CovenantWise

XBI's lead product, CovenantWise, will solve one of the banks' key problems by monitoring clients' banking covenants accurately, efficiently and inexpensively. CovenantWise licenses will be sold to banks worldwide.

CovenantWise is a software program, which will have modules installed on the banks' computers and on their borrowing customers' computers. It will enable the banks to create dynamic electronic banking agreements with its customers. It will extract the necessary information from the borrower's books and records and link it to the Banking Agreement. It will display the Bank Report to the borrower's corporate management, and let them know what the information would mean to the lending institution. It will point out breaches and potential violations of the banking agreement. It will alert management, so that management can create an appropriate action plan to send to the bank. The business thus has a chance to show that it recognizes the problem and is correcting the situation.

Once the bank receives the report, CovenantWise would export it to banks' analysis programs. After analysis and review, It will prompt the bank to send a reply to its customers, indicating the banks' assessment of its customer's business and the action plan, if one was submitted. In so doing it makes covenant reporting a circular and mostly automated process.

The advantages that flow to the bank are that

• The lender receives accurate information in a timely manner
• There is no need to re-enter data
• There is a timely analysis of credit risk
• The lender has the ability to respond quickly
• The lender's credit risk is reduced significantly
• Benchmarking made possible by working with client information in real time

The advantages that flow to the borrower are that

• There is no need to retype data or create extra information
• The borrower will understand the lender's requirements
• The borrower will start to respond to business problems quickly
• The borrower is able to report to bank quickly
• The borrower will receive a report from the bank

The advantages that flow to the relationship between them are that:

• The bank is no longer regarded as policeman
• Lower costs may imply better borrowing conditions
• The banking agreement can become a dynamic document that truly reflects the needs of the relationship.