ServiceMagic 2014 Annual Report Download - page 7

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Table of Contents
he generally has the right to consent to limited matters in the event that IAC’s ratio of total debt to EBITDA (as defined in the governance
agreement) equals or exceeds four to one over a continuous twelve-month period.
As a result of Mr. Diller’s ownership interest, voting power and the contractual rights described above, Mr. Diller is currently in a position to
influence, subject to our organizational documents and Delaware law, the composition of IAC’s Board of Directors and the outcome of corporate
actions requiring shareholder approval, such as mergers, business combinations and dispositions of assets, among other corporate transactions.
3