Document:

Extension Letter to Loan and Security Agreement, dated as of June 28, 2005

 Exhibit 10.1 
  

			
	  
 

	 	500 SEVENTH AVENUE
NEW YORK, NY 10018-1502
	 	  
 PHONE: 212-575-4449
FAX: 213-382-3442

		
	 	 	thomas.braunstein@sterlingbancorp.com
www.sterlingbancorp.com
		
	 	 	Thomas Braunstein
First Vice President

  
 June 28, 2005 
  
 Mr. Alvin Murstein 
 Medallion Financial, Inc. 
 437 Madison Ave. 38th Floor 
 New York, NY 10022 
  

			
	 .
	 	 Re: $15,000,000 Revolving Credit Note and Loan
 and
Security Agreement dated April 26, 2004 and
 subsequently extended to June 30, 2005

  
 Dear Mr. Murstein: 
  
 Reference is made to the Loan and Security Agreement (“Agreement”) date April 26,
2004 by and between Medallion Financial Corp. (“Borrower”) and Sterling National Bank (“Lender”) and the underlying Revolving Credit Note (“Promissory Note”), which the Borrower executed in the original principal amount
of fifteen million dollars ($15,000,000.00), which were subsequently extended to June 30, 2005. As you know, the Lender’s obligation to make advances under the Agreement expires, and all amounts due and owing under the Promissory Note and the
Agreement are payable in full, on June 30, 2005, (the “Revolving Credit Termination Date”). Lender is willing to extend the Revolving Credit Termination Date to July 31, 2005 (the “Extended Revolving Credit Termination Date”),
subject to the following terms and conditions: 
  

	 	1.	In the event of any default under the Agreement or the Promissory Note, the loan and all accrued and unpaid interest shall be due and payable immediately upon demand.

  

	 	2.	All other terms and conditions of the Agreement and Promissory Note remain in full force and effect. 

  

	 	3.	The Extended Revolving Credit Termination Date shall be effective upon receipt by the Lender of a copy of this letter signed by the Borrower no later than June 30, 2005.

  
 In order to induce Lender to grant this extension Borrower
hereby represents that: (a) there is no default or event of default under the Agreement, the Note or any other loan document, (b) the principal amount currently outstanding under the Note and the Agreement is $10,700,000.00, and the Borrower has no
claims, defenses or offsets against the payment thereof, and (c) the Borrower ratifies and reaffirms the Note, the Agreement and the other loan documents in their entirety. 
  
 If the foregoing is satisfactory, please have a copy of this letter signed by the Borrower and return the executed copy to me by overnight
delivery service. 
  

	
	 Yours truly,

	 Sterling National Bank

	
	 /s/ Thomas M. Braunstein

	 Thomas M. Braunstein

	 First Vice President

  
 AGREED AND ACCEPTED THIS 28 DAY OF
JUNE, 2005 
  

			
	 Medallion Financial Corp.

		
	By:	 	 /s/ Alvin Murstein

	 	 	 Name: Alvin Murstein

	 	 	 Title: CEOFirst Amendment to Loan and Security Agreement, dated as of July 28, 2005

 Exhibit 10.2 
  
 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 
  
 THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”) is dated July 28, 2005 and is by and between
MEDALLION FINANCIAL CORP., a Delaware corporation having an address of 437 Madison Avenue, New York, New York 10022 (the “Borrower”), and STERLING NATIONAL BANK, a national banking association having an address of 650 Fifth Avenue, New
York, New York 10019 (the “Bank”). 
  
 RECITALS

  
 A. The Borrower and the Bank entered into a Loan and Security
Agreement dated April 26, 2004 (the “Loan Agreement”), pursuant to which the Bank has agreed to extend certain credit and make certain loans to the Borrower in an aggregate principal amount not to exceed $15,000,000. 
  
 B. The Borrower has requested, and the Bank has agreed to make, certain
amendments to the Loan Agreement, all as more fully described herein. 
  
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 AGREEMENT 
  
 1. Defined Terms. Except as otherwise indicated herein, all words and terms defined in the Loan Agreement shall have
the same meanings when used herein. 
  
 2. Extension of
Revolving Credit Termination Date. The Revolving Credit Termination Date is hereby extended to June 30, 2006. Accordingly, the definition of the term “Revolving Credit Termination Date” set forth in Section 1.1 of the Loan Agreement is
hereby amended and restated in its entirety as follows: 
  
 “Revolving Credit Termination Date” shall mean June 30, 2006. 
  
 3. Amendments to Other Loan Documents. Each of the other Loan Documents is hereby amended to the extent necessary to reflect the amendments to the terms of the Loan Agreement effected by this Amendment. Without
limiting the generality of the foregoing, each of the other Loan Documents shall secure the Note (as defined below) to the same extent, and with the same effect, as it secured the Prior Note (as defined below). The Borrower shall take or cause to be
taken such actions, and shall execute, deliver, file and/or record or cause to be executed, delivered, filed and/or recorded such documents and other instruments, as the Bank shall deem to be necessary or advisable in order to confirm, implement or
perfect the amendments to the other Loan Documents effected by this Paragraph 3. 
  
 4. No Defenses. The Borrower acknowledges that, as of July 26, 2005, the aggregate outstanding principal balance under the Revolving Credit Loan was $10,700,000. The Borrower acknowledges and agrees that, as of
the date hereof, it has no offsets, counterclaims or 

 
defenses of any nature whatsoever to its Obligations to the Bank under the Loan Agreement or any of the other Loan Documents, and hereby expressly waives and
releases any and all claims against the Bank which exist on the date hereof with respect thereto. 
  
 5. Substitute Note. Concurrently herewith, the Borrower is executing and delivering to the Bank a Substitute Revolving Credit Note in the maximum
principal amount of $15,000,000 (the “Note”) in substitution for, but not in repayment of, the Revolving Credit Note dated April 26, 2004 in the maximum principal amount of $15,000,000 previously issued by the Borrower to the Bank (the
“Prior Note”). The execution and delivery by the Borrower of the Note pursuant to the provisions hereof shall not constitute a refinancing, repayment, accord and satisfaction or novation of the Prior Note or the indebtedness evidenced
thereby. 
  
 6. Representations and Warranties. In order to
induce the Bank to enter into this Amendment and amend the Loan Agreement as provided herein, the Borrower hereby represents and warrants to the Bank that: 
  
 (a) All of the representations and warranties of the Borrower set forth in the Loan Agreement are true, complete and correct in all
material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof and as if set forth at length herein. 
  
 (b) After giving effect to this Amendment, no Event of Default presently exists and is continuing on and as of the date hereof.

  
 (c) Since the date of the Borrower’s
most recent financial statements delivered to the Bank, the Borrower has not experienced a material adverse effect in its business, operations or financial condition. 
  
 (d) The Borrower has full power and authority to execute, deliver and perform any action or step which may
be necessary to carry out the terms of this Amendment and this Amendment has been duly executed and delivered by the Borrower and is the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms, subject to any
applicable bankruptcy, insolvency, general equity principles or other similar laws affecting the enforcement of creditors’ rights generally. 
  
 (e) The execution, delivery and performance of this Amendment will not (i) violate any provision of any existing law, statute, rule,
regulation or ordinance, (ii) conflict with, result in a breach of, or constitute a default under (A) the certificate of incorporation or by-laws of the Borrower, (B) any order, judgment, award or decree of any court, governmental authority, bureau
or agency, or (C) any mortgage, indenture, lease, contract or other material agreement or undertaking to which the Borrower is a party or by which the Borrower or any of its properties or assets may be bound, or (iii) result in the creation or
imposition of any lien or other encumbrance upon or with respect to any property or asset now owned or hereafter acquired by the Borrower, other than liens in favor of the Bank, except, in the case of clauses (ii) and (iii) above, for any deviation
from the foregoing which would not reasonably be expected to have a Material Adverse Effect. 
  

 2 

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

 3 

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

			
	 MEDALLION FINANCIAL CORP.

		
	By:	 	 /s/Alvin Murstein

	 	 	 Name: Alvin Murstein

	 	 	 Title:   Chairman & Chief Executive Officer

  

			
	 STERLING NATIONAL BANK

		
	By:	 	 /s/Thomas Braunstein

	 	 	 Name: Thomas Braunstein

	 	 	 Title:   First Vice President

  

 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]