Operational Covenant Clause Samples
An Operational Covenant is a contractual provision that requires one party, typically a borrower or service provider, to maintain certain standards or perform specific actions related to the ongoing operation of a business or project. For example, it may obligate a company to maintain insurance, comply with laws, or keep financial records up to date throughout the term of an agreement. The core function of this clause is to ensure that the operational integrity and value of the business or asset are preserved, thereby protecting the interests of the other party and reducing the risk of default or loss.
Operational Covenant. Company shall comply with the operational covenant set forth in the attached Exhibit 6.11.
Operational Covenant. The Borrower agrees to use its best efforts to formulate and institute, on or before November 15, 1999, a covenant with respect to the business operations of the Credit Parties, including, without limitation, manufacturing variances, in form and substance acceptable to the Required Lenders.
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Operational Covenant. The Borrower shall not at any time permit Revenues for any calendar year set forth below to be less than the amount set forth opposite such date below: --------------------- ------------------------------------ CALENDAR YEAR MINIMUM REVENUES --------------------- ------------------------------------ 1999 US$90,000,000 --------------------- ------------------------------------ 2000 US$120,000,000 --------------------- ------------------------------------ 2001 US$143,000,000 --------------------- ------------------------------------ 2002 US$200,000,000 --------------------- ------------------------------------
Operational Covenant. Trenwick shall comply with the operational covenant set forth in the attached Schedule 6.10.
Operational Covenant. During the period commencing on the date of this Agreement and for three (3) years thereafter, neither Buyer, nor its permitted assigns, shall have the right to propose or conduct any operations on the lands covered by or pooled, unitized or communitized with the Assigned Interests, unless approved by Seller, provided that if Seller or any affiliate of Seller fails to execute the portion of the then current Capital Expenditure Plan (as such term is defined in the Purchase Agreement) related to the Assigned Interests, whether in Seller’s or such affiliate’s capacity as an operator thereof or because Seller has failed to pay any expenses to related to its working interest therein or for any other reason whatsoever, Buyer may propose or conduct any operations on the lands covered by or pooled, unitized or communitized with the Assigned Interests without the approval or consent of Seller, provided that Buyer may not (a) propose to drill more ▇▇▇▇▇ on such lands during the calendar year covered by such Capital Expenditure Plan than are prescribed in the portion of such Capital Expenditure Plan related to the Assigned Interests and (b) propose or conduct any operations on such lands during the following calendar year in excess of the operations budgeted for in the portion of such Capital Expenditure Plan related to the Assigned Interests.
Operational Covenant. The Borrower shall not at any time permit Revenues for any calendar year set forth below to be less than the amount set forth opposite such date below: ------------------------------- -------------------------------------------------------------- CALENDAR YEAR MINIMUM REVENUES ------------------------------- -------------------------------------------------------------- 1999 US$90,000,000 ------------------------------- -------------------------------------------------------------- 2000 US$120,000,000 ------------------------------- -------------------------------------------------------------- 2001 US$143,000,000 ------------------------------- -------------------------------------------------------------- 2002 US$200,000,000 ------------------------------- -------------------------------------------------------------- 2003 US$295,000,000 ------------------------------- -------------------------------------------------------------- 2004 US$400,000,000 ------------------------------- -------------------------------------------------------------- 2005 US$530,000,000 ------------------------------- -------------------------------------------------------------- 2006 US$623,000,000 ------------------------------- --------------------------------------------------------------
Operational Covenant. Prior to the Effective Date, Purchaser has acquired and assumed from its parent company, The Recreational Group, Inc. ("RG"), all of the Viridian fiber operations formerly conducted by RG. For a period of not less than 36 months after the Effective Date, Purchaser shall maintain its separate existence and shall continue to operate such Viridian fiber operations, including the Purchased Assets, and shall not take any actions to transfer assets or operations out of Purchaser's business which would operate to minimize the variable portion of the purchase price payable pursuant to Section 2(b) above.
Operational Covenant. 58 SECTION 9. SECURITY...........................................................................................................59