Free Answering Brief in Opposition - District Court of Delaware - Delaware

Case 1:04-cv-01551-JJF Document 379-4 Filed 10/05/2007 Page1 of 2
EXHIBIT 24

Case 1 :04-cv-01551-JJ F Document 379-4 Filed 10/05/2007 Page 2 of 2
Gegnea Roderick l
From: Gegne, Floderlok
Sent: Monde; Merch O4, 2002 7:08 AM
To: Yeo (E—melI)
Subiect: Private investor funding
Andrew, §
__ I wes In the process of preperlngthle e~mell when you celled. Bob to my dismay ie flylng beck today from Flerlde and Iwlll .
not know how much he cen deliver untll late this afternoon after the wire transfer oleecillne. I em dreftlng eiterihle e»mell ;
my wire transfer instructions. to the various lenders to move $1,500,000 to SFEL ¥ do not know if It will hit todey but ‘ ¤
deflnltely tomorrow morning.
A row things. I went to eddreee wlth you In this e~meIl. Since time is of the eeeenee, Bob end I will be advancing without
dooumente again. To that end, I em relying on your word whleh- Ie ee good to me as eey written document.
I do went to clarify one point on the term sheet. Iam concerned about our collateral eevorege, since as you ste on the _
voloe mall SFC hee $35,000,006 In unfunded ioene. These Loans will be eubieot to bankruptcy rlsk unless we have a llen
egelnet them whlcn cen not rally happen unless theyrere delivered tous or e cuetodlen. We did use Gary In the pest, but
that wee really before you hed en eeteblleheol ouetoolerr (WTC was leee then stellar} and some recent bankroptoy oeeee ·
that have put :1 quesllon into the preotloe. Also, we dtd noi have SWR: to contend wlth which wlll put SFO Into bankruptcy It .
SFC defaults on there loan. As e reeult, lwould feel a whole lot better if the loene were moved to Welle, which you will
have to do In any event on the teko out. l- polnt out toyou that we ere really et risk untll the next round of funcllng elnce 2
these loene have not been tunoed yet. None or the Ioene that SFC holds ere eeeeoned that ere not in default from what l
understand In my conference calls wlth Swl-I where SFC is frying to get eolleterel to inereeee the advances from SWH.
Consequently the eolleterel may not be any good and thus l need to get these held at Welle Fargo to melee euro when
SWH funds fleet these loans will be good loans and Bob end the Trusts have e perfected-security Interest ln the collateral.
Also, es you know, you probably will heve to glve on. the personal guaranty which will make ue less secured since we will ‘
not pursue the personal guaranty llke SWH wlll. Finally, I em elreedy eeelng the ceeh flow crunch elnce the trusts were not
polo the monthly lnterest on th -subordinated debt nor was Pam. For that matter, CEC has not pelcl ln two months.
Between- SFO end CEO alter this funding we wllt have er 3,000~,O0Ettle:£ up In theee two entitles (about $6 mlllfon ln SPG
and $7 million ln GEC} and the cosh flow crunch will hurt with the lncreeeed borrowing.
` I do not went you take the e—mell the wrong way, which le why I would have preferred dlscuesing It with you. Our
advancement of the funds Ie proof of our continued fellh end support. l inet need something to support the loans so that I
em not personally making good on the full $l=3 million to my family whlch i could never repay elnce my portion would
personally wipe me out. As you eloquently eeid, SFC will be either worth hundreds of mllllone or nothing In the next 12
months. l em betllng on the teller.
Ftod
Rod Gaguo I
TqI:21S-9814695 .
Fax: 2159814750
e—mei1: [email protected]
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