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<br />SAMPLE FINANCIAL INSTITUTIONAL COMMITMENT LETTER <br />(On Lender Stationary) <br /> <br />May 7,2003 <br /> <br />Mr. John Sanchez, President <br />XYZ Manufacturing Corporation <br />1017 S. Flores Street <br />Some City, Texas 78711 <br /> <br />Dear Mr. Sanchez: <br /> <br />Pursuant to our discussion and based on a review and assessment of your project proposal and related <br />financial information, first Bank of Some City, Texas commits to provide permanent financing for your <br />project. Although we were asked to finance your total project costs of $16,350, we are only able to provide <br />$8,850 due to our loan policies and ratio requirements. Our commitment is based on the sound financial <br />resources of the company (principals) and the feasibility of the project. <br /> <br />The terms of our commitment are as follows: <br /> <br />Amount: $8,850 or 85% of the project cost, whichever is higher. <br /> <br />Rate: Prime plus 1-1/2% (based on New York Prime), variable rate over the term of the loan. <br /> <br />Term: 5 years <br /> <br />Expiration Date: Six months from the date of this letter. <br /> <br />Security: <br /> <br />First Lien Deed of Trust on plant and satisfactory covenants <br /> <br />Our financial commitment for this project is contingent only upon your company receiving an economic <br />development loan from the City of San Marcos, Texas through the San Marcos Revolving Loan Program. <br /> <br />We look forward to assisting you in finalizing this financial arrangement in the near future. <br /> <br />Sincerely, <br /> <br />Rita L. Moorehead <br />President <br />