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SEC Filings

424B1
DITECH HOLDING CORP filed this Form 424B1 on 09/16/1997
Entire Document
 
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SERVICE MARKS
 
     HCP owns two service marks that have been registered with the United States
Patent and Trademark Office, each of which expires in the year 2003. HCP will
continue to own the service marks after the consummation of the Formation
Transactions.
 
FACILITIES
 
     The executive offices, approximately 2,300 square feet, are located in New
York, New York. The lease for the executive offices requires minimum annual
rental payments of $41,900 and expires in November 2001. In addition to the
executive offices, the Company's operations will be conducted in office space
pursuant to various lease agreements throughout the United States. A summary of
the office leases is shown below:
 

<TABLE>
<CAPTION>
                           OFFICE     MINIMUM
                           SPACE       ANNUAL       EXPIRATION
        LOCATION          (SQ.FT)      RENTAL          DATE                    OFFICE USE
- ------------------------  --------    --------    ---------------   --------------------------------
<S>                       <C>         <C>         <C>               <C>
New York, New York......    2,300     $ 41,900    November 2001     Executive, Administration,
                                                                      Investment Operations
Edison, New Jersey......    5,850     $ 74,400    June 2002         Accounting, Administration, Due
                                                                      Diligence Operations, Mortgage
                                                                      Loan Servicing, Investment
                                                                      Operations
Chicago, Illinois.......    3,900       57,000    June 1999         Due Diligence Operations,
                                                                      Investment Operations
St., Louis, Missouri....    3,800       93,000    February 1998     Mortgage Origination Operations
Rockland,
  Massachusetts.........      300        6,000    Month to Month    Investment Operations
Sacramento,
  California............      150        6,800    Month to Month    Due Diligence Operations,
                                                                      Investment Operations
St. Paul, Minnesota.....      150        5,100    Month to Month    Investment Operations
                           ------     --------
          Total:........   16,450     $284,200
                           ======     ========
</TABLE>

 
     The Principals believe that these facilities are adequate for the Company's
foreseeable needs and that lease renewals and/or alternate space at comparable
rental rates is available, if necessary.
 
FUTURE REVISIONS IN POLICIES AND STRATEGIES
 
     The Board of Directors of the Company has established the investment and
operating policies and strategies set forth in this Prospectus. The Board of
Directors has the power to modify or waive such policies and strategies without
the consent of the stockholders to the extent that the Board of Directors
determines that such modification or waiver is in the best interests of
stockholders. Among other factors, developments in the market which affect the
policies and strategies mentioned herein or which change the Company's
assessment of the market may cause the Board of Directors to revise the
Company's policies and strategies. See "Risk Factors -- Negative Effect on
Financial Condition Due to Board of Director's Ability to Change Policies of the
Company."
 
LEGAL PROCEEDINGS
 
     On or about January 15, 1997, Quarters on Melody Lane Partnership
("Quarters") brought suit against HCMC in the District Court in Dallas County,
Texas (titled Quarters on Melody Lane Partnership v. Hanover Capital Mortgage
Corporation et al.) In a letter dated December 17, 1996, Quarters threatened to
bring an action against HCMC and others unless Quarters was permitted to repay a
Multifamily Mortgage Loan,which had been originated by HCMC, without pre-payment
penalties. The initial principal balance of the Multifamily Mortgage Loan, which
closed on June 28, 1994, was approximately $1.76 million. A portion of the
proceeds of the Multifamily Mortgage Loan was retained in an escrow account, in
accordance with the loan documents, to fund the costs of repairs, replacements
and improvements. In the December 17 letter, Quarters alleged that HCMC
personnel orally represented before the closing of the Multifamily Mortgage
 
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