Document:

Exhibit 10.2

                         AMENDMENT NO. 8 TO AMENDED AND
             RESTATED LOAN AGREEMENT, LIMITED WAIVER AND CONSENT

     AMENDMENT NO. 8 TO AMENDED AND RESTATED LOAN AGREEMENT, LIMITED WAIVER AND
CONSENT dated as of September 11, 2002 (this "Amendment"), by and among
MEDALLION FUNDING CORP., a New York corporation (the "Borrower"), the lending
institutions that are listed on the signature pages hereto, FLEET NATIONAL BANK
(f/k/a Fleet Bank, National Association), as a Bank ("Fleet"), as Swing Line
Lender (the "Swing Line Lender"), as Arranger and as Agent for the Banks
(including any successor, the "Agent"), amending the Loan Agreement (as defined
below).

     WHEREAS, the Borrower, the banks and other lending institutions that from
time to time are signatories thereto (including Assignees, collectively, the
"Banks" and individually, a "Bank"), the Agent and the Swing Line Lender are
parties to an Amended and Restated Loan Agreement dated as of December 24, 1997
(as amended, the "Loan Agreement", capitalized terms defined therein having the
same meanings herein as therein), pursuant to which the Banks have extended
credit to the Borrower on the terms and subject to the conditions set forth
therein;

     WHEREAS, the Borrower has requested certain amendments of the Loan
Agreement and waivers of certain provisions of the Loan Agreement, and, subject
to the terms and conditions set forth herein, the Borrower, the Banks, the Agent
and the Swing Line Lender have agreed to amend the Loan Documents and waive
certain provisions thereof; and

     NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree to amend the Loan Documents as follows:

     1. Amendments to Definitions. Section 1.1 of the Loan Agreement is hereby
amended by:

     (a) deleting the definition "Term Loan Commitment" in its entirety.

     (b) deleting the period at the end of subsection (h) of the definition of
"Eligibility Requirements" and inserting the text "; and" in lieu thereof and
adding the following new subsection (i):

         "(i)  such Loan,  if a Specified  Loan,  is a Permitted  Specified
     Loan."

     (c) deleting the following definitions in their entirety, and substituting
in lieu thereof the following new definitions:

         "Applicable Prime Rate Margin" shall mean (a) zero percent (0.0%) for
     the period from and including the Amendment No. 8 Effective Date to but not
     including the date which is 120 days after the Amendment No. 8 Effective
     Date, (b) one half of one

<PAGE>

     percent (0.5%) for the period from and including the day which is 120 days
     following the Amendment No. 8 Effective Date to but not including the date
     which is 240 days after the Amendment No. 8 Effective Date, and (c) one
     percent (1.0%) thereafter.

         "Borrowing Base" shall mean, as of any date of calculation, an amount
     equal to the sum of:

             (i) (A) cash of up to $5,000,000, plus (B) cash pledged to the
         Agent, for the ratable benefit of the Banks, pursuant to a cash
         collateral security agreement in form and substance satisfactory to the
         Agent plus (C) Short Term Investments shown on the Borrower's balance
         sheet as of such date, plus

             (ii) 83.33% of the sum, without duplication, of (A) the aggregate
         outstanding principal balances of, plus accrued interest (excluding
         deferred interest) on, all Eligible Medallion Loans and Eligible
         Commercial Loans shown on Borrower's balance sheet as of the last day
         of the most recent month, minus (B) the portion, if any, of the Loans,
         plus accrued interest (excluding deferred interest) thereon, that
         Borrower, in its reasonable business judgment, deems to be
         uncollectible or subject to classification as non-accruing, minus (C)
         the Eligible Loans, plus accrued interest (excluding deferred interest)
         thereon, which are more than 60 days past due, plus

             (iii) 83.33% of 75% of the Eligible Medallion Loans and accrued
         interest (excluding deferred interest) thereon which are more than 60
         days past due, but are less than 91 days past due, plus

             (iv) 83.33% of 65% of the Eligible Medallion Loans and accrued
         interest (excluding deferred interest) thereon which are more than 90
         days past due, but are less than 121 days past due;

     provided, that if all or any part of any Medallion Loan or Commercial Loan
     would be excluded under any of the provisions set forth above, then the
     entire outstanding principal amount of, plus accrued interest (including
     deferred interest) on, such Medallion Loan or Commercial Loan shall be
     excluded.

         "Collateral" shall mean and include all existing and after-acquired
     interests in the assets and property of whatever nature whatsoever, real,
     personal or mixed, tangible or intangible, of the Borrower and MFCC. The
     term shall include the stock of Media pledged by the Parent pursuant to the
     terms of the Parent Pledge Agreement, the stock of MFCC pledged by the
     Borrower pursuant to the terms of the Borrower Pledge Agreement and the
     beneficial and ownership interests in the SPV pledged by the Borrower
     pursuant to the terms of the SPV Pledge Agreement, securing the Loans and
     all other property and interests in personal property that shall, from time
     to time, secure the Loans.

         "Maturity" shall mean August 31, 2003 with respect to all Loans.

                                       2
<PAGE>

         "Term-Out Date" shall mean the Amendment No. 8 Effective Date.

         "Term Loan" or "Term Loans" shall mean the Revolving Credit Loans
     converted to Term Loans on the Amendment No. 8 Effective Date.

     (d) inserting the following new definitions in proper alphabetical order
therein:

         "Amendment No. 8" shall mean Amendment No. 8 to Amended and Restated
     Loan Agreement, Limited Waiver and Consent dated as of September 11, 2002
     among the Borrower, the Agent, the Swing Line Lender and the Banks.

         "Amendment No. 8 Effective Date" shall mean the date on which the
     Borrower has satisfied, to the Agent's satisfaction, each of the conditions
     listed in Section 37(a) to Amendment No. 8, as evidenced by the notice
     given pursuant to Section 37(c) therein.

         "Documentation Punch List Letter" shall mean that certain letter
     agreement dated on or before the Amendment No. 8 Effective Date, among the
     Borrower, the Agent and the Senior Note Holders, which sets forth those
     items that are required to be completed by the Borrower within the
     applicable required periods following the Amendment No. 8 Effective Date.

         "Merrill Lynch" shall mean Merrill Lynch Bank USA or an affiliate
     thereof, including any permitted assignee under the Merrill Lynch Facility.

         "Merrill Lynch Facility" shall mean the financing transaction to close
     on or about the Amendment No. 8 Effective Date, pursuant to which the SPV
     will from time to time borrow money from Merrill Lynch and the SPV will
     from time to time use the proceeds to purchase Medallion Loans from the
     Borrower.

         "Merrill Lynch Loan Agreement" shall mean the Loan and Security
     Agreement dated on or about the Amendment No. 8 Effective Date, by and
     among the SPV and Merrill Lynch.

         "Permitted Specified Loans" shall mean Specified Loans that do not
     exceed (A) $12,000,000 for the period from and including the Amendment No.
     8 Effective Date to but not including the date which is ninety (90) days
     after the Amendment No. 8 Effective Date, (B) $6,000,000 for the period
     from and including the date which is ninety (90) days after the Amendment
     No. 8 Effective Date to but not including February 1, 2003 and (C) $0
     thereafter.

         "Shared Services Agreement" shall mean that certain Shared Services
     Agreement dated on or about the Amendment No. 8 Effective Date, between the
     Parent and the SPV.

         "Specified Loans" shall mean Medallion Loans existing on the Amendment
     No. 8 Effective Date, and made to borrowers that were organizations
     dissolved at or before the time when such Medallion Loans were made, if, at
     the time of reference thereto, the dissolved borrowers have not been
     reinstated to entity existence with the

                                       3
<PAGE>

     applicable department of state or secretary of state as if such dissolution
     had not occurred.

         "SPV" shall mean Taxi Medallion Loan Trust I, a special purpose,
     bankruptcy remote, Delaware business trust, established by the Borrower in
     connection with the Merrill Lynch Facility.

         "SPV Pledge Agreement" shall mean that certain Collateral Assignment of
     Ownership Interests dated as of September 11, 2002, by the Borrower in
     favor of the Agent and the Senior Note Holders and relating to the
     beneficial and ownership interests in the SPV.

     2. Interest; Removal of LIBO Rate Pricing. As of the Amendment No. 8
Effective Date, all Loans shall bear interest at an annual rate equal to the
Prime Rate plus the Applicable Prime Rate Margin, except as provided in Section
2.6 of the Loan Agreement. As of the Amendment No. 8 Effective Date, LIBO Rate
pricing shall no longer be available under the Loan Agreement. Accordingly, all
references in the Loan Agreement to LIBO Rate Loans, Adjusted LIBO Rate,
Applicable LIBO Margin and LIBO Base Rate are hereby deleted.

     3. Removal of Revolving Credit Loans and Swing Line Loans; Term Loans Only.
As of the Amendment No. 8 Effective Date, the Term-Out Date shall have occurred
and all Revolving Credit Loans and Swing Line Loans outstanding shall be
converted to Term Loans. All references on or after the Amendment No. 8
Effective Date to Loans shall refer solely to Term Loans. Notwithstanding any
term to the contrary in the Loan Agreement or the other Loan Documents,
including Section 2.3(c) thereof, on and after the Amendment No. 8 Effective
Date, (i) no Term Loan may be converted to any other loan type and (ii) no
further Loans shall be made as Revolving Credit Loans or Swing Line Loans under
the Loan Agreement. All references in the Loan Agreement and the other Loan
Documents to the terms "Aggregate Revolving Credit Commitments", "Revolving
Credit Commitment", "Revolving Credit Commitment Period", "Revolving Credit
Exposure", "Revolving Credit Loan", "Revolving Credit Loans", "Revolving Credit
Obligations", "Scheduled Swing Line Commitment Termination Date", "Swing Line
Commitment", "Swing Line Commitment Amount", "Swing Line Commitment Period",
"Swing Line Commitment Termination Date", "Swing Line Exposure", "Swing Line
Interest Period", "Swing Line Loan", "Swing Line Loans", "Swing Line Maturity
Date" and "Swing Line Participation Amount" shall be deleted. In addition, all
provisions of the Loan Agreement and the other Loan Documents relating or
otherwise having an effect with respect to any of the defined terms identified
in the preceding sentence are hereby deleted to the extent of such relation or
effect. At the request of any Bank, the Borrower shall deliver to such Bank a
separate promissory note of the Borrower, in substantially the form of Annex A
attached hereto, dated as of the Amendment No. 8 Effective Date and completed in
favor of such Bank in the amount of such Bank's Percentage of the outstanding
Loans and otherwise with appropriate insertions.

     4. Amendment of Section 2.2 of the Loan Agreement. Section 2.2 of the Loan
Agreement is hereby amended by:

                                       4
<PAGE>

     (a) deleting Section 2.2(b) in its entirety and substituting the following
new Section 2.2(b) in lieu thereof:

         "(b)  [Intentionally omitted].; and

     (b) deleting Section 2.2(c)(iii) in its entirety and substituting the
following new Section 2.2(c)(iii) in lieu thereof:

         "(c)(iii) Interest Rate on the Term Loans. Each Term Loan shall bear
     interest, subject to the provisions of Sections 2.6 and 10.14 hereof, until
     its Maturity on the principal amount thereof from time to time outstanding
     at an annual rate equal to the Prime Rate plus the Applicable Prime Rate
     Margin. The rate of interest of each Term Loan shall be computed on the
     basis of a 360-day year for the actual number of days elapsed."

     5. Amendment of Section 2.5 of the Loan Agreement. Section 2.5 of the Loan
Agreement is hereby amended by:

     (a) deleting Section 2.5(b) in its entirety and substituting in lieu
thereof the following new Section 2.5(b):

         "(b) Mandatory Repayment of Term Loans. Principal on each Term Loan
     shall be repaid by the Borrower to the Agent in accordance with the
     amortization schedule set forth below. Such payments (each a "Principal
     Payment" and collectively, the "Principal Payments") shall be paid on or
     before the dates specified below and shall be applied pro rata to repay the
     Senior Notes and the Term Loans in accordance with Section 5 of the
     Intercreditor Agreement. Any prepayments of principal on the Term Loans
     made on or after August 1, 2002 pursuant to Sections 2.5(a), (c) and (e)
     hereof shall be applied against the monthly Principal Payments in
     chronological order of the dates on which such Principal Payments are to be
     made.

     =========================================================================
            Date of Principal Payment           Amount of Principal Payment
     =========================================================================

           Within two (2) Business Days                 $104,000,000
          following the Amendment No. 8
                  Effective Date
     -------------------------------------------------------------------------

                September 30, 2002                       $2,000,000
     -------------------------------------------------------------------------

                 October 31, 2002                        $2,000,000
     -------------------------------------------------------------------------

                November 30, 2002                       $17,000,000
     -------------------------------------------------------------------------

                December 31, 2002                        $5,500,000
     -------------------------------------------------------------------------

                 January 31, 2003                       $21,500,000
     -------------------------------------------------------------------------

                February 28, 2003                        $2,000,000
     -------------------------------------------------------------------------

                                       5
<PAGE>

     -------------------------------------------------------------------------

                  March 31, 2003                         $2,000,000
     -------------------------------------------------------------------------

                  April 30, 2003                         $1,000,000
     -------------------------------------------------------------------------

                   May 31, 2003                          $1,000,000
     -------------------------------------------------------------------------

                  June 30, 2003                          $1,000,000
     -------------------------------------------------------------------------

                  July 31, 2003                          $1,000,000
     -------------------------------------------------------------------------
                                             All outstanding amounts under the
                 August 31, 2003                Term Loans and Senior Notes
     -------------------------------------------------------------------------

     (b) deleting Sections 2.5(e)(iii), (iv) and (vi) in their entirety and
substituting the following new Sections 2.5(e)(iii), (iv) and (vi) in proper
alphabetical and numerical order in lieu thereof:

         "(iii) Other than sales permitted pursuant to Section 8.3(f)(v), (vi)
     and (vii) herein, promptly following the occurrence of any sale, transfer
     or disposition of Loans or other assets of the Borrower or any of its
     Subsidiaries (following the obtaining of any necessary consents or
     approvals hereunder or under any other applicable agreements, including the
     Financial Agreement, the Note Purchase Agreement and the Collateral Agency
     Agreement, for such sale, transfer or disposition), the Borrower shall
     repay (1) outstanding Loans, (2) outstanding Senior Notes, (3) the
     principal amounts outstanding of the CP Debt, and (4) the outstanding
     principal amount of Indebtedness of the Borrower permitted pursuant to
     Section 8.2(g) hereof, in an amount equal to one hundred percent (100%) of
     the Net Cash Proceeds of such sale, transfer or disposition, with such Net
     Cash Proceeds being allocated among the Banks, the Agent, the CP Holders,
     the Senior Note Holders and the holders of the Indebtedness described in
     clause (4) of this Section 2.5(e)(iii) on a pro rata basis in accordance
     with the provisions of Section 5 of the Intercreditor Agreement. In the
     event that any Net Cash Proceeds remain after applying the Net Cash
     Proceeds in accordance with the provisions of Section 5 of the
     Intercreditor Agreement ("Excess Asset Proceeds"), such Excess Asset
     Proceeds shall be transferred to the Operating Account.

         (iv) [Intentionally Omitted].

         (vi) On or before the Amendment No. 8 Effective Date, upon the
     Borrower's receipt of the cash payment necessary to reduce its intercompany
     account with the Freshstart Venture Capital Corp. to $0, the Borrower shall
     repay (1) outstanding Term Loans, and (2) outstanding Senior Notes, in an
     amount equal to one hundred percent (100%) of such payment, with such
     payment being allocated among the Banks, the Agent and the Senior Note
     Holders on a pro rata basis in accordance with the provisions of Section 5
     of the Intercreditor Agreement."

                                       6
<PAGE>

     6. Amendment of Article 2A of the Loan Agreement. Article 2A of the Loan
Agreement is hereby amended by deleting Article 2A in its entirety and
substituting the following new Article 2A in lieu thereof:

         "2A. Collateral Security; Guaranties. The Borrower Obligations under
     this Agreement shall be secured by a perfected first priority security
     interest (subject only to Liens permitted hereunder and entitled to
     priority under applicable law (including Liens in favor of the "Agent" (as
     defined in the Financial Agreement) under the Financial Agreement to secure
     the obligations thereunder) and to the requirements of the Collateral
     Agency Agreement and the Intercreditor Agreement) in substantially all of
     the assets of the Borrower and MFCC, whether now owned or hereafter
     acquired and wherever located, pursuant to the terms of (1) the Security
     Agreements, including a pledge by the Borrower of one hundred percent
     (100%) of the capital stock owned by the Borrower of each of its
     Subsidiaries, subject to limitations imposed by applicable law with respect
     to any particular Subsidiary, and to the receipt of consents (including
     lender consents) as may be required under other loan documents for any
     particular Subsidiary, provided that the Borrower shall have used its best
     efforts to obtain such consents, with the Borrower acknowledging that the
     pledge of (and subsequent enforcement of the security interest in) the
     stock of Media requires no such consent, and (2) the Lockbox Agreements
     upon the Borrower's compliance with Section 6.21.1 hereof. In addition, the
     Borrower Obligations under this Agreement shall be secured by a first
     priority perfected pledge by the Borrower in favor of the Agent of its
     beneficial and ownership interests in the SPV, for the benefit of the Agent
     and the Banks, and the Senior Note Holders, together with the granting by
     the Borrower of a first priority perfected security interest in favor of
     the Agent, for the benefit of the Agent and the Banks, and the Senior Note
     Holders in any claims the Borrower may now or hereafter have against the
     SPV, pursuant to the SPV Pledge Agreement, provided that notwithstanding
     any provision to the contrary contained herein or in any Loan Document,
     voting, disposition or other remedies may not be exercised against the
     pledge or security interest until such time as the loans under the Merrill
     Lynch Facility have been paid or have been declared to be due and payable
     prior to their scheduled maturity (which for clarity does not include rapid
     amortization events under the Merrill Lynch Facility). The Borrower
     Obligations under this Agreement and the other Loan Documents shall also be
     guaranteed by the Guarantors pursuant to the terms of the Guaranties
     (subject, in the case of Media, to the terms of the Collateral Agency
     Agreement and in the case of MFCC, to the terms of the Intercreditor
     Agreement); provided, however, that the Guaranty with respect to Media
     shall provide that, with the prior written consent of the Agent and the
     Required Banks, which consent shall not be conditioned on any requirement
     to repay Indebtedness, such Guaranty of Media shall be released upon any
     sale, transfer, public offering, merger, consolidation or other similar
     event involving the change of at least 33% of the legal and beneficial
     ownership of Media."

                                       7

<PAGE>

     7. Amendment of Article 2B.1 of the Loan Agreement. Article 2.B.1 of the
Loan Agreement is hereby amended by deleting Article 2B.1 in its entirety and
substituting the following new Article 2B.1 in lieu thereof:

         "ARTICLE 2B.1 ALLOCATION OF FUNDS IN THE FLEET CONCENTRATION ACCOUNT.

         SECTION 2B.1.1. Credit for Funds Received in Concentration Account.

             (a) All funds and cash proceeds in the form of money, checks and
         like items received in the Fleet Concentration Account as contemplated
         by Section 6.21 hereof shall be credited, on the same Business Day on
         which the Agent determines that good collected funds have been
         received, and, prior to the receipt of good collected funds, on a
         provisional basis until final receipt of good collected funds, and
         applied as contemplated by Section 2B.1.2 hereof, (b) all funds and
         cash proceeds in the form of a wire transfer received in the Fleet
         Concentration Account as contemplated by Section 6.21 hereof shall be
         credited on the same Business Day as the Agent's receipt of such
         amounts (or on such later date as the Agent determines that good
         collected funds have been received), and transferred as contemplated by
         Section 2B.1.2 hereof, and (c) all funds and cash proceeds in the form
         of an automated clearing house transfer received in the Fleet
         Concentration Account as contemplated by Section 6.21 hereof shall be
         credited, on the next Business Day following the Agent's receipt of
         such amounts (or on such later date as the Agent determines that good
         collected funds have been received), and transferred as contemplated by
         Section 2B.1.2 hereof. For purposes of the foregoing provisions of this
         Section 2B.1.1, the Agent shall not be deemed to have received any such
         funds or cash proceeds on any day unless received by the Agent before
         2:30 p.m. (Boston time) on such day. The Borrower further acknowledges
         and agrees that any such provisional credits or credits in respect of
         wire or automatic clearing house funds transfers shall be subject to
         reversal if final collection in good funds of the related item is not
         received by, or final settlement of the funds transfer is not made in
         favor of, the Agent in accordance with the Agent's customary procedures
         and practices for collecting provisional items or receiving settlement
         of funds transfers.

             SECTION 2B.1.2. Transfer to Operating Account Prior to Event of
         Default. Amounts received in the Fleet Concentration Account which are
         determined by the Agent in its sole discretion to be good collected
         funds shall be transferred to the Operating Account on a daily basis,
         so long as an Event of Default has not occurred of which the account
         officers of the Agent active on the Borrower's accounts have knowledge.
         The Borrower shall be permitted to invest funds transferred to the
         Operating Account pursuant to this Section 2B.1.2 in Cash Equivalents.

             SECTION 2B.2. Repayments of Term Loans After Event of Default.

                                       8

<PAGE>

             (a) Following the occurrence and during the continuance of an Event
         of Default of which the account officers of the Agent active on the
         Borrower's accounts have knowledge but prior to the Agent's election to
         exercise its right to accelerate pursuant to Section 9.1 herein, funds
         transferred to the Fleet Concentration Account and for which the
         Borrower has received credits in an amount equal to such amounts due
         and payable under the Senior Debt shall be applied to the outstanding
         Senior Debt and allocated among the Banks, the Agent, the Senior Note
         Holders, the CP Holders and the holders of the outstanding Indebtedness
         permitted pursuant to Section 8.2(g) hereof in accordance with the
         terms of the Intercreditor Agreement, and all remaining funds shall be
         transferred to the Operating Account.

             (b) Following the occurrence and during the continuance of an Event
         of Default of which the account officers of the Agent active on the
         Borrower's accounts have knowledge and upon the Agent's exercise of its
         right to accelerate pursuant to Section 9.1 herein or if all
         outstanding Term Loans have not been paid in full at Maturity, all
         funds transferred to the Fleet Concentration Account and for which the
         Borrower has received credits shall be applied to the outstanding
         Senior Debt and allocated among the Banks, the Agent, the Senior Note
         Holders, the CP Holders and the holders of the outstanding Indebtedness
         permitted pursuant to Section 8.2(g) hereof, in accordance with Section
         9.5 hereof and subject to the terms of the Intercreditor Agreement.

     8. Amendment of Section 3.1 of the Loan Agreement. Section 3.1 of the Loan
Agreement is hereby amended by deleting Sections 3.1(d), (e), (f) and (g) in
their entirety and substituting the following new Sections 3.1(d), (e) and (f)
in proper alphabetical and numerical order in lieu thereof:

         "(d) Amendment No. 8 Amendment Fee. The Borrower agrees to pay to the
     Agent, for the pro rata account of each Bank (based on each Bank's
     Percentage), on the Amendment No. 8 Effective Date, an amendment fee equal,
     in the aggregate, to 0.25% of the principal amount of Term Loans
     outstanding after giving effect to payment of the Principal Payment due on
     the Amendment No. 8 Effective Date.

         (e) Amendment No. 8 Deferred Fee. In the event that all Term Loans have
     not been paid in full and all obligations outstanding under the Note
     Purchase Agreements (including without limitation principal, accrued
     interest and the make-whole amount thereunder) have not been paid in full
     on or before August 31, 2003, the Borrower agrees to pay to the Agent, for
     the pro rata account of each Bank (based on each Bank's Percentage) and
     the Senior Note Holders, a deferred fee in the amount of $500,000 for the
     pro rata accounts of the Banks and the Senior Note Holders.

         (f) Nature of Fees. All fees hereunder shall, except for the deferred
     fee described in Section 3.1(e) hereof, be fully earned as of the Amendment
     No. 8

                                       9
<PAGE>

     Effective Date, and shall in any case be non-refundable when paid. The
     deferred fee described in Section 3.1(e) hereof and all other fees payable
     hereunder shall be fully earned on the due date therefor."

     9. Amendment of Section 4.18 of the Loan Agreement. Section 4.18 of the
Loan Agreement is hereby amended by deleting the text "fiscal years ended March
31, 1995, 1996 and 1997" in the first sentence thereof and substituting the text
"fiscal year ended December 31, 2001" in lieu thereof.

     10. Amendment of Section 4.22 of the Loan Agreement. Section 4.22 of the
Loan Agreement is hereby amended by deleting Section 4.22 in its entirety and
substituting the following new Section 4.22 in lieu thereof:

         "Section 4.22. Priority; Continued Effectiveness. Except as otherwise
     permitted hereunder, the Agent, for the ratable benefit of the Banks and
     the CP Holders, have a valid and perfected first priority security interest
     (subject to the terms of the Intercreditor Agreement and the Collateral
     Agency Agreement) in and to all Collateral, enforceable against the
     Borrower and all third parties in all relevant jurisdictions and securing
     the payment of the Term Loans and all other sums payable under or in
     connection with the Loan Documents. Each of the Borrower Security
     Agreement, the Lockbox Agreements, the Parent Pledge Agreement and, after
     the execution and delivery thereof, the SPV Pledge Agreement is effective
     to create in favor of the Agent, for the ratable benefit of the Banks and
     the CP Holders, a valid and perfected first priority (subject to the terms
     of the Intercreditor Agreement and the Collateral Agency Agreement and
     except as otherwise permitted hereunder) security interest in and to the
     Collateral described therein securing the payment of the Term Loans and all
     other sums payable under or in connection with the Loan Documents. No
     additional Borrower Financing Statements are required to be filed in order
     to maintain the perfection and priority of the security interests created
     pursuant to the Borrower Security Agreement, the Lockbox Agreements, the
     Parent Pledge Agreement and the SPV Pledge Agreement."

     11. Amendment of Section 5.2 of the Loan Agreement. Section 5.2 of the Loan
Agreement is hereby amended by deleting Section 5.2 in its entirety and
substituting the following new Section 5.2 in lieu thereof:

     "Section 5.2. [Intentionally omitted]."

     12. Amendment of Section 6.1 of the Loan Agreement. Section 6.1 of the Loan
Agreement is hereby amended by deleting Section 6.1(i) in its entirety and
substituting the following new Section 6.1(i) in proper alphabetical order in
lieu thereof:

         "(i) (a) on the Amendment No. 8 Effective Date (based upon July 31,
     2002 information adjusted to give effect to (1) the repayment of Loans, (2)
     transfers of Loans to the SPV, and (3) the transactions contemplated by
     Sections 8.11(i)(e)(2) and (6)), and within fifteen (15) Business Days
     after the end of every calendar month thereafter or at any other time upon
     the Agent's request, a Borrowing Base

                                       10
<PAGE>

     Certificate, signed by each of the chief financial officer of the Borrower
     and M.R. Weiser, Inc., or another consultant satisfactory to the Borrower
     and the Agent, covering the period commencing with the first day following
     the last day of the period covered by the preceding Borrowing Base
     Certificate and (b) concurrently with any contribution by the Borrower of
     cash or Medallion Loans to, or repurchases of Medallion Loans from, the
     Merrill Lynch Facility as permitted by Sections 8.3(f)(vi) and
     8.11(i)(e)(4) herein, a pro forma Borrowing Base Certificate, signed by
     each of the chief financial officer of the Borrower and M.R. Weiser, Inc.,
     or another consultant satisfactory to the Borrower and the Agent,
     demonstrating the Borrowing Base after giving effect to such contribution;"

     13. Amendment of Section 6.15 of the Loan Agreement. Section 6.15 of the
Loan Agreement is hereby by amended by deleting Section 6.15 in its entirety and
substituting the following new Section 6.15 in lieu thereof:

         "Section 6.15.  [Intentionally omitted]."

     14. Amendment of Section 6.16 of the Loan Agreement. Section 6.16 of the
Loan Agreement is hereby by amended by deleting Section 6.16 in its entirety and
inserting the following new Section 6.16 in lieu thereof:

         "Section 6.16. Post-Closing Matters. The Borrower shall complete each
     of the post-closing matters specified in the Documentation Punch List
     Letter within the applicable required periods following the Amendment No.
     8 Effective Date provided for therein."

     15. Amendment of Section 6.21 of the Loan Agreement. Section 6.21 of the
Loan Agreement is hereby amended by deleting the reference to Excess Dividend
Payments in the second sentence thereof.

     16. Amendment of Section 6.22 of the Loan Agreement. Section 6.22 of the
Loan Agreement is hereby amended by deleting Section 6.22 in its entirety and
inserting the following new Section 6.22 in lieu thereof:

         "Section 6.22. Independent Firm. The Banks and the Agent shall have
     access to M.R. Weiser at all times for, among other things, updates on the
     status of M.R. Weiser's work and questions about the scope and substance
     thereof. Bingham McCutchen LLP on behalf of the Banks and the Agent shall
     have the right to hire Argus Management Corporation (or a similar
     consulting firm) as their own consulting firm (with the expenses of such
     consulting firm to be set forth in detailed monthly bills and to be for the
     account of the Borrower), and such consulting firm shall have access at all
     times to the officers, employees, records and other information of the
     Borrower and their Subsidiaries and shall be permitted to review all
     calculations performed in connection with the preparation of each Borrowing
     Base Certificate to be delivered pursuant to Section 6.1(i) hereof;
     provided, however, that absent a Default or an Event of Default, such fees
     and expenses, together with all fees and expenses of Nightingale or any
     other advisor hired by the Senior Note

                                       11
<PAGE>

     Holders or their counsel in connection with the Note Purchase Agreements,
     shall not exceed, in the aggregate, (i) $75,000 per month for the period
     commencing on the Amendment No. 8 Effective Date through the earlier to
     occur of the month in which the outstanding principal amount of Term Loans
     and Senior Notes is less than $36,000,000 and November 30, 2002 (it being
     understood that such amount shall be pro rated for any partial calendar
     months) and (ii) $37,500 per month thereafter. However, the foregoing fee
     limitations shall not be imposed in the event the Borrower fails to provide
     to the Agent (i) on the Amendment No. 8 Effective Date and on Thursday of
     each calendar week thereafter, a 13-week statement of cash flows in the
     form currently being provided to the Agent and the Senior Note Holders,
     (ii) on the Amendment No. 8 Effective Date and on the 10th and 25th of each
     calendar month thereafter, monitoring reports (including without limitation
     the form of monitoring report attached hereto as Annex B), in form and
     substance satisfactory to the Agent, concerning the various actions
     proposed by the Borrower to comply with the schedule of Principal Payments
     set forth in Section 2.5(b) hereof, (iii) daily reports regarding cash
     balances of the Borrower and its Affiliates, which reports shall be in a
     form reasonably acceptable to the Agent and (iv) evidence, in form and
     substance satisfactory to the Agent, that each of the items set forth in
     the Documentation Punch List Letter to be completed after the Amendment No.
     8 Effective Date has been completed in a manner satisfactory to the Agent
     on or before November 15, 2002."

     17. Amendment of Section 6.23 of the Loan Agreement. Section 6.23 of the
Loan Agreement is hereby by amended by deleting Section 6.23 in its entirety and
inserting the following new Section 6.23 in lieu thereof:

         "Section 6.23.  Replacement of Servicer.

         (a) In the event that Merrill Lynch, at any time under the Merrill
     Lynch Facility, has exercised its right or has given notice that it will
     exercise its right to terminate the rights and obligations of the Borrower
     (or any permitted successor or assignee of the Borrower) as servicer under
     the Merrill Lynch Facility, the Borrower shall promptly notify the Agent of
     such termination or notice to terminate and, upon such termination or in
     the event a notice to terminate has not been rescinded within seven (7)
     Business Days after the Borrower's receipt thereof, the Agent shall have
     the right to replace the Borrower as servicer with respect to the
     Collateral granted pursuant to the Loan Agreement. The Agent may exercise
     such right by giving written notice to the Borrower.

         (b) In the event of such replacement of the Borrower as servicer of the
     Collateral, the Borrower covenants (i) to safeguard the servicing records
     and (ii) that all funds and loan documents relating to the Collateral
     (collectively, the "Medallion Loan Records") shall, at the option of the
     Agent, promptly upon receipt of notice of the Agent's intent to appoint a
     new servicer for the Collateral, be submitted to the control of the Agent
     or its designee and that, on the date such notice is received, they will be
     transferred to the Agent or its designee, without prejudice to the rights,
     if any, of either party against the other.

                                       12
<PAGE>

         (c) Prior to the replacement of the Borrower as servicer of the
     Collateral, the Agent may arrange for the collateral agent appointed
     pursuant to the Intercreditor Agreement (the "Collateral Agent") to
     establish with the Agent a segregated account on behalf of the Borrower
     (the "Alternate Collection Account"). The Agent shall notify the Borrower
     of the establishment of the Alternate Collection Account, specifying the
     account number for such account. From and after receipt of such notice, all
     collections arising with respect to the Collateral shall, whether credited
     to the Fleet Concentration Account or otherwise received by the Borrower,
     the Collateral Agent, the Agent, any replacement servicer appointed by the
     Agent or any other Person, be deposited in the Alternate Collection
     Account. The Collateral Agent shall distribute the funds on deposit in the
     Alternate Collection Account in accordance with Article 2B hereof and
     subject to the terms of the Intercreditor Agreement on each date a
     principal payment is required under Section 2.5(b) hereof and each date
     interest is payable under this Agreement in accordance with the terms of
     Section 5(d) of the Intercreditor Agreement. The Borrower hereby pledges to
     the Collateral Agent, for itself, the Agent, the Banks and the Senior Note
     Holders, and grants the Collateral Agent a security interest in the
     Alternate Collection Account and all funds that may be on deposit there
     from time to time. The Borrower further covenants and agrees (i) to provide
     notification to the obligors in respect of any Medallion Loan, Commercial
     Loan or other Collateral to make all payments in respect of such Collateral
     directly to the Alternate Collection Account and (ii) to otherwise
     cooperate with the Agent in ensuring that such payments are made directly
     to the Alternate Collection Account.

         (d) Notwithstanding any appointment of a new servicer hereunder, the
     Borrower shall not be relieved of liability for all amounts due, or
     responsibilities owed the Agent or the Banks hereunder. The Borrower
     forthwith upon receipt of notice of the Agent's appointment of a new
     servicer for the Collateral shall (i) pay over to the Agent or its designee
     all amounts held by it or subsequently received by it with respect to the
     affected Collateral or the proceeds thereof, (ii) deliver to the Agent a
     full accounting in respect of the affected Collateral, including a
     statement showing the monthly payments and other amounts collected by or
     with respect to such Collateral and a statement of moneys held in trust by
     or on behalf of it for the payment of taxes, insurance premiums or other
     charges with respect to the affected Collateral, (iii) otherwise use its
     best efforts to effect the orderly and efficient transfer of servicing of
     the affected Collateral to the designee selected by the Agent, and (iv)
     arrange for the physical transfer and delivery to designee selected by the
     Agent of all Collateral and copies thereof in its possession, and all
     Medallion Loan Records."

     18. Amendment of Article 7 of the Loan Agreement. Article 7 of the Loan
Agreement is hereby amended by deleting Article 7 in its entirety and
substituting the following new Article 7 in lieu thereof:

         "ARTICLE 7. FINANCIAL COVENANTS.

                                       13
<PAGE>

         The Borrower covenants and agrees that, until the Notes, together with
     interest and all other Indebtedness of Borrower to the Agent or the Banks
     under this Agreement and the other Loan Documents, are paid in full,
     Borrower and its Subsidiaries shall not, without the prior written consent
     of the Agent and the Required Banks:

         Section 7.1. [Intentionally Omitted].

         Section 7.2. [Intentionally Omitted].

         Section 7.3. Borrowing Base. Suffer or permit at any time the aggregate
     unpaid balance of all Senior Debt to exceed the Borrowing Base.

         Section 7.4. [Intentionally Omitted].

         Section 7.5. [Intentionally Omitted].

         Section 7.6. [Intentionally Omitted]."

     19. Amendment of Section 8.1 of the Loan Agreement. Section 8.1(a) of the
Loan Agreement is hereby amended by inserting the words ", the SPV Pledge
Agreement" immediately following the words "the Borrower Security Agreement" in
clause (i) thereof."

     20. Amendment of Section 8.2 of the Loan Agreement. Section 8.2(e) of the
Loan Agreement is hereby amended by inserting the words "including unsecured
liabilities (other than Indebtedness for money borrowed or that is evidenced by
bonds, debentures, notes or other similar instruments) of the Borrower in favor
of the SPV incurred in connection with the Merrill Lynch Facility" immediately
before the semicolon at the end of such section.

     21. Amendment of Section 8.3 of the Loan Agreement. Section 8.3 of the Loan
Agreement is hereby amended by deleting Sections 8.3(e) and (f) in their
entirety and substituting the following new Sections 8.3(e) and (f) in lieu
thereof:

         "(e) (i) Make or maintain any Investment (including by way of the
     acquisition of any Person) in any Subsidiary or Affiliate, or any Person
     that after taking into account such Investment would become a Subsidiary or
     Affiliate, other than (i) Investments in the Parent arising in relation to
     the intercompany account between the Borrower and the Parent in an
     aggregate amount not to exceed $8,598,828 through Maturity, (ii)
     Investments in the SPV made (A) in connection with the formation and
     capitalization of the SPV as required under or in connection with the
     Merrill Lynch Facility and (B) in order to cure or prevent any borrowing
     base default or rapid amortization event under the Merrill Lynch Facility,
     provided that no Event of Default shall exist with respect to the Loan
     Agreement or the Note Purchase Agreements and no Event of Default shall
     exist with respect to the Loan Agreement or the Note Purchase Agreements
     after giving effect to such transactions and (iii) Investments existing on
     the Amendment No. 7 Effective Date and listed on Schedule III hereto. For
     the avoidance of doubt, the Borrower shall not make, nor

                                       14

<PAGE>

     shall the Borrower permit any of its Subsidiaries to make, any Investment
     in Media or Business Lenders, LLC following the Amendment No. 6 Effective
     Date.

         (f) Sell, discount or otherwise dispose of Loans or any Collateral or
     sell, discount or otherwise dispose of other Receivables or obligations
     owing to the Borrower or any of its Subsidiaries, with or without recourse,
     other than (i) in connection with the grant of any participation in
     accordance with and to the extent permitted by Section 2.14 hereof, and
     consistent in any event with past practices, (ii) for collection in the
     ordinary course of business, (iii) to the Agent for the benefit of the
     Banks and, with respect to the pledged shares of Media and for so long as
     the Collateral Agency Agreement is in effect, the Collateral Agent, for the
     benefit of the Banks, the Senior Note Holders and the CP Holders, (iv) with
     respect to the sales of Loans by the Borrower to its Affiliates made prior
     to the Amendment No. 8 Effective Date and described on Schedule 8.3(f)
     hereto, (v) on or prior to the Amendment No. 8 Effective Date, Commercial
     Loans in an aggregate principal amount not to exceed $10,000,000 including
     any accrued and unpaid interest and without discount thereon to the Parent
     in exchange for Medallion Loans of equivalent value (which determination of
     equivalency shall take into account any cash payment from the Borrower, in
     such amount as approved by the Agent, but in no event to exceed $200,000,
     to achieve such equivalency and shall be satisfactory to the Agent), all
     pursuant to documentation reasonably acceptable to the Agent and the Senior
     Note Holders, (vi) sales of Loans as permitted or required by the Merrill
     Lynch Facility including sales of new Medallion Loans made on or after the
     Amendment No. 8 Effective Date and the contribution of Medallion Loans to
     the Merrill Lynch Facility in order to cure or prevent any borrowing base
     defaults or rapid amortization event under the Merrill Lynch Facility,
     (vii) after the Amendment No. 8 Effective Date, participations in Medallion
     Loans in an aggregate principal amount not to exceed $5,000,000 including
     any accrued and unpaid interest and without discount thereon to Atlantic
     Bank, as the lead lender, in exchange for a 100% interest in approximately
     $4,750,000 of Medallion Loans with respect to which Atlantic Bank was the
     lead lender and a 5% interest in approximately $5,000,000 of Medallion
     Loans with respect to which Atlantic Bank is the lead lender, all pursuant
     to documentation reasonably acceptable to the Agent and the Senior Note
     Holders, and (viii) sales of Loans permitted pursuant to Section 8.6(b)
     hereof; provided that in each such case referred to in this Section 8.3(f),
     no Default or Event of Default has occurred or is continuing, or would
     result therefrom."

     22. Amendment of Section 8.5 of the Loan Agreement. Section 8.5 of the
Loan Agreement is hereby amended by deleting Section 8.5 in its entirety and
substituting the following new Section 8.5 in lieu thereof:

         "Section 8.5. Restricted Payments. Make, or obligate itself to make,
     any Restricted Payment, provided that (a) after the Amendment No. 8
     Effective Date, the Borrower may make quarterly payments of the sum of (i)
     the minimum amount of Dividends required to be paid for such Borrower to
     retain its status as a regulated investment company pursuant to Section
     851(a) of the Code, plus (ii) the payment of Dividends required to be paid
     in order to avoid the imposition of excise taxes

                                       15
<PAGE>

     pursuant to the Code, as determined by the Borrower's independent
     accountants on the basis of good faith estimates provided by the Borrower,
     provided that any such amount to be paid under this Section 8.5(a)(ii)
     shall be quantified by the Borrower and in connection therewith, the
     Borrower authorizes the Agent and the Senior Note Holders to communicate
     directly with the Borrower's independent accountants and authorizes such
     accountants to disclose to Agent and the Senior Note Holders any and all
     financial statements and other supporting financial documents and schedules
     including copies of any management letter with respect to the business,
     financial condition and other affairs of the Borrower and its Subsidiaries
     and, provided further that five (5) days prior to any such payment, the
     Borrower shall deliver a certificate demonstrating pro forma compliance
     with Section 7.3 hereof after making such payment with respect to any
     Principal Payments to be made with respect to Senior Debt, (b) after the
     Amendment No. 8 Effective Date, the Borrower contribute additional
     Medallion Loans or cash to, and/or repurchase at fair value Medallion Loans
     from the SPV in connection with the Merrill Lynch Facility in order to (1)
     cure or prevent any borrowing base defaults or rapid amortization event
     under the Merrill Lynch Facility and (2) to reacquire any Medallion Loans
     sold to the SPV which did not at the time of such sale meet the
     "eligibility criteria" for sale under the terms of the Merrill Lynch
     Facility, provided, in each case, that no Event of Default shall exist with
     respect to the Senior Facilities and no Event of Default shall exist with
     respect to the Senior Facilities after giving effect to such transactions,
     and provided further that the Borrower provides prior written notice to the
     Agent and the Senior Note Holders of any such contributions and/or
     repurchases pursuant to this Section 8.5(b), and (c) on the date any
     Principal Payment or other prepayment (whether voluntary or otherwise) is
     made in accordance with Section 2.5 hereof, the Borrower may prepay
     outstanding principal amounts of the Senior Note Debt in an aggregate
     amount not to exceed the result of 17.25227% multiplied by the sum of the
     amount of such payment plus the aggregate amount of the Principal Payment
     or other repayment, as applicable, is made to the Banks on such date. Any
     such Restricted Payments permitted under Section 8.5(a) above that are made
     to the Parent shall be paid as a credit to the intercompany balance owing
     from the Parent to the Borrower."

     23. Amendment of Section 8.6 of the Loan Agreement. Section 8.6 of the
Loan Agreement is hereby amended by deleting Section 8.6(b) in its entirety and
substituting the following new Section 8.6(b) in lieu thereof:

         "(b) Subject to any additional requirements under Section 8.11 hereof,
     (i) sell, discount or otherwise dispose of Loans or any Collateral, other
     than (A) as permitted by Sections 8.3(f)(v), (vi) and (vii) and Section
     8.11(i)(e)(2),(B) the sale of Loans to an Affiliate for cash for a price
     not less than the sum of the outstanding principal amount thereof, plus any
     accrued and unpaid interest and without discount thereon, and (C) the sale
     of Loans to any Person who is not an Affiliate for a cash price not less
     than the outstanding principal amount thereof plus any accrued and unpaid
     interest and without discount thereon, provided such sale is an arm's
     length transaction made pursuant to the reasonable requirements of the
     Company's or such Subsidiary's business; or (ii) sell, discount or
     otherwise dispose of other Receivables or obligations owing to the Borrower
     or any of its Subsidiaries, with or without

                                       16
<PAGE>

     recourse, other than (A) in connection with the grant of any participation
     in accordance with and to the extent permitted by Section 2.14 hereof and
     consistent in any event with past practices, (B) to a non-Affiliate for
     collection in the ordinary course of business, or (C) to the Agent for the
     benefit of the Banks (subject to the terms of the Intercreditor Agreement);
     provided further that, in each such case, (x) immediately upon such sale or
     other disposition, the Borrower makes, in accordance with the provisions of
     Section 2.5(e)(iii) hereof, a mandatory prepayment of the outstanding Term
     Loans and outstanding Senior Notes in an amount equal to the aggregate
     principal amount, plus accrued interest, of the Loans so sold or otherwise
     disposed of, and (y) no Default or Event of Default has occurred or is
     continuing, or would result therefrom."

     24. Amendment of Section 8.11 of the Loan Agreement. Section 8.11 of the
Loan Agreement is hereby amended by deleting Section 8.11 in its entirety and
substituting the following new Section 8.11 in lieu thereof:

         "Section 8.11.  Transactions with Affiliates.

         (i) (a) Enter into, or cause, suffer, or permit to exist, any
     transactions, including, without limitation, the purchase, sale, lease or
     exchange of any property or the rendering of any service, with any
     Affiliate on fair and reasonable terms that are less favorable to the
     Borrower than those that would be obtainable at the time in a comparable
     arm's-length transaction from any Person who is not an Affiliate; (b)
     become an Affiliated Person of any Bank or any Affiliated Person of any
     Bank known to the Borrower; and the Borrower shall use its best efforts to
     ensure that none of its Affiliated Persons is or becomes an Affiliated
     Person of any Bank or an Affiliated Person of any Bank known to the
     Borrower; (c) sell, discount or otherwise dispose of Loans or any
     Collateral to any Affiliate, other than any sale permitted by Sections
     8.3(f)(i), (v) and (vi) and Section 8.6(b) hereof; (d) sell, discount or
     otherwise dispose of other Receivables or obligations owing to the Borrower
     or any of its Subsidiaries to any Affiliate, with or without recourse,
     other than any transaction permitted by Sections 8.3(f)(v) and (vi) hereof;
     and (e) transfer any assets or cash to any Affiliate, excluding for
     purposes hereof (1) the payment to an Affiliate of such amounts as may be
     received on account of Loans serviced by the Borrower on such Affiliate's
     behalf, after deduction of management fees provided under the respective
     sale, transfer or participation agreement, (2) on or prior to the Amendment
     No. 8 Effective Date, the transfer of $4,100,000 to the Parent as
     reimbursement for allocable overhead and expenses incurred by the Parent
     for services rendered to or on behalf of the Borrower prior to July 1,
     2002, provided, that arrangements satisfactory to the Agent and the Senior
     Note Holders have been made for (A) the Parent, upon receipt of such
     proceeds, to make a capital contribution in the amount of $5,000,000 to
     Freshstart Venture Capital Corp., (B) Freshstart Venture Capital Corp. to
     purchase from the Borrower for cash, at the outstanding principal amount
     thereof plus any accrued and unpaid interest and without discount thereon
     and pursuant to documentation all as reasonably acceptable to the Agent and
     the Senior Note Holders, Medallion Loans that do not satisfy the
     Eligibility Requirements and (C) the proceeds received by the Borrower to
     be applied pro rata to permanently reduce

                                       17

<PAGE>

     outstanding principal of the Senior Notes and the Term Loans in accordance
     with Section 5 of the Intercreditor Agreement within two (2) Business Days
     following the $4,100,000 transfer to the Parent referred to above, (3)
     after the Amendment No. 8 Effective Date, the transfer of cash
     reimbursements to the Parent for all allocable overhead and expenses
     (including salary and other customary intercompany charges) incurred by the
     Parent for services rendered to or on behalf of the Borrower after July 1,
     2002, in a manner consistent with the Borrower's existing method of
     allocation as of July 1, 2002, (4) contributions from the Borrower of
     additional Medallion Loans or cash to, and/or repurchases of such Medallion
     Loans from, the SPV in connection with the Merrill Lynch Facility for an
     amount equal to the outstanding principal amount thereof plus any accrued
     and unpaid interest and without discount thereon in order (x) to cure or
     prevent any borrowing base defaults or rapid amortization event under the
     Merrill Lynch Facility and (y) to reacquire any Medallion Loans sold to the
     SPV which did not at the time of such sale meet the "eligibility criteria"
     for sale under the terms of the Merrill Lynch Facility, provided, in each
     case, that no Event of Default shall exist with respect to the Senior
     Facilities and no Event of Default shall exist with respect to the Senior
     Facilities after giving effect to such transactions and provided further
     that the Borrower provides prior written notice to the Agent and the Senior
     Note Holders of any such contributions and/or repurchases pursuant to this
     Section 8.11(e)(4), (5) any other transaction contemplated under the
     Merrill Lynch Facility or pursuant to the Shared Services Agreement, (6)
     the repurchase, at the outstanding principal amount thereof plus any
     accrued and unpaid interest and without discount thereon, of (x)
     participations in Medallion Loans from Freshstart Venture Capital Corp. on
     or prior to the Amendment No. 8 Effective Date and (y) participations in
     Medallion Loans from Atlantic Bank as permitted by Section 8.3(f)(vii)
     hereof, in each case solely in connection with a concurrent transfer of
     such Medallion Loans to the SPV in connection with the Merrill Lynch
     Facility so long as (A) the net proceeds from such transfer are, upon
     receipt, applied to permanently reduce outstanding principal of the Term
     Loans and the Senior Notes in accordance with Section 5 of the
     Intercreditor Agreement, (B) after giving effect to such repurchase and
     application of net proceeds, no Event of Default is continuing with respect
     to the Loan Agreement or the Note Purchase Agreements and (C) unless
     otherwise approved by the Agent, the aggregate amount transferred by the
     Borrower in connection with any such repurchases does not exceed $500,000
     and (7) transfers of Commercial Loans pursuant to Section 8.3(f)(v) hereof.

         (ii) After the Amendment No. 8 Effective Date, all intercompany
     transactions concerning loans serviced by the Borrower for any Affiliate or
     by any Affiliate for the Borrower, including, without limitation, sales,
     payoffs, prepayments, amortization and interest, shall be paid by the
     Borrower, and to the extent the Borrower has the right to do so, shall be
     caused by the Borrower to be paid by any such Affiliate, in cash on a
     monthly basis. In the event funds received on account of any such
     intercompany transaction exceed $250,000 with respect to any particular
     loan, settlement of such transaction shall be made in cash and shall occur
     no later than five (5) Business Days after such funds are received by the
     Borrower, as servicer."

                                       18
<PAGE>

     25. Amendment of Section 8.16 of the Loan Agreement. Section 8.16 of the
Loan Agreement is hereby amended by deleting Section 8.16 in its entirety and
substituting the following new Section 8.16 in lieu thereof:

         "Section 8.16. Portfolio Purchases. Make or effect, or obligate itself
     to make or effect, any Portfolio Purchase or other asset acquisition (other
     than the acquisition of assets in the ordinary course of business
     consistent with past practices) or stock (or other equity interest)
     acquisition, other than (i) the exchange of Commercial Loans for Medallion
     Loans as permitted by Section 8.3(f)(v) hereof, (ii) the repurchase of
     Medallion Loans from the SPV in connection with the Merrill Lynch Facility
     as permitted by Section 8.11(i)(e)(4) hereof and (iii) the repurchase of
     participations in Medallion Loans from Freshstart Venture Capital Corp. or
     Atlantic Bank as permitted by Section 8.11(i)(e)(6) hereof."

     26. Amendment of Section 8.17 of the Loan Agreement. Section 8.17 of the
Loan Agreement is hereby amended by deleting Section 8.17 in its entirety and
substituting the following new Section 8.17 in lieu thereof:

         "Section 8.17. Securitizations. Enter into any securitization or
     similar transaction (i.e., any transfer of its assets in connection with
     any sale, assignment or other transfer of any receivables, including
     accounts receivable, loan receivables, lease receivables or other payment
     obligations or any interest in any of the foregoing, which may in each case
     include any collections and other proceeds thereof, any collection or
     deposit accounts related thereto, or any collateral, guarantees or other
     property or claims supporting or securing payment by the obligor thereon
     of, or otherwise related to, any such receivables) other than the Merrill
     Lynch Facility without the prior written consent of the Agent and the
     requisite Banks (as determined by reference to Section 10.2 hereof) or as
     otherwise permitted by Sections 8.3(f)(i), (iii) and (vi) hereof."

     27. Amendment of Section 8.18 of the Loan Agreement. Section 8.18 of the
Loan Agreement is hereby amended by deleting Section 8.18 in its entirety and
inserting the following new Sections 8.18 and 8.19 in lieu thereof:

         "Section 8.18. Subsidiaries, etc. Form, acquire, create or otherwise
     suffer to exist any Subsidiary other than MFCC and the SPV, provided,
     however, that the Borrower, MFCC and the SPV comply with the requirements
     of Section 6.16 hereof.

         Section 8.19. Executive Compensation. Directly or indirectly pay any
     executive bonuses to, or otherwise increase the compensation in effect on
     the Amendment No. 8 Effective Date of, either Alvin Murstein or Andrew
     Murstein until payment in full of the Senior Obligations (as defined in the
     Intercreditor Agreement, and inclusive of the Make-Whole Amount)."

     28.   Amendment  of Section  9.1 of the Loan  Agreement.  Section 9.1 of
the Loan Agreement is hereby amended by:

                                       19
<PAGE>

     (a) deleting the references to Sections 6.1(k)(iv) and 6.16 in Section
9.1(b);

     (b) deleting the text "or 6.22" in Section 9.1(b) and substituting the text
", 6.22 or 6.23" in lieu thereof;

     (c) deleting the text "Section 6.7" in the parenthetical in Section 9.1(c)
and substituting the text "Sections 6.7 and 6.16" in lieu thereof;

     (d) inserting the following parenthetical immediately before the semicolon
at the end of Section 9.1(d):

         "(it being understood by the parties hereto that the provisions of this
     Section 9.1(d) shall not apply to the Documentation Punch List Letter)";

     (e) inserting the word "or" at the end of Section 9.1(f)(i) and deleting
Section 9.1(f)(iii) in its entirety;

     (f) deleting the comma at the end of Section 9.1(f)(ii) and inserting a
semicolon in lieu thereof; and

     (g) inserting the following new Sections 9.1(n) and (o) in proper
alphabetical order therein:

         "(n) if loans made to the SPV under the Merrill Lynch Loan Agreement
     shall have become due and payable in full (whether at maturity or by
     acceleration) and shall not have been paid in full (it being understood
     that a rapid amortization event under the Merrill Lynch Facility shall not
     be included in this clause(n)); and

         (o) if the Agent shall not have received $5,000,000 in proceeds from
     the Borrower on account of the sale of Medallion Loans to Freshstart
     Venture Capital Corp. within two (2) Business Days following the transfer
     of $4,100,000 by the Borrower to the Parent in connection with the
     transaction permitted and as required by Section 8.11(i)(e)(2) hereof."

     29. Amendment of Section 9.2 of the Loan Agreement. Section 9.2 of the Loan
Agreement is hereby amended by adding the following new sentence at the end of
such Section:

     "In addition and subject to the provisions of the Intercreditor Agreement,
in case any one or more Events of Default shall occur and be continuing, each
Bank, if owed any amount with respect to the Loans, may, with the consent of the
Required Banks but not otherwise, proceed to protect and enforce its rights by
suit in equity, action at law or other appropriate proceeding, whether for the
specific performance of any covenant or agreement contained in this Agreement
and the other Loan Documents or any instrument pursuant to which the Borrower
Obligations to such Bank are evidenced, and, if such amount shall have become
due, by declaration or otherwise, proceed to enforce the payment thereof or any
other legal or equitable right of such Bank."

                                       20

<PAGE>

     30. Amendment of Section 9.5 of the Loan Agreement. Section 9.5 of the Loan
Agreement is hereby amended by deleting Section 9.5 in its entirety and
substituting the following new Section 9.5 in lieu thereof:

         "Section 9.5 Further Payments. Subject to the terms of the
     Intercreditor Agreement, in the event that the Term Loans and all other
     amounts owing under the Loan Documents shall have been declared due and
     payable pursuant to the provisions of this Section or that all outstanding
     Term Loans shall not have been paid in full at Maturity, any funds received
     by the Agent and the Banks from or on behalf of the Borrower shall be
     remitted to, and applied by, the Agent in the following manner and order:
     (a) first, to the payment of interest on, and then the principal portion
     of, any Term Loans which the Agent may have advanced on behalf of any Bank
     for which the Agent has not then been reimbursed by such Bank or the
     Borrower; (b) second, to reimburse the Agent and the Documentation Agent
     for any expenses due from the Borrower pursuant to the provisions of
     Section 10.6, (c) third, to the payment of the Fees, (d) fourth, to the
     payment of any other fees, expenses or amounts (other than the principal of
     and interest on the Term Loans) payable by the Borrower to the Agent, the
     Documentation Agent or any of the Banks under the Loan Documents, (e)
     fifth, to the payment, pro rata according to the Exposure Percentage of
     each Bank, of interest due on the Term Loans, (f) sixth, to the payment,
     pro rata according to Exposure Percentage of each Bank, of principal on the
     Term Loans, of such principal, (g) seventh, any remaining funds shall be
     paid to whomsoever shall be entitled thereto or as a court of competent
     jurisdiction shall direct."

     31. Amendment of Section 10 of the Loan Agreement. Section 10 of the Loan
Agreement is hereby amended by adding the following new Section 10.19 in proper
numerical order therein:

         "Section 10.19 Security Interest in Reacquired Medallion Loans. The
     Borrower hereby acknowledges that, notwithstanding any release or waiver of
     any Lien given in connection with the sale or contribution of Medallion
     Loans by the Borrower to the SPV, the Lien created by the Borrower Security
     Agreement shall attach to all after-acquired Collateral (as defined in the
     Borrower Security Agreement) including, without limitation, any Medallion
     Loan repurchased or reacquired by the Borrower following the sale or
     contribution of such Medallion Loan to the SPV."

     32. Amendment to Schedules to the Loan Agreement. The Schedules to the Loan
Agreement are hereby amended by deleting Schedule III thereto in its entirety
and substituting in lieu thereof Schedule III attached hereto.

     33. Waivers.

     (a) Subject to the terms and conditions hereof, each of the Banks hereby
waives (i) the Borrower's compliance with the requirement of Section 8.3(e)(i)
of the Loan Agreement (as in effect prior to the Amendment No. 8 Effective
Date); provided, however, that Investments in the Parent with respect to the
intercompany account between the Borrower

                                       21
<PAGE>

and the Parent in an aggregate amount do not to exceed $8,598,828 through August
31, 2003 and (ii) the Events of Default listed on Annex C attached hereto.

     (b) The Borrower hereby acknowledges that (i) one or more Events of Default
have occurred under the Loan Agreement since May 15, 2002, (ii) the waivers
contained in this Amendment shall not become effective until the Amendment No. 8
Effective Date and (iii) the Agent has been collecting, and will continue to
collect until the Amendment No. 8 Effective Date, for the ratable benefit of the
Banks, and the Banks shall be entitled to retain, interest on all outstanding
Loans at the rate of interest set forth in Section 2.6 of the Loan Agreement.

     (c) The Borrower has reported certain violations of the Note Purchase
Agreements. Subject to the terms and conditions hereof, each of the Agent and
the Banks, following the effectiveness of the Senior Note Holders' waiver
required by Section 36(d) hereof, hereby waives any Default or Event of Default
which may have occurred or may occur under Section 9.1(f) of the Loan Agreement
to the extent such defaults are described in such waiver of the Senior Note
Holders, provided that such defaults do not exceed the thresholds required by
the Senior Note Holders in any such waiver of the defaults and events of default
under the Note Purchase Agreement.

     34. Amendments to the Security Agreement. The Borrower Security Agreement
is hereby amended by:

     (a) (i) deleting the period at the end of Section 4.1(l) and substituting a
semicolon in lieu thereof, and (ii) adding the following new paragraph at the
end of Section 4.1:

         "excluding, however, from the representations contained in Sections
     4.1(b) and (c) above, Specified Loans which do not comply with such
     Sections solely on account of such Loans' status as Specified Loans."

     (b) adding the following new paragraph at the end of Section 6.10:

         "To the extent any Investments are made in the SPV as permitted by
     Section 8.3(e)(ii) of the Loan Agreement, the SPV shall acquire the assets
     comprising such Investments free and clear of the liens created by this
     Agreement and the other Loan Documents. To the extent that any Medallion
     Loan, Commercial Loan or other asset is sold, transferred or disposed of
     and the sale, transfer or disposition is permitted under the Loan
     Agreement, the sale, transfer or disposition of the asset shall be free and
     clear of the liens created by this Agreement and the other Loan Documents.
     However, in the case of any such permitted Investment, sale, transfer or
     disposition, the liens created by this Agreement and the other Loan
     Documents shall attach to the proceeds of the Investment, sale, transfer of
     disposition. In the case of an Investment, sale, transfer or disposition
     free and clear of the liens created by this Agreement and the other Loan
     Documents, the Agent is authorized to provide to the transferee appropriate
     evidences of release of the liens. If the Investment, sale, transfer or
     disposition is permitted under the Loan Agreement only in the absence of a
     Default or Event of Default, the Agent shall be fully protected in
     providing such

                                       23
<PAGE>

     evidence of release so long as the officers of the Agent active on the
     Borrower's account have no actual knowledge of the existence of a Default
     or Event of Default. Nothing contained in this Section 6.10 shall result in
     a lien on or a security interest in the capital stock of Freshstart Venture
     Capital Corp in favor of the Agent."; and

     (c)   adding the  following new Section 6.16 in proper  numerical  order
therein:

         "Section 6.16. Inconsistent Provisions. If any provision of this
     Agreement relating to any lien on or security interest in any Investment by
     the Borrower in Taxi Medallion Loan Trust I, a special purpose, bankruptcy
     remote, Delaware business trust, shall be inconsistent with, or contrary
     to, any provision in the Collateral Assignment of Ownership Interests dated
     as of September 11, 2002 (the "Assignment"), from the Borrower in favor of
     the Agent, the provision in the Assignment shall be controlling and shall
     supersede such inconsistent provision in this Agreement to the extent
     necessary to give full effect to all provisions contained in the
     Assignment; provided, however, that but for the limitations imposed on
     account of the Standback Termination Date (as such term is defined in the
     Assignment), nothing contained in the Assignment shall derogate from any of
     the rights or remedies of the Agent contained in this Agreement or such
     document."

     35. Irrevocable Payment Instructions.

     (a) Subject to the provisions of Section 6.22 of the Loan Agreement, if the
Agent should at any time or from time to time determine that any invoices for
the fees and expenses of counsel to the Agent or any invoices for the fees and
expenses of Argus Management Corporation or any other financial consultants
hired by the Agent or its counsel have not been reimbursed by the Borrower to
the Agent, the Agent shall be entitled to debit the Borrower's Operating Account
in an amount equal to the outstanding fees and expenses and to apply such amount
to the unreimbursed fees and expenses.

     (b) The Borrower has entered into a funds transfer agreement with the Agent
on the Agent's customary form. The following provisions are supplemental to the
funds transfer agreement:

         (i) The Borrower hereby submits to the Agent a standing payment order
     to pay from the Borrower's Operating Account the amount set forth at any
     time or from time to time in any written notification received by the Agent
     from the Senior Note Holders (A) stating that the funds transfer is being
     requested to pay the outstanding fees and expenses of counsel to the Senior
     Note Holders, Nightingale & Associates LLC or any other financial
     consultants hired by the Senior Note Holders or their counsel and (B)
     containing funds transfer instructions.

         (ii) The Agent shall be fully protected in relying on any such
     notification and complying with the funds transfer instructions contained
     therein and shall not be responsible for the truth, accuracy, authenticity
     or genuineness of the notification or of any information contained therein.
     The Borrower agrees to indemnify and to hold

                                       23
<PAGE>

     the Agent harmless from and against any losses, costs or expenses sustained
     or incurred by the Agent in accepting a payment order and complying with
     the funds transfer instructions. Such indemnity obligations shall
     constitute obligations under the Credit Agreement secured by the
     Collateral.

         (iii) The standing payment order set forth in this Section 35(b) may
     not be cancelled without the prior written consent of the Senior Note
     Holders. The Borrower and the Agent agree not to amend the funds transfer
     agreement between them so as to derogate from the provisions in favor of
     the Senior Note Holders contained in this Section 35(b).

     36. Representations and Warranties, Etc.

         (a) Each of the Borrower and the Guarantors hereby represents and
     warrants to the Agent and the Banks as of the date hereof, and as of any
     date on which the conditions set forth in Section 37 below are met, as
     follows:

             (i) The execution and delivery by each of the Borrower and the
         Guarantors of this Amendment, Amendment No. 5 to the Financial
         Agreement and all other instruments and agreements required to be
         executed and delivered by each of the Borrower and the Guarantors in
         connection with the transactions contemplated hereby and thereby or
         referred to herein or therein (collectively, the "Amendment
         Documents"), and the performance by each of the Borrower and the
         Guarantors of any of their respective obligations and agreements under
         the Amendment Documents, the Loan Agreement and the other Loan
         Documents, as amended hereby, are within the corporate or other
         authority of each of the Borrower and the Guarantors, as the case may
         be, have been duly authorized by all necessary proceedings on behalf of
         each of the Borrower and the Guarantors, as the case may be, and do not
         and will not contravene any provision of law or of any judgment, order
         or decree applicable to or binding on the Borrower or the Guarantors,
         or of the Borrower's or either Guarantor's charter, other incorporation
         or organizational papers, or by-laws or any stock provision or any
         amendment thereof or of any indenture, agreement, instrument or
         undertaking binding upon the Borrower or the Guarantors.

             (ii) Each of the Amendment Documents and the Loan Agreement and
         other Loan Documents, as amended hereby, to which the Borrower or a
         Guarantor is a party constitutes a legal, valid and binding obligation
         of such Person, enforceable in accordance with its terms, except as
         limited by bankruptcy, insolvency, reorganization, moratorium or
         similar laws relating to or affecting generally the enforcement of
         creditors' rights.

             (iii) No approval or consent of, or filing with, any Governmental
         Authority is required to make valid and legally binding the execution,
         delivery or performance by each of the Borrower and the Guarantors of
         the Amendment Documents or the Loan Agreement or other Loan Documents,
         as amended

                                       24
<PAGE>

         hereby, or the consummation by each of the Borrower and the Guarantors
         of the transactions among the parties contemplated hereby and thereby
         or referred to herein or therein.

             (iv) The representations and warranties contained in Article 4 of
         the Loan Agreement and in the other Loan Documents were true and
         correct at and as of the date made. Except to the extent of changes
         resulting from transactions contemplated or permitted by the Loan
         Agreement and the other Loan Documents, changes occurring in the
         ordinary course of business (which changes, either singly or in the
         aggregate, have not been materially adverse to the interests of the
         Banks or the Senior Note Holders) and to the extent that such
         representations and warranties relate expressly to an earlier date and
         after giving effect to the provisions hereof, such representations and
         warranties, after giving effect to this Amendment, also are correct at
         and as of the date hereof.

             (v) Each of the Borrower and the Guarantors has performed and
         complied in all material respects with all terms and conditions herein
         and in the Loan Documents required to be performed or complied with by
         it prior to or at the time hereof, and as of the date hereof, after
         giving effect to the provisions of this Amendment and the other
         Amendment Documents, there exists no Event of Default or Default.

         (b) Each of the Borrower and the Guarantors acknowledges and agrees
     that the representations and warranties contained in this Amendment shall
     constitute representations and warranties referred to in Article 4 of the
     Loan Agreement, a breach of which shall constitute an Event of Default.

     37. Effectiveness.

     (a) Except as set forth in Section 37(b) below, this Amendment shall become
effective (the "Amendment No. 8 Effective Date") upon the satisfaction of each
of the following conditions, in each case in a manner satisfactory to, and in
form and substance satisfactory to, the Agent on or before September 13, 2002:

         (i) This Amendment shall have been duly executed and delivered by each
     of the Borrower, the Guarantors, the Agent and the requisite Banks and
     shall be in full force and effect.

         (ii) The SPV Pledge Agreement shall have been duly executed, in full
     force and effect and delivered by the Borrower, together with (A) all trust
     certificates or other certificates evidencing the Borrower's beneficial and
     ownership interests in the SPV, (B) a dated instruction letter to the
     trustee, advising the trustee of the transfer of the trust certificate, (C)
     instruments of assignment duly executed in blank, and (D) an undated
     consent from the management board of the SPV, consenting to the transfer.

         (iii) The Agent shall have received (A) evidence of the effectiveness
     of an amendment to the Financial Agreement, in form and substance
     satisfactory to the Agent,

                                       25
<PAGE>

     together with all requisite consents, in form and substance satisfactory to
     the Agent, from the Financial Banks, including without limitation consent
     for the $5,000,000 capital contribution by the Parent to Freshstart Venture
     Capital Corp and (B) evidence of the waiver of any defaults existing
     immediately prior to the Amendment No. 8 Effective Date under the Financial
     Agreement.

         (iv) The Agent shall have received (A) evidence of the effectiveness of
     an amendment to the Note Purchase Agreements, in form and substance
     satisfactory to the Agent, and (B) evidence of the waiver of any defaults
     existing immediately prior to the Amendment No. 8 Effective Date under the
     Note Purchase Agreements, each in form and substance satisfactory to the
     Agent.

         (v) The Agent shall have received copies of all of the documentation
     executed and delivered in connection with the Merrill Lynch Facility,
     together with satisfactory evidence of consummation of the Merrill Lynch
     Facility upon terms and conditions satisfactory to the Agent and the Senior
     Note Holders.

         (vi) The Agent shall have received a payment of not less than
     $99,000,000 from the proceeds of the consummation of the Merrill Lynch
     Facility and cash on hand of the Borrower, which payment (A) when added to
     the proceeds to be received on account of the transaction permitted
     pursuant to Section 8.11(i)(e)(2) of the Loan Agreement, shall total no
     less than $104,000,000 and (B) shall be applied to repay outstanding Term
     Loans and the principal amounts outstanding under the Senior Notes, in an
     amount equal to one hundred percent (100%) of such payment, with such
     payment being allocated among the Banks, the Agent and the Senior Note
     Holders on a pro rata basis in accordance with the provisions of Section 5
     of the Intercreditor Agreement.

         (vii) The Agent shall have received, for the pro rata account of the
     Banks, all accrued and unpaid interest on the principal amount of Loans
     outstanding immediately prior to the Amendment No. 8 Effective Date at the
     rate set forth in Section 2.6 of the Loan Agreement.

         (viii) The Agent shall have received, for the pro rata account of each
     Bank, amendment fees equal to, in the case of each Bank, 0.25% multiplied
     by such Bank's Percentage of the principal amount of Term Loans outstanding
     as of the date hereof (after giving effect to the Principal Payment
     required on the Amendment No. 8 Effective Date.

         (ix) The Agent shall have received evidence satisfactory to the Agent
     that the $854,000 intercompany balance between the Borrower and Freshstart
     Venture Capital Corp. has been reduced to $0.

         (x) All outstanding Swing Lines Loans shall be paid in full.

         (xi) All reports, statements, schedules, certificates and other
     documents required to be delivered to the Agent and each Bank pursuant to
     Section 6.1 of the Loan Agreement, as amended by this Amendment, shall have
     been so delivered.

                                       26
<PAGE>

         (xii) The Agent shall have received a copy of a fully executed letter
     between the Borrower and a document imaging company, such letter to be in
     form and substance reasonably satisfactory to the Agent, which letter sets
     forth rates for such document imaging company to produce compact discs
     containing imaged copies of all of the promissory notes, security
     agreements and financing statements related to the Bank Loans constituting
     Collateral, with such descriptive data items attached to each such
     promissory note, security agreement and financing statement as may be
     requested by the Agent to permit sorting and indexing.

         (xiii) Except as specified in the Documentation Punch List Letter, the
     Agent shall have received (A) copies of appropriate assignment documents
     for intercompany loan transfers identified by M.R. Weiser as necessary or
     desirable including, without limitation, all promissory notes owned by the
     Borrower marked to reflect any chain of assignment thereof to the Borrower
     and (B) satisfactory evidence that all necessary steps to rectify any
     material deficiencies noted by M.R. Weiser in its review of the Collateral
     have been performed.

         (xiv) The Agent shall have received from the Secretary of the Borrower
     a copy, certified by such Secretary to be true and complete as of such
     date, of the resolutions of its Board of Directors or other management
     authorizing, to the extent it is a party thereto, the execution, delivery
     and performance of Amendment No. 8.

         (xv) The Agent shall have received favorable legal opinions addressed
     to the Agent and the Banks, dated as of the date hereof, in form and
     substance satisfactory to the Agent, from counsel to the Borrower and the
     Guarantors and Delaware counsel to the Borrower, concerning corporate or
     other applicable entity authority matters and the enforceability of each of
     the Amendment Documents and the SPV Pledge Agreement, and the Loan
     Agreement and the other Loan Documents as amended thereby, and concerning
     such other matters as the Agent may request.

         (xvi) The Agent shall have received an indemnification from the Senior
     Note Holders, in form and substance satisfactory to the Agent, relating to
     any payment order accepted by the Agent pursuant to Section 35 hereof.

         (xvii) Bingham McCutchen LLP shall have received payment of all fees
     and expenses outstanding as of the date hereof, including, but not limited
     to, fees and expenses occurred in connection with the preparation of this
     Amendment and ancillary documentation and all fees and expenses incurred in
     connection with the employment of Argus Management Corporation.

         (xviii) Bingham McCutchen LLP shall have received payment of a retainer
     in the amount of $100,000, which amount shall include a retainer on account
     of the continued employment of Argus Management Corporation.

         (xix) The Agent shall have received such other items, documents,
     agreements or actions as the Agent may reasonably request in order to
     effectuate the transactions contemplated hereby.

                                       27
<PAGE>

     (b) The amendments set forth in (i) Section 8.3(f)(v) (sale of up to
$10,000,000 of Commercial Loans to the Parent in exchange for Medallion Loans of
equivalent value), (ii) Section 8.11(i)(e)(2) (transfer of $4,100,000 to the
Parent as reimbursement for allocable overhead and expenses) and (iii) Section
8.11(i)(e)(6)(x) (repurchase of participations in Medallion Loans from
Freshstart Venture Capital Corp.) shall become effective as of the date hereof.
In the event that either of the transactions described in Sections 37(b)(i) and
(ii) above occur on or after the date hereof and prior to the Amendment No. 8
Effective Date, the requirement that no Default or Event of Default shall have
occurred or be continuing, or would result therefrom, shall not apply thereto.

     (c) The Agent agrees to provide notice to the Borrower of the occurrence
and date of the Amendment No. 8 Effective Date promptly upon satisfaction of
each of the foregoing conditions. Such notice shall be conclusive and binding on
all parties hereto.

     38. Release. In order to induce the Agent and the Banks to enter into this
Amendment, the Borrower, on behalf of itself and its Subsidiaries, acknowledges
and agrees that: (a) none of the Borrower nor such Subsidiaries has any claim or
cause of action against the Agent, the Swing Line Lender, the Collateral Agent
or any Bank (or any of their respective directors, officers, employees or
agents); (b) none of the Borrower nor such Subsidiaries has any offset rights,
counterclaims or defenses of any kind against any of its respective obligations,
indebtedness or liabilities to the Agent, the Swing Line Lender, the Collateral
Agent or any Bank; and (c) each of the Agent, the Swing Line Lender, the
Collateral Agent and the Banks has heretofore properly performed and satisfied
in a timely manner all of its obligations to the Borrower and each such
Subsidiary. The Borrower, on behalf of itself and its Subsidiaries, wishes to
eliminate any possibility that any past conditions, acts, omissions, events,
circumstances or matters would impair or otherwise adversely affect any of the
Agent's, the Swing Line Lender's, the Collateral Agent's or the Banks' rights,
interests, contracts, collateral security or remedies. Therefore, the Borrower,
on behalf of itself and its Subsidiaries, unconditionally releases, waives and
forever discharges (x) any and all liabilities, obligations, duties, promises or
indebtedness of any kind of the Agent, the Swing Line Lender, the Collateral
Agent or any Bank to the Borrower or any of its Subsidiaries, except the
obligations to be performed by the Agent, the Swing Line Lender, the Collateral
Agent or any Bank on or after the date hereof as expressly stated in this
Amendment, the Loan Agreement and the other Loan Documents, and (y) all claims,
offsets, causes of action, suits or defenses of any kind whatsoever (if any),
whether arising at law or in equity, whether known or unknown, which the
Borrower or any such Subsidiary might otherwise have against the Agent, the
Swing Line Lender, the Collateral Agent, any Bank or any of its directors,
officers, employees or agents, in either case (x) or (y), on account of any past
or presently existing condition, act, omission, event, contract, liability,
obligation, indebtedness, claim, cause of action, defense, circumstance or
matter of any kind.

     39. Miscellaneous Provisions.

     (a) The Borrower hereby ratifies and confirms all of its obligations to the
Agent and the Banks under the Loan Agreement and the other Loan Documents, in
each case as amended hereby, including, without limitation, the Bank Loans, and
the Borrower hereby affirms its

                                       28
<PAGE>

absolute and unconditional promise to pay to the Banks and the Agent the Term
Loans, reimbursement obligations and all other amounts due or to become due and
payable to the Banks and the Agent under the Loan Agreement and the other Loan
Documents, as amended hereby. Except as expressly amended hereby, each of the
Loan Agreement and the other Loan Documents shall continue in full force and
effect. This Amendment and the Loan Agreement shall hereafter be read and
construed together as a single document, and all references to the Loan
Agreement in the Loan Agreement, any other Loan Document or any agreement or
instrument related to the Loan Agreement shall hereafter refer to the Loan
Agreement as amended by this Amendment.

     (b) No consent or waiver herein granted shall extend to or affect any
obligations not expressly herein consented to or waived or shall impair any
right of the Agent or the Banks consequent thereon. No consent or waiver herein
granted shall extend beyond the term expressly set forth herein for such consent
or waiver, nor shall anything contained herein be deemed to imply any
willingness of the Agent or the Banks to agree to, or otherwise prejudice any
rights of the Agent and the Banks with respect to, any similar or dissimilar
consents or waivers that may be requested for any future period.

     (c) Without limiting the expense reimbursement requirements set forth in
Section 10.6 of the Loan Agreement, the Borrower agrees to pay on demand all
costs and expenses, including reasonable attorneys' fees, of the Agent incurred
in connection with this Amendment.

     (d) THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO CONFLICT OF LAWS).

     (e) This Amendment may be executed in any number of counterparts, and all
such counterparts shall together constitute but one instrument. In making proof
of this Amendment it shall not be necessary to produce or account for more than
one counterpart signed by each party hereto by and against which enforcement
hereof is sought.

                      [signature pages immediately follow]

                                       29

<PAGE>

     IN WITNESS WHEREOF, intending to be legally bound, each of the undersigned
has caused this Amendment to be executed on its behalf by its officer thereunto
duly authorized, as of the date first above written.

                                    MEDALLION FUNDING CORP.

                                    By:/s/ Alvin Murstein
                                       -----------------------------------
                                       Name:  Alvin Murstein
                                       Title: Chief Executive Officer

                                    By:/s/ James Jack
                                       -----------------------------------
                                       Name:  James E. Jack
                                       Title: Executive Vice President &
                                              Chief Financial Officer

                                    FLEET NATIONAL BANK (f/k/a Fleet Bank,
                                    National Association), as Agent, as Swing
                                    Line Lender and as one of the Banks

                                    By:/s/ Mark A. Van Osdol
                                       -----------------------------------
                                       Name:  Mark A. Van Osdol
                                       Title: Senior Vice President

                                    THE BANK OF NEW YORK, as Documentation
                                    Agent and as one of the Banks

                                    By:/s/ George P. Malanga
                                       -----------------------------------
                                       Name:  George P. Malanga
                                       Title: Senior Vice President

<PAGE>

                                    HARRIS TRUST AND SAVINGS BANK

                                    By:/s/ Michael S. Cameli
                                       -----------------------------------
                                       Name:  Michael S. Cameli
                                       Title: V.P.

                                    BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                                    By:/s/ Fredrich N. Wilms
                                       -----------------------------------
                                       Name:  F.N. Wilms
                                       Title: Vice President

                                    JPMORGAN CHASE BANK (f/k/a The Chase
                                    Manhattan Bank)

                                    By:/s/ Cynthia Lash
                                       -----------------------------------
                                       Name:  Cynthia Lash
                                       Title: Vice President

                                    ISRAEL DISCOUNT BANK OF NEW YORK

                                    By:/s/ Robert J. Fainelli
                                       -----------------------------------
                                       Name:  Robert J. Fainelli
                                       Title: First Vice President

                                    By:/s/ Howard Weinberg
                                       -----------------------------------
                                       Name:  Howard Weinberg
                                       Title: Senior Vice President

<PAGE>

                                    CITIBANK, N.A. (f/k/a European American
                                    Bank)

                                    By:/s/ Daniel J. Horan
                                       -----------------------------------
                                       Name:  Daniel J. Horan
                                       Title: Sr. Vice President

                                    BANK LEUMI USA

                                    By:/s/ John Koenigsberg  /s/ Paul Tine
                                       -----------------------------------
                                       Name:  John Koenigsberg   Paul Tine
                                       Title: FVP                VP

                                    HSBC BANK USA

                                    By:/s/ Walter J. Oemcke
                                       -----------------------------------
                                       Name:  Walter J. Oemcke
                                       Title: Vice President

<PAGE>

     Each of the undersigned hereby reaffirms and ratifies all of its agreements
and obligations under the Loan Documents which such Person is a party to, and
confirms that it consents to the amendment of the Loan Agreement as set forth
above.

MEDALLION TAXI MEDIA, INC.

By:/s/ Andrew M. Murstein
   -----------------------------------
   Name:  Andrew M. Murstein
   Title: Chief Executive Officer

By:/s/ Michael Leible
   -----------------------------------
   Name:  Michael Leible
   Title: President

MEDALLION FINANCIAL CORP.

By:/s/ Alvin Murstein
   -----------------------------------
   Name:  Alvin Murstein
   Title: Chief Executive Officer

By:/s/ James Jack
   -----------------------------------
   Name:  James E. Jack
   Title: Chief Financial Officer and
          Executive Vice President

MEDALLION FUNDING CHICAGO CORP.

By:/s/ Alvin Murstein
   -----------------------------------
   Name:  Alvin Murstein
   Title: Chief Executive Officer

By:/s/ James Jack
   -----------------------------------
   Name:  James E. Jack
   Title: Chief Financial OfficerExhibit 10.3

                      FOURTH AMENDMENT TO THE NOTE PURCHASE
                     AGREEMENTS, LIMITED WAIVER AND CONSENT

     This Fourth Amendment to the Note Purchase Agreements, Limited Waiver and
Consent dated as of September 11, 2002 (this "Amendment") is entered by and
among Medallion Funding Corp., a New York corporation (the "Company") and each
of the institutional investors named on Schedule A hereto (collectively, the
"Holders"). Capitalized terms used but not defined herein shall have the
meanings specified in the Existing Note Purchase Agreements (as defined below).

     WHEREAS, the Company is a party to a separate Note Purchase Agreement dated
as of June 1, 1999, with each of the Holders (collectively, as amended on March
30, 2001, June 29, 2001, and April 1, 2002, the "Existing Note Purchase
Agreements" and, as amended hereby, the "Note Purchase Agreements"), pursuant to
which the Company issued and sold $22,500,000 aggregate principal amount of
7.20% Senior Secured Notes, Series A, due June 1, 2004, and $22,500,000
aggregate principal amount of 7.20% Senior Secured Notes, Series B, due
September 1, 2004 (collectively, as amended and restated on April 1, 2002, the
"Outstanding Notes" and, as amended and restated in connection with this
Amendment, the "Notes").

     WHEREAS, the Company has requested certain amendments to the Existing Note
Purchase Agreements and waivers of certain provisions thereof and, subject to
the terms and conditions set forth herein, the Company and the Holders have
agreed to amend the Existing Note Purchase Agreements and waive certain
provisions thereof; and

     NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree to amend the Existing Note Purchase
Agreements as follows:

     1. Amendments to Definitions. Schedule B to the Existing Note Purchase
Agreements is hereby amended by:

     (a) deleting the following definitions in their entirety:

          "Permitted Commercial Sale"

          "Permitted Sales"

          "Monthly Permitted Asset Sales"

     (b) in the definition of "Eligibility Requirements," (i) deleting the
semicolon at the end of subsection (f) and inserting a comma in lieu thereof,
(ii) deleting the text "and" at the end of subsection (g), (iii) deleting the
period at the end of subsection (h) and inserting a comma in lieu thereof, and
(iv) inserting the following new subsection (i) in proper alphabetical order:

     "(i) such Loan, if a Specified Loan, is a Permitted Specified Loan."

     (c) deleting the following definitions in their entirety and substituting
in lieu thereof the following new definitions:

<PAGE>

          "Collateral" shall mean and include all existing and after-acquired
     interests in the assets and property of whatever nature whatsoever, real,
     personal or mixed, tangible or intangible, of the Company and MFCC. The
     term shall include the stock of Media pledged by the Parent pursuant to the
     terms of the Parent Pledge Agreement, the stock of MFCC pledged by the
     Company pursuant to the terms of the MFCC Pledge Agreement and the
     beneficial and ownership interests in the SPV pledged by the Company
     pursuant to the terms of the SPV Pledge Agreement, securing the Notes and
     all other property and interests in personal property that shall, from time
     to time, secure the Notes.

          "Collateral Agent" shall have the meaning specified in the Company
     Security Agreement as well as, when the context requires, the Intercreditor
     Agreement.

          "Dividends" shall mean for both the most recently completed fiscal
     quarter of the Company and its Subsidiaries and the most recently completed
     four fiscal quarters of the Company and its Subsidiaries, the sum of all
     (a) paid cash dividends on Capital Stock of the Company and its
     Subsidiaries, plus (b) accrued and unpaid cash dividends on Capital Stock
     of the Company and its Subsidiaries.

          "Existing Note Purchase Agreements" shall have the meaning specified
     in the recitals of the Fourth Amendment.

          "Guaranty" or "Guaranties" shall mean, in the singular or the plural
     as the context requires, the separate Guaranties from each of the
     Guarantors in favor of the Holders guaranteeing the payment and performance
     of the Company Obligations.

          "Maturity Date" shall mean the earlier of (i) August 31, 2003, and
     (ii) the date that all of the Notes shall become due and payable pursuant
     to Section 12.

          "Net Finance Assets" shall mean, as of any date of calculation, an
     amount equal to the sum of:

               (i) (A) cash of up to $5,000,000, plus (B) cash pledged to the
          Intercreditor Collateral Agent, for the ratable benefit of the Holders
          and the Funding Banks, pursuant to a cash collateral security
          agreement in form and substance satisfactory to the Required Holders
          plus (C) Short Term Investments shown on the Company's balance sheet
          as of such date, plus

               (ii) 83.33% of the sum, without duplication, of (A) the aggregate
          outstanding principal balances of, plus accrued interest (excluding
          deferred interest) on, all Eligible Medallion Loans and Eligible
          Commercial Loans shown on the Company's balance sheet as of the last
          day of the most recent month, minus (B) the portion, if any, of the
          Loans, plus accrued interest (excluding deferred interest) thereon,
          that the Company, in its reasonable business judgment, deems to be
          uncollectible or subject to classification as non-accruing, minus (C)
          the Eligible Loans, plus accrued interest (excluding deferred
          interest) thereon, which are more than 60 days past due, plus

                                       2

<PAGE>

               (iii) 83.33% of 75% of the Eligible Medallion Loans and accrued
          interest (excluding deferred interest) thereon which are more than 60
          days past due, but are less than 91 days past due, plus

               (iv) 83.33% of 65% of the Eligible Medallion Loans and accrued
          interest (excluding deferred interest) thereon which are more than 90
          days past due, but are less than 121 days past due;

     provided, that if all or any part of any Medallion Loan or Commercial Loan
     would be excluded under any of the provisions set forth above, then the
     entire outstanding principal amount of, plus accrued interest (including
     deferred interest) on, such Medallion Loan or Commercial Loan shall be
     excluded.

          "Note Documents" shall mean the Note Purchase Agreements, the Other
     Agreements, the Notes, the Security Documents, the Intercreditor Agreement,
     the Collateral Agency Agreement, and all other documents, instruments,
     certificates and notices at any time delivered in connection with the
     foregoing, in each case as amended modified or restated from time to time.

          "Note Purchase Agreements" shall have the meaning specified in the
     recitals of the Fourth Amendment.

          "Notes" shall have the meaning specified in the recitals of the Fourth
     Amendment.

          "Outstanding Notes" shall have the meaning specified in the recitals
     of the Fourth Amendment.

          "Restricted Payment" shall mean, with respect to the Company and its
     Subsidiaries, any of the following: (i) the payment of any dividend on or
     any distribution in respect of any Capital Stock, (ii) any defeasance,
     redemption, repurchase or other acquisition or retirement for value prior
     to the scheduled maturity of any Indebtedness ranked pari passu or
     subordinate in right of payment to the Notes or of any Indebtedness having
     a maturity date prior to the maturity of the Notes (other than Permitted
     Debt); (iii) when paid (or when the proceeds of which are paid) to any
     Person during the continuance of any Default or Event of Default, any
     defeasance, redemption, repurchase or other acquisition or retirement for
     value prior to the scheduled maturity of any Indebtedness permitted by
     Section 10.18 hereof; (iv) the redemption, repurchase, retirement or other
     acquisition of any Capital Stock of the Company or its Subsidiaries or of
     any warrants, rights or options to purchase or acquire any Capital Stock of
     the Company or its Subsidiaries (other than pursuant to and in accordance
     with stock option plans and other benefit plans for management or employees
     of the Company and its Subsidiaries, in an aggregate amount not in excess
     of $500,000 during any 12 month period, provided that any such redemption,
     repurchase, retirement or other acquisition of any Capital Stock of the
     Company or its Subsidiaries or of any warrants, rights or options to
     purchase or acquire any Capital Stock of the Company or its Subsidiaries
     otherwise permitted this parenthetical clause shall not be permitted
     following the occurrence and during the

                                       3

<PAGE>

     continuance of any Default or Event of Default); (v) any expenditure or the
     incurrence of any liability to make any expenditure for any Investment not
     permitted by Section 10.8 hereof; (vi) when incurred during the continuance
     of a Default or Event of Default, any expenditure or the incurrence of any
     liability to make any expenditure for any Investment permitted by Section
     10.8 hereof; (vii) the payment of any principal of, interest on, or any
     amounts due in respect of, any Indebtedness not permitted by Section 10.18
     hereof; (viii) the payment of any principal of, or interest on, or any
     other amounts due in respect of, any Subordinated Debt; and (ix) the
     setting aside of any amount or property for payment of Indebtedness
     described above, by means of a sinking fund, defeasance or otherwise.

          "Security Documents" shall mean the Company Security Agreement,
     Company Financing Statements, any Mortgage Assignment, the Parent Pledge
     Agreement, the MFCC Pledge Agreement, the SPV Pledge Agreement, the
     Guaranties, the Lockbox Agreements (as defined in the Bank Loan Agreement)
     and any other instruments, documents or agreements referred to herein or
     related hereto pursuant to which the Company or any of its Subsidiaries
     agrees to grant Liens in favor of the Holders.

     (d) inserting the following new definitions in proper alphabetical order
therein:

          "Documentation Punch List Letter" shall mean that certain letter
     agreement dated on or before the Fourth Amendment Effective Date, among the
     Company, the Intercreditor Collateral Agent, the Agent and the Holders,
     which sets forth those items that are required to be completed by the
     Company within the applicable required periods specified therein.

          "Fourth Amendment" shall mean the Fourth Amendment to the Note
     Purchase Agreements, Limited Waiver and Consent dated as of September 11,
     2002, by and between the Company, MFCC, Media and each of the Holders.

          "Fourth Amendment Effective Date" shall mean the date on which the
     Company has satisfied, to the satisfaction of each of the Holders, each of
     the conditions listed in Section 34 of the Fourth Amendment, as evidenced
     by the notice given pursuant to Section 34(c) therein.

          "Guarantor/Guarantors" Media and/or MFCC, as the context requires.

          "Media" shall mean Medallion Taxi Media, Inc., a New York corporation.

          "Merrill Lynch" shall mean Merrill Lynch Bank USA or an affiliate
     thereof, including any permitted assignee under the Merrill Lynch Facility.

          "Merrill Lynch Facility" shall mean the financing transaction to close
     on or about the Fourth Amendment Effective Date, pursuant to which the SPV
     will from time to time borrow money from Merrill Lynch and the SPV will
     from time to time use the proceeds to purchase Medallion Loans from the
     Company.

                                       4

<PAGE>

          "Merrill Lynch Loan Agreement" shall mean the Loan and Security
     Agreement dated on or about the Fourth Amendment Effective Date, by and
     among the SPV and Merrill Lynch.

          "Permitted Specified Loans" shall mean Specified Loans that do not
     exceed (A) $12,000,000 for the period from and including the Fourth
     Amendment Effective Date to but not including the date which is ninety (90)
     days after the Fourth Amendment Effective Date, (B) $6,000,000 for the
     period from and including the date which is ninety (90) days after the
     Fourth Amendment Effective Date to but not including February 1, 2003, and
     (C) $0 thereafter.

          "Shared Services Agreement" shall mean that certain Shared Services
     Agreement dated on or about the Fourth Amendment Effective Date, between
     the Parent and the SPV.

          "Specified Loans" shall mean Medallion Loans existing on the Fourth
     Amendment Effective Date and made to borrowers that were organizations
     dissolved at or before the time when such Medallion Loans were made, if, at
     the time of reference thereto, the dissolved borrowers have not been
     reinstated to entity existence with the applicable department of state or
     secretary of state as if such dissolution had not occurred.

          "SPV" shall mean Taxi Medallion Loan Trust I, a special purpose,
     bankruptcy remote, Delaware business trust, established by the Company in
     connection with the Merrill Lynch Facility.

          "SPV Pledge Agreement" shall mean that certain Collateral Assignment
     of Ownership Interests dated as of September 11, 2002, by the Company in
     favor of the Agent and the Holders and relating to the beneficial and
     ownership interests in the SPV.

          "Term Loans" shall have the meaning specified in the Bank Loan
     Agreement, as in effect on the Fourth Amendment Effective Date.

     2. Amendment of Section 1.2 of the Existing Note Purchase Agreements.
Section 1.2 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 1.2 in its entirety and substituting the following new Section
1.2 in lieu thereof:

          "Section 1.2. Security for Notes. The Notes will be entitled to the
     benefit of the Security Documents. The Company Obligations shall be secured
     by a perfected first priority security interest (subject only to the
     Permitted Liens, if and to the extent the Permitted Liens are entitled to
     priority under applicable law, and to the requirements of the Intercreditor
     Agreement and the Collateral Agency Agreement) in substantially all of the
     assets of the Company and MFCC, whether now owned or hereafter acquired and
     wherever located, pursuant to the terms of the Security Documents,
     including a pledge by the Company of one hundred percent (100%) of the
     Capital Stock owned by the Company of each of its Subsidiaries, subject to
     limitations imposed by applicable law with respect to any particular
     Subsidiary, and to the receipt of consents (including lender consents) as
     may be required under other loan documents for any particular Subsidiary,

                                       5

<PAGE>

     provided that the Company shall have used its best efforts to obtain such
     consents, with the Company acknowledging that the pledge of (and subsequent
     enforcement of the security interest in) the stock of Media requires no
     such consent. In addition, the Company Obligations shall be secured by a
     first priority perfected pledge by the Company in favor of the
     Intercreditor Collateral Agent of its beneficial and ownership interests in
     the SPV, for the benefit of the Holders, the Agent and the Funding Banks,
     together with the granting by the Company of a first priority perfected
     security interest in favor of the Intercreditor Collateral Agent, for the
     benefit of the Holders, the Agent and the Funding Banks, in any claims the
     Company may now or hereafter have against the SPV, pursuant to the SPV
     Pledge Agreement, provided that, notwithstanding any provision to the
     contrary contained herein or in any of the Note Documents, voting,
     disposition or other remedies may not be exercised against such pledge or
     security interest until such time as the loans under the Merrill Lynch
     Facility have been paid or have been declared to be due and payable prior
     to their scheduled maturity (which for clarity shall not include rapid
     amortization under the Merrill Lynch Facility). The Company Obligations
     shall also be guaranteed by the Guarantors pursuant to the terms of the
     Guaranties (subject, in the case of Media, to the terms of the Collateral
     Agency Agreement and, in the case of MFCC, to the terms of the
     Intercreditor Agreement); provided, however, that the Guaranty with respect
     to Media shall provide that, with the prior written consent of the Agent
     and the Holders, which consent shall not be conditioned on any requirement
     to repay Indebtedness, such Guaranty of Media shall be released upon any
     sale, transfer, public offering, merger, consolidation or other similar
     event involving the change of at least 33% of the legal and beneficial
     ownership of Media.

     3. Amendment of Section 5.5 of the Existing Note Purchase Agreements.
Section 5.5 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 5.5 in its entirety and substituting the following new Section
5.5 in lieu thereof:

          "Section 5.5. Financial Condition. The consolidated balance sheets of
     the Company for the fiscal year ended December 31, 2001, and the related
     consolidated statements of income, retained earnings and cash flow for such
     fiscal year, as certified by the Company's Independent Public Accountants,
     fairly present the consolidated financial position of the Company as of the
     date of each such financial statement and the consolidated results of the
     Company's operations and cash flows for the respective periods so
     specified. All such financial statements have been prepared in accordance
     with GAAP consistently applied on a basis consistent with that of the
     comparable preceding period except as set forth in the notes thereto, and
     since the dates of such financial statements, there has been no material
     adverse change in the consolidated condition, financial or otherwise, of
     the Company."

     4. Amendment of Section 5.22 of the Existing Note Purchase Agreements.
Section 5.22 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 5.22 in its entirety and substituting the following new Section
5.22 in lieu thereof:

          "Section 5.22. Priority; Continued Effectiveness. Except as otherwise
     permitted hereunder, the Collateral Agent, for the benefit of the Holders,
     has a valid and perfected

                                       6

<PAGE>

     first priority security interest (subject to the terms of the Intercreditor
     Agreement and the Collateral Agency Agreement) in and to all Collateral,
     enforceable against the Company and all third parties in all relevant
     jurisdictions and securing the payment of the Notes and all other sums
     payable under or in connection with the Note Documents. Each of the Company
     Security Agreement, the Lockbox Agreements (as defined in the Bank Loan
     Agreement), the Parent Pledge Agreement and, after the execution and
     delivery thereof, the SPV Pledge Agreement is effective to create in favor
     of the Collateral Agent, for the benefit of the Holders, a valid and
     perfected first priority (subject to the terms of the Intercreditor
     Agreement and the Collateral Agency Agreement and except as otherwise
     permitted hereunder) security interest in and to the Collateral described
     therein securing the payment of the Notes and all other sums payable under
     or in connection with the Note Documents. No additional Company Financing
     Statements are required to be filed in order to maintain the perfection and
     priority of the security interests created in favor of the Holders or the
     Collateral Agent, for the benefit of the Holders, pursuant to the Company
     Security Agreement, the Lockbox Agreements (as defined in the Bank Loan
     Agreement) the Parent Pledge Agreement and the SPV Pledge Agreement."

     5. Amendment of Section 7.1 of the Existing Note Purchase Agreements.
Section 7.1 of the Existing Note Purchase Agreements is hereby amended by:

     (a) deleting Section 7.1(h)(i) in its entirety and substituting the
following new Section 7.1(h)(i) in lieu thereof:

          "(i) (A) on the Fourth Amendment Effective Date (based upon July 31,
     2002 information adjusted to give effect to (1) the repayment of Loans, (2)
     transfers of Loans to the SPV, and (3) the transactions contemplated by
     Sections 10.1(a)(4)(B) and (F)), and within fifteen (15) Business Days
     after the end of every calendar month thereafter or at any other time upon
     the Holders' request, a Borrowing Base Certificate, signed by each of the
     chief financial officer of the Company and M.R. Weiser, Inc. ("M.R.
     Weiser") or another consultant satisfactory to the Company and the Holders,
     covering the period commencing with the first day following the last day of
     the period covered by the preceding Borrowing Base Certificate; and (B)
     concurrently with any contribution by the Company of cash or Medallion
     Loans to, or repurchases of Medallion Loans from, the Merrill Lynch
     Facility, as permitted by Section 10.1(a)(4)(D) hereof, a pro forma
     Borrowing Base Certificate, signed by each of the chief financial officer
     or the Company and M.R. Weiser or another consultant satisfactory to the
     Company and the Holders, demonstrating the Borrowing Base after giving
     effect to such contribution;"

     (b) deleting Sections 7.1(j)(iv) and (v) in their entirety and substituting
in the following new Sections 7.1(j)(iv) and (v) in proper numerical order in
lieu thereof:

          "(iv) Intentionally Omitted.

          (v) Intentionally Omitted."

                                       7

<PAGE>

     6. Amendment of Section 7.3 of the Existing Note Purchase Agreements.
Section 7.3 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 7.3(c) in its entirety and substituting the following new
Section 7.3(c) in lieu thereof:

          "(c) Independent Firm. The Holders shall have access to M.R. Weiser at
     all times for, among other things, updates on the status of M.R. Weiser's
     work and questions about the scope and substance thereof. Kaye Scholer LLC
     on behalf of the Holders shall have the right to employ Nightingale &
     Associates LLC (or a similar consulting firm) as their financial advisors,
     with the expenses of such consulting firm to be for the account of the
     Company. Such consulting firm shall provide copies of detailed monthly
     bills to the Company. Such consulting firm shall have access at all times
     to the officers, employees, records and other information of the Company
     and its Subsidiaries; provided, however, that absent a Default or Event of
     Default, the fees and expenses thereof, together with all fees and expenses
     of Argus Management Corporation or any other consulting firm that may be
     hired by the Agent or its counsel in connection with the Bank Loan
     Agreement, shall not exceed, in the aggregate, (1) $75,000 per month for
     the period commencing on the Fourth Amendment Effective Date through the
     earlier to occur of the month in which the outstanding principal amount of
     Term Loans and Notes is less than $36,000,000 and November 30, 2002 (it
     being understood that such amount shall be pro rated for any partial
     calendar months) and (2) $37,500 per month thereafter. However, the
     foregoing fee limitations shall not be imposed in the event the Company
     fails to provide to the Holders (i) on the Fourth Amendment Effective Date
     and by Thursday of each calendar week thereafter, a 13-week statement of
     cash flows in the form being provided to the Agent and the Holders
     immediately prior to the Fourth Amendment Effective Date, (ii) on the
     Fourth Amendment Effective Date and on the 10th and 25th of each calendar
     month thereafter, monitoring reports (including without limitation the form
     of monitoring report attached hereto as Annex A), in form and substance
     satisfactory to the Holders, concerning the various actions proposed by the
     Company to comply with the schedule of Principal Payments set forth in
     Section 14.3 hereof, (iii) daily reports regarding the cash balances of the
     Company and its Affiliates, which reports shall be in a form reasonably
     acceptable to the Holders and (iv) evidence, in form and substance
     satisfactory to the Holders, that each of the items set forth in the
     Documentation Punch List Letter to be completed after the Fourth Amendment
     Effective Date has been completed in a manner satisfactory to the Holders
     on or before November 15, 2002."

     7. Amendment of Section 8.8 of the Existing Note Purchase Agreements.
Section 8.8 of the Existing Note Purchase Agreements is hereby amended by:

     (a) deleting Sections 8.8(c), (d), (e) and (f) and substituting the
following new Sections 8.8(c), (d), (e) and (f) in proper alphabetical order in
lieu thereof:

          "(c) Other than sales permitted pursuant to Section 10.3(b) hereof,
     promptly following the occurrence of any sale, transfer or other
     disposition of Loans, Collateral or other assets of the Company or any of
     its Subsidiaries (following the obtaining of any necessary consents or
     approvals hereunder or under any other applicable agreements, including the
     Bank Loan Agreement, Intercreditor Agreement and Collateral Agency
     Agreement), the Company shall prepay or cause its applicable Subsidiary to
     prepay the

                                       8

<PAGE>

     Notes in an amount equal to the Holders' Pro Rata Share (as defined in the
     Intercreditor Agreement) of one hundred percent (100%) of the Net Cash
     Proceeds thereof, in accordance with Section 5 of the Intercreditor
     Agreement.

          (d) Intentionally Omitted.

          (e) Intentionally Omitted.

          (f) On or before the Fourth Amendment Effective Date, upon the
     Company's receipt of the cash payment necessary to reduce the intercompany
     balance due and owing from Freshstart Venture Capital Corp. to $0, the
     Company shall prepay the Notes in an amount equal to the Holders' Pro Rata
     Share (as defined in the Intercreditor Agreement) of one hundred percent
     (100%) of the Net Cash Proceeds thereof, in accordance with Section 5 of
     the Intercreditor Agreement."

     (b) deleting Section 8.8(h) and substituting the following new Section
8.8(h) in lieu thereof:

          "(h) Prepayment of the Notes pursuant to this Section 8.8 shall be at
     100% of the principal amount of such Notes, together with interest on such
     Notes accrued to the date of prepayment. Payment of the Make-Whole Amount
     due with respect to such prepayment shall be deferred until the earlier of
     (x) the Maturity Date and (y) the payment in full of all amounts due and
     payable under the Notes, provided that any amounts so deferred shall accrue
     interest at the same rate as the Notes during such deferral period. Any and
     all prepayments made pursuant to this Section 8.8 shall be allocated among
     all Notes of each series at the time outstanding in proportion, as nearly
     as practicable, to the respective unpaid principal amounts thereof not
     theretofore called for prepayment. Any and all prepayments made pursuant to
     Sections 8.2 or 8.8 hereof on or after August 1, 2002, shall be applied
     against the monthly Principal Payments (as defined in Section 14.03) in
     chronological order of the dates on which such Principal Payments are
     required to be made pursuant to the terms of Section 14.03 hereof."

     8. Amendment of Section 9.9 of the Existing Note Purchase Agreements.
Section 9.9 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 9.9 in its entirety and substituting the following new Section
9.9 in lieu thereof:

          "Section 9.9. Intentionally Omitted."

     9. Amendment of Section 9.13 of the Existing Note Purchase Agreements.
Section 9.13 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 9.13 in its entirety and substituting the following new Section
9.13 in lieu thereof:

          "Section 9.13. Intentionally Omitted."

     10. Amendment of Section 9.14 of the Existing Note Purchase Agreements.
Section 9.14 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 9.14 in its entirety and substituting the following new Section
9.14 in lieu thereof:

                                       9

<PAGE>

          "Section 9.14. Intentionally Omitted."

     11. New Section 9.15 of the Existing Note Purchase Agreements. Section 9 of
the Existing Note Purchase Agreements is hereby amended by inserting, in proper
numerical order, the following new Sections 9.15 and 9.16:

          "Section 9.15. Replacement of Servicer.

          (a) In the event that Merrill Lynch, at any time under the Merrill
     Lynch Facility, has exercised its right or has given notice that it will
     exercise its right to terminate the rights and obligations of the Company
     (or any permitted successor or assignee of the Company) as servicer under
     the Merrill Lynch Facility, the Company shall promptly notify the
     Collateral Agent and the Holders of such termination or notice to terminate
     and, upon such termination or in the event a notice to terminate has not
     been rescinded within seven (7) Business Days after the Company's receipt
     thereof, the Intercreditor Collateral Agent shall have the right to replace
     the Company as servicer with respect to the Collateral granted pursuant to
     the Note Documents. The Intercreditor Collateral Agent may exercise such
     right by giving written notice to the Company.

          (b) In the event of such replacement of the Company as servicer of the
     Collateral, the Company covenants (i) to safeguard the servicing records
     and (ii) that all funds and loan documents relating to the Collateral
     (collectively, the "Medallion Loan Records") shall, at the option of the
     Intercreditor Collateral Agent, promptly upon receipt of notice of the
     Intercreditor Collateral Agent's intent to appoint a new servicer for the
     Collateral, be submitted to the control of the Intercreditor Collateral
     Agent or its designee and that, on the date such notice is received, they
     will be transferred to the Intercreditor Collateral Agent or its designee,
     without prejudice to the rights, if any, of either party against the other.

          (c) Prior to the replacement of the Company as servicer of the
     Collateral, the Intercreditor Collateral Agent may establish with the Agent
     a segregated account on behalf of the Company (the "Alternate Collection
     Account"). From and after receipt of such notice, all collections arising
     with respect to the Collateral shall, whether credited to the Fleet
     Concentration Account (as defined in the Bank Loan Agreement) or otherwise
     received by the Company, the Intercreditor Collateral Agent, the Agent, any
     replacement servicer appointed by the Agent or any other Person, be
     deposited in the Alternate Collection Account. The Intercreditor Collateral
     Agent shall distribute the funds on deposit in the Alternate Collection
     Account in accordance with the terms of the Intercreditor Agreement on each
     date a Principal Payment is required under Section 14.3 hereof and each
     date interest is payable on the Notes. The Company hereby pledges to the
     Intercreditor Collateral Agent, for itself, the Agent, the Funding Banks
     and the Holders, and grants the Intercreditor Collateral Agent a security
     interest, in the Alternate Collection Account and all funds that may be on
     deposit there from time to time. The Company further covenants and agrees
     (i) to provide notification to the obligors in respect of any Medallion
     Loan, Commercial Loan or other Collateral to make all payments in respect
     of such Collateral directly to the Alternate Collection Account and

                                       10

<PAGE>

     (ii) to otherwise cooperate with the Intercreditor Collateral Agent in
     ensuring that such payments are made directly to the Alternate Collection
     Account.

          (d) Notwithstanding any appointment of a new servicer hereunder, the
     Company shall not be relieved of liability for all amounts due, or
     responsibilities owed the Holders hereunder. The Company forthwith upon
     receipt of notice of the Intercreditor Collateral Agent's appointment of a
     new servicer for the Collateral shall (i) pay over to the Collateral Agent
     or its designee all amounts held by it or subsequently received by it with
     respect to the affected Collateral or the proceeds thereof, (ii) deliver to
     the Intercreditor Collateral Agent a full accounting in respect of the
     affected Collateral, including a statement showing the monthly payments and
     other amounts collected by or with respect to such Collateral and a
     statement of moneys held in trust by or on behalf of it for the payment of
     taxes, insurance premiums or other charges with respect to the affected
     Collateral, (iii) otherwise use its best efforts to effect the orderly and
     efficient transfer of servicing of the affected Collateral to the designee
     selected by the Intercreditor Collateral Agent, and (iv) arrange for the
     physical transfer and delivery to designee selected by the Intercreditor
     Collateral Agent of all Collateral and copies thereof in its possession,
     and all Medallion Loan Records.

          Section 9.16. Deferred Amendment Fee. In the event the Term Loans have
     not been paid in full and all obligations outstanding under the Note
     Purchase Agreements (including without limitation principal, accrued
     interest and any Make-Whole Amounts) have not been paid in full on or
     before the Maturity Date, the Company agrees to pay to the Intercreditor
     Collateral Agent, for the pro rata account of the Funding Banks and the
     Holders, a deferred fee in the amount of $500,000. Such deferred fee shall
     be fully earned on the due date therefor and non-refundable when paid."

     12. Amendment of Section 10.1 of the Existing Note Purchase Agreements.
Section 10.1 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.1 in its entirety and substituting the following new Section
10.1 in lieu thereof:

          "Section 10.1. Transactions with Affiliates.

          (a) Subject to any additional requirements under Section 10.3 hereof,
     without the prior written consent of the Required Holders, the Company will
     not, and will not permit any of its Subsidiaries to:

               (1) enter into, or cause, suffer, or permit to exist, any
          transactions, including without limitation the purchase, sale, lease
          or exchange of any property or the rendering of any service, with any
          Affiliate except in the ordinary course of business, pursuant to the
          reasonable requirements of the Company's or such Subsidiary's business
          and upon fair and reasonable terms no less favorable to the Company
          than those that would be obtainable at the time in a comparable
          arm's-length transaction from any Person who is not an Affiliate;

               (2) become an Affiliate of any Holder or any Affiliate of any
          Holder known to the Company; and the Company shall use its best
          efforts to ensure that

                                       11

<PAGE>

          none of its Affiliates is or becomes an Affiliate of any Holder or an
          Affiliate of any Holder known to the Company;

               (3) sell, discount or otherwise dispose of Loans or any
          Collateral to any Affiliate, or sell, discount or otherwise dispose of
          other Receivables or obligations owing to the Company or any of its
          Subsidiaries to any Affiliate, with or without recourse, other than to
          the extent permitted by Section 10.1(a)(4), Section 10.3(b) or Section
          10.3(c)(2) hereof;

               (4) transfer any assets or cash to any Affiliate, other than -

                    (A) the payment to an Affiliate of such amounts as may be
               received on account of Loans serviced by the Company on such
               Affiliate's behalf, after deduction of management fees provided
               under the respective sale, transfer or participation agreement,

                    (B) on or prior to the Fourth Amendment Effective Date, the
               transfer of $4,100,000 to the Parent as reimbursement for
               allocable overhead and expenses incurred by the Parent for
               services rendered to or on behalf of the Company prior to July 1,
               2002, provided, that arrangements satisfactory to the Agent and
               the Holders have been made for (i) the Parent, upon receipt of
               such proceeds, to make a capital contribution in the amount of
               $5,000,000 to Freshstart Venture Capital Corp., (ii) Freshstart
               Venture Capital Corp. to purchase from the Company for cash, at
               the outstanding principal amount thereof plus any accrued and
               unpaid interest and without discount thereon and pursuant to
               documentation all as reasonably acceptable to the Agent and the
               Holders, Medallion Loans that do not satisfy the Eligibility
               Requirements and (iii) the proceeds received by the Company to be
               applied pro rata to repay the Notes and the Term Loans in
               accordance with Section 5 of the Intercreditor Agreement within
               two (2) Business Days following the $4,100,000 transfer to the
               Parent referred to above,

                    (C) after the Fourth Amendment Effective Date, the transfer
               of cash reimbursements to the Parent for all allocable overhead
               and expenses (including salary and other usual and customary
               intercompany charges) incurred by the Parent for services
               rendered to or on behalf of the Company after July 1, 2002, in a
               manner consistent with the Company's existing method of
               allocation as of July 1, 2002,

                    (D) contributions from the Company of cash or additional
               Medallion Loans to, and/or repurchases at fair value by the
               Company of Medallion Loans from the SPV in connection with the
               Merrill Lynch Facility in order (x) to cure or prevent any
               borrowing base defaults or rapid amortization event under the
               Merrill Lynch Facility and (y) to reacquire any Medallion Loans
               sold to the SPV which did not at the time of such sale meet the
               "eligibility criteria" for sale under the terms of the

                                       12

<PAGE>

               Merrill Lynch Facility, provided, in each case, that no Event of
               Default shall exist with respect to the Senior Facilities and no
               Event of Default shall exist with respect to the Senior
               Facilities after giving effect to such transactions and provided
               further that the Company provides prior written notice to the
               Agent and the Holders of any such contributions and/or
               repurchases pursuant to this Section 10.1(a)(4)(D),

                    (E) any other transaction permitted or required under the
               Merrill Lynch Facility or the Shared Services Agreement,
               including without limitation additional sales of Medallion Loans
               by the Company to the SPV made on or after the Fourth Amendment
               Effective Date,

                    (F) the repurchase, at the outstanding principal amount
               thereof plus any accrued and unpaid interest and without discount
               thereon, of (x) participations in Medallion Loans from Freshstart
               Venture Capital Corp. on or prior to the Fourth Amendment
               Effective Date and (y) participations in Medallion Loans from
               Atlantic Bank as permitted by Section 10.3(b)(5) hereof, in each
               case solely in connection with a concurrent transfer of such
               Medallion Loans to the SPV in connection with the Merrill Lynch
               Facility so long as (i) the net proceeds from such transfer are,
               upon receipt, applied to repay the Term Loans and the Notes in
               accordance with Section 5 of the Intercreditor Agreement, (ii)
               after giving effect to such repurchase and application of net
               proceeds, no Event of Default is continuing with respect to the
               Bank Loan Agreement or the Note Purchase Agreements and (iii)
               unless otherwise approved by the Holders, the aggregate amount
               transferred by the Company in connection with any such
               repurchases does not exceed $500,000, and

                    (G) on or prior to the Fourth Amendment Effective Date, the
               transfer of Commercial Loans in an aggregate principal amount not
               to exceed $10,000,000, including any accrued and unpaid interest
               and without discount thereon, to the Parent in exchange for
               Medallion Loans of equivalent value (which determination of
               equivalency shall take into account any cash payment from the
               Company, in such amount as approved by the Holders but in no
               event to exceed $200,000, to achieve such equivalency and shall
               be satisfactory to the Holders), all pursuant to documentation
               reasonably acceptable to the Holders.

          (b) After the Fourth Amendment Effective Date, all intercompany
     transactions concerning loans serviced by the Company for any Affiliate or
     by any Affiliate for the Company, including, without limitation, sales,
     payoffs, prepayments, amortization and interest, shall be paid by the
     Company, and to the extent the Company has the right to do so, shall be
     caused by the Company to be paid by any such Affiliate, in cash on a
     monthly basis. In the event funds received on account of any such
     intercompany transaction exceed $250,000 with respect to any particular
     loan, settlement of such transaction shall be made in cash and shall occur
     no later than five (5) Business Days after such funds are received by the
     Company, as servicer."

                                       13

<PAGE>

     13. Amendment of Section 10.2 of the Existing Note Purchase Agreements.
Section 10.2 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.2 in its entirety and substituting the following new Section
10.2 in lieu thereof:

          "Section 10.2. Merger, Consolidation, etc. The Company shall not, and
     shall not permit any of its Subsidiaries to, consolidate with or merge with
     any other corporation or, except to the extent permitted by Section
     10.1(a)(4)(D) and (E) hereof, convey, transfer or lease substantially all
     of its assets in a single transaction or series of transactions to any one
     or more Persons, without the express written consent of the Holders, and no
     such conveyance, transfer or lease shall have the effect of releasing the
     Company or any Successor Corporation from its liability under the Note
     Purchase Agreements, Notes or other Note Documents."

     14. Amendment of Section 10.3 of the Existing Note Purchase Agreements.
Section 10.3 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.3 in its entirety and substituting the following new Section
10.3 in lieu thereof:

          "Section 10.3. Sale of Assets.

          Subject to any additional requirements under Section 10.1 hereof,
     without the prior written consent of the Required Holders, the Company will
     not, and will not permit any of its Subsidiaries to:

          (a) sell, discount or otherwise dispose of Loans or any Collateral, or
     sell discount or otherwise dispose of other Receivables or obligations
     owing to the Company or any of its Subsidiaries with or without recourse,
     if a Default or Event of Default has occurred and is continuing or if the
     effect of such sale, discount or disposal would be to put the Company in
     violation of any of the covenants and agreements in this Agreement or any
     other of the Note Documents;

          (b) excluding for purposes hereof any sale, discounting or disposition
     permitted by Section 10.3(c) hereof, sell, discount or otherwise dispose of
     Loans or any Collateral, or sell discount or otherwise dispose of other
     Receivables or obligations owing to the Company or any of its Subsidiaries,
     with or without recourse, other than (1) to the Holders or the Collateral
     Agent, for the benefit of the Holders and, with respect to the pledged
     shares of Media and for so long as the Collateral Agency Agreement is in
     effect, to the Collateral Agent (as defined in the Collateral Agency
     Agreement), for the benefit of the Holders, (2) on or about the Fourth
     Amendment Effective Date, the transfer of Commercial Loans to the Parent to
     the extent permitted by Section 10.1(a)(4)(G) hereof, (3) contributions
     from the Company of cash or Medallion Loans to, and/or repurchases by the
     Company of Medallion Loans from, the SPV in connection with the Merrill
     Lynch Facility, to the extent permitted by Section 10.1(a)(4)(D) hereof,
     (4) the sales of Loans as permitted or required by the Merrill Lynch
     Facility, including additional sales of Medallion Loans by the Company to
     the SPV made on or after the Fourth Amendment Effective Date, and (5) after
     the Fourth Amendment Effective Date, participations in Medallion Loans in
     an

                                       14

<PAGE>

     aggregate principal amount not to exceed $5,000,000, including any accrued
     and unpaid interest and without discount thereon, to Atlantic Bank, as the
     lead lender, in exchange for a 100% interest in approximately $4,750,000 of
     Medallion Loans with respect to which Atlantic Bank was the lead lender and
     a 5% interest in approximately $5,000,000 of Medallion Loans with respect
     to which Atlantic Bank is the lead lender, all pursuant to documentation
     reasonably acceptable to the Agent and the Holders; provided that, in each
     such case referred to in this Section 10.3(b), no Default or Event of
     Default has occurred or is continuing, or would result therefrom;

          (c) excluding for purposes hereof any sale, discounting or disposition
     permitted by Section 10.3(b) hereof, sell, discount or otherwise dispose of
     Loans or any Collateral, or sell discount or otherwise dispose of other
     Receivables or obligations owing to the Company or any of its Subsidiaries,
     with or without recourse, other than (1) the sale of Loans to any Person
     who is not an Affiliate for a cash price not less than the than the
     outstanding principal amount thereof plus any accrued and unpaid interest
     and without discount thereon, provided such sale is an arm's length
     transaction made pursuant to the reasonable requirements of the Company's
     or such Subsidiary's business, (2) the sale of Loans to an Affiliate for a
     cash price not less than the sum of the outstanding principal amount
     thereof, plus any accrued interest and without discount thereon, (3) to a
     non-Affiliate for collection in the ordinary course of business, and (4) in
     connection with the grant of any participation in accordance with and to
     the extent permitted by Section 2.14 of the Bank Loan Agreement (as in
     effect on the Fourth Amendment Effective Date), and consistent in any event
     with past practices; provided that, in each such case referred to in this
     Section 10.3(c), (x) no Default or Event of Default has occurred or is
     continuing, or would result therefrom and (y) immediately upon receipt of
     the proceeds thereof, the Company makes the mandatory prepayment required
     with respect thereto under Section 8.8(c) hereof."

     15. Amendment of Section 10.4 of the Existing Note Purchase Agreements.
Section 10.4 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.4 in its entirety and substituting the following new Section
10.4 in lieu thereof:

          "Section 10.4. Intentionally Omitted."

     16. Amendment of Section 10.5 of the Existing Note Purchase Agreements.
Section 10.5 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.5 in its entirety and substituting the following new Section
10.5 in lieu thereof:

          "Section 10.5. Intentionally Omitted."

     17. Amendment of Section 10.8 of the Existing Note Purchase Agreements.
Section 10.8 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.8(e) in its entirety and substituting the following new
Section 10.8(e) in lieu thereof:

                                       15

<PAGE>

          "(e) make or maintain any Investment (including by way of the
     acquisition of any Person) in any Subsidiary or Affiliate, or any Person
     that after taking into account such Investment would become a Subsidiary or
     Affiliate, other than (1) Investments in the Parent arising in relation to
     the intercompany account between the Company and the Parent in an aggregate
     amount not to exceed $8,598,828 through the Maturity Date, (2) Investments
     in MFCC existing as of the Effective Date of the Third Amendment in an
     amount not to exceed $8,951,000, provided that the underlying transfers of
     Yellow Cab Loans were subject to the Liens of the Holders or the Collateral
     Agent, for the benefit of the Holders; (3) Investments in Medallion
     Business Credit, LLC existing as of the Effective Date of the Third
     Amendment in an amount not to exceed $7,274; and (4) Investments in the SPV
     made (A) in connection with the formation and capitalization of the SPV as
     required under or in connection with the Merrill Lynch Facility and (B) in
     order to cure or prevent any borrowing base default or rapid amortization
     event under the Merrill Lynch Facility, provided that no Event of Default
     shall exist with respect to the Bank Loan Agreement or the Note Purchase
     Agreements and no Event of Default shall exist with respect to the Bank
     Loan Agreement or the Note Purchase Agreements after giving effect to such
     transactions. For the avoidance of doubt, the Company shall not make, nor
     shall it permit any of its Subsidiaries to make, any Investment in Media or
     Business Lenders, LLC following the Effective Date of the Third Amendment."

     18. Amendment of Section 10.9 of the Existing Note Purchase Agreements.
Section 10.9 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.9 in its entirety and substituting the following new Section
10.9 in lieu thereof:

          "Section 10.9. Restricted Payments. The Company will not, and will not
     permit any Subsidiary to, make, or obligate itself to make, any Restricted
     Payment, provided that (a) after the Fourth Amendment Effective Date, the
     Company may make quarterly payments of the sum of (1) the minimum amount of
     Dividends required to be paid for the Company to retain its status as a
     regulated investment company pursuant to Section 851(a) of the Code, plus
     (2) the payment of Dividends required to be paid in order to avoid the
     imposition of excise taxes pursuant to the Code, as determined by the
     Company's Independent Public Accountants on the basis of good faith
     estimates provided by the Company, provided that any such amount to be paid
     under this Section 10.9 shall be quantified by the Company and in
     connection therewith, the Company authorizes the Agent and the Holders to
     communicate directly with the Company's Independent Public Accountants and
     authorizes such accountants to disclose to the Agent and the Holders any
     and all financial statements and other supporting financial documents and
     schedules including copies of any management letter with respect to the
     business, financial condition and other affairs of the Company and its
     Subsidiaries and, provided further that five (5) days prior to any such
     payment, the Company shall deliver a certificate demonstrating pro forma
     compliance after making such payment with respect to any Principal Payments
     to be made with respect to Senior Debt, (b) after the Fourth Amendment
     Effective Date, the Company may contribute additional Medallion Loans or
     cash to, and/or repurchase Medallion Loans from the SPV in connection with
     the Merrill Lynch Facility at fair value in order to (1) cure any borrowing
     base defaults under the Merrill Lynch Facility and (2) to reacquire any
     Medallion Loans sold to the SPV which did not at the time of such sale meet
     the "eligibility criteria" for sale under the terms of

                                       16

<PAGE>

     the Merrill Lynch Facility, provided, in each case, that no Event of
     Default shall exist with respect to the Senior Facilities and no Event of
     Default shall exist with respect to the Senior Facilities after giving
     effect to such transactions and provided further that the Company provides
     prior written notice to the Agent and the Holders of any such contributions
     and/or repurchases to be made pursuant to this Section 10.9, and (c) on the
     date any Principal Payment or other prepayment (whether voluntary or
     otherwise) is made hereunder, the Company may prepay outstanding principal
     amounts of the Term Loans in an aggregate amount not to exceed the result
     of 82.74773% multiplied by the sum of the amount of such payment plus the
     aggregate amount of the Principal Payment or other repayment, as
     applicable, on such date. Any such Restricted Payments permitted under
     Section 10.9(a) above that are made to the Parent shall be paid as a credit
     to the intercompany balance owing from the Parent to the Company."

     Amendment of Section 10.10 of the Existing Note Purchase Agreements.
Section 10.10 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.10 in its entirety and substituting the following new
Section 10.10 in lieu thereof:

          "Section 10.10. Portfolio Purchases and Acquisitions. Without the
     prior written consent of the Required Holders, the Company will not make or
     effect, or obligate itself to make or effect, any Portfolio Purchase or
     other asset acquisition (other than the acquisition of assets in the
     ordinary course of business consistent with past practices) or stock (or
     other equity interest) acquisition, other than (a) the repurchase of
     Medallion Loans from the SPV in connection with the Merrill Lynch Facility
     to the extent permitted by Section 10.1(a)(4)(D) hereof, (b) the repurchase
     of participations in Medallion Loans from Freshstart Venture Capital Corp.
     or Atlantic Bank to the extent permitted by Section 10.1(a)(4)(F) hereof,
     and (c) the exchange of Commercial Loans for Medallion Loans to the extent
     permitted by Section 10.1(a)(4)(G) hereof."

     19. Amendment of Section 10.14 of the Existing Note Purchase Agreements.
Section 10.14 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.14 in its entirety and substituting the following new
Section 10.14 in lieu thereof:

          "Section 10.14. Intentionally Omitted."

     20. Amendment of Section 10.15 of the Existing Note Purchase Agreements.
Section 10.15 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.15 in its entirety and substituting the following new
Section 10.15 in lieu thereof:

                  "Section 10.15.  Intentionally Omitted."

     21. Amendment of Section 10.18 of the Existing Note Purchase Agreements.
Section 10.18 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.18 in its entirety and substituting the following new
Section 10.18 in lieu thereof:

          "Section 10.18. Additional Indebtedness. The Company shall not, and
     shall not permit any Subsidiary to, create, incur, assume or suffer to
     exist, contingently or otherwise, any Indebtedness without the prior
     written consent of the Required Holders, excluding for purposes hereof: (a)
     Indebtedness arising under the Note Documents; (b)

                                       17

<PAGE>

     Indebtedness to the Agent or the Funding Banks arising under the Bank Loan
     Agreement, subject to the terms and conditions of the Intercreditor
     Agreement; (c) Indebtedness secured by Liens permitted by Section 10.19(b),
     (c) or (g); and (d) unsecured current liabilities incurred in the ordinary
     course and paid within ninety (90) days after the due date thereof (unless
     diligently contested in good faith by appropriate proceedings and, if
     required by the Holders, reserved against in conformity with GAAP) other
     than liabilities for money borrowed or evidenced by bonds, debentures,
     notes or similar instruments, including unsecured liabilities (other than
     Indebtedness for money borrowed or that is evidenced by bonds, debentures,
     notes or other similar instruments) incurred by the Company in favor of the
     SPV in connection with the Merrill Lynch Facility."

     22. Amendment of Section 10.19 of the Existing Note Purchase Agreements.
Section 10.19 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.19(a) in its entirety and substituting the following new
Section 10.19(a) in lieu thereof:

          "(a) Liens created under the Company Security Agreement, MFCC Security
     Agreement and SPV Pledge Agreement, and any other Liens in favor of the
     Holders or the Collateral Agent, for the benefit of the Holders (including
     without limitation any Liens in favor of the Holders or the Collateral
     Agent, for the benefit of the Holders, on Yellow Cab Loans transferred to
     MFCC, which transfers were subject to such Liens);"

     23. Amendment of Section 10.20 of the Existing Note Purchase Agreements.
Section 10.20 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.20 in its entirety and substituting the following new
Section 10.20 in lieu thereof:

          "Section 10.20. Securitizations, etc. The Company shall not enter into
     any securitization or similar transaction (i.e., any transfer of its assets
     in connection with any sale, assignment or other transfer of any
     receivables, including accounts receivable, loan receivables, lease
     receivables or other payment obligations or any interest in any of the
     foregoing, which may in each case include any collections and other
     proceeds thereof, any collection or deposit accounts related thereto, or
     any collateral, guarantees or other property or claims supporting or
     securing payment by the obligor thereon of, or otherwise related to, any
     such receivables) other than the Merrill Lynch Facility without the prior
     written consent of the Holders or as otherwise permitted by Section
     10.3(b)(1), (3) and (4) and Section 10.3(c)(4) hereof."

     24. Amendment of Section 10.21 of the Existing Note Purchase Agreements.
Section 10.21 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.21 in its entirety and substituting the following new
Section 10.21 in lieu thereof:

          "Section 10.21. Intentionally Omitted."

     25. Amendment of Section 10.22 of the Existing Note Purchase Agreements.
Section 10.22 of the Existing Note Purchase Agreements is hereby amended by
deleting Section 10.22 in its entirety and substituting the following new
Section 10.22 in lieu thereof:

          "Section 10.22. Subsidiaries. The Company shall not at any time form,
     create, own, acquire or allow to exist any Subsidiary other than MFCC and
     the SPV."

                                       18

<PAGE>

     26. New Section 10.23 of the Existing Note Purchase Agreements. Section 10
of the Existing Note Purchase Agreements is hereby amended by inserting, in
proper numerical order, the following new Section 10.23:

          "Section 10.23. Executive Compensation. The Company shall not pay, or
     obligate itself to pay, directly or indirectly, any executive bonuses to,
     or otherwise increase the compensation in effect on the Fourth Amendment
     Effective Date of, either Alvin Murstein or Andrew Murstein until payment
     in full of the Senior Obligations (as defined in the Intercreditor
     Agreement, and inclusive of the Make-Whole Amount)."

     27. Amendment of Section 11 of the Existing Note Purchase Agreements.
Section 11 of the Existing Note Purchase Agreements is hereby amended by:

     (a) deleting Section 11(c)(i) in its entirety and substituting the
following new Section 11(c)(i) in lieu thereof:

          "(i) the Company defaults in the performance of or compliance with any
     term in Sections 7.1(d), 8.8, 9.6, 9.8, 9.10, 9.12, 9.15, 10.1 through
     10.23, and 14.3 hereof, provided that if, within five (5) days of a Default
     under Section 10.13 hereof, the Company cures such Default, no such default
     shall have occurred for purposes hereof, or"

     (b) inserting the following parenthetical immediately before the semicolon
at the end of Section 11(c)(iii):

          "(it being understood by the parties hereto that the provisions of
     this Section 11(c)(iii) shall not apply to the Documentation Punch List
     Letter)"

     (c) replacing the periods at the end of Sections 11(j) and (l) with the
words "; or"

     (d) inserting the following new Sections 11(m) and (n) in proper
alphabetical order:

          "(m) if loans made to the SPV under the Merrill Lynch Loan Agreement
     shall have become due and payable in full (whether at maturity or by
     acceleration) and shall not have been paid in full; and

          (n) if the Intercreditor Collateral Agent shall not have received
     $5,000,000 in proceeds from the Company on account of the sale of Medallion
     Loans to Freshstart Venture Capital Corp. within two (2) Business Days
     following the transfer of $4,100,000 by the Company to the Parent in
     connection with the transaction permitted and as required by Section
     10.1(a)(4)(B) hereof."

     28. New Section 12.4 of the Existing Note Purchase Agreements. Section 12
of the Existing Note Purchase Agreements is hereby amended by inserting, in
proper numerical order, the following new Section 12.4:

          "Section 12.4. Application of Further Payments. Subject to the terms
     of the Intercreditor Agreement, and notwithstanding anything to the
     contrary in the Notes, in the event that the Notes and all other amounts
     owing under the Note Documents shall have

                                       19

<PAGE>

     been declared due and payable or that all Notes shall not have been paid in
     full as of the Maturity Date, any funds received in respect of the Notes
     shall be applied by the Holders in the following manner and order of
     priority: (a) first, to the payment of fees, expenses or amounts (other
     than principal, interest or Make-Whole Amounts due in respect of the Notes)
     payable under the Note Documents, (b) second, to the payment of interest
     accrued in respect of any Make-Whole Amounts for which payment was deferred
     pursuant to Section 8.8(h) hereof, (c) third, to the payment of accrued and
     unpaid interest on the Notes, (d) fourth, to the payment of any Make-Whole
     Amounts, (e) fifth, to the payment of outstanding principal on the Notes
     and (f) sixth, any remaining funds shall be paid to whomsoever shall be
     entitled thereto or as a court of competent jurisdiction shall direct."

     29. Amendment of Section 14 of the Existing Note Purchase Agreements.
Section 14 of the Existing Note Purchase Agreements is hereby amended by adding,
in proper numerical order, the following new Section 14.3:

          "Section 14.3. Amortization Schedule. Principal on the Notes shall be
     repaid by the Company in accordance with the amortization schedule set
     forth below. Such payments (the "Principal Payments") shall be paid on or
     before the dates specified below and shall be applied pro rata to repay the
     Notes and the Term Loans in accordance with Section 5 of the Intercreditor
     Agreement. Any prepayments on the Notes made pursuant to Sections 8.2 or
     8.8 hereof on or after August 1, 2002, shall be applied against the monthly
     Principal Payments in chronological order of the dates on which such
     Principal Payments are to be made.

     ---------------------------------------- ----------------------------------
            Date of Principal Payment           Amount of Principal Payment
     ---------------------------------------- ----------------------------------
     Within two (2) Business Days following             $104,000,000
      the Fourth Amendment Effective Date
     ---------------------------------------- ----------------------------------
               September 30, 2002                        $2,000,000
     ---------------------------------------- ----------------------------------
                October 31, 2002                         $2,000,000
     ---------------------------------------- ----------------------------------
                November 30, 2002                       $17,000,000
     ---------------------------------------- ----------------------------------
                December 31, 2002                        $5,500,000
     ---------------------------------------- ----------------------------------
                January 31, 2003                        $21,500,000
     ---------------------------------------- ----------------------------------
                February 28, 2003                        $2,000,000
     ---------------------------------------- ----------------------------------
                 March 31, 2003                          $2,000,000
     ---------------------------------------- ----------------------------------
                 April 30, 2003                          $1,000,000
     ---------------------------------------- ----------------------------------
                  May 31, 2003                           $1,000,000
     ---------------------------------------- ----------------------------------

                                       20

<PAGE>

     ---------------------------------------- ----------------------------------
                  June 30, 2003                          $1,000,000
     ---------------------------------------- ----------------------------------
                  July 31, 2003                          $1,000,000
     ---------------------------------------- ----------------------------------
                                               All outstanding amounts under
                 August 31, 2003                the Notes and the Term Loans
     ---------------------------------------- ----------------------------------

     30. Waivers.

     (a) Subject to the terms and conditions hereof, each of the Holders hereby
waives (i) the Company's compliance with the requirement of Section 10.8(e) of
the Existing Note Purchase Agreements; provided that Investments in the Parent
with respect to the intercompany account between the Company and the Parent in
an aggregate amount do not to exceed $8,598,828 through August 31, 2003, and
(ii) the Events of Default set forth on Annex B hereto.

     (b) The Company hereby acknowledges that (i) one or more Events of Default
have occurred since May 15, 2002, (ii) the waivers contained in this Amendment
shall not become effective until the Fourth Amendment Effective Date and (iii)
the Holders have been collecting and will continue to collect until the Fourth
Amendment Effective Date, and the Holders shall be entitled to retain, interest
on all outstanding Notes at the Default Rate in the Outstanding Notes.

     (c) The Company has reported certain violations of the Bank Loan Agreement.
Subject to the terms and conditions hereof, each of the Holders, following the
effectiveness of the waivers required by Section 34(a)(iv) and (v) of this
Amendment, hereby waives any Default or Event of Default which may have occurred
or may occur under Section 11(l) of the Existing Note Purchase Agreements to the
extent such defaults are described in such waivers, provided that such defaults
do not exceed the thresholds required by the Agent and the Funding Banks in any
such waiver of the defaults and events of default under the Bank Loan Agreement.

     31. Amendments to Company Security Agreement.

     (a) Section 2.1 of the Company Security Agreement is hereby amended by
inserting the following new paragraph at the end of such section:

          "Notwithstanding the foregoing, to the extent any Investments are made
     in the SPV as permitted by Section 10.8(e)(4) of the Note Purchase
     Agreements, the SPV shall acquire the assets comprising such Investments
     free and clear of the liens created by this Agreement and the other Note
     Documents. To the extent that any Medallion Loan, Commercial Loan or other
     asset is sold, transferred or disposed of and the sale, transfer or
     disposition is permitted under the Note Purchase Agreements, the sale,
     transfer or disposition of the asset shall be free and clear of the liens
     created by this Agreement and the other Note Documents. However, in the
     case of any such permitted Investment, sale, transfer or disposition, the
     liens created by this Agreement and the other Note Documents shall attach
     to the proceeds of the Investment, sale, transfer of disposition. In the
     case of an Investment, sale, transfer or disposition free and clear of the
     liens created by this Agreement and the other Note Documents, the
     Collateral Agent is authorized to provide to the transferee appropriate
     evidences of release of the liens. If the Investment, sale,

                                       21

<PAGE>

     transfer or disposition is permitted under the Note Purchase Agreements
     only in the absence of a Default or Event of Default, the Collateral Agent
     shall be fully protected in providing such evidence of release so long as
     the officers of the Collateral Agent active on the Company's account have
     no actual knowledge of the existence of a Default or Event of Default.
     Nothing in this Section 2.1 shall result in a lien on or a security
     interest in the Capital Stock of Freshstart Venture Capital Corp in favor
     of the Holders."

     (b) Section 4.1 of the Company Security Agreement is hereby amended by:

          (i) deleting the third paragraph thereof in its entirety and inserting
     the following new paragraph in lieu thereof:

               "To the best of the Company's knowledge, each outstanding Loan
          does, and each future Loan will, represent a bona fide, valid and
          legally enforceable indebtedness according to its terms (excluding,
          for purposes of such representation, Specified Loans (as defined in
          the Note Purchase Agreements) which do not comply with such
          requirement solely on account of such Loans' status as Specified
          Loans), and each Loan, at the time of creation thereof, except with
          the consent of the Collateral Agent and the Noteholders, will be
          subject to no offsets, discounts, counterclaims, contra-accounts or
          any other defense of any kind or character that materially adversely
          affects the value of the Loan (excluding, for purposes of such
          representation, Specified Loans (as defined in the Note Purchase
          Agreements) which do not comply with such requirement solely on
          account of such Loans' status as Specified Loans);"

          (ii) inserting the following parenthetical prior to the semicolon at
     the end of the fourth paragraph thereof:

               "(excluding, for purposes of such representation, Specified Loans
          (as defined in the Note Purchase Agreements) which do not comply with
          such requirement solely on account of such Loans' status as Specified
          Loans)" and

          (iii) inserting the following parenthetical prior to the semicolon at
     the end of the final paragraph thereof:

               "(excluding, for purposes of such representation, Specified Loans
          (as defined in the Note Purchase Agreements) which do not comply with
          such requirement solely on account of such Loans' status as Specified
          Loans)".

     (c) Section 7 of the Company Security Agreement is hereby amended by
inserting, in proper numerical order, the following new Section 7.14:

          "Section 7.14. Inconsistent Provisions. If any provision of this
     Agreement relating to any lien on or security interest in any Investment by
     the Company in Taxi Medallion Loan Trust I, a special purpose, bankruptcy
     remote, Delaware business trust, shall be inconsistent with, or contrary
     to, any provision in the Collateral Assignment of Ownership Interests dated
     as of September 11, 2002 (the "Assignment"), from the Company in favor of
     the Holders, the provision in the Assignment shall be controlling

                                       22

<PAGE>

     and shall supersede such inconsistent provision in this Agreement to the
     extent necessary to give full effect to all provisions contained in the
     Assignment; provided, however, that but for the limitations imposed on
     account of the Standback Termination Date (as such term is defined in the
     Assignment), nothing contained in the Assignment shall derogate from any of
     the rights or remedies of the Agent contained in this Agreement or such
     document."

     32. Irrevocable Payment Instructions.

     (a) Prior to the Fourth Amendment Effective Date, the Company shall enter
into a funds transfer agreement with the Collateral Agent on the Collateral
Agent's customary form, which funds transfer agreement shall be in form and
substance satisfactory to the Holders and shall, in addition to its usual and
customary terms, provide as follows:

          (i) The Company submits to the Collateral Agent a standing payment
     order to pay from the Company's operating account the amount set forth at
     any time or from time to time in any written notification received by the
     Collateral Agent from the Holders (A) stating that the transfer is being
     requested to pay the outstanding fees and expenses of counsel to the
     Holders, Nightingale & Associates LLC or any other financial consultants
     hired by the Holders or their counsel and (B) containing funds transfer
     instructions.

          (ii) The Collateral Agent shall be fully protected in relying on any
     such notification and complying with the funds transfer instructions
     contained therein and shall not be responsible for the truth, accuracy,
     authenticity or genuineness of the notification or of any information
     contained therein. The Company agrees to indemnify and to hold the
     Collateral Agent harmless from and against any losses, costs or expenses
     sustained or incurred by the Collateral Agent in accepting a payment order
     and complying with the funds transfer instructions. Such indemnity
     obligations shall constitute obligations under the Bank Loan Agreement
     secured by the Collateral.

          (iii) The standing payment order set forth in this Section 32(a) shall
     not be cancelled, and the Company and the Collateral Agent agree that the
     funds transfer agreement shall not be amended so as to derogate from the
     provisions in favor of the Holders contained in this Section 32(a), without
     the prior written consent of the Holders.

     (b) Subject to the provisions of Section 7.3(c) of the Note Purchase
Amendments, if the Holders should at any time or from time to time determine
that the unpaid reimbursements due and owing from the Company on account of
invoices for the fees and expenses of counsel to the Holders, Nightingale &
Associates LLC and any other financial consultants hired by the Holders or their
counsel, equal or exceed $150,000 in the aggregate, the Holders shall be
entitled to provide written notification thereof to the Collateral Agent, which
notification shall (i) state that a funds transfer is being requested to pay in
full the outstanding fees and expenses of counsel to the Holders, Nightingale &
Associates LLC and any other financial consultants hired by the Holders or their
counsel and (ii) contain funds transfer instructions. Upon receipt of such
notification, (x) the Collateral Agent shall debit the Company's operating
account in an amount equal to such unpaid fees and expenses and transfer such
amount to the Holders or as otherwise directed in such notification and (y) the
Company and its Subsidiaries shall be deemed to have

                                       23

<PAGE>

unconditionally released, waived and forever discharged all claims, offsets,
causes of action, suits or defenses of any kind whatsoever (other than claims by
the Company against any agent of the Holders to recover fees or expenses paid to
such agent pursuant to this Section 32(b) if and to the extent such payment was
caused by or resulted from such agent's gross negligence or willful misconduct,
as determined by a court of competent jurisdiction in a final, non-appealable
judgment or order), whether arising at law or in equity, whether known or
unknown, which the Company or any Subsidiary might otherwise have against the
Collateral Agent, any Holder or any directors, officers, employees or agents of
any Holder, including without limitation counsel to the Holders, Nightingale &
Associates LLC and any other financial consultants hired by the Holders or their
counsel, arising in connection with, concerning or relating in any way to any
payment or request for payment made pursuant to this Section 32(b) or any fees
or expenses for which reimbursement may be sought pursuant to this Section
32(b).

     33. Representations and Warranties, Etc.

     (a) Each of the Company and the Guarantors hereby represents and warrants
to the Holders as of the date hereof, and as of any date on which the conditions
set forth in Section 34 of this Amendment are met, as follows:

          (i) The execution and delivery by each of the Company and the
     Guarantors of this Amendment and all other instruments and agreements
     required to be executed and delivered by each of the Company and the
     Guarantors in connection with the transactions contemplated hereby and
     thereby or referred to herein or therein (collectively, the "Amendment
     Documents"), and the performance by each of the Company and the Guarantors
     of any of their respective obligations and agreements under the Amendment
     Documents, the Note Purchase Agreements and the other Note Documents, as
     amended hereby, are within the corporate or other authority of each of the
     Company and the Guarantors, as the case may be, have been duly authorized
     by all necessary proceedings on behalf of each of the Company and the
     Guarantors, as the case may be, and do not and will not contravene any
     provision of law or of any judgment, order or decree applicable to or
     binding on the Company or the Guarantors, or of the Company's or either
     Guarantor's charter, other incorporation or organizational papers, or
     by-laws or any stock provision or any amendment thereof or of any
     indenture, agreement, instrument or undertaking binding upon the Company or
     the Guarantors.

          (ii) Each of the Amendment Documents, the Note Purchase Agreements and
     the other Note Documents, as amended hereby, to which the Company or a
     Guarantor is a party constitutes a legal, valid and binding obligation,
     enforceable in accordance with its terms, except as limited by bankruptcy,
     insolvency, reorganization, moratorium or similar laws relating to or
     affecting generally the enforcement of creditors' rights.

          (iii) No approval or consent of, or filing with, any Governmental
     Authority is required to make valid and legally binding the execution,
     delivery or performance by each of the Company and the Guarantors of the
     Amendment Documents, the Note Purchase Agreements or any other Note
     Document, as amended hereby, or the consummation by each of the Company and
     the Guarantors of the transactions among the parties contemplated hereby
     and thereby or referred to herein or therein.

                                       24

<PAGE>

          (iv) The representations and warranties contained in Section 5 of the
     Existing Note Purchase Agreements and in the other Note Documents were true
     and correct at and as of the date made. Except to the extent of changes
     resulting from transactions contemplated or permitted by the Note Purchase
     Agreements and the other Note Documents, changes occurring in the ordinary
     course of business (which changes, either singly or in the aggregate, have
     not been materially adverse to the interests of the Funding Banks or the
     Holders) and to the extent that such representations and warranties relate
     expressly to an earlier date and after giving effect to the provisions
     hereof, such representations and warranties, after giving effect to this
     Amendment, also are correct at and as of the date hereof.

          (v) Each of the Company and the Guarantors has performed and complied
     in all material respects with all terms and conditions herein and in the
     Note Documents required to be performed or complied with by it prior to or
     at the time hereof, and as of the date hereof, after giving effect to the
     provisions of this Amendment and the other Amendment Documents, there
     exists no Default or Event of Default.

          (vi) The Company is a closed end management investment company
     registered under the 1940 Act. The Company is an "investment company," as
     such term is defined in the 1940 Act. The Company is not a "business
     development company," as such term is defined in the 1940 Act. The purchase
     of the Notes by the Holders, the application of the proceeds and repayment
     thereof by the Company and the performance of the transactions contemplated
     by this Agreement and other Note Documents did not and will not violate any
     provision of said Act, or any rule, regulation or order issued by the SEC
     thereunder.

     (b) Each of the Company and the Guarantors acknowledges and agrees that the
representations and warranties contained in this Amendment shall constitute
representations and warranties referred to in Section 5 of the Note Purchase
Agreements, a breach of which shall constitute an Event of Default under the
Note Purchase Agreements.

     34. Effectiveness.

     (a) Except as set forth in Section 34(b) below, this Amendment shall become
effective as of the date first written above (the "Fourth Amendment Effective
Date") upon the satisfaction of each of the following conditions, in each case
in a manner satisfactory to, and in form and substance satisfactory to, the
Holders on or before September 13, 2002:

          (i) This Amendment shall have been duly executed and delivered by each
     of the Company, the Guarantors and the Holders and shall be in full force
     and effect.

          (ii) The Holders shall have received amended and restated Notes
     executed by the Company and issued pursuant to Section 13.2 of the Existing
     Note Purchase Agreements, in the forms attached hereto as Annex C (Series A
     Notes) and Annex D (Series B Notes), respectively.

          (iii) The Holders shall have received evidence that the SPV Pledge
     Agreement shall have been duly executed, in full force and effect and
     delivered to the Collateral Agent, together with (A) all trust certificates
     or other certificates evidencing the

                                       25

<PAGE>

     Company's beneficial and ownership interests in the SPV, (B) a dated
     instruction letter to the trustee, advising the trustee of the transfer of
     the trust certificate, (C) instruments of assignment duly executed in
     blank, and (D) an undated consent from the management board of the SPV,
     consenting to the transfer, each in form and substance satisfactory to the
     Holders.

          (iv) The Holders shall have received (A) evidence of the effectiveness
     of an amendment to the Bank Loan Agreement, in form and substance
     satisfactory to the Holders, and (B) evidence of the waiver of any defaults
     existing immediately prior to the Fourth Amendment Effective Date under the
     Bank Loan Agreement, each in form and substance satisfactory to the
     Holders.

          (v) The Holders shall have received (A) evidence of the effectiveness
     of an amendment to the Financial Agreement, in form and substance
     satisfactory to the Holders, together with all requisite consents from the
     Financial Banks, in form and substance satisfactory to the Holders,
     including consent for the $5,000,000 capital contribution by the Parent to
     Freshstart Venture Capital Corp and (B) evidence of the waiver of any
     defaults existing immediately prior to the Fourth Amendment Effective Date
     under the Financial Agreement.

          (vi) The Holders shall have received copies of all documentation
     executed and delivered in connection with the Merrill Lynch Facility,
     together with evidence of consummation of the Merrill Lynch Facility upon
     terms and conditions satisfactory to the Holders.

          (vii) The Holders and the Agent shall have received a payment of not
     less than $99,000,000 from the proceeds of the consummation of the Merrill
     Lynch Facility and cash on hand of the Company, which payment (A) when
     added to the proceeds to be received on account of the transaction
     permitted pursuant to Section 10.1(a)(4)(B) of the Note Purchase
     Agreements, shall total no less than $104,000,000 and (B) shall be applied
     to repay outstanding Term Loans and the principal amounts outstanding under
     the Notes, in an amount equal to one hundred percent (100%) of such
     payment, with such payment being allocated among the Agent, the Funding
     Banks, and the Holders on a pro rata basis in accordance with the
     provisions of Section 5 of the Intercreditor Agreement.

          (viii) The Holders shall have received all accrued and unpaid interest
     on the Outstanding Notes due and owing immediately prior to the Fourth
     Amendment Effective Date.

          (ix) The Holders shall have received a fee equal, in the aggregate, to
     0.25% of the outstanding principal of the Notes after giving effect to
     payment of the Principal Payment due on the Fourth Amendment Effective
     Date. Such fee shall be fully earned as of the Fourth Amendment Effective
     Date and non-refundable when paid.

          (x) The Holders shall have received evidence that the $854,000
     intercompany balance between the Company and Freshstart Venture Capital
     Corp. has been reduced to $0.

                                       26

<PAGE>

          (xi) All reports, statements, schedules, certificates and other
     documents required to be delivered to the Holders pursuant to Section 7.1
     of the Note Purchase Agreements, as amended by this Amendment, shall have
     been so delivered.

          (xii) The Holders shall have received a copy of a fully executed
     letter between the Company and a document imaging company, such letter to
     be in form and substance reasonably satisfactory to the Collateral Agent,
     which letter sets forth rates for such document imaging company to produce
     compact discs containing imaged copies of all of the promissory notes,
     security agreements and financing statements related to the Loans
     constituting Collateral, with such descriptive data items attached to each
     such promissory note, security agreement and financing statement as may be
     required by the Collateral Agent to permit sorting and indexing.

          (xiii) Except as specified in the Documentation Punch List Letter, the
     Collateral Agent shall have received (A) copies of appropriate assignment
     documents for intercompany loan transfers identified by M.R. Weiser as
     necessary or desirable including, without limitation, all promissory notes
     owned by the Company marked to reflect any chain of assignment thereof to
     the Company and (B) satisfactory evidence that all necessary steps to
     rectify any material deficiencies noted by M.R. Weiser in its review of the
     Collateral have been performed.

          (xiv) The Holders shall have received from the Secretary of the
     Company a copy, certified by such Secretary to be true and complete as of
     such date, of the resolutions of its Board of Directors or other management
     authorizing, to the extent it is a party thereto, the execution, delivery
     and performance of the Fourth Amendment.

          (xv) The Holders shall have received favorable legal opinions, dated
     as of the date hereof, in form and substance satisfactory to the Holders,
     from counsel to the Company and the Guarantors and Delaware counsel to the
     Company, concerning corporate or other applicable entity authority matters
     and the enforceability of each of the Amendment Documents and the SPV
     Pledge Agreement, and the Note Purchase Agreements and the other Note
     Documents as amended thereby, and concerning such other matters as the
     Holders may request.

          (xvi) The Holders shall have received the funds transfer agreement
     required by Section 32(a) of this Amendment, signed by the Company and the
     Collateral Agent.

          (xvii) Kaye Scholer LLC shall have received payment of all fees and
     expenses outstanding as of the date hereof, including, but not limited to,
     fees and expenses occurred in connection with the preparation of this
     Amendment and ancillary documentation and all fees and expenses incurred in
     connection with the employment of Nightingale & Associates LLC.

          (xviii) Kaye Scholer LLC shall have received payment of an additional
     retainer in the amount of $100,000 from the Company, which amount shall
     include a retainer on account of the continued employment of Nightingale &
     Associates LLC.

                                       27

<PAGE>

          (xix) The Holders shall have received such other items, documents,
     agreements or actions as they may reasonably request in order to effectuate
     the transactions contemplated hereby.

     (b) The amendments set forth in (i) Section 10.1(a)(4)(G) (sale of up to
$10,000,000 of Commercial Loans to the Parent in exchange for Medallion Loans of
equivalent value), (ii) Section 10.1(a)(4)(B) (transfer of $4,100,000 to the
Parent as reimbursement for allocable overhead and expenses) and (iii) Section
10.1(a)(4)(F) (repurchase of participations in Medallion Loans from Freshstart
Venture Capital Corp.) shall become effective as of the date hereof. In the
event that either of the transactions described in Sections 34(b)(i) and (ii)
above occur on or after the date hereof and prior to the Fourth Amendment
Effective Date, the requirement that no Default or Event of Default shall have
occurred or be continuing, or would result therefrom, shall not apply thereto.

     (c) The Holders agree to provide notice to the Company of the occurrence
and date of the Fourth Amendment Effective Date promptly upon satisfaction of
each of the foregoing conditions. Such notice shall be conclusive and binding on
all parties hereto.

                                       28

<PAGE>

     35. Release. In order to induce the Holders to enter into this Amendment,
the Company, on behalf of itself and its Subsidiaries, acknowledges and agrees
that: (a) none of the Company nor such Subsidiaries has any claim or cause of
action against any Holder (or any of their respective directors, officers,
employees or agents); (b) none of the Company nor such Subsidiaries has any
offset rights, counterclaims or defenses of any kind against any of its
respective obligations, indebtedness or liabilities to any Holder; and (c) each
of the Holders has heretofore properly performed and satisfied in a timely
manner all of its obligations to the Company and each such Subsidiary. The
Company, on behalf of itself and its Subsidiaries, wishes to eliminate any
possibility that any past conditions, acts, omissions, events, circumstances or
matters would impair or otherwise adversely affect any of the Holders' rights,
interests, contracts, collateral security or remedies. Therefore, the Company,
on behalf of itself and its Subsidiaries, unconditionally releases, waives and
forever discharges (x) any and all liabilities, obligations, duties, promises or
indebtedness of any kind of any Holder to the Company or any of its
Subsidiaries, except the obligations to be performed by any Holder on or after
the date hereof as expressly stated in this Amendment, the Note Purchase
Agreement and the other Note Documents, and (y) all claims, offsets, causes of
action, suits or defenses of any kind whatsoever (if any), whether arising at
law or in equity, whether known or unknown, which the Company or any such
Subsidiary might otherwise have against any Holder or any of its directors,
officers, employees or agents, in either case (x) or (y), on account of any past
or presently existing condition, act, omission, event, contract, liability,
obligation, indebtedness, claim, cause of action, defense, circumstance or
matter of any kind.

     36. Intercompany Allocation of Fees/Expenses. On or before October 15,
2002, the Company shall cause all fees and expenses incurred by the Company on
behalf of the Parent or any Affiliate in connection with the negotiation and
preparation of this Amendment, the amendments required by Sections 34(a)(iv) and
(v) hereof or the Merrill Lynch Facility, to be paid by the Parent or such
Affiliate, as the case may be, in accordance with the Company's existing method
of allocation.

     37. Miscellaneous Provisions.

     (a) The Company hereby ratifies and confirms all of its obligations to the
Holders under the Note Purchase Agreements and the other Note Documents, in each
case as amended hereby, including, without limitation, the Notes, and the
Company hereby affirms its absolute and unconditional promise to pay to the
Holders amounts owed in connection with the Notes, reimbursement obligations and
all other amounts due or to become due and payable to the Holders under the Note
Purchase Agreements and other Note Documents, as amended hereby. Except as
expressly amended hereby, each of the Existing Note Purchase Agreements and the
other Note Documents shall continue in full force and effect. This Amendment and
each Note Purchase Agreement shall hereafter be read and construed together as a
single document.

     (b) No consent or waiver herein granted shall extend to or affect any
obligations not expressly herein consented to or waived or shall impair any
right of the Holders consequent thereon. No consent or waiver herein granted
shall extend beyond the term expressly set forth herein for such consent or
waiver, nor shall anything contained herein be deemed to imply any willingness
of the Holders to agree to, or otherwise prejudice any rights of the Holders
with respect to, any similar or dissimilar consents or waivers that may be
requested in the future.

                                       29

<PAGE>

     (c) THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO CONFLICT OF LAWS).

     (d) This Amendment may be executed in any number of counterparts, and all
such counterparts shall together constitute but one instrument. In making proof
of this Amendment it shall not be necessary to produce or account for more than
one counterpart signed by each party hereto by and against which enforcement
hereof is sought.

                       Signature pages immediately follow

                                       30

<PAGE>

         This Fourth Amendment is hereby accepted and agreed to as of the date
aforesaid.

                                        MEDALLION FUNDING CORP.

                                        By: /s/ Alvin Murstein
                                            ------------------------------
                                            Name:  Alvin Murstein
                                            Title: CEO

                                        By: /s/ James E. Jack
                                            ------------------------------
                                             Name:  James E. Jack
                                             Title: CFO and EVP

<PAGE>

     This Fourth Amendment is hereby accepted and agreed to as of the date
aforesaid.

                                        THE TRAVELERS INSURANCE COMPANY

                                        By: /s/ Denise T. Duffee
                                            ------------------------------
                                            Name:  Denise T. Duffee
                                            Title: Investment Officer

                                        FIRST CITICORP LIFE INSURANCE COMPANY

                                        By: Travelers Asset Management
                                            International Company LLC

                                            By: /s/ Denise T. Duffee
                                                ------------------------------
                                                Name:  Denise T. Duffee
                                                Title: Investment Officer

                                        CITICORP LIFE INSURANCE COMPANY

                                        By: Travelers Asset Management
                                            International Company LLC

                                            By: /s/ Denise T. Duffee
                                                ------------------------------
                                                Name:  Denise T. Duffee
                                                Title: Investment Officer

                                        UNITED OF OMAHA LIFE INSURANCE COMPANY

                                        By: /s/  Curtis R. Caldwell
                                            ------------------------------
                                            Name:  Curtis R. Caldwell
                                            Title: Vice President

                                        COMPANION LIFE INSURANCE COMPANY

                                        By: /s/ Curtis R. Caldwell
                                            ------------------------------
                                            Name:  Curtis R. Caldwell
                                            Title: Authorized Signer

<PAGE>

     This Fourth Amendment is hereby accepted and agreed to as of the date
aforesaid.

                                        FLEET NATIONAL BANK (f/k/a FLEET BANK,
                                        N.A.), in its separate capacities as
                                        Collateral Agent under the Company
                                        Security Agreement, the Intercreditor
                                        Agreement and the Collateral Agency
                                        Agreement

                                        By: /s/ Mark A. Van Osdol
                                            ------------------------------
                                            Name:  Mark A. Van Osdol
                                            Title: Senior Vice President

<PAGE>

     Each of the undersigned hereby reaffirms and ratifies all of its agreements
and obligations under the Note Documents which such Person is party to, and
confirms that it consents to the amendment of the Existing Note Purchase
Agreements as set forth above.

                                        MEDALLION TAXI MEDIA, INC.

                                        By: /s/ Andrew Murstein
                                            ------------------------------
                                            Name:  Andrew Murstein
                                            Title: CEO

                                        By: /s/ Michael Leible
                                            ------------------------------
                                            Name:  Michael Leible
                                            Title: President

                                        MEDALLION FINANCIAL CORP.

                                        By: /s/ Alvin Murstein
                                            ------------------------------
                                            Name:  Alvin Murstein
                                            Title: President

                                        By: /s/ James E. Jack
                                            ------------------------------
                                            Name:  James E. Jack
                                            Title: CFO and EVP

                                        MEDALLION FUNDING CHICAGO CORP.

                                        By: /s/ Alvin Murstein
                                            ------------------------------
                                            Name:  Alvin Murstein
                                            Title: CEO

                                        By: /s/ James E. Jack
                                            ------------------------------
                                             Name:  James E. Jack
                                             Title: CFO

<PAGE>

                                   Schedule A
                                   ----------

                                                 PRINCIPAL AMOUNT OF THE
          NAME OF HOLDER OF                      NOTES HELD AS OF FOURTH
          OUTSTANDING NOTES                      AMENDMENT EFFECTIVE DATE

THE TRAVELERS INSURANCE COMPANY                   $2,192,424.65 Series A
                                                  $2,192,424.65 Series B

FIRST CITICORP LIFE INSURANCE COMPANY              $219,242.47 Series A
                                                    $219,242.47Series B

CITICORP LIFE INSURANCE COMPANY                    $219,242.47 Series A
                                                   $219,242.47 Series B
                                                   $109,621.23 Series A
                                                   $109,621.23 Series B

UNITED OF OMAHA LIFE INSURANCE COMPANY            $1,863,560.95 Series A
                                                  $1,863,560.95 Series B

COMPANION LIFE INSURANCE COMPANY                   $328,863.70 Series A
                                                   $328,863.70 Series B

<PAGE>

                                     Annex A
                                     -------

                               Monitoring Reports
                               ------------------

                               [To be agreed upon]

<PAGE>

                                     Annex B
                                     -------

                      Waived Defaults or Events of Default
                      ------------------------------------

1.   Section 7.1(i)

2.   Section 10.3*

3.   Section 10.8(e)*

4.   Section 10.11*

5.   Section 10.14

6.   Section 10.15

7.   Section 10.18

8.   Section 10.20*

9.   Section 10.22*

*    The Company is in default of these covenants due to closing of the Merrill
     Lynch Facility.

<PAGE>

                                     Annex C
                                     -------

                              Form of Series A Note
                              ---------------------

                             MEDALLION FUNDING CORP.

            8.85% SENIOR SECURED NOTE, SERIES A, DUE AUGUST 31, 2003

No. RA-____                                                   September 13, 2002
$__________                                                      PPN 58403# AC 1

     FOR VALUE RECEIVED, the undersigned, MEDALLION FUNDING CORP. (herein called
the "Company"), a corporation organized and existing under the laws of the State
of New York, hereby promises to pay to _____________________, or registered
assigns, the principal sum of _________________________________________ DOLLARS,
pursuant to the terms of the Note Purchase Agreements (as hereinafter defined)
but in any event not later than August 31, 2003, with interest (computed on the
basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof, together with any Make-Whole Amount for which payment has been deferred
by agreement of the Company and the holder hereof (as set forth in the Note
Purchase Agreements), at the rate of (i) 8.85% per annum for the period from and
including the date hereof through and including January 11, 2003, (ii) 9.35% per
annum for the period from and including January 12, 2003, through and including
May 11, 2003; and (iii) 9.85% per annum from and including May 12, 2003 and
thereafter, payable monthly in arrears, on the first Business Day of each month,
commencing with the first Business Day in the month of October 2002, until the
principal hereof shall have become due and payable, and (b) without duplication
of amounts under clause (a), to the extent permitted by law on any overdue
payment (including any overdue prepayment) of principal, any overdue payment of
interest and during the continuance of an Event of Default (as defined in the
Note Purchase Agreements), payable monthly in arrears as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate per annum from
time to time equal to the greater of (i) the rate otherwise borne hereunder plus
2% or (ii) 2% over the rate of interest publicly announced by Citibank, N.A.
from time to time in New York, New York as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of the Company or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of a series of 8.85% Senior Secured Notes, Series A, due
August 31, 2003, issued, together with the Company's 8.85% Senior Secured Notes,
Series B, due August 31, 2003 (herein called the "Notes"), pursuant to the
separate Note Purchase Agreements, each dated as of June 1, 1999 (as from time
to time amended, the "Note Purchase Agreements"), between the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreements and (ii) to have made the representation set forth in
Section 6.2 of the Note Purchase Agreements.

<PAGE>

     This Note is secured by, and this Note and the holder hereof are also
entitled equally and ratably with the holders of all other Notes to the rights
and benefits provided pursuant to the terms and provisions of the Security
Documents (as such term is defined in the Note Purchase Agreements). Reference
is hereby made to each of the foregoing for a statement of the nature and extent
of the benefits afforded thereby and the rights of the holders in respect
thereof.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to prepayment, in whole or from time to time in part,
at the times and on the terms specified in the Note Purchase Agreements.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

     This Note amends and restates in its entirety that certain 8.35% Senior
Secured Note, Series A, due June 1, 2003, number RA-___, in the aggregate
principal amount of $_________________ pursuant to that certain "Fourth
Amendment to the Note Purchase Agreements, Limited Waiver and Consent" dated as
of September 11, 2002.

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

                 Remainder of this page intentionally left blank

<PAGE>

                                        MEDALLION FUNDING CORP.

                                        By:
                                            ------------------------------
                                            Name:  Alvin Murstein
                                            Title: Chief Executive Officer

                                        By:
                                            ------------------------------
                                            Name:  James E. Jack
                                            Title: Chief Financial Officer

<PAGE>

                                     Annex D
                                     -------

                              Form of Series B Note
                              ---------------------

                             MEDALLION FUNDING CORP.

            8.85% SENIOR SECURED NOTE, SERIES B, DUE AUGUST 31, 2003

No. RB-____                                                   September 13, 2002
$__________                                                      PPN 58403# AD 9

     FOR VALUE RECEIVED, the undersigned, MEDALLION FUNDING CORP. (herein called
the "Company"), a corporation organized and existing under the laws of the State
of New York, hereby promises to pay to _____________________, or registered
assigns, the principal sum of _______________________________________ DOLLARS on
August 31, 2003, with interest (computed on the basis of a 360-day year of
twelve 30-day months) (a) on the unpaid balance thereof, together with any
Make-Whole Amount for which payment has been deferred by agreement of the
Company and the holder hereof (as set forth in the Note Purchase Agreements
referred to below), at the rate of (i) 8.85% per annum for the period from and
including the date hereof through and including January 11, 2003, (ii) 9.35% per
annum for the period from and including January 12, 2003, through and including
May 11, 2003; and (iii) 9.85% per annum from and including May 12, 2003 and
thereafter, payable monthly in arrears, on the first Business Day of each month,
commencing with the first Business Day in the month of October 2002, until the
principal hereof shall have become due and payable, and (b) without duplication
of amounts under clause (a), to the extent permitted by law on any overdue
payment (including any overdue prepayment) of principal, any overdue payment of
interest and during the continuance of an Event of Default (as defined in the
Note Purchase Agreements referred to below), payable monthly in arrears as
aforesaid (or, at the option of the registered holder hereof, on demand), at a
rate per annum from time to time equal to the greater of (i) the rate otherwise
borne hereunder plus 2% or (ii) 2% over the rate of interest publicly announced
by Citibank, N.A. from time to time in New York, New York as its "base" or
"prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of the Company or at such other place as the
Company shall have designated by written notice to the holder of this Note as
provided in the Note Purchase Agreements referred to below.

     This Note is one of a series of Senior Secured Notes, Series B, due August
31, 2003, issued, together with the Company's 8.85% Senior Secured Notes, Series
A, due August 31, 2003 (herein called the "Notes"), pursuant to separate Note
Purchase Agreements, dated as of June 1, 1999 (as from time to time amended, the
"Note Purchase Agreements"), between the Company and the respective Purchasers
named therein and is entitled to the benefits thereof. Each holder of this Note
will be deemed, by its acceptance hereof, (i) to have agreed to the
confidentiality provisions set forth in Section 20 of the Note Purchase
Agreements and (ii) to have made the representation set forth in Section 6.2 of
the Note Purchase Agreements.

<PAGE>

     This Note is secured by, and this Note and the holder hereof are also
entitled equally and ratably with the holders of all other Notes to the rights
and benefits provided pursuant to the terms and provisions of the Security
Documents (as such term is defined in the Note Purchase Agreements). Reference
is hereby made to each of the foregoing for a statement of the nature and extent
of the benefits afforded thereby and the rights of the holders in respect
thereof.

     This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

     This Note is subject to prepayment, in whole or from time to time in part,
at the times and on the terms specified in the Note Purchase Agreements.

     If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreements.

     This Note amends and restates in its entirety that certain 8.35% Senior
Secured Note, Series B, due June 1, 2003, number RB-___, in the aggregate
principal amount of $_________________ pursuant to that certain Fourth Amendment
to the Note Purchase Agreements, Limited Waiver and Consent dated as of
September 11, 2002.

     This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

                 Remainder of this page intentionally left blank

<PAGE>

                                        MEDALLION FUNDING CORP.

                                        By:
                                            ------------------------------
                                            Name:  Alvin Murstein
                                            Title: Chief Executive Officer

                                        By:
                                            ------------------------------
                                            Name:  James E. Jack
                                            Title: Chief Financial Officer

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