Bank or Lender Letterhead
June 15, 2006
Mr. Matthew Barclay
Barclay Associates
90 West Bay Rd.
Windward, WI 53000
Re: Barclay West, L.P.
Addison, Wisconsin
Gentlemen:
This letter shall serve to confirm First State Bank's willingness to grant a loan on the captioned property, after completion of a car wash for which the Bank has this day made a building loan to Barclay West, L.P., subject to the conditions hereinafter set forth.
Based upon the information you have supplied to the Bank, we propose the following:
Borrower: Barclay West, L.P.
Total Loan: $550,000.00
Rate: First 18 months: interest only fixed rate to be determined at closing (today it would be 9.0%) for 1% over our Base Rate; thereafter amortizing on a 25 year schedule with interest floating at 250 basis points above the two (2) year Constant Maturity Treasury Index.
Fee: 1% of the loan amount upon acceptance of this commitment.
Term: Three years.
Guaranty: Joint and several Guaranties of Matthew Barclay and Jane East.
Collateral: (a) First Mortgage lien on property at Main St. and Oakdale Rd., Addison, Wisc. At time of closing property to be improved with a car wash. Lessee is Wash-a-Car, Inc.
(b) Assignment of lease between Borrower and Wash-a-Car, Inc., the basic rent under which will service the Loan at 1:2 coverage.
(c) Evidence satisfactory to the Bank and Bank's counsel that improvements have been complete in accordance with all governmental requirements.
(d) Hazard Insurance and Title Insurance in amounts and from companies satisfactory to the Bank and its counsel.
(e) Delivery of a true copy of the lease between Borrower and Wash-a-Car, Inc. and an estoppel letter form Wash-a-Car, Inc.
(f) Guaranty of North American Wash-a-Car Corporation in form and substance satisfactory to our counsel.
As always, the documentation, status of title, and related matters must all be satisfactory to the Bank and the
Bank's counsel.
Kindly have the counterpart copy of this letter executed by the Borrower and returned to us.
If we are not in receipt of the executed counterpart of this letter by the close of business July 9, 2004, or if the proposed loan referred to herein is not closed and funded on or before September 30, 2004, this commitment will expire and terminate and the Bank shall have no obligation or liability hereunder.
Very truly yours,
Catherine Washington
Senior Vice President
Accepted and agreed to this _______day of
___________________, 2004
Barclay West, L.P.
By:___________________________________
General Partner
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