Thirteenth Amendment to Loan and Security Agreement



 Exhibit 10.1 

THIRTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS THIRTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”) is dated September 29, 2010 and is by and
between MEDALLION FINANCIAL CORP., a Delaware corporation having an address of 437 Madison Avenue, New York, New York 10022 (the “Borrower”), and STERLING NATIONAL BANK, a national banking association having an address of 650 Fifth Avenue,
New York, New York 10019 (the “Bank”). 
 RECITALS 

A. The Borrower and the Bank entered into a Loan and Security Agreement dated April 26, 2004 (the “Original Loan
Agreement”), pursuant to which the Bank has agreed to extend certain credit and make certain loans to the Borrower. 
 B.
The Borrower and the Bank have amended the Original Loan Agreement pursuant to various amendments prior to the date hereof (the Original Loan Agreement, as amended by such prior amendments, is collectively referred to herein as the “Loan
Agreement”). 
 C. The Borrower has requested, and the Bank has agreed to make, certain amendments to the Loan Agreement,
all as more fully described herein. 
 NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 AGREEMENT

 1. Defined Terms. Except as otherwise indicated herein, all words and terms defined in the Loan Agreement shall
have the same meanings when used herein. 
 2. Extension of Revolving Credit Termination Date. The Revolving Credit
Termination Date is hereby extended to December 1, 2010. Accordingly, the definition of the term “Revolving Credit Termination Date” set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety as
follows: 
 “Revolving Credit Termination Date” shall mean December 1, 2010. 

3. Amendments to Other Loan Documents. Each of the other Loan Documents is hereby amended to the extent necessary to reflect the
amendments to the terms of the Loan Agreement effected by this Amendment. Without limiting the generality of the foregoing, each of the other Loan Documents shall secure the Revolving Credit Note (as defined below) to the same extent, and with the
same effect, as it secured the Prior Note (as defined below). The Borrower shall take or cause to be taken such actions, and shall execute, deliver, file and/or record or cause to be executed, delivered, filed and/or recorded such documents and
other instruments, as the Bank shall deem to be necessary or advisable in order to confirm, implement or perfect the amendments to the other Loan Documents effected by this Paragraph. 







 4. No Defenses. The Borrower acknowledges that, as of September 30, 2010, the
aggregate outstanding principal balance under the Revolving Credit Loan is $15,000,000.00. The Borrower acknowledges and agrees that, as of the date hereof, it has no offsets, counterclaims or defenses of any nature whatsoever to its Obligations to
the Bank under the Loan Agreement or any of the other Loan Documents, and hereby expressly waives and releases any and all claims against the Bank which exist on the date hereof with respect thereto. 

5. Substitute Note. Concurrently herewith, the Borrower is executing and delivering to the Bank a Substitute Revolving Credit Note
in the maximum principal amount of $20,000,000 (the “Revolving Credit Note”) in substitution for, but not in repayment of, the Substitute Revolving Credit Note dated July 1, 2010 in the maximum principal amount of $20,000,000
previously issued by the Borrower to the Bank (the “Prior Note”). The execution and delivery by the Borrower of the Revolving Credit Note pursuant to the provisions hereof shall not constitute a refinancing, repayment, accord and
satisfaction or novation of the Prior Note or the indebtedness evidenced thereby. 
 6. Reaffirmation of Guaranty Agreement
and Security Agreement. In order to induce the Bank to enter into this Amendment and to amend the Loan Agreement as provided herein, the Borrower is causing Medallion Funding LLC to execute and deliver to the Bank concurrently herewith a
Reaffirmation of Guaranty and Security Agreement. 
 7. Representations and Warranties. In order to induce the Bank to
enter into this Amendment and to amend the Loan Agreement as provided herein, the Borrower hereby represents and warrants to the Bank that: 

(a) All of the representations and warranties of the Borrower set forth in the Loan Agreement are true, complete and
correct in all material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof and as if set forth at length herein. 

(b) After giving effect to this Amendment, no Event of Default presently exists and is continuing on and as of the date
hereof. 
 (c) Since the date of the Borrower’s most recent financial statements delivered to the Bank, the
Borrower has not experienced a material adverse effect in its business, operations or financial condition. 
 (d)
The Borrower has full power and authority to execute, deliver and perform any action or step which may be necessary to carry out the terms of this Amendment and this Amendment has been duly executed and delivered by the Borrower and is the legal,
valid and binding obligation of the Borrower enforceable in accordance with its terms, subject to any applicable bankruptcy, insolvency, general equity principles or other similar laws affecting the enforcement of creditors’ rights generally.

 (e) The execution, delivery and performance of this Amendment will not (i) violate any provision of any
existing law, statute, rule, regulation or ordinance, (ii) conflict with, result in a breach of, or constitute a default under (A) the certificate of incorporation or by-laws of the Borrower, (B) any order, judgment, award or decree
of any court, governmental authority, 
  

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bureau or agency, or (C) any mortgage, indenture, lease, contract or other material agreement or undertaking to which the Borrower is a party or by which the Borrower or any of its
properties or assets may be bound, or (iii) result in the creation or imposition of any lien or other encumbrance upon or with respect to any property or asset now owned or hereafter acquired by the Borrower, other than liens in favor of the
Bank, except, in the case of clauses (ii) and (iii) above, for any deviation from the foregoing which would not reasonably be expected to have a Material Adverse Effect. 

(f) No consent, license, permit, approval or authorization of, exemption by, notice to, report to, or registration, filing
or declaration with any person is required in connection with the execution, delivery and performance by the Borrower of this Amendment or the validity thereof or the transactions contemplated thereby, other than (i) filing or recordation of
financing statements and like documents in connection with the Liens granted in favor of the Bank, (ii) those consents, if they were not obtained or made, which would not reasonably be expected to have a Material Adverse Effect and
(iii) filings which the Borrower may be obligated to make with the Securities and Exchange Commission. 
 8. Bank
Costs. The Borrower shall reimburse the Bank on demand for all costs, including reasonable legal fees and expenses and recording fees, incurred by the Bank in connection with this Amendment and the transactions referenced herein. If payment of
such costs is not made within ten (10) days of the Bank’s demand therefor, the Bank may, and the Borrower irrevocably authorizes the Bank to, charge the Borrower’s account with the Bank or make an Advance under the Revolving Credit
Loan in order to satisfy such obligation of the Borrower. 
 9. Counterparts. This Amendment may be signed in several
counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. 
 10. No
Change. Except as expressly set forth herein, all of the terms and provisions of the Loan Agreement shall continue in full force and effect. 

11. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 [Signatures on following page] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the date set forth on the first page hereof. 
  

			
	MEDALLION FINANCIAL CORP.
		
	By:	 	/s/ Brian S. O’Leary
		 	Name: Brian S. O’Leary
		 	Title: Executive Vice President
		 	 & Chief Operating Officer




 

			
	STERLING NATIONAL BANK
		
	By:	 	/s/ Thomas Braunstein
		 	Name: Thomas Braunstein
		 	Title: First Vice President


  

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