective as of the last day of each fiscal year.
Net Worth Covenant. The Company shall not permit its Net Worth, for any fiscal quarter, to be less than $87,500,000.
Net Worth Covenant. The Guarantor shall at all times maintain a Net Worth greater than or equal to the outstanding principal amount of the Term Loans. For purposes of this Section, Net Worth shall mean the net value of the Guarantor within the meaning of Treasury regulation section 1.752-2(k) (which generally equals the amount by which the fair market value of all assets owned by the Guarantor exceeds the amount of all of the liabilities or other obligations of the Guarantor (other than the obligations under this Guaranty and other similar obligations within the meaning of Treasury regulation section 1.752-2(b)(1)), determined at the times specified in Treasury regulation section 1.752-2(k)). If the Guarantor fails to maintain such Net Worth for a period of ninety (90) continuous days, the Borrower agrees to pay an additional amount of interest of 1% per annum in addition to the interest rate otherwise applicable on the Term Loans from such ninetieth (90th) day until such time as the Guarantor is again in compliance with the Net Worth covenant set forth in this Section.
Net Worth Covenant. Sellers covenant and agree that (a) at Closing, Sellers shall deposit, from the proceeds of the Purchase Price, an amount equal to the Liability Cap in an account established by Sellers with a bank or other financial institution and (b) during the Survival Period (as defined in Section 16 below) (and, in the event Buyer has made a timely claim(s) against Sellers pursuant to this Section 11, thereafter until the claim(s) have been fully resolved): (i) Sellers shall keep and maintain cash or cash equivalents in such account in an amount equal to the Liability Cap, (ii) Sellers shall not pledge, encumber or otherwise grant a security interest in such account or such cash or equivalents and (iii) Sellers shall not distribute or pay any such cash or cash equivalents to its members, partners, affiliates or any other third party.
Net Worth Covenant. As of the Effective Date, the following covenant is hereby added as new Section 5(e) of the Guaranty:
Net Worth Covenant. Guarantor covenants and agrees that the Net Worth (as hereinafter defined) of Parent Guarantor shall be not less than (i) $7.5 million from the 1-year anniversary of the Effective Date through the date immediately preceding the 2-year anniversary of the Effective Date, (ii) $8.5 million from the 2-year anniversary of the Effective Date through the date immediately preceding the 3-year anniversary of the Effective Date, (iii) $9.5 million from the 3-year anniversary of the Effective Date through the date immediately preceding the 4-year anniversary of the Effective Date, (iv) $10.5 million from the 4-year anniversary of the Effective Date through the date immediately preceding the 5-year anniversary of the Effective Date, or (v) $12.0 million from the 5-year anniversary of the Effective Date through the remainder of the Term. Parent Guarantor covenants and agrees that it will not declare or pay any dividend or distribution of any kind on any of its equity interests (of any class or type whatsoever, and whether now or hereafter issued and outstanding), other than distributions to its equity owners in an amount equal to their reasonably estimated income tax liabilities attributable to the consolidated taxable income of Parent Guarantor, at any time that Parent Guarantor is not in compliance with the foregoing Net Worth covenant. For purposes hereof, “Net Worth” means the excess of consolidated total assets (excluding (x) intangible assets, such as goodwill, licenses, patents, trademarks, trade names, copyrights and franchises, and (y) capital lease assets, but including, without limitation, deposits funded to support a letter of credit) over consolidated total liabilities (excluding Liabilities under the Lease and other capital lease liabilities), all as determined in accordance with generally accepted accounting principles except as otherwise provided herein.
