Common use of Borrowers Financial Covenants Clause in Contracts

Borrowers Financial Covenants. (a) Borrower's consolidated EBIDA, as calculated from amounts reflected on Borrower's unaudited income statements with respect to the covenants as of each six month period ending June 30th and December 31st and audited as to all fiscal year covenants prepared in accordance with GAAP for the periods indicated below shall, at a minimum, be as follows: DATE EBIDA --------------------------------- ---------- Full Year Ended December 31, 2005 $5,000,000 Six Months Ended June 30, 2006 $2,250,000 Six Months Ended December 31, 2006 $2,250,000 Total: Fiscal Year 2006 $4,500,000 Such amounts and values stated above for the six month period ended December 31, 2006, shall remain the benchmark for all six month periods thereafter until all of Borrower's obligations to Lender arising out of or relating to this Agreement are fully extinguished. (b) Borrower's Fixed Charge Ratio, measured quarterly on a consolidated basis beginning with the quarter ending June 30, 2005, shall not be less than 1.4 for such quarter and for all quarters ending thereafter. (c) Borrower's Current Ratio, measured quarterly on a consolidated basis beginning with the quarter ending June 30, 2005, shall not be less than 1.15. (d) Borrower's ratio of Funded Debt to Tangible Net Worth, measured quarterly on a consolidated basis beginning with the month ending June 30, 2005, must be no greater than the following: Date Ratio -------------------------------------- ----- From Execution Date through 12/30/2005 5.5:1 1/1/2006 through 12/31/2006 5.0:1 1/1/2007 through 12/31/2007 4.0:1 1/1/2008 and thereafter 3.5:1

Borrowers Financial Covenants. (a) Borrower's consolidated EBIDAEBITDA and Borrower's consolidated gross revenues, as calculated from amounts reflected on Borrower's unaudited income statements with respect to the covenants as of each six month period ending June 30th and December 31st and audited as to all fiscal year covenants prepared in accordance with GAAP for the periods indicated below shall, at a minimum, be as follows: DATE EBIDA --------------------------------- ---------- Date EBITDA REVENUES ---- ------ -------- Full Year Ended December 31, 2005 $2003 $ 5,000,000 $ 90,000,000 Six Months Ended June 30, 2006 $2,250,000 2004 2,500,000 45,000,000 Six Months Ended December 31, 2006 $2,250,000 2004 3,500,000 60,000,000 Total: Fiscal Year 2006 $4,500,000 2004 6,000,000 105,000,000 Six Months Ended June 30, 2005 3,000,000 50,000,000 Six Months Ended December 31, 2005 4,000,000 65,000,000 Total: Fiscal Year 2005 7,000,000 115,000,000 Such amounts and values stated above for the six month period ended December 31, 20062005, shall remain the benchmark for all six month periods thereafter until all of Borrower's obligations to Lender arising out of or relating to this Agreement are fully extinguished. (b) Borrower's Fixed Charge Ratio, measured quarterly on a consolidated basis beginning with the quarter ending June September 30, 20052003, shall not be less than 1.4 1.75 for such the quarter ending September 30, 2003, and shall not be less than 2.0 for all quarters ending thereafter. (c) Borrower's Current Ratio, measured quarterly on a consolidated basis beginning with the quarter month ending June 30, 20052003, shall not be less than 1.151.20, except that for the quarter ended June 30, 2003, the Current Ratio shall be not less than 1.0. (d) Borrower's ratio of Funded Debt to Tangible Net Worth, measured quarterly on a consolidated basis beginning with the month ending June September 30, 20052003, must be no greater than the following: Date Ratio -------------------------------------- ----- ---- From Execution Date through 12/30/2005 5.5:1 1/1/2006 September 30, 2003 3.5:1 September 30, 2003 through 12/31/2006 5.0:1 1/1/2007 September 30, 2004 3.0:1 September 30, 2004 through 12/31/2007 4.0:1 1/1/2008 September 30, 2005 2.0:1 September 30, 2005 and thereafter 3.5:11.5:1