Common use of Fixed Charge Coverage Ratios Clause in Contracts

Fixed Charge Coverage Ratios. (a) At any time that Excess Availability is less than $30,000,000 or 16.7% of the Maximum Credit, whichever is greater, the Fixed Charge Coverage Ratio of Borrowers and Guarantors (on a consolidated basis) determined as of the end of the fiscal quarter most recently ended for which Agent has received financial statements in accordance with Section 9.6 hereof, shall be not less than 1.10 to 1.00 for the period of the immediately preceding four (4) consecutive fiscal quarters ending on the last day of such fiscal quarter (or such lesser number of fiscal quarters as shall have elapsed since the date of closing of the Credit Facility until four (4) full fiscal quarters shall have elapsed); and (b) As measured during a Covenant Recalibration Period, the Fixed Charge Coverage Ratio-Recalibrated of Borrowers and Guarantors (on a consolidated basis) determined as of the end of the fiscal month most recently ended for which Agent has received financial statements in accordance with Section 9.6 hereof, shall be not less than 1.10 to 1.00 for the period of the immediately preceding 12 consecutive fiscal months ending on the last day of such fiscal month (or such lesser number of fiscal months as shall have elapsed since the end of the fiscal month most recently ended for which Agent has received financial statements in accordance with Section 9.6 hereof, until 12 fiscal months shall have elapsed).