EX-2 3 a2027024zex-2.txt EXHIBIT 2 [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 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 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%
* Maximum advance against stock traded at less than $10/share, or with low trading volume, could have a lower advance rate