Common use of Financial Covenant Default Clause in Contracts

Financial Covenant Default. Customer acknowledges that the financial covenants set forth in Attachment A to the Agreement are applicable to the financial results of Customer for the fiscal quarter ending April 30, 2003, and Customer was required to maintain such financial covenants at all times. Customer further acknowledges its actual attainment was as follows: (i) Net Profit After Tax to Net Revenue Equal to or Greater than 0.10 percent -3.38 percent (ii) Debt Service Ratio Equal to or Greater than 1.25:1.0 -1.73:1.0

Financial Covenant Default. Customer acknowledges that the financial covenants set forth in Attachment A to the Agreement are applicable to the financial results of Customer for the fiscal quarter ending April 30July 31, 2003, and Customer was required to maintain such financial covenants at all times. Customer further acknowledges its actual attainment was as follows: (i) Net Profit After Tax to Net Revenue Equal to or Greater than 0.10 percent -3.38 percent (ii) Debt Service Ratio Equal to or Greater than 1.25:1.0 -1.73:1.0