Common use of Senior Debt Service Coverage Ratio Clause in Contracts

Senior Debt Service Coverage Ratio. As of the last day of each applicable period, the ratio of the Borrower's Operating Cash Flow, on a Crdentia Proper Consolidated Basis, to Borrower's Senior Debt Service, on a Crdentia Proper Consolidated Basis, for each period set forth below (which ratio shall be tested as of the last day of each such period) must be at least the following: ------------------------------- ---------------------------- ---------------------------- ---------------------------- SENIOR DEBT SERVICE TIME FRAME DATE TESTED COVERAGE RATIO BASED ON ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 1/31/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 2/28/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 3/31/05 1.00 to 1.00 Trailing 3 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 4/30/05 1.00 to 1.00 Trailing 4 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 5/31/05 1.00 to 1.00 Trailing 5 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 6/30/05 1.25 to 1.00 Trailing 6 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 7/31/05 1.25 to 1.00 Trailing 7 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 8/31/05 1.25 to 1.00 Trailing 8 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 9/30/05 1.25 to 1.00 Trailing 9 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 10/31/05 1.25 to 1.00 Trailing 10 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 11/30/05 1.25 to 1.00 Trailing 11 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 12/31/05 1.25 to 1.00 Trailing 12 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Quarterly 3/31/06 and each quarter 1.25 to 1.00 Trailing 12 months thereafter ------------------------------- ---------------------------- ---------------------------- ----------------------------

Senior Debt Service Coverage Ratio. As of the last day of each applicable period, the ratio of the Borrower's Operating Cash Flow, on a Crdentia Proper Consolidated Basis, to Borrower's Senior Debt Service, on a Crdentia Proper Consolidated Basis, for each period set forth below (which ratio shall be tested as of the last day of each such period) must be at least the following: ------------------------------- (See attached SCHEDULE B for calculation) ---------------------------- ---------------------------- ---------------------------- SENIOR DEBT SERVICE ------------------------- --------------------------- -------------------------- TIME FRAME DATE TESTED SENIOR DEBT SERVICE BASED ON COVERAGE RATIO BASED ON ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 1/31/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 2/28/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 3/31/05 1.00 to 1.00 Trailing 3 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 4/30/05 1.00 to 1.00 Trailing 4 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 5/31/05 1.00 to 1.00 Trailing 5 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 6/30/05 1.25 to 1.00 Trailing 6 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 7/31/05 1.25 to 1.00 Trailing 7 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 8/31/05 1.25 to 1.00 Trailing 8 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 9/30/05 1.25 to 1.00 Trailing 9 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 10/31/05 1.25 to 1.00 Trailing 10 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 11/30/05 1.25 to 1.00 Trailing 11 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Monthly 12/31/05 1.25 to 1.00 Trailing 12 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- ------------------------- --------------------------- -------------------------- Quarterly 3/31/06 and each quarter 1.25 to 1.00 Trailing 12 months quarter thereafter ------------------------------- ---------------------------- ---------------------------- ----------------------------------------------------- --------------------------- --------------------------

Senior Debt Service Coverage Ratio. As of the last day of each applicable period, the ratio of the Borrower's Operating Cash Flow, on a Crdentia Proper Consolidated Basis, to Borrower's Senior Debt Service, on a Crdentia Proper Consolidated Basis, for each period set forth below (which ratio shall be tested as of the last day of each such period) must be at least the following: ------------------------------- ---------------------------- ---------------------------- ---------------------------- SENIOR DEBT SERVICE TIME FRAME DATE TESTED COVERAGE RATIO BASED ON Senior Debt Service Time Frame Date Tested Coverage Ratio Based on ---------- ----------- -------------- -------- ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 1/31/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 2/28/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 3/31/05 1.00 to 1.00 Trailing 3 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 4/30/05 1.00 to 1.00 Trailing 4 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 5/31/05 1.00 to 1.00 Trailing 5 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 6/30/05 1.25 to 1.00 Trailing 6 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 7/31/05 1.25 to 1.00 Trailing 7 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 8/31/05 1.25 to 1.00 Trailing 8 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 9/30/05 1.25 to 1.00 Trailing 9 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 10/31/05 1.25 to 1.00 Trailing 10 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 11/30/05 1.25 to 1.00 Trailing 11 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 12/31/05 1.25 to 1.00 Trailing 12 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Quarterly 3/31/06 and each quarter 1.25 to 1.00 Trailing 12 months thereafter ------------------------------- ---------------------------- ---------------------------- ----------------------------

Senior Debt Service Coverage Ratio. As of the last day of each applicable period, the ratio of the Borrower's Operating Cash Flow, on a Crdentia Proper Consolidated Basis, Flow to Borrower's Senior Debt Service, on a Crdentia Proper Consolidated Basis, Service for each period set forth below (which ratio shall be tested as of the last day of each such period) must be at least the following: ------------------------------- ---------------------------- ---------------------------- ---------------------------- SENIOR DEBT SERVICE TIME FRAME DATE TESTED COVERAGE RATIO BASED ON Senior Debt Service Time Frame Date Tested Coverage Ratio Based On ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 1/31/05 7/31/04 0.25 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 8/31/04 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 2/28/05 1.00 to 1.00 Monthly ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 3/31/05 1.00 9/30/04 1.50 to 1.00 Trailing 3 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 4/30/05 1.00 to 1.00 Trailing 4 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 5/31/05 1.00 to 1.00 Trailing 5 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 6/30/05 1.25 10/31/04 1.50 to 1.00 Trailing 6 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 7/31/05 1.25 11/30/04 1.50 to 1.00 Trailing 7 6 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 8/31/05 1.25 to 1.00 Trailing 8 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 9/30/05 1.25 to 1.00 Trailing 9 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 10/31/05 1.25 to 1.00 Trailing 10 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 11/30/05 1.25 to 1.00 Trailing 11 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Monthly 12/31/05 1.25 12/31/04 1.50 to 1.00 Trailing 12 months ------------------------------- ---------------------------- ---------------------------- ---------------------------- Quarterly 3/31/06 3/31/04 and each quarter 1.25 1.50 to 1.00 Trailing 12 months thereafter ------------------------------- ---------------------------- ---------------------------- ----------------------------