Total Leverage Ratio - §10. 1 (for the Reference Period ended , 200 )
A. Consolidated Funded Debt: Sum of all Indebtedness of the Borrower and its Subsidiaries during such Reference Period relating to: • Borrowed Money (including issuance of notes or bonds): $ • Deferred purchase price of assets (other than trade payables): $ • Capitalized Leases: $ • Rental Obligations: $ • Maximum drawing amount of all letters of credit outstanding: $ • Indebtedness of any type referred to above of another Person guaranteed by the Borrower or any of its Subsidiaries: $ Total: $ plus Subordinated Debt obligations: $ equals Consolidated Funded Debt: $
B. Consolidated EBITDAR: Consolidated Net Income (or Deficit): $ plus depreciation and amortization: $ plus income tax expense: $ plus Consolidated Total Interest Expense paid or accrued: $ plus other noncash charges for such period: $ plus principal payments received with respect to Direct Finance Leases: $ plus consolidated rental expense: $ equals Consolidated EBITDAR: $
C. Total Leverage Ratio equals (Item 1A to Item 1B):
D. The Borrower will not permit the Total Leverage Ratio, as at the end of any Reference Period on or ending during any period described in the table set forth below, to exceed the ratio set forth opposite such period in such table: Closing Date through 12/31/07 4.50:1.00 01/01/08 and thereafter 3.50:1.00 Notwithstanding the foregoing, in the event that (a) the Borrower prepays (in whole or in part) the outstanding amount of Interpool Convertible Subordinated Debt, the Borrower will not permit the Total Leverage Ratio, as at the end of any Reference Period ending on or after the date that such prepayment is made, to exceed 3.50:1.00 or (b) the Term Loan is not advanced within fourteen (14) days following the Closing Date, the Borrower will not permit the Total Leverage Ratio, as at the end of any Reference Period, to exceed 3.50:1.00.
