To: U.S. SMALL BUSINESS ADMINISTRATION
      Disaster assistance
      Processing and Disbursement Center
      Post Office Box 156089
      Fort Worth TX 76155-2243= o ns = "urn:schemas-microsoft-com:office:office" /> 

From: Michael K.Han & Mari Kitamori
          6833 Highway 140
          Midpines CA 95345 

Dear Sirs, 

Enclosed please find original signed paper and guarantee signed by Mari Kitamori. 

Please note that my wife and I regretfully are not able to provide your good offices with
CERTIFICATION OF HAZARD INSURANCE. 

We appreciate it very much that your good office approved the loan in amount $35,000.
However, the problem is that the rule requires me to have fire and flood issuance with the liabilities over 1 million dollars we could not afford to comply.  In order obtain the loan of
$35,000 we will have to pay the insurance premium about $10,000 in advance annually. We
do not think we could afford to follow the rule of requirement. 

In consideration of this approved loan, please note the following fact: 

1.       When I submitted the loan application, I made it clear that we cannot afford fire insurance and we didn’t have one. 

2.       We do not need too much loan. The amount approved is only 1.5% of my property value. 

3.        I sold my partial parcel 25 acres to my neighbor at $330,000. In 2005. 

4.       The remained land still consists of 48.55 acres. The land value would be more than
 enough to guarantee the pay back of the loan approved by your good office. 

5.        The Muir Lodge at present owns no mortgage or particular debt. 

We would be appreciative that your office in consideration of the above mentioned make an exemption of that rule and proceed with the funding. Otherwise, we will accept the out come what ever your office considers it proper.
By the way, I would invite your Supervisor's attention on the propriety of SBA
action on the purpose of Government Emergency Fund propriety. If SBA did not
have intention to help those people in need in case of Emergency you should not
have had opening window for the government relieve Fund. You are paid by the
tax revenue in an attempt to help the people not to give the hurdles to the people
you are going to help. We had difficulties in coping with this disaster and we certainly do not welcome this kind of bureaucracy against us in time of emergency.

Sincerely Yours,
Michael K.Han and Mari Kitamori

Encl: Signed pager of loan agreement.

Yosemite Highway 140 was closed due to the huge rockslide from April 2006. To cope with the disaster, Mariposa is announced as Disaster County because the whole county is suffering
from the business slowing down completely. Muir Lodge was worst of them all. Simply put
it. We are very close to the rockslide area.

Fortunately the government is acting very quickly. On 8/18/06 the highway was reopened on
conditional basis. The traffic starts from 6 am to 8 pm with car length limited to 28 feet.
Although the motel picks a little business, yet the pick season i.e. April thru September, are already over. We are expecting this year with sales about 15~20% of last year.