Common use of Cash Flow Coverage Ratio Clause in Contracts

Cash Flow Coverage Ratio. Unless Tenant is in full compliance with the provisions of Section 3.1 of the Security Agreement, Tenant shall not permit the ratio of: (a) Cash Flow to (b) Total Rent reserved for any calendar quarter to be less than 1.75 to one; provided, however, that the failure to maintain either of such ratios shall not constitute an event of default if the Lease Reserve Fund is (i) then maintained in an amount equal to six months Initial Base Rent or (ii) reinstated to an amount equal to six months Initial Base Rent within thirty (30) days after Tenant delivers to Landlord financial statements indicating such failure.