Line of Credit Promissory Note
April 1, 2003
Pursuant to this Line of Credit Promissory Note (the "Note"), John R. Coghlan, as lender, agrees to provide a
$1,500,000 line of credit to Temporary Financial Services, Inc., a Washington corporation ("TFS") as borrower,
for a period of twelve months from April 1, 2003. Advances against the line may be requested from time-to-time
by TFS so long as the aggregate outstanding advances against the line of credit do not exceed $1,500,000. Mr.
Coghlan agrees to deliver the funds requested by TFS by suitable means such as wire transfer, check or cashiers
check. The line will expire and all outstanding advances will be due and payable, with accrued interest, on
December 31, 2003.
Interest on each outstanding advance will be calculated from the date of the advance to the date of repayment at
the rate of 8% per annum on the basis of actual days elapsed and a year of 365 days. In the event payments are
made prior to maturity, the payments will be applied first to accrued interest then due on all outstanding advances,
and then to reduce the oldest advance first. Payments toward accrued interest and any outstanding advance may
be made at any time without penalty. After maturity, if the outstanding advances are not repaid, the outstanding
balances, including accrued interest to the date of maturity, will bear interest at the lower of a per annum rate of
18% or the maximum rate authorized by the applicable law.
Mr. Coghlan and TFS acknowledge that the primary purpose of this line of credit is to enable TFS to provide a
$2,000,000 line of credit to Genesis Financial, Inc. TFS agrees to pay over to Mr. Coghlan, any origination fees
and other loan fees received by TFS from Genesis. The TFS/Genesis line of credit agreement is attached and
incorporated into this agreement by reference. This Note is unsecured and does not create any priority or security
interest in specific TFS loan receivables or other assets.
No failure by Mr. Coghlan to exercise,