Effective tangible net worth clause samples

Effective Tangible Net Worth. Maintain an Effective Tangible Net Worth (defined as total book net worth plus minority interest minus due from officers/stockholders/affiliates minus intangible assets and accumulated amortization plus subordinated debt) of not less than $20,000,000.00, based on consolidated statements of Amphastar Pharmaceuticals, Inc.

Debt to Effective Tangible Net Worth Ratio (EACO Corporation). EACO Corporation shall maintain a maximum Debt to Effective Tangible Net Worth Ratio of 3.25 to 1.00 to be measured at the end of each fiscal quarter. The term “Debt to Effective Tangible Net Worth” means EACO Corporation’s total liabilities, less amounts subordinated to Lender, as evidenced by a subordination agreement, if any divided by EACO Corporation’s Effective Tangible Net Worth. The term “Effective Tangible Net Worth” means EACO Corporation’s total assets, less intangibles [i.e. goodwill, trademarks, patents, copyrights, organizational expenses, and similar intangible items, but including leaseholds and leasehold improvements], less amounts due from officers, partners, stockholders, directors, affiliates, and subsidiaries, less total liabilities, plus amounts subordinated to Lender, as evidenced by a subordination agreement, if any. The first measurement will be as of May 31, 2015.

Effective Tangible Net Worth. Maintain a minimum Effective Tangible Net Worth of at least $2,500,000.00 quarterly increasing by 100% of net profit after tax at each fiscal year end, measured at each fiscal quarter-end, beginning June30, 2015.

Debt to Effective Tangible Net Worth. Maintain a ratio of Debt to Effective Tangible Net Worth of not more than 2.00 to 1 through September30, 2015, and 1.75 to 1 thereafter, measured at each fiscal quarter-end, this covenant should be tested beginning June30, 2015.

Effective Tangible Net Worth. The words “Effective Tangible Net Worth” shall mean the Borrower’s stated net worth plus Subordinated Liabilities but less all intangible assets of the Borrower (i.e. goodwill, trademarks, patents, copyrights, organization expense, covenants not to compete and other similar intangible items including, but not limited to, investments and/or advances in all amounts due from affiliates, officers or employees).

Effective Tangible Net Worth. Maintain a minimum Effective Tangible Net Worth of at least $3,500,000.00, measured at each quarter-end.

Debt to Effective Tangible Net Worth. Maintain a ratio of Debt to Effective Tangible Net Worth of not more than 1.00 to 1, quarterly.

(a) Effective Tangible Net Worth. As of the end of September 30 and March 31 of each year, permit its Effective Tangible Net Worth to be less than $100,000,000.00. Borrower’s Effective Tangible Net Worth shall be tested semi-annually on September 30 and March 31 of each year based on the financial information provided by Borrower to Lender under Section 5.3(a)(i).

The credit agreement provides different interest rate alternatives under which we may borrow funds. We may elect to borrow based on LIBOR plus a margin or an alternative base rate plus a margin. The margin can range from 0.75% to 2.5%, depending on interest rate alternatives and on our leverage of liabilities to effective tangible net worth. The applicable interest rate as of June 30, 2016 was 2.56%. An unused commitment fee is also payable. It ranges from 0.25% to 0.625%, depending on leverage. In relation to the execution of the credit agreement, we incurred loan costs that were deferred and reduced our “Long term loans, net of current portion” on our unaudited consolidated balance sheets. Those costs are being amortized over the two-year life of the credit agreement. The unamortized balance at June 30, 2016 and March 31, 2016 was $257,000 and $304,000, respectively.

The credit agreement provides different interest rate alternatives under which we may borrow funds. We may elect to borrow based on LIBOR plus a margin or an alternative base rate plus a margin. The margin can range from 0.75% to 2.5%, depending on interest rate alternatives and on our leverage of liabilities to effective tangible net worth. The applicable interest rate as of June 30, 2016 was 2.56%. An unused commitment fee is also payable. It ranges from 0.25% to 0.625% annually, depending on leverage.

The credit agreement provides different interest rate alternatives under which we may borrow funds. We may elect to borrow based on LIBOR plus a margin or an alternative base rate plus a margin. The margin can range from 0.75% to 2.5%, depending on interest rate alternatives and on our leverage of liabilities to effective tangible net worth. The applicable interest rate as of March 31, 2016 was 2.44%. An unused commitment fee is also payable. It ranges from 0.25% to 0.625%, depending on leverage.

The credit agreement provides different interest rate alternatives under which we may borrow funds. We may elect to borrow based on LIBOR plus a margin or an alternative base rate plus a margin. The margin can range from 0.75% to 2.5%, depending on interest rate alternatives and on our leverage of liabilities to effective tangible net worth. An unused commitment fee is also payable. It ranges from 0.25% to 0.625%, depending on leverage. The applicable interest rate was 2.85% as of March31, 2017.