EBITDA IN A PREVIOUS PERIOD; MINUS
(D)
ALL AMOUNTS INCLUDED IN COMBINED FOREIGN NET INCOME IN RESPECT OF DEFERRED
INCOME TAX BENEFITS AND OTHER NON-CASH INCOME ITEMS.
"Combined Foreign Interest Expense" means, for any period, the total of:
(A)
THE AGGREGATE AMOUNT OF INTEREST, INCLUDING COMMITMENT FEES, PAYMENTS IN
THE NATURE OF INTEREST UNDER CAPITALIZED LEASES AND NET PAYMENTS UNDER FINANCIAL
HEDGE AGREEMENTS, ACCRUED BY DOE RUN PERU AND ITS SUBSIDIARIES (WHETHER SUCH
INTEREST IS REFLECTED AS AN ITEM OF EXPENSE OR CAPITALIZED) IN ACCORDANCE WITH
GAAP ON A CONSOLIDATED BASIS; MINUS
(B)
TO THE EXTENT OTHERWISE INCLUDED IN CLAUSE (A) ABOVE, (I) THE AMORTIZATION
OF DEFERRED FINANCING FEES AND COSTS, (II) ORIGINAL ISSUE DISCOUNT RELATING TO
INDEBTEDNESS, (III) ACCRUED INTEREST ON INDEBTEDNESS NOT PAID IN CASH TO THE
EXTENT PERMITTED BY THE TERMS, INCLUDING SUBORDINATION TERMS, OF SUCH
INDEBTEDNESS (INCLUDING PIK INTEREST), AND (IV) THE AGGREGATE AMOUNT OF INTEREST
IN RESPECT OF INTER-COMPANY INDEBTEDNESS AMONG THE COMPANY AND ITS SUBSIDIARIES;
PLUS
(C)
ACTUAL CASH PAYMENTS WITH RESPECT TO ACCRUED AND UNPAID INTEREST (INCLUDING
PIK INTEREST) THAT HAS PREVIOUSLY REDUCED COMBINED FOREIGN INTEREST EXPENSE
PURSUANT TO CLAUSE (B) ABOVE;
6
provided, however, that Combined Foreign Interest Expense shall not include the
effects of any adjustments required by Statement No. 15 of the United States
Financial Accounting Standards Board.
"Combined Foreign Net Income" means, for any period, the net income (or loss) of
Doe Run Peru and its Subsidiaries, determined in accordance with GAAP on a
Combined basis; provided, however, that Combined Foreign Net Income shall not
include:
(A)
EXCEPT WITH RESPECT TO DETERMINATIONS MADE ON A PRO FORMA BASIS WITH
RESPECT TO ACQUISITIONS PERMITTED HEREUNDER, THE INCOME (OR LOSS) OF ANY PERSON
ACCRUED PRIOR TO THE DATE SUCH PERSON BECOMES A SUBSIDIARY OF DOE RUN PERU OR IS
MERGED INTO OR CONSOLIDATED WITH DOE RUN PERU OR ANY OF ITS SUBSIDIARIES;
(B)
THE INCOME (OR LOSS) OF ANY PERSON (OTHER THAN A SUBSIDIARY OF DOE RUN
PERU) IN WHICH DOE RUN PERU OR ANY OF ITS SUBSIDIARIES HAS AN OWNERSHIP
INTEREST; PROVIDED, HOWEVER, THAT (I) COMBINED FOREIGN NET INCOME SHALL INCLUDE
AMOUNTS IN RESPECT OF THE INCOME OF SUCH PERSON WHEN ACTUALLY RECEIVED IN CASH
BY DOE RUN PERU OR ANY OF ITS SUBSIDIARIES IN THE FORM OF DIVIDENDS OR SIMILAR
DISTRIBUTIONS AND (II) COMBINED FOREIGN NET INCOME SHALL BE REDUCED BY THE
AGGREGATE AMOUNT OF ALL INVESTMENTS, REGARDLESS OF THE FORM THEREOF, MADE BY DOE
RUN PERU OR ANY OF ITS SUBSIDIARIES IN SUCH PERSON FOR THE PURPOSE OF FUNDING
ANY DEFICIT OR LOSS OF SUCH PERSON;
(C)
ALL AMOUNTS INCLUDED IN COMPUTING SUCH NET INCOME (OR LOSS) IN RESPECT OF
(I) THE WRITE-UP OF ANY ASSET ON OR AFTER OCTOBER 31, 2001 OR (II) THE
RETIREMENT OF ANY INDEBTEDNESS OR EQUITY AT LESS THAN FACE VALUE AFTER OCTOBER
31, 2001;
(D)
ANY EXTRAORDINARY AND NONRECURRING GAINS AND LOSSES (INCLUDING
RESTRUCTURING COSTS) AND THE RELATED TAX EFFECTS;
(E)
ANY GAINS OR LOSSES FROM THE SALE OF ASSETS, INVESTMENT