Cohort Default Rates. The Borrower will not permit any Active Subsidiary whose operating income for the most recently completed Fiscal Year equals or exceeds seven and one-half percent (7-1/2%) of the aggregate operating income of all Active Subsidiaries for the same fiscal period to have a Cohort Default Rate in excess of twenty-five percent (25%) per year for the two (2) previous years.
Appears in 2 contracts
Sources: Credit Agreement (Education Management Corporation), Credit Agreement (Education Management Corporation)