Restrictions of Compensation. Compensation of officers of the Borrower, paid by the Borrower, will be limited to an amount that, when taken, will not adversely affect the repayment ability of the Borrower. This amount may not be increased year to year unless (1) an after-tax profit was made in the preceding fiscal year, (2) the Borrower is and will remain in compliance with covenants of the Loan Agreement and those identified in the Conditional Commitment as applying throughout, and (3) all Borrower debts are paid to a current status. This is not intended to apply to dividend payments to cover personal tax liability resulting from the profitability of Borrower’s business.
Restrictions of Compensation. Compensation of officers of the Borrower, paid by the Borrower, will be limited to an amount that, when taken, will not adversely affect the repayment ability of the Borrower. This amount may not be increased year to year unless (1) the Borrower’s operations were cash flow positive in the preceding fiscal year after taking into account all operating expenses, non-financed capital expenditures, appropriate funding of all reserves and debt service, (2) the Borrower is in compliance with covenants of the Loan Agreement and those identified in this Conditional Commitment as applying throughout, (3) all Borrower debts are paid to a current status, and (4) prior written concurrence of the Lender is obtained, which will not be unreasonably withheld.
