Collar Amount definition
Examples of Collar Amount in a sentence
If the deficiency is less than the Collar Amount, there shall be no reduction.
If the excess is greater than the Collar Amount, the actual amount of the increase shall be the amount of the excess less the Collar Amount.
If the Net Adjustment Amount is positive and exceeds the Collar Amount, then the Purchase Price will be adjusted upward by the full amount of the Net Adjustment Amount, and Purchaser will pay or cause to be paid an amount in cash equal to the Net Adjustment Amount to Seller by wire transfer of immediately available funds to an account or accounts designated in writing by Seller to Purchaser.
For the avoidance of doubt, if HD Supply’s good-faith estimate of the Closing Working Capital is that the Closing Working Capital is equal to an amount that is not less than the Lower Working Capital Collar Amount and is also not greater than the Upper Working Capital Collar Amount, then the Estimated Adjustment Amount will be zero.
Net Working Capital as of the Closing Date as set forth in the Final Adjustment Report shall be deemed to be the “Final Working Capital” (provided that if the absolute value of the difference between Final Working Capital and Estimated Working Capital is less than the Inside Collar Amount, then Final Working Capital shall be deemed equal to Estimated Working Capital).