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[WELLS FARGO LETTERHEAD]
September 12, 2000
Mr. Stephen "Duffy" Oyster
3825 Lake Austin Blvd.
Suite 401
Austin, Texas 78703
RE: Financing for purchase of Pancho's Mexican Buffet, Inc.
Dear Duffy:
Wells Fargo is please to consider financing up to $7,000,000 for your proposed
purchase of Pancho's Mexican Buffet, Inc. This is not a commitment, but rather
an expression of interest, subject to continued due diligence and successful
negotiation of a credit agreement. Terms and conditions for discussion are
attached as an exhibit to this letter.
I look forward to visiting with you further about this opportunity.
Sincerely,
Keith Smith
Senior Relationship Manager
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Term Sheet
September 12, 2000
FOR DISCUSSION ONLY
Summarized below are the terms and conditions referred to in the letter of like
date. This does not indicate a commitment to lend, but rather is presented as a
basis for discussion.
BORROWER: Stephen and Tina Oyster
PURPOSE: Acquisition of Pancho's Mexican Buffet, Inc.
AMOUNT: Up to $7,000,000
INTEREST RATE: Prime minus 1%, floating
MATURITY: One year
REPAYMENT: Interest Monthly
COLLATERAL: Liquid Assets
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ADVANCE RATE: 1. Cash (certificates of deposit, money market accounts) 100%
2. Commercial paper rated A1 or better 90%
3. Municipal and corporate bonds rated AA or better 85%
4. U.S. Government bonds, notes and T-bills 90%
5. Mutual Funds 70%
6. Listed stocks, actively traded* 70%
7. O-T-C, quoted in Wall Street Journal* 50%
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* Maximum advance against stock traded at less than $10/share, or with
low trading volume, could have a lower advance rate
