Development Takeout Agreement letter for Mezz Funding-

[Gordon Meadows]

Good Good Evening!

Steve & I are working on several existing production oil deals. Here is a math example: maybe you can assist us for a fee at closing?

1.We have a buyer

2.The buyer wants to buy 1,000 barrels/day in existing production

3.Purchase price is $30M

4.Our bank will lend 67% or $20M

5.We have a Mezz funding source who will deposit the balance of the purchase price of $10M directly into our lending bank

6.The Mezz wants to get paid off in 12 months with a 30% profit, so he wants $13M in 12 months

7.The whole key to this deal is that the Mezz needs a Forward Takeout Commitment from a legitimate bank or life insurance company for the $13M

Four questions, please:

1)Can you provide a Forward Takeout Commitment for this situation

2)I understand from the information that Gordon sent me that this type of letter costs 1 – 2 points and that is fine

3)Will your takeout commitment provider charge anything to underwrite this deal and let us know if they are willing to issue a takeout commitment

4)We are working on oil production deals in both the continental USA as well as Canada – are both locations acceptable to your takeout commitment provider

I am really hopeful that the answer to 3) is no, because if it is, then we will put a solid production deal in front of you.

Let me know – many thanks

ps.

We are also developing several SFR /Modular Dev in Austin TX. (2016).