MAXIMUM FUNDED DEBT TO EARNINGS RATIO. Not permit, for the period ending on the last day of each calendar quarter ending during any period (inclusive) set forth below, the ratio of (a) Borrower's Indebtedness for interest bearing borrowed money on the last day of each such calendar quarter during such period set forth below plus the product of rental expenses for the twelve month period ending on the last day of such calendar quarter multiplied by a factor of 4 to (b) the product of (i) the Annualizing Factor multiplied by (ii) Borrower's consolidated net earnings before interest expense, provision for Taxes, depreciation and amortization for such twelve month period plus rental expenses minus the sum of inventory purchases and Capital Expenditures for such period, to be greater than the ratio set forth below opposite such period: Period Maximum Ratio ------ ------------- Calendar quarter ending June 30, 1999 3.25 : 1.00 Six month period ending September 30, 1999 3.25 : 1.00 Nine month period ending December 31, 1999 3.25 : 1.00 Twelve month periods ending March 31, 2000 and June 30, 2000 3.00 : 1.00 Twelve month periods ending September 30, 2000 and December 31, 3.15 : 1.00 2000 Twelve month periods ending March 31, 2001 and June 30, 2001 3.25 to 1.00 Twelve month period ending September 30, 2001 and each twelve 2.75 : 1.00 month period ending on the last day of any calendar quarter thereafter For purposes of this SECTION 4.3 and SECTION 4.4, (i) consolidated net earnings shall not include any gains on the sale or other disposition of Investments of fixed assets and any extraordinary or nonrecurring items of income to the extent that the aggregate of all such gains and extraordinary or nonrecurring items of income exceeds the aggregate of losses on such sale or other disposition and extraordinary or nonrecurring charges, and (ii) interest expense shall include, without limitation, implicit interest expense on Capitalized Leases, and shall exclude the amortization of the closing fee, the modification fee, or any other fee paid to Lender in connection with the Loans. The Annualizing Factor means a factor of 4.0 for the period ending June 30, 1999, a factor of 2.0 for the period ending September 30, 1999, a factor of 1.33 for the period ending December 31, 1999 and a factor of 1.0 for each period ending on or after March 31, 2000.
MAXIMUM FUNDED DEBT TO EARNINGS RATIO. Not permit, for the twelve month period ending on the last day of each month ending during any period (inclusive) set forth below, the ratio of (a) Borrower's Indebtedness for interest bearing borrowed money on the last day of each such month during such period set forth below (excluding Indebtedness subordinated to Lender in a manner satisfactory to Lender) to (b) Borrower's consolidated net earnings before interest expense and provision for Taxes for such twelve month period, to be greater than the ratio set forth below opposite such twelve month period; Period Maximum Ratio ------- ------------- April 30, 1997 through December 30, 1997 3.75:1.00 December 31, 1997 through December 30, 1998 3.50:1.00 December 31, 1998 and the twelve month period ending 3.25:1:00 on the last day of each month thereafter
