Debt to EBITDA Clause Samples

Debt to EBITDA. If the Borrower has not submitted to the Administrative Agent the information described above as and when required under Section 5.03(c) or (d), as the case may be, the Administrative Agent may determine, in its reasonable judgment, the ratio referred to above that would have been in effect as at such date, and, consequently, the Applicable Margin in effect for the period commencing on such date until such time as the Borrower submits to the Administrative Agent the information so required, and within three (3) Business Days after receipt thereof the Applicable Margin shall be adjusted retroactively for the relevant period. Notwithstanding the above schedule, prior to the delivery to the Administrative Agent of the Borrower's financial statements for its fiscal quarter ending September 30, 1999, the Applicable Margin for a Revolving Credit Advance and a Term Loan A Advance shall be 2.75% for a Eurodollar Advance and 1.50% for a Prime Rate Advance;

Debt to EBITDA. Maintain a debt to annualized EBITDA (defined as net profit before total interest expense, taxes, depreciation and amortization) not to exceed 3.0 to 1.

Debt to EBITDA. At the last day of any fiscal quarter set forth below, commencing with the first fiscal quarter of the 1997 fiscal year of the Company, permit the ratio of Consolidated Funded Indebtedness as at such day to Consolidated EBITDA for the period of four fiscal quarters ending on such day to be greater than the ratio set forth below for such fiscal quarter; provided, that (i) for the first fiscal quarter set forth below, Consolidated EBITDA for the period of four fiscal quarters ending on the last day of such fiscal quarter shall be deemed to be the Consolidated EBITDA for such fiscal quarter multiplied by four, (ii) for the second fiscal quarter set forth below, Consolidated EBITDA for the period of four fiscal quarters ending on the last day of such fiscal quarter shall be deemed to be the Consolidated EBITDA for the first two fiscal quarters set forth below multiplied by two, and (iii) for the third fiscal quarter set forth 80 75 below, Consolidated EBITDA for the period of four fiscal quarters ending on the last day of such fiscal quarter shall be deemed to be the Consolidated EBITDA for the first three fiscal quarters set forth below multiplied by four thirds; and provided further, that, with respect to any acquisition permitted by subsection 8.6(h), the last four fiscal quarters of Consolidated EBITDA (as may be adjusted for post-acquisition cost savings reasonably agreed to by the Company and the Administrative Agent) of the acquired company shall be added for the purposes of calculating this ratio: Fiscal Year Fiscal Quarter Ratio ----------- -------------- ----- 1997 First 6.00 to 1 Second 6.00 to 1 Third 6.00 to 1 Fourth 5.75 to 1 1998 First 5.75 to 1 Second 5.75 to 1 Third 5.75 to 1 Fourth 4.50 to 1 1999 First 4.50 to 1 Second 4.50 to 1 Third 4.50 to 1 Fourth 4.00 to 1 2000 First 4.00 to 1 Second 4.00 to 1 Third 4.00 to 1 Fourth 4.00 to 1 2001 First 4.00 to 1 Second 4.00 to 1 Third 4.00 to 1 Fourth 4.00 to 1 2002 First 4.00 to 1 Second 4.00 to 1 Third 4.00 to 1 Fourth 4.00 to 1 2003 First 4.00 to 1 Second 4.00 to 1 Third 4.00 to 1 Fourth 4.00 to 1

Debt to EBITDA. At the last day of any fiscal quarter set forth below, permit the ratio (the "Leverage Ratio") of Consolidated Funded Indebtedness as of such day to Consolidated EBITDA for the period of four fiscal quarters ending on such day to be greater than the ratio set forth below for such fiscal quarter; provided that, (x) with respect to any acquisition made during the respective four quarter period pursuant to, and as permitted by, subsection 9.6(g), the last four fiscal quarters of Consolidated EBITDA of the acquired company shall be added for the purposes of calculating this ratio and (y) the last four fiscal quarters of Consolidated EBITDA of each company, business or business segment sold during the respective four fiscal quarter period pursuant to one or more Asset Sales shall be subtracted for purposes of calculating this ratio: FISCAL YEAR FISCAL QUARTER RATIO 2003 Third 4.75 to 1.00 Fourth 4.75 to 1.00 2004 First 4.50 to 1.00 Second 4.50 to 1.00 Third 4.25 to 1.00 Fourth 4.25 to 1.00 2005 First 4.00 to 1.00 Second 4.00 to 1.00 Third 3.75 to 1.00 Fourth 3.50 to 1.00 2006 First 3.50 to 1.00 Second 3.50 to 1.00 Third 3.25 to 1.00 Fourth 3.00 to 1.00 2007 First 3.00 to 1.00 Second 3.00 to 1.00 Third 3.00 to 1.00 Fourth 3.00 to 1.00 2008 First 3.00 to 1.00 Second 3.00 to 1.00 Third 3.00 to 1.00 Fourth 3.00 to 1.00 2009 First 3.00 to 1.00 Second 3.00 to 1.00

Debt to EBITDA. Debtor will at all times maintain a ratio of Debt to EBITDA of not greater than 4.00 to 1.00.

Debt to EBITDA. HWDC shall ensure that the ratio of Debt as at the end of any Relevant Period to EBITDA in respect of such Relevant Period shall not exceed 4:1.

Debt to EBITDA. The Borrower shall not permit the ratio of -------------- Consolidated Total Funded Debt to Consolidated EBITDA (calculated on a trailing four quarters basis) to exceed 1.75 to 1.0, determined at the end of each Fiscal Quarter.

Debt to EBITDA. At the last day of any fiscal quarter set forth -------------- below, permit the ratio (the "Leverage Ratio") of Consolidated Indebtedness as -------------- of such day to Consolidated EBITDA for the period of four fiscal quarters ending on such day to be greater than the ratio set forth below for such fiscal quarter: Fiscal Year Fiscal Quarter Ratio ------------- -------------- ------------ ▇▇▇▇ ▇▇▇▇▇▇ 6.85 to 1.00 1999 First 6.85 to 1.00 Second 6.85 to 1.00 Third 6.85 to 1.00 Fourth 6.85 to 1.00 Thereafter 6.00 to 1.00; provided that for purposes of calculating Consolidated EBITDA for any period, -------- the Consolidated EBITDA of any Acquired Business acquired during such period (as the Consolidated EBITDA of such Acquired Business may be adjusted (w) for those items that occur by reason of such acquisition that would be substantially in conformity with the calculation of Consolidated EBITDA in accordance with Regulation S-X, (x) in accordance with the adjustment to EBITDA for the fiscal year ending December 31, 1997 described in the Confidential Information Memorandum in an aggregate approximate amount of $1,300,000, (y) to reflect a full year of occupancy of newly constructed beds and (z) for any cost reduction resulting from the termination of any contracts of the Acquired Business which are in existence at the time of the acquisition of such Acquired Business and any additional costs incurred in connection with the services that were terminated) shall be included on a pro forma basis for such period (assuming the --- ----- consummation of such acquisition and the incurrence, assumption or guarantee of any Indebtedness in connection therewith occurred on the first day of such period).

Debt to EBITDA. (a) At the last day of any fiscal quarter set forth below, permit the ratio of Consolidated Funded Indebtedness as at such day to Consolidated EBITDA for the period of four fiscal quarters ending on such day (the "Leverage Ratio") to be greater than the ratio set forth below for such fiscal quarter; provided, that, with respect to any acquisition permitted by subsection 8.6(h), the last four fiscal quarters of Consolidated EBITDA (as may be adjusted for post-acquisition cost savings reasonably agreed to by the Company and the Administrative Agent) of the acquired company shall be added to the Consolidated EBITDA of the Company for the purposes of calculating this ratio: Fiscal Year Fiscal Quarter Ratio ----------- -------------- ----- 1999 First 4.50 to 1 Second 4.50 to 1 Third 4.50 to 1 1999-2003 Each fiscal quarter 4.00 to 1 thereafter (b) In the event the Company elects to prepay the Permanent Subordinated Debt in excess of $30,000,000 as provided for in clause (x)(2) of subsection 8.13, at the time of such prepayment and at all times thereafter, the ratio of Consolidated Senior Funded Indebtedness (after giving pro forma effect to any redemption, repayment or repurchase of Permanent Subordinated Debt as provided in subsection 8.13 and the incurrence of any Consolidated Senior Funded Indebtedness in connection therewith) to Consolidated EBITDA for the four fiscal quarters most recently ended for which financial information is available shall be at or less than 3.25 to 1, which ratio shall be tested on a quarterly basis. 78 73