The following paper provides a way to solve a system of equations using Newton's method. (The theorem begins at the end of page 2.)
I can't understand the assumptions made in the proof:

Basically, what I want to know is, how does the author get to this assumption?
$$ \frac{M}{2}*||T_{u}|| + N < K < 1 $$ where M is the Lipschitz constant, $T_{u}$ is the pseudo-inverse of the jacobian at u, and N comes from (11).
Based on these assumptions, the rest of the proof is clear to me. But the basic assumptions aren't. Any help would be greatly appreciated! :)
Constants:
Assumptions:
These assumptions seem pretty standard for Newton-Kantorovich results.