Example ContractsClausestestingVariants
Testing
Testing contract clause examples

Fixed Charge Coverage Ratio. During any Covenant Testing Period, [[Organization A:Organization]] will cause to be maintained, as of each Fixed Charge Coverage Test Date, a Fixed Charge Coverage Ratio as of the twelve (12) month period then ended of not less than 1.0 to 1.0; provided that for any testing of the Fixed Charge Coverage Ratio for any period ending on or prior to December 31, 2017, such test shall be for the period commencing on January 1, 2017 and ending on the last day of the applicable month.

At any time that a Covenant Trigger Event shall be in effect, the Consolidated Fixed Charge Coverage Ratio of the ​ and its Restricted Subsidiaries for the Test Period ending on the last day of the most recent Fiscal Quarter for which financial statements of the ​ and its Restricted Subsidiaries were required to have been delivered pursuant to [Section 7.1(a) or (b)])], as applicable, and each subsequent Test Period during the continuance of such Covenant Trigger Event, shall be not less than 1.0 to 1.0 and the ​ shall immediately deliver to the [[Administrative Agent:Organization]] a certificate of the chief financial officer setting forth reasonably detailed calculations of the Consolidated Fixed Charge Coverage Ratio.

Parent covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations, Parent and its Restricted Subsidiaries will maintain a Fixed Charge Coverage Ratio, calculated for each 12 month period ending on the first day of any Covenant Testing Period and the last day of each fiscal month occurring on or before the end of any Covenant Testing Period, in each case of at least 1.00 to 1.00.

Draft better contracts
faster with AllDrafts

AllDrafts is a cloud-based editor designed specifically for contracts. With automatic formatting, a massive clause library, smart redaction, and insanely easy templates, it’s a welcome change from Word.

And AllDrafts generates clean Word and PDF files from any draft.