Document:

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                                                                    EXHIBIT 10.8

                                   Guaranty

                          Dated as of April 30, 2001

                                      by

                          Medallion Taxi Media, Inc.

                                  in favor of

                the holders from time to time of those certain
               $22,500,000 7.20% Senior Secured Notes, Series A
                               due June 1, 2004

                                      and

               $22,500,000 7.20% Senior Secured Notes, Series B
                            due September 1, 2004
                          of Medallion Funding Corp.

================================================================================
<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
Section                                          Heading                                         Page
<S>                                                                                              <C>
Section 1.  Definitions..........................................................................   1
Section 2.  Guaranty of Payment and Performance..................................................   2
Section 3.  Guarantor's Agreement to Pay Enforcement Costs, etc..................................   2
Section 4.  Waivers by Guarantor; Bank's Freedom to Act..........................................   3
Section 5.  Unenforceability of Obligations Against Borrower.....................................   3
Section 6.  Subrogation; Subordination...........................................................   4
Section 7.  Setoff...............................................................................   4
Section 8.  Further Assurances...................................................................   4
Section 9.  Release..............................................................................   5
Section 10. Termination; Reinstatement...........................................................   5
Section 11. Successors and Assigns...............................................................   5
Section 12. Amendments and Waivers...............................................................   5
Section 13. Notices..............................................................................   6
Section 14. Governing Law; Consent to Jurisdiction...............................................   6
Section 15. Waiver of Jury Trial.................................................................   6
Section 16. Miscellaneous........................................................................   6
</TABLE>

                                      -i-
<PAGE>

     Guaranty, dated as of April 30, 2001 ("Guaranty"), by Medallion Taxi Media,
Inc., a New York corporation (the "Guarantor") in favor of (i) the holders from
time to time (herein, the "Noteholders") of those certain $22,500,000 aggregate
principal amount 7.20% Senior Secured Notes, Series A due June 1, 2004 (the
"Series A Notes") and $22,500,000 aggregate principal amount 7.20% Senior
Secured Notes, Series B Notes due September 1, 2004 (the "Series B Notes" and
together with the Series A Notes, the "Notes") issued pursuant to those certain
Note Purchase Agreements each dated as of June 1, 1999 (as amended pursuant to
that certain First Amendment Agreement dated as of March 30, 2001 (the "First
Amendment") and as further amended and in effect from time to time, the "Note
Agreements"), between Medallion Funding Corp., a New York corporation
("Borrower") and each of the purchasers set forth in Schedule A thereto.

     Whereas, the Borrower and the Guarantor are members of a group of related
corporations, the success of any one of which is dependent in part on the
success of the other members of such group;

     Whereas, the Guarantor has received and expects to continue to receive
substantial direct and indirect benefits from the extensions of credit to the
Borrower by the Noteholders pursuant to the Note Agreements (which benefits are
hereby acknowledged);

     Whereas, it is a condition to the effectiveness of the First Amendment that
the Guarantor execute and deliver to the Noteholders, for the benefit of the
Noteholders, a guaranty substantially in the form hereof; and

     Whereas, the Guarantor wishes to guaranty the Borrower's obligations to the
Noteholders under or in respect of the Note Agreements as provided herein;

     Now, Therefore, the Guarantor hereby agrees with the Noteholders as
follows:

     Section 1. Definitions. All capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Note
Agreements.

     "Obligations" means any and all present and future indebtedness and all
performance obligations which may at any time be owing by the Borrower to the
Collateral Agent or any Noteholder, however arising, under the Note Agreements,
this Guaranty or any other Note Document between the Collateral Agent and/or any
Noteholder and the Borrower in connection with any of the foregoing or in
connection with any Note Document, whether now in existence or incurred
hereafter, whether incurred directly or incurred by others and assumed by the
Borrower, whether secured by mortgage, pledge, or lien upon or security interest
in any property of the Borrower, or any other person, whether such indebtedness
or other obligation is absolute or contingent, joint or several, matured or
unmatured, direct or indirect, and whether the Borrower is liable for such
indebtedness or other obligation as principal, surety, endorser, guarantor, or
otherwise. Without limiting the generality of the foregoing, the Obligations
shall include the liability of the Borrower to any Noteholder for all balances
owing to any Noteholder under the Note Agreements or under any other agreement
or arrangement now or hereafter
<PAGE>

entered into between the Borrower and the Collateral Agent or any Noteholder in
connection therewith, and, solely in connection with this Guaranty or the Note
Agreements, the following: (i) indebtedness owing by the Borrower to the
Collateral Agent or any Noteholder, (ii) the liability of the Borrower to the
Collateral Agent or any Noteholder as maker or endorser of any promissory note
or other instrument for the payment of money, and (iii) the liability of the
Borrower to the Collateral Agent or any Noteholder under any instrument of
guaranty of indemnity, or arising under any guarantee, endorsement, or
undertaking which the Collateral Agent or any Noteholder may make or issue to
others for the account of the Borrower. The Obligations shall also include
interest, premium (if any), Make-Whole Amount (if any), commissions, financing
and service charges, and expenses and fees, including but not limited to the
costs and expenses of collection of the Obligations (including the fees and
disbursements of accountants), the costs and expenses of the Collateral Agent
and the costs and expenses of filing, perfecting, preserving, retaking, holding,
and preparing any of the Collateral for sale chargeable to the Borrower and due
from the Borrower under this Guaranty, the Note Agreements or under any other
agreement or arrangement which may be now or hereafter entered into between the
Borrower and the Collateral Agent or the Noteholders.

     Section 2. Guaranty of Payment and Performance. The Guarantor hereby
guarantees to the Noteholders the full and punctual payment when due (whether at
stated maturity, by required prepayment, by acceleration or otherwise), as well
as the performance, of all of the Obligations including all such which would
become due but for the operation of the automatic stay pursuant to (S)362(a) of
the Federal Bankruptcy Code and the operation of (S)(S)502(b) and 506(b) of the
Federal Bankruptcy Code. This Guaranty is an absolute, unconditional and
continuing guaranty of the full and punctual payment and performance of all of
the Obligations and not of their collectibility only and is in no way
conditioned upon any requirement that any Noteholder first attempt to collect
any of the Obligations from the Borrower or resort to any collateral security or
other means of obtaining payment. Should the Borrower default in the payment or
performance of any of the Obligations, the obligations of the Guarantor
hereunder with respect to such Obligations in default shall, upon demand by the
Required Holders, become immediately due and payable to the Noteholders, without
demand or notice of any nature, all of which are expressly waived by the
Guarantor. Payments by the Guarantor hereunder may be required by the
Noteholders on any number of occasions. All payments by the Guarantor hereunder
shall be made to the Noteholders, in the manner and at the place of payment
specified therefor in the Note Agreements, for the account of the Noteholders.

     Section 3. Guarantor's Agreement to Pay Enforcement Costs, etc. The
Guarantor further agrees, as the principal obligor and not as a guarantor only,
to pay to the Noteholders, on demand, all costs and expenses (including court
costs and legal expenses) incurred or expended by any Noteholder in connection
with the Obligations, this Guaranty and the enforcement hereof and thereof,
together with interest on amounts recoverable under this (S)3 from the time when
such amounts become due until payment, whether before or after judgment, at the
rate of interest for overdue principal set forth in the Note Agreements,
provided that if such interest exceeds the maximum amount permitted to be paid
under applicable law, then such interest shall be reduced to such maximum
permitted amount.

                                      -2-
<PAGE>

          Section 4. Waivers by Guarantor; Bank's Freedom to Act. The Guarantor
agrees that the Obligations will be paid and performed strictly in accordance
with their respective terms, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the
rights of any Noteholder with respect thereto. The Guarantor waives promptness,
diligence, presentment, demand, protest, notice of acceptance, notice of any
Obligations incurred and all other notices of any kind, all defenses which may
be available by virtue of any valuation, stay, moratorium law or other similar
law now or hereafter in effect, any right to require the marshalling of assets
of the Borrower or any other entity or other person primarily or secondarily
liable with respect to any of the Obligations, and all suretyship defenses
generally. Without limiting the generality of the foregoing, the Guarantor
agrees to the provisions of any instrument evidencing, securing or otherwise
executed in connection with any Obligation and agrees that the obligations of
the Guarantor hereunder shall not be released or discharged, in whole or in
part, or otherwise affected by (i) the failure of any Noteholder to assert any
claim or demand or to enforce any right or remedy against the Borrower or any
other entity or other person primarily or secondarily liable with respect to any
of the Obligations; (ii) any extensions, compromise, refinancing, consolidation
or renewals of any Obligation; (iii) any change in the time, place or manner of
payment of any of the Obligations or any rescissions, waivers, compromise,
refinancing, consolidation or other amendments or modifications of any of the
terms or provisions of the Note Agreements, the other Note Documents or any
other agreement evidencing, securing or otherwise executed in connection with
any of the Obligations, (iv) the addition, substitution or release of any entity
or other person primarily or secondarily liable for any Obligation; (v) the
adequacy of any rights which any Noteholder may have against any collateral
security or other means of obtaining repayment of any of the Obligations; (vi)
the impairment of any collateral securing any of the Obligations, including
without limitation the failure to perfect or preserve any rights which any
Noteholder might have in such collateral security or the substitution, exchange,
surrender, release, loss or destruction of any such collateral security; or
(vii) any other act or omission which might in any manner or to any extent vary
the risk of the Guarantor or otherwise operate as a release or discharge of the
Guarantor, all of which may be done without notice to the Guarantor. To the
fullest extent permitted by law, the Guarantor hereby expressly waives any and
all rights or defenses arising by reason of (A) any "one action" or
"anti-deficiency" law which would otherwise prevent any Noteholder from bringing
any action, including any claim for a deficiency, or exercising any other right
or remedy (including any right of set-off), against the Guarantor before or
after such Noteholder's commencement or completion of any foreclosure action,
whether judicially, by exercise of power of sale or otherwise, or (B) any other
law which in any other way would otherwise require any election of remedies by
any Noteholder.

          Section 5. Unenforceability of Obligations Against Borrower. If for
any reason the Borrower has no legal existence or is under no legal obligation
to discharge any of the Obligations, or if any of the Obligations have become
irrecoverable from the Borrower by reason of the Borrower's insolvency,
bankruptcy or reorganization or by other operation of law or for any other
reason, this Guaranty shall nevertheless be binding on the Guarantor to the same
extent as if the Guarantor at all times had been the principal obligor on all
such Obligations. In the event that acceleration of the time for payment of any
of the Obligations is stayed upon the insolvency, bankruptcy or reorganization
of the Borrower, or for any other reason, al1 such amounts otherwise subject to
acceleration under the terms of the Note Agreements, the other

                                      -3-
<PAGE>

     Note Documents or any other agreement evidencing, securing or otherwise
     executed in connection with any Obligation shall be immediately due and
     payable by the Guarantor.

            Section 6. Subrogation; Subordination.

                    Section 6.1. Waiver of Rights Against Borrower. Until the
            final payment and performance in full of all of the Obligations, the
            Guarantor shall not exercise and hereby waives any rights against
            the Borrower arising as a result of payment by the Guarantor
            hereunder, by way of subrogation, reimbursement, restitution,
            contribution or otherwise, and will not prove any claim in
            competition with any Noteholder in respect of any payment hereunder
            in any bankruptcy, insolvency or reorganization case or proceedings
            of any nature; the Guarantor will not claim any setoff, recoupment
            or counterclaim against the Borrower in respect of any liability of
            the Guarantor to the Borrower; and the Guarantor waives any benefit
            of and any right to participate in any collateral security which may
            be held by or for the benefit of any Noteholder.

                    Section 6.2. Subordination. The payment of any amounts due
            with respect to any indebtedness of the Borrower for money borrowed
            or credit received now or hereafter owed to the Guarantor is hereby
            subordinated to the prior payment in full of all of the Obligations.
            The Guarantor agrees that, after the occurrence of any default in
            the payment or performance of any of the Obligations, the Guarantor
            will not demand, sue for or otherwise attempt to collect any such
            indebtedness of the Borrower to the Guarantor until all of the
            Obligations shall have been paid in full. If, notwithstanding the
            foregoing sentence, the Guarantor shall collect, enforce or receive
            any amounts in respect of such indebtedness while any Obligations
            are still outstanding, such amounts shall be collected, enforced and
            received by the Guarantor as trustee for the Noteholders and be paid
            over to the Noteholders, on account of the Obligations without
            affecting in any manner the liability of the Guarantor under the
            other provisions of this Guaranty.

                    Section 6.3. Provisions Supplemental. The provisions of this
            (S)6 shall be supplemental to and not in derogation of any rights
            and remedies of the Noteholders under any separate subordination
            agreement which the Noteholders may at any time and from time to
            time enter into with the Guarantor for the benefit of the
            Noteholders.

            Section 7. Setoff. Regardless of any other means of obtaining
   payment of any of the Obligations, each of the Noteholders is hereby
   authorized at any time and from time to time, without notice to the Guarantor
   (any such notice being expressly waived by the Guarantor) and to the fullest
   extent permitted by law, to set off and apply such deposits and other sums
   against the obligations of the Guarantor under this Guaranty, whether or not
   such Noteholder shall have made any demand under this Guaranty and although
   such obligations may be contingent or unmatured.

            Section 8. Further Assurances. The Guarantor agrees that it will
   from time to time, at the request of any Noteholder, do all such things and
   execute all such documents as such Noteholder may consider necessary ,or
   desirable to give full effect to this Guaranty and to perfect and preserve
   the rights and powers of the Noteholder hereunder. The Guarantor
   acknowledges

                                      -4-
<PAGE>

   and confirms that the Guarantor itself has established its own adequate means
   of obtaining from the Borrower on a continuing basis all information desired
   by the Guarantor concerning the financial condition of the Borrower and that
   the Guarantor will look to the Borrower and not to any Noteholder in order
   for the Guarantor to keep adequately informed of changes in the Borrower's
   financial condition.

            Section 9. Release. Notwithstanding any provision of this Guaranty
   to the contrary, this Guaranty shall be released, with the prior written
   consent of the Required Holders, which consent shall not be conditioned on
   any requirement to repay Indebtedness, 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 the Guarantor.

            Section 10. Termination; Reinstatement. This Guaranty shall remain
   in full force and effect until the Noteholders are given written notice of
   the Guarantor's intention to discontinue this Guaranty, notwithstanding any
   intermediate or temporary payment or settlement of the whole or any part of
   the Obligations. No such notice shall be effective unless received and
   acknowledged by an officer of each of the Noteholders at the address of each
   of the Noteholders for notices set forth in (S)18 of each of the Note
   Agreements. No such notice shall affect any rights of any Noteholder
   hereunder, including without limitation the rights set forth in (S)(S)4 and
   6, with respect to any Obligations incurred or accrued prior to the receipt
   of such notice or any Obligations incurred or accrued pursuant to any
   contract or commitment in existence prior to such receipt. This Guaranty
   shall continue to be effective or be reinstated, notwithstanding any such
   notice, if at any time any payment made or value received with respect to any
   Obligation is rescinded or must otherwise be returned by any Noteholder upon
   the insolvency, bankruptcy or reorganization of the Borrower, or otherwise,
   all as though such payment had not been made or value received.

            Section 11. Successors and Assigns. This Guaranty shall be
   binding upon the Guarantor, its successors and assigns, and shall inure to
   the benefit of the Noteholders and their respective successors, transferees
   and assigns. Without limiting the generality of the foregoing sentence, each
   Noteholder may assign or otherwise transfer the Note Agreements, the other
   Note Documents or any other agreement or note held by it evidencing, securing
   or otherwise executed in connection with the Obligations, or sell
   participations in any interest therein, to any other entity or other person,
   and such other entity or other person shall thereupon become vested, to the
   extent set forth in the agreement evidencing such assignment, transfer or
   participation, with all the rights in respect thereof granted to such
   Noteholder herein, all in accordance with (S)13 of the Note Agreements. The
   Guarantor may not assign any of its obligations hereunder without the prior
   written consent of the Noteholders (and any such assignment without such
   consent shall be null and void).

            Section 12.  Amendments and Waivers. No amendment or waiver of any
   provision of this Guaranty nor consent to any departure by the Guarantor
   therefrom shall be effective unless the same shall be in writing and signed
   by the Required Holders. No failure on the part of any Noteholder to
   exercise, and no delay in exercising, any right hereunder shall operate as a
   waiver thereof; nor shall any single or partial exercise of any fight
   hereunder preclude by other or further exercise thereof or the exercise of
   any other right.

                                      -5-
<PAGE>

            Section 13. Notices. All notices and other communications called for
   hereunder shall be made in writing and, unless otherwise specifically
   provided herein, shall be deemed to have been duly made or given when
   delivered by hand or mailed first class, postage prepaid, or, in the case of
   telegraphic or telexed notice, when transmitted, answer back received,
   addressed as follows: if to the Guarantor, at the address set forth beneath
   its signature hereto, and if to the Noteholders, at their respective
   addresses for notices to the Noteholders set forth in Section 18 of the Note
   Agreements, or at such address as either party may designate in writing to
   the other.

            Section 14. Governing Law; Consent to Jurisdiction. THIS GUARANTY IS
   INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT AND SHALL BE GOVERNED BY, AND
   CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. The
   Guarantor agrees that any suit for the enforcement of this Guaranty may be
   brought in the courts of the State of New York or any federal court sitting
   therein and consents to the nonexclusive jurisdiction of such court and to
   service of process in any such suit being made upon the Guarantor by mail at
   the address specified by reference in Section 13. The Guarantor hereby waives
   any objection that it may now or hereafter have to the venue of any such suit
   or any such court or that such suit was brought in an inconvenient court.

            Section 1.5. Waiver of Jury Trial. THE GUARANTOR HEREBY WAIVES ITS
   RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY
   DISPUTE IN CONNECTION WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS HEREUNDER
   OR THE PERFORMANCE OF ANY OF SUCH RIGHTS OR OBLIGATIONS. Except as prohibited
   by law, the Guarantor hereby waives any right which it may have to claim or
   recover in any litigation referred to in the preceding sentence any special,
   exemplary, punitive or consequential damages or any damages other than, or in
   addition to, actual damages. The Guarantor (j) certifies that neither any
   Noteholder nor any representative, agent or attorney of any Noteholder has
   represented, expressly or otherwise, that any Noteholder would not, in the
   event of litigation, seek to enforce the foregoing waivers and (ii)
   acknowledges that, in entering into the Note Agreements and the other Note
   Documents any Noteholder is a party, the Noteholders are relying upon, among
   other things, the waivers and certifications contained in this Section 15.

            Section 16. Miscellaneous. This Guaranty constitutes the entire
   agreement of the Guarantor with respect to the matters set forth herein. The
   rights and remedies herein provided are cumulative and not exclusive of any
   remedies provided by law or any other agreement, and this Guaranty shall he
   in addition to any other guaranty of or collateral security for any of the
   Obligations. The invalidity or unenforceability of any one or more sections
   of this Guaranty shall not affect the validity or enforceability of its
   remaining provisions. Captions are for the ease of reference only and shall
   not affect the meaning of the relevant provisions. The meanings of all
   defined terms used in this Guaranty shall be equally applicable to the
   singular and plural forms of the terms defined.

                                      -6-
<PAGE>

          In WITNESS WHEREOF, the Guarantor has caused this Guaranty to be
   executed and delivered as of the date first above written.

                                   Medallion Taxi Media, Inc.

                                   By:/s/ Andrew M. Murstein
                                     -------------------------------
                                      Andrew M. Murstein
                                      President

                                   By:/s/ Larry D.Hall
                                      ------------------------------
                                      Larry D. Hall
                                      Corporate Controller

                                   Address:

                                   437 Madison Avenue
                                   38th Floor
                                   New York, New York
                                   Telex: (212) 328-2125<PAGE>

                                                                    EXHIBIT 10.9
                                   GUARANTY
                                   --------

                          DATED as of April 30, 2001

                                      by

                          Medallion Taxi Media, Inc.

                                  in favor of

         FLEET NATIONAL BANK, as Agent for itself and the Banks named
                                    herein

                                      and

                                   THE BANKS

<PAGE>

                               TABLE OF CONTENTS
                               -----------------

1.    Definitions..........................................  1
      -----------
2.    Guaranty of Payment and Performance..................  2
      ----------------------------------
3.    Guarantor's Agreement to Pay Enforcement Costs, etc..  2
      ---------------------------------------------------
4.    Waivers by Guarantor; Bank's Freedom to Act..........  2
      -------------------------------------------
5.    Unenforceability of Obligations Against Borrowers....  3
      -------------------------------------------------
6.    Subrogation; Subordination...........................  4
      --------------------------
      6.1.   Waiver of Rights Against Borrowers............  4
             ----------------------------------
      6.2.   Subordination.................................  4
             -------------
      6.3.   Provisions Supplemental.......................  5
             -----------------------
7.    Security; Setoff.....................................  5
      ----------------
8.    Further Assurances...................................  5
      ------------------
9.    Release..............................................  5
      -------
10.   Termination; Reinstatement...........................  6
      --------------------------
11.   Successors and Assigns...............................  6
      ----------------------
12.   Amendments and Waivers...............................  6
      ----------------------
13.   Notices..............................................  7
      -------
14.   Governing Law; Consent to Jurisdiction...............  7
      --------------------------------------
15.   Waiver of Jury Trial.................................  7
      --------------------
16.   Miscellaneous........................................  8
      -------------
<PAGE>

                                    GUARANTY
                                    --------

     GUARANTY, dated as of April 30, 2001, by Medallion Taxi Media, Inc., a New
York corporation (the "Guarantor") in favor of (i) Fleet National Bank, a
national banking association, as agent (hereinafter, in such capacity, the
"Agent") for itself and the other banking institutions (hereinafter,
collectively, the "Banks") which are or may become parties to a Second Amended
and Restated Loan Agreement dated as of September 22, 2000 (as amended and in
effect from time to time, the "Financial Agreement"), among Medallion Financial
Corp., a Delaware corporation ("MFC"), Medallion Business Credit, LLC, a
Delaware limited liability company ("MBC";  MBC and MFC are sometimes
hereinafter referred to individually as a "Borrower" and together as the
"Borrowers"), the Banks and the Agent and (ii) each of the Banks.

     WHEREAS, the Borrowers and the Guarantor are members of a group of related
corporations, the success of any one of which is dependent in part on the
success of the other members of such group;

     WHEREAS, the Guarantor expects to receive substantial direct and indirect
benefits from the extensions of credit to the Borrowers by the Banks pursuant to
the Financial Agreement (which benefits are hereby acknowledged);

     WHEREAS, it is a condition to the effectiveness of Amendment No. 1 that the
Guarantor execute and deliver to the Agent, for the benefit of the Banks and the
Agent, a guaranty substantially in the form hereof; and

     WHEREAS, the Guarantor wishes to guaranty the Borrowers' obligations to the
Banks and the Agent under or in respect of the Financial Agreement as provided
herein;

     NOW, THEREFORE, the Guarantor hereby agrees with the Banks and the Agent as
follows:

     1.  Definitions. The term "Obligations" shall have the meaning provided
         -----------
therefor in the Security Agreement (as defined in the Financial Agreement); all
other capitalized terms used herein without definition shall have the respective
meanings provided therefor in the Financial Agreement.
<PAGE>

                                      -2-

     2.  Guaranty of Payment and Performance. The Guarantor hereby guarantees to
         -----------------------------------
the Banks and the Agent the full and punctual payment when due (whether at
stated maturity, by required pre-payment, by acceleration or otherwise), as well
as the performance, of all of the Obligations including all such which would
become due but for the operation of the automatic stay pursuant to Section
362(a) of the Federal Bankruptcy Code and the operation of (S)(S)502(b) and
506(b) of the Federal Bankruptcy Code. This Guaranty is an absolute,
unconditional and continuing guaranty of the full and punctual payment and
performance of all of the Obligations and not of their collectibility only and
is in no way conditioned upon any requirement that the Agent or any Bank first
attempt to collect any of the Obligations from the Borrowers or resort to any
collateral security or other means of obtaining payment. Should the Borrowers
default in the payment or performance of any of the Obligations, the obligations
of the Guarantor hereunder with respect to such Obligations in default shall,
upon demand by the Agent, become immediately due and payable to the Agent, for
the benefit of the Banks and the Agent, without demand or notice of any nature,
all of which are expressly waived by the Guarantor. Payments by the Guarantor
hereunder may be required by the Agent on any number of occasions. All payments
by the Guarantor hereunder shall be made to the Agent, in the manner and at the
place of payment specified therefor in the Financial Agreement, for the account
of the Banks and the Agent.

     3.  Guarantor's Agreement to Pay Enforcement Costs, etc. The Guarantor
         ----------------------------------------------------
further agrees, as the principal obligor and not as a guarantor only, to pay to
the Agent, on demand, all costs and expenses (including court costs and legal
expenses) incurred or expended by the Agent or any Bank in connection with the
Obligations, this Guaranty and the enforcement hereof and thereof, together with
interest on amounts recoverable under this Section 3 from the time when such
amounts become due until payment, whether before or after judgment, at the
rate of interest for overdue principal set forth in the Financial Agreement,
provided that if such interest exceeds the maximum amount permitted to be paid
--------
under applicable law, then such interest shall be reduced to such maximum
permitted amount.

     4.  Waivers by Guarantor; Bank's Freedom to Act. The Guarantor agrees that
         -------------------------------------------
the Obligations will be paid and performed strictly in accordance with their
respective terms, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Agent or any Bank with respect thereto. The Guarantor waives promptness,
diligences,
<PAGE>

                                      -3-

presentment, demand, protest, notice of acceptance, notice of any Obligations
incurred and all other notices of any kind, all defenses which may be available
by virtue of any valuation, stay, moratorium law or other similar law now or
hereafter in effect, any right to require the marshalling of assets of the
Borrowers or any other entity or other person primarily or secondarily liable
with respect to any of the Obligations, and all suretyship defenses generally.
Without limiting the generality of the foregoing, the Guarantor agrees to the
provisions of any instrument evidencing, securing or otherwise executed in
connection with any Obligation and agrees that the obligations of the Guarantor
hereunder shall not be released or discharged, in whole or in part, or otherwise
affected by (i) the failure of the Agent or any Bank to assert any claim or
demand or to enforce any right or remedy against the Borrowers or any other
entity or other person primarily or secondarily liable with respect to any of
the Obligations; (ii) any extensions, compromise, refinancing, consolidation or
renewals of any Obligation; (iii) any change in the time, place or manner of
payment of any of the Obligations or any rescissions, waivers, compromise,
refinancing, consolidation or other amendments or modifications of any of the
terms or provisions of the Financial Agreement, the other Loan Documents or any
other agreement evidencing, securing or otherwise executed in connection with
any of the Obligations, (iv) the addition, substitution or release of any entity
or other person primarily or secondarily liable for any Obligation; (v) the
adequacy of any rights which the Agent or any Bank may have against any
collateral security or other means of obtaining repayment of any of the
Obligations; (vi) the impairment of any collateral securing any of the
Obligations, including without limitation the failure to perfect or preserve any
rights which the Agent or any Bank might have in such collateral security or the
substitution, exchange, surrender, release, loss or destruction of any such
collateral security; or (vii) any other act or omission which might in any
manner or to any extent vary the risk of the Guarantor or otherwise operate as a
release or discharge of the Guarantor, all of which may be done without notice
to the Guarantor. To the fullest extent permitted by law, the Guarantor hereby
expressly waives any and all rights or defenses arising by reason of (A) any
"one action" or "anti-deficiency" law which would otherwise prevent the Agent or
any Bank from bringing any action, including any claim for a deficiency, or
exercising any other right or remedy (including any right of set-off), against
the Guarantor before or after the Agent's or such Bank's commencement or
completion of any foreclosure action, whether judicially, by exercise of power
of sale or otherwise, or (B) any other
<PAGE>

                                      -4-

law which in any other way would otherwise require any election of remedies by
the Agent or any Bank.

     5.  Unenforceability of Obligations Against Borrowers. If for any reason
         -------------------------------------------------
the Borrowers have no legal existence or are under no legal obligation to
discharge any of the Obligations, or if any of the Obligations have become
irrecoverable from the Borrowers by reason of the Borrowers' insolvency,
bankruptcy or reorganization or by other operation of law or for any other
reason, this Guaranty shall nevertheless be binding on the Guarantor to the same
extent as if the Guarantor at all times had been the principal obligor on all
such Obligations. In the event that acceleration of the time for payment of any
of the Obligations is stayed upon the insolvency, bankruptcy or reorganization
of the Borrowers, or for any other reason, all such amounts otherwise subject to
acceleration under the terms of the Financial Agreement, the other Loan
Documents or any other agreement evidencing, securing or otherwise executed in
connection with any Obligation shall be immediately due and payable by the
Guarantor.

     6.  Subrogation; Subordination.
         --------------------------

          6.1.  Waiver of Rights Against Borrowers. Until the final payment and
                ----------------------------------
     performance in full of all of the Obligations, the Guarantor shall not
     exercise and hereby waives any rights against the Borrowers arising as a
     result of payment by the Guarantor hereunder, by way of subrogation,
     reimbursement, restitution, contribution or otherwise, and will not prove
     any claim in competition with the Agent or any Bank in respect of any
     payment hereunder in any bankruptcy, insolvency or reorganization case or
     proceedings of any nature; the Guarantor will not claim any setoff,
     recoupment or counterclaim against the Borrowers in respect of any
     liability of the Guarantor to the Borrowers; and the Guarantor waives any
     benefit of and any right to participate in any collateral security which
     may be held by the Agent or any Bank.

          6.2.  Subordination. The payment of any amounts due with respect to
                -------------
     any indebtedness of the Borrowers for money borrowed or credit received now
     or hereafter owed to the Guarantor is hereby subordinated to the prior
     payment in full of all of the Obligations. The Guarantor agrees that, after
     the occurrence of any default in the payment or performance of any of the
     Obligations, the Guarantor will not demand, sue for or
<PAGE>

                                      -5-

     otherwise attempt to collect any such indebtedness of the Borrowers to the
     Guarantor until all of the Obligations shall have been paid in full. If,
     notwithstanding the foregoing sentence, the Guarantor shall collect,
     enforce or receive any amounts in respect of such indebtedness while any
     Obligations are still outstanding, such amounts shall be collected,
     enforced and received by the Guarantor as trustee for the Banks and the
     Agent and be paid over to the Agent, for the benefit of the Banks and the
     Agent, on account of the Obligations without affecting in any manner the
     liability of the Guarantor under the other provisions of this Guaranty.

          6.3.  Provisions Supplemental. The provisions of this Section 6 shall
                 -----------------------
     be supplemental to and not in derogation of any rights and remedies of the
     Banks and the Agent under any separate subordination agreement which the
     Agent may at any time and from time to time enter into with the Guarantor
     for the benefit of the Banks and the Agent.

     7.  Setoff. Regardless of any other means of obtaining payment of any of
         ------
the Obligations, each of the Agent and the Banks is hereby authorized at any
time and from time to time, without notice to the Guarantor (any such notice
being expressly waived by the Guarantor) and to the fullest extent permitted by
law, to set off and apply such deposits and other sums against the obligations
of the Guarantor under this Guaranty, whether or not the Agent or such Bank
shall have made any demand under this Guaranty and although such obligations may
be contingent or unmatured.

     8.  Further Assurances. The Guarantor agrees that it will from time to
         ------------------
time, at the request of the Agent, do all such things and execute all such
documents as the Agent may consider necessary or desirable to give full effect
to this Guaranty and to perfect and preserve the rights and powers of the Banks
and the Agent hereunder. The Guarantor acknowledges and confirms that the
Guarantor itself has established its own adequate means of obtaining from the
Borrowers on a continuing basis all information desired by the Guarantor
concerning the financial condition of the Borrowers and that the Guarantor will
look to the Borrowers and not to the Agent or any Bank in order for the
Guarantor to keep adequately informed of changes in the Borrowers' financial
condition.

     9.  Release.  Notwithstanding any provision of this Guaranty to the
         -------
contrary, this Guaranty shall be released, with the prior written
<PAGE>

                                      -6-

consent of the Agent and the Required Banks, which consent shall not be
conditioned on any requirement to repay Indebtedness, 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 the Guarantor.

     10.  Termination; Reinstatement. This Guaranty shall remain in full force
          --------------------------
and effect until the Agent is given written notice of the Guarantor's intention
to discontinue this Guaranty, notwithstanding any intermediate or temporary
payment or settlement of the whole or any part of the Obligations. No such
notice shall be effective unless received and acknowledged by an officer of the
Agent at the address of the Agent for notices set forth in Section 10.4 of the
Financial Agreement. No such notice shall affect any rights of the Agent or any
Bank hereunder, including without limitation the rights set forth in (S)(S)4 and
6, with respect to any Obligations incurred or accrued prior to the receipt of
such notice or any Obligations incurred or accrued pursuant to any contract or
commitment in existence prior to such receipt. This Guaranty shall continue to
be effective or be reinstated, notwithstanding any such notice, if at any time
any payment made or value received with respect to any Obligation is rescinded
or must otherwise be returned by the Agent or any Bank upon the insolvency,
bankruptcy or reorganization of the Borrowers, or otherwise, all as though such
payment had not been made or value received.

     11.  Successors and Assigns. This Guaranty shall be binding upon the
          ----------------------
Guarantor, its successors and assigns, and shall inure to the benefit of the
Agent and the Banks and their respective successors, transferees and assigns.
Without limiting the generality of the foregoing sentence, each Bank may assign
or otherwise transfer the Financial Agreement, the other Loan Documents or any
other agreement or note held by it evidencing, securing or otherwise executed in
connection with the Obligations, or sell participations in any interest therein,
to any other entity or other person, and such other entity or other person shall
thereupon become vested, to the extent set forth in the agreement evidencing
such assignment, transfer or participation, with all the rights in respect
thereof granted to such Bank herein, all in accordance with Section 12 of the
Financial Agreement. The Guarantor may not assign any of its obligations
hereunder without the prior written consent of the Agent and the Banks (and any
such assignment without such consent shall be null and void).
<PAGE>

                                      -7-

     12.  Amendments and Waivers. No amendment or waiver of any provision of
          ----------------------
this Guaranty nor consent to any departure by the Guarantor therefrom shall be
effective unless the same shall be in writing and signed by the Agent with the
consent of the Majority Banks. No failure on the part of the Agent or any Bank
to exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right.

     13.  Notices. All notices and other communications called for hereunder
          -------
shall be made in writing and, unless otherwise specifically provided herein,
shall be deemed to have been duly made or given when delivered by hand or mailed
first class, postage prepaid, or, in the case of telegraphic or telexed notice,
when transmitted, answer back received, addressed as follows: if to the
Guarantor, at the address set forth beneath its signature hereto, and if to the
Agent, at the address for notices to the Agent set forth on Exhibit A of the
Financial Agreement, or at such address as either party may designate in writing
to the other.

     14.  Governing Law; Consent to Jurisdiction. THIS GUARANTY IS INTENDED TO
          --------------------------------------
TAKE EFFECT AS A SEALED INSTRUMENT AND SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. The Guarantor agrees that
any suit for the enforcement of this Guaranty may be brought in the courts of
the State of New York or any federal court sitting therein and consents to the
nonexclusive jurisdiction of such court and to service of process in any such
suit being made upon the Guarantor by mail at the address specified by reference
in Section 13. The Guarantor hereby waives any objection that it may now or
hereafter have to the venue of any such suit or any such court or that such suit
was brought in an inconvenient court.

     15.  Waiver of Jury Trial. THE GUARANTOR HEREBY WAIVES ITS RIGHT TO A JURY
          --------------------
TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE
PERFORMANCE OF ANY OF SUCH RIGHTS OR OBLIGATIONS. Except as prohibited by law,
the Guarantor hereby waives any right which it may have to claim or recover in
any litigation referred to in the preceding sentence any special, exemplary,
punitive or consequential damages or any damages other than, or in addition to,
actual damages. The Guarantor (i) certifies
<PAGE>

                                      -8-

that neither the Agent or any Bank nor any representative, agent or attorney of
the Agent or any Bank has represented, expressly or otherwise, that the Agent or
any Bank would not, in the event of litigation, seek to enforce the foregoing
waivers and (ii) acknowledges that, in entering into the Financial Agreement and
the other Loan Documents to which the Agent or any Bank is a party, the Agent
and the Banks are relying upon, among other things, the waivers and
certifications contained in this Section 15.

     16.  Miscellaneous. This Guaranty constitutes the entire agreement of the
          -------------
Guarantor with respect to the matters set forth herein. The rights and remedies
herein provided are cumulative and not exclusive of any remedies provided by law
or any other agreement, and this Guaranty shall be in addition to any other
guaranty of or collateral security for any of the Obligations. The invalidity or
unenforceability of any one or more sections of this Guaranty shall not affect
the validity or enforceability of its remaining provisions. Captions are for the
ease of reference only and shall not affect the meaning of the relevant
provisions. The meanings of all defined terms used in this Guaranty shall be
equally applicable to the singular and plural forms of the terms defined.

     IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed
and delivered as of the date first above written.

                                          MEDALLION TAXI MEDIA, INC.

                                          By:  /s/ Andrew M. Murstein
                                              ------------------------------
                                               Andrew M. Murstein
                                               President

                                          Address:

                                          437 Madison Avenue
                                          38th Floor
                                          New York, New York 10022

                                          Telecopy:  212-328-2125

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