Fixed Charge Coverage Deficiency. If at any time or from time to time on or after the Amendment Effective Date to and including the last day of the Adjustment Period, the Fixed Charge Coverage Ratio for any Relevant Period is less than 1.60 to 1.00 (the “Fixed Charge Coverage Deficiency”), based on the most recent financial statements furnished pursuant to Section 7.1(a) or Section 7.1(b), as the case may be, then from and including the last day of such Relevant Period to and until the last day of the first Relevant Period with respect to which the Fixed Charge Coverage Ratio is at least 1.60 to 1.00, based on the most recent financial statements furnished pursuant to Section 7.1(a) or Section 7.1(b), as the case may be, or, if earlier, the last day of the Adjustment Period (the “Deficiency Period”), the then applicable rate of interest on the Notes shall be increased by 1.00% per annum (the “Deficiency Rate Increase”). For the avoidance of doubt, the Deficiency Rate Increase shall not at any time during the Deficiency Period exceed 1.00%. The Deficiency Rate Increase shall be in addition to (i) the rate of interest then applicable to the Notes pursuant to Section 1.3(a), (ii) the Reserve Rate Increase, if any, then applicable to the Notes pursuant to Section 1.3(b) and (iii) the 2.00% per annum increase contemplated in clause (i) of the definition of “Default Rate” if then applicable to the Notes. The Company shall give notice (the “Notice of Deficiency Rate Increase”) to each holder of Notes in writing of the Fixed Charge Coverage Deficiency and the effective date of the Deficiency Rate Increase together with (i) the financial statements furnished pursuant to, and within the time required by, Section 7.1(a) or Section 7.1(b), as the case may be, and (ii) the related certificate of compliance furnished pursuant to Section 7.2(a). If the Company fails to deliver the applicable financial statements or the compliance certificate as and when required by this Section 1.3(c), then a Fixed Charge Coverage Deficiency shall be deemed to have occurred in respect of the Relevant Period for which such financial statements or compliance certificate shall not have been furnished and the related Deficiency Rate Increase shall become effective at the time and for the period provided in the first paragraph of this Section 1.3(c).
