Exhibit 10.3
EXHIBIT B
FINANCIAL COVENANTS
Borrower shall remain in compliance with the following financial covenants:
1. SENIOR DEBT TO CAPITAL SHALL NOT EXCEED 3.0. Except however, Lender
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agrees to forebear Xxxxxxxx's non-compliance with this covenant during
the first 5 months of Xxxxxxxx's operations.
2. Senior Debt shall consist of all of Borrower's liabilities except debt
which has been specifically subordinated. Capital consists of
Xxxxxxxx's equity plus subordinated debt.
3. Borrower shall not cause or allow any material disbursement or
distribution of funds to any party except in the normal course of
business and as generally outlined in Borrower's Business Plan.
4. Borrower shall pay all costs associated with the administration of this
line.
REPORTING OBLIGATIONS
Borrower shall provide to Lender any and all financial and collateral
information that Lender may reasonably request, including:
a. Monthly Compliance Certificate. b. Monthly internally prepared
financial statements.
c. Monthly internally prepared collateral reports showing the amount of
line advances and the identification, status and eligibility of all
real estate loans.
d. Fiscal year end financial statements, audited by an acceptable CPA.
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Warehousing Line of Credit Promissory Note - Exhibit B Page 1 of 1
