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EXHIBIT A <br />December 3, 2007 <br />Mr. Jess Graba <br />Midwest Gymnastics <br />1160 Red Fox Road <br />Arden Hills, MN 55112 <br />Dear Mr. Graba, <br />We at First American Bank appreciate the opportunity to provide funds for the exterior <br />renovation of a commercial building at 3203 Country Drive, Little Canada, Minnesota to meet <br />the requirements of the City of Little Canada. We feel certain that we can structure a <br />competitive proposal that will meet your financial needs. <br />We have previously issued a terms sheet for the purchase of the building and renovation of <br />interior space into a gymnastics center (please refer to our letter of 11/27/07). We understand <br />that the exterior renovation will not occur until the seller, who is leasing the space back through <br />September 2008, vacates the building. As we have discussed, you may need up to $1,500,000 <br />for the exterior renovation at that point in time. Our initial proposal would be as follows: <br />This proposal is being presented as a terms sheet for discussion purposes only and <br />does not represent a formal commitment to lend by First American Bank, N.A. <br />Borrower <br />Graba Properties, LLC <br />Purpose <br />Provide funds to renovate the exterior of a commercial building totaling 46,000 <br />square feet to meet the requirements of the City of Little Canada. <br />Collateral <br />Second mortgage on the property being renovated at 3203 Country Drive, <br />Little Canada, MN. Assignment of architect and building contracts for the <br />renovation and assignment of rents and leases. <br />Amount <br />$1,500,000 or 80% of combined loan to value based on bank ordered <br />appraised value, whichever is less. <br />Terms <br />A non - revolving line of credit with monthly interest payments during renovation <br />(estimated time of three months). Converting to a 5 -year term note with a 20- <br />year amortization. <br />Interest Rate <br />To be determined <br />Prepayment <br />Penalty <br />None <br />Guarantors <br />Jess Graba and JGT, Inc. <br />Loan Fees <br />An origination fee of 1.00% of the loan amount. <br />Other Fees <br />You will be responsible for all closing costs <br />Covenant <br />Debt service coverage ratio of 1.15X. <br />Contingency <br />Requires approval of the SBA <br />FDIC <br />2424 MONETARY BLVD, SUITE 107 + HUDSON, Wt 54016 k 715- 381 -8330 <br />1 1 - <br />IPPaCunc <br />wc1wmn <br />