I. Introduction

This Term Sheet outlines the key terms and conditions agreed upon by multiple creditors who have competing interests in the same debtor's assets. It serves as a preliminary document that summarizes the key points of the intercreditor arrangement before the formal agreement is drafted. The purpose of this Term Sheet is to provide a clear understanding of the rights, obligations, and priorities of each creditor involved in the financing.

II. Parties Involved

1. Lead Lender: [Your Company Name]

   • Name: [Your Name]

   • Address: [Your Company Address]

   • Contact: [Your Company Number]
     

2. Other Creditors

   • Name: [Other Creditor Name(s)]

   • Address: [Other Creditor Address(es)]

   • Contact: [Other Creditor Contact Information(s)]
     

III. Key Terms and Conditions

1. Priority of Payments

   • Senior Debt: Senior loans with a fixed interest rate of 5% per annum

   • Subordinated Debt: Subordinated loans with a variable interest rate tied to LIBOR
     

2. Collateral

   • Shared Collateral: Real estate properties owned by the debtor

   • Priority of Collateral: Senior debt holders have priority followed by subordinated debt holders
     

3. Voting Rights

   • Major Decisions: Unanimous consent for major asset sales or restructuring

   • Other Matters: Majority vote for routine operational decisions

IV. Default and Enforcement

In the event of default by the debtor, the Intercreditor Agreement governs the following:

• Enforcement Actions: Senior debt holders can initiate foreclosure proceedings while subordinated debt holders must wait for senior debt to take action
  

• Standstill Provisions: A 90-day standstill period before creditors can take enforcement actions

V. Miscellaneous Provisions

1. Expenses

   • Cost Allocation: Costs related to foreclosure or legal actions to be shared proportionally among creditors
     

2. Amendment and Waiver

   • Conditions for Amendment: Requires written agreement of all parties

   • Waiver Provision: Limited waivers for specific instances, not a general waiver of rights
     

VI. Governing Law and Dispute Resolution

This Intercreditor Agreement is governed by the laws of [Jurisdiction]. Any disputes arising from this agreement shall be resolved through [Arbitration/Mediation/Court Proceedings] in [City, State/Country].

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