Target NWC definition
Examples of Target NWC in a sentence
Promptly after the forth Final Quarterly NWC Report is determined, Buyer shall use the Final Quarterly NWC Reports to calculate the Target NWC in accordance with Exhibit K.
If the Net Working Capital shown on the Closing Date Statement is less than the Target NWC (the absolute value of such shortfall, the “Shortfall Amount”), the Seller shall promptly, and in any case within five Business Days after the date that the Closing Date Statement becomes final, pay to the Purchaser the Shortfall Amount.
The Target NWC will be determined after the close of the Twelve Month Measurement Period in accordance with methodology set forth in Exhibit K hereto.
Appropriate adjustment to the Original Note Balance shall be made immediately upon the final determination of the Final NWC Calculation in accordance with this Section as follows: either (i) the Original Note Balance shall be increased by the amount by which the Final NWC exceeds the Target NWC or (ii) the Original Note Balance shall be decreased by the amount by which the Target NWC exceeds the Final NWC.
Notwithstanding anything in this Section 7.1 to the contrary, the Group Companies may distribute cash to the Shareholders to the extent that, after giving effect to such distribution, the amount obtained by subtracting the Estimated Closing Company Transaction Expenses from the Current Assets exceeds the Target NWC Amount.