Small Business Division Quarie Banking Fendalton Building I High St CBD, Oakland September 14, 2010 Lily Putnik 121 Sandringham Road Mount Albert, Oakland Dear Ms. Putnik, I am writing in relation to your application for a loan of $20,000, dated August 29, to start a new venture in online education. After reviewing your personal credit history, your business plan, and the current market situation, we have decided to approve the application. Please note that this approval comes with a number of terms and conditions. Firstly, the interest rate at which the loan will be charged is set at a fixed rate of 6.5% for the first 6 months. Beyond that, the interest rate will be paired to the standard floating rate. The current floating rate is 6.7%. Secondly, you have opted for fixed-term interest only repayments. This means that, for the first 3 years, you will only be able to pay back the interest on the loan. After that, you will be expected to start paying off the principal as well. Finally, at Quarie Banking, we regard entering into a loan agreement as the start of a business relationship. As a Quarie Banking business customer, you are now able to make use of our free business mentoring program..You can also access a range of online resources about business management on our website at www.quariebanking.com. Regards, John Schmidt Manager, SmallBusiness Division What benefit is available to Ms. Putnik