Total Liabilities divided by Tangible Net Worth. Not at any time greater than 1.0 to 1.0. (“Tangible Net Worth” has the meaning given to it above, and “Total Liabilities” excludes indebtedness which is subordinated to the Obligations to Trade Bank under a subordination agreement in form and substance acceptable to Trade Bank or by subordination language acceptable to Trade Bank in the instrument evidencing such indebtedness.)
Total Liabilities divided by Tangible Net Worth. Not at any time greater than 1.0 to 1.0. (“Tangible Net Worth” means the aggregate of total shareholders’ equity determined in accordance with GAAP plus indebtedness which is subordinated to the Obligations to Trade Bank under a subordination agreement in form and substance acceptable to Trade Bank or by subordination language acceptable to Trade Bank in the instrument evidencing such indebtedness less all assets which would be classified as intangible assets under GAAP, including but not limited to, goodwill, licenses, patents, trademarks, trade names, copyrights, capitalized software and organizational costs, licenses and franchises, and (ii) assets which Trade Bank determines in its business judgment would not be available or would be of relatively small value in a liquidation of Borrower’s business, including, but not limited to, loans to officers or affiliates ando ther items, and “Total Liabilities” excludes indebtedness which is subordinated to the Obligations to Trade Bank under a subordination agreement in form and substance acceptable to Trade Bank or by subordination language acceptable to Trade Bank in the instrument evidencing such indebtedness.)
Total Liabilities divided by Tangible Net Worth. Not greater than 1.0 for the second fiscal quarter ending June, 2006, not greater than 1.10 to 1.0 for the third fiscal quarter ending September, 2006 and thereafter not greater than 1.15 to 1.0 at each fiscal quarter end, with “Total Liabilities” defined as the aggregate of current liabilities and non-current liabilities, and with “Tangible Net Worth” defined as the aggregate of total stockholders’ equity less any intangible assets. Net Income After Taxes. Not less than negative $3,100,000.00 for the fiscal quarter ending June, 2006; not less than negative $2,500,000.00 for the fiscal quarter ending September, 2006 and not less than negative $500,000.00 for the fiscal quarter ending December, 2006 and thereafter. DESIGN WITHIN REACH, INC. By: /s/ Xxx Xxxxxxx Xxx Xxxxxxx Title: Chief Executive Officer NAME OF BORROWER: DESIGN WITHIN REACH, INC. FACILITY TERMINATION DATE: November 30, 2007 CREDIT LIMIT FOR THIS REVOLVING CREDIT LOAN FACILITY AND SUBLIMITS: Credit Limit: the lesser of (a) Ten Million Dollars ($10,000,000), or (b) the Borrowing Base in effect from time to time.
Total Liabilities divided by Tangible Net Worth. Not at any time greater than 1.0 to 1.0. ("Tangible Net Worth" has the meaning given to it above, and "Total Liabilities" excludes indebtedness which is subordinated to the Obligations to Trade Bank under a subordination agreement in form and substance acceptable to Trade Bank or by subordination language acceptable to Trade Bank in the instrument evidencing such indebtedness.) Pre-Tax Profit. Not less than $1,000,000 on a trailing four quarters basis (determined as of each fiscal quarter end). (Trailing four quarters shall mean the sum of the results of four consecutive quarters consisting of the present quarter and the three preceding quarters). Maximum Borrowing Limit: As of the last day of each fiscal quarter, total loans outstanding under the Revolving Credit Facility shall not exceed seventy-five percent (75%) of total Accounts Receivable of Borrower and Subsidiaries (determination of the values for Accounts Receivable will be derived from Borrower's quarterly consolidated and consolidating financial statements for such fiscal quarter).
Total Liabilities divided by Tangible Net Worth. Not at any time ----------------------------------------------- greater than 2.5 to 1.0 ("Tangible Net Worth" means the aggregate of total ---------- stockholders' equity including indebtedness which is subordinated to the Obligations pursuant to documentation satisfactory to Trade Bank and excluding any intangible assets, and "Total Liabilities" means the aggregate of current liabilities and non-current liabilities, less indebtedness which is subordinated ---- to the Obligations pursuant to documentation satisfactory to Trade Bank.)
