1
EXHIBIT (B)(1)
March 20, 2000
Xx. Xxxxx Xxxxxxxx
Chief Operating Officer
Rocky Mountain Chocolate Factory
000 Xxxxxx Xx.
Xxxxxxx, XX 00000
Dear Xxxxx:
Norwest Bank Colorado, N.A. (the "Bank") hereby commits to the following loan
arrangement with Rocky Mountain Chocolate Factory, Inc. ("RMCF").
1.) Commitment: $1,000,000 to purchase treasury stock.
2.) Maturity: The loan booked under the commitment will mature two years
from origination.
3.) Repayment: Interest payments scheduled monthly beginning one month from
origination for the first year. Principal including interest payments
of $31,685.00 monthly beginning 13 months from origination. Three year
amortization with a two year maturity.
4.) Rate: The loan will bear interest at 8.75% fixed for th term of the
loan.
5.) Collateral: Loans will be cross-collateralized. The Bank will have a
junior lien on real estate and business assets.
6.) Fees: You will pay recording fees necessary to secure the Bank's lien
position. No commitment, documentation preparation or legal fees to be
charged in connection with the origination of this loan.
The new loan commitment is subject to the terms and conditions of any loan
agreements now existing or hereafter arising between the Bank and RMCF. All the
loans of RMCF to the Bank are cross-defaulted meaning default under any one loan
is default under all loans. The Bank has the right to cancel this commitment in
the event of loan default.
Sincerely,
/s/ Xxxx Xxxxx
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Xxxx Xxxxx
Assistant Vice President
Accepted and Agreed:
/s/ Xxxxx Xxxxxxxx
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Xxxxx Xxxxxxxx
Chief Operating Officer and
Chief Financial Officer
