LIOX » Topics » Section 5.9 Financial Covenants .

This excerpt taken from the LIOX 8-K filed Sep 7, 2005.

Section 5.9 Financial Covenants.

 

Comply with the following financial covenants:

 

(a) Leverage Ratio. The Leverage Ratio, as of the last day of each fiscal quarter of the Company occurring during the periods indicated below, shall be less than or equal to the following:

 

Period


   Ratio

Closing Date through March 31, 2006

   3.75 to 1.0

April 1, 2006 through September 30, 2006

   3.00 to 1.0

October 1, 2006 through September 30, 2007

   2.75 to 1.0

October 1, 2007 September 30, 2008

   2.50 to 1.0

October 1, 2008 though September 30, 2009

   2.25 to 1.0

October 1, 2009 and thereafter

   2.00 to 1.0

 

(b) Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of the last day of each fiscal quarter of the Company occurring during the periods indicated below, shall be greater than or equal to the following:

 

Period


   Ratio

Closing Date through March 31, 2006

   1.50 to 1.0

April 1, 2006 through September 30, 2006

   1.60 to 1.0

October 1, 2006 through September 30, 2007

   1.65 to 1.0

October 1, 2007 and thereafter

   1.75 to 1.0

 

(c) Consolidated Capital Expenditures. Consolidated Capital Expenditures as of the end of each period set forth below shall be less than or equal to the following:

 

Period


   Amount

Closing Date through December 31, 2005

   $ 8,000,000

January 1, 2006 through December 31, 2006

   $ 8,500,000

January 1, 2007 through December 31, 2007

   $ 9,000,000

January 1, 2008 through December 31, 2008

   $ 9,500,000

January 1, 2009 through December 31, 2009

   $ 10,000,000

January 1, 2010 through December 31, 2010

   $ 10,000,000

January 1, 2011 through December 31, 2011

   $ 10,000,000

 

plus the unused amount available for Consolidated Capital Expenditures under this Section 5.9(c) for the immediately preceding fiscal year (excluding any carry forward available from any prior fiscal year); provided, that with respect to any fiscal year, capital expenditures made during any such fiscal year shall be deemed to be made first with respect to the applicable limitation for such year and then with respect to any carry forward amount to the extent applicable.

 

The parties hereto acknowledge and agree that, for purposes of all calculations made in determining compliance for any applicable period with the financial covenants

 

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set forth in this Section 5.9, (i) after consummation of any Permitted Acquisition, (A) income statement items and other balance sheet items (whether positive or negative) attributable to the Target acquired in such transaction shall be included in such calculations to the extent relating to such applicable period, subject to adjustments mutually acceptable to the Company and the Required Lenders, and (B) Indebtedness of a Target which is retired in connection with a Permitted Acquisition shall be excluded from such calculations and deemed to have been retired as of the first day of such applicable period and (ii) after any Asset Disposition permitted by Section 6.4(a)(vi), (A) income statement items and other balance sheet items (whether positive or negative) attributable to the Property disposed of shall be excluded in such calculations to the extent relating to such applicable period, subject to adjustments mutually acceptable to the Company and the Required Lenders and (B) Indebtedness that is repaid with the proceeds of such Asset Disposition shall be excluded from such calculations and deemed to have been repaid as of the first day of such applicable period.

 

This excerpt taken from the LIOX 10-K filed Feb 28, 2005.

10. FINANCIAL COVENANTS.

 

LTI covenants and agrees that, so long as any Loan, Unpaid Reimbursement Obligation, Letter of Credit or Note is outstanding or any Lender has any Commitment or other obligation to make any Loans or any LC Issuer has any obligation to issue, extend or renew any Letters of Credit:

 

10.1 Fixed Charges Coverage Ratio. LTI will not permit the ratio of Consolidated EBITDA for any Reference Period ending on the last day of a fiscal quarter of LTI, to Consolidated Fixed Charges as determined for such Reference Period, to be less than 1.25 to 1.00 as at the last day of the last fiscal quarter of such Reference Period.

 

10.2 Leverage Ratio. LTI will not permit the Leverage Ratio to exceed 3.5 to 1.00 at the end of any Reference Period.

 

10.3 Consolidated Tangible Net Worth. LTI will not permit its Consolidated Tangible Net Worth to be less than (a) $42,000,000 on December 31, 2004, and (b) the Required Net Worth at the end of each fiscal quarter of LTI ending thereafter.

 

10.4 Minimum Consolidated EBITDA. LTI will not permit its Consolidated EBITDA at the end of any Reference Period to be less than $10,000,000.

 

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EXCERPTS ON THIS PAGE:

8-K
Sep 7, 2005
10-K
Feb 28, 2005

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