Common use of Debt to EBITDA Clause in Contracts

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. 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 ------------- ----------- -------------- ------------ ▇▇▇▇ ▇▇▇▇▇▇ ----- 1998 Fourth 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 2000 First 6.85 to 1.00 Second 6.85 to 1.00 Third 6.85 to 1.00 Fourth 6.50 to 1.00 2001 First 6.50 to 1.00 Second 6.50 to 1.00 Third 6.50 to 1.00 Fourth 6.25 to 1.00 2002 First 6.25 to 1.00 Second 6.25 to 1.00 Third 6.25 to 1.00 Fourth 6.00 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).