Dear Jeffrey:
To formalize conversations you had with Laurence this morning concerning a bridge loan for Winstar, please find attached a term sheet for your review and acceptance.
Upon receipt of this term sheet, please call Laurence for any clarification that may be needed.
Sincerely,
James P. Whittier
EFTA00128649
12/12/01 14:26 FAX
002
# TERM SHEET
WINSTAR BRIDGE LOAN
- Loan - $15 million
- Term - Date of closing of Winstar acquisition on or prior to January 10, 2002
- Consideration -
* Interest rate - 15%*
- Equity - 3% of outstanding equity at closing (Founder's Stock)
• $500,000 Fee
- Security -
- $130 million in U.S. Treasuries is presently being held at Williams Management & Capital Group Ltd. for the benefit of Wintel Telecom Holdings, Inc. evidenced by a custodial safekeeping receipt. A segregated portion of these securities, in the amount of $15 million, will be held for the benefit of Jeffrey Epstein or his designate.
- Personal guarantee by Laurence S. Zimmerman secured by the following:
515 Park Avenue, 27th & 28th Floors, New York, New York - Appraised value $23,500,000 by Cushman & Wakefield (as of Nov. 2001)
- 0124 Coldstream Lane, Aspen, Colorado - Purchase price $10,900,000 (acquired Dec. 1998)
Current mortgage against 515 Park Avenue is $8.6 million
- Current mortgage against Aspen property is $5.5 million
- Repayment - Proceeds of loan from the Primary lender (i.e., BONY) secured by the safekeeping receipt representing $130 million in U.S. Treasuries
- Funding Requirement - $15 million must be funded no later than December 14, 2001, no later than 12:00 P.M.
Agreed to and accepted by:
Jeffrey Epstein
Date