Document:

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                                                                    EXHIBIT 10.1

                                SECOND AMENDMENT
                                       TO
             FOURTH AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

         Second Amendment dated as of April 14, 2003 to the Fourth Amended and
Restated Revolving Credit and Term Loan Agreement (the "Second Amendment"), by
and among LEASECOMM CORPORATION, a Massachusetts corporation (the "Borrower"),
FLEET NATIONAL BANK, a national banking association ("Fleet"), the other
financial institutions from time to time party thereto (together with Fleet, the
"Lenders") and FLEET NATIONAL BANK, as agent for the Lenders (the "Agent") made
as of August 22, 2000 (as amended and in effect from time to time, the "Credit
Agreement"). Terms not otherwise defined herein which are defined in the Credit
Agreement shall have the same respective meanings herein as therein.

         WHEREAS, the Borrower and the Lenders have agreed to modify certain
terms and conditions of the Credit Agreement as specifically set forth in this
Second Amendment;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

         SECTION 1. WAIVER. Subject to the satisfaction of the conditions
specified in Section 4 herein, but with effect retroactive to the date on which
the Defaults or Events of Default described on Annex A hereto (solely for the
periods described on such Annex A, the "Specified Defaults") occurred, the Agent
and the Lenders hereby (a) permanently waive such Specified Defaults and (b)
rescind that certain notice of demand, dated March 5, 2003 from the Agent to the
Borrower.

         SECTION 2. RATIFICATION OF EXISTING AGREEMENTS. The Borrower agrees
that the Obligations, as evidenced by or otherwise arising under the Credit
Agreement and the other Loan Documents, except as otherwise expressly modified
in this Second Amendment upon the terms set forth herein, are, by the Borrower's
execution of this Second Amendment, ratified and confirmed in all respects. In
addition, by the execution of this Second Amendment, the Borrower represents and
warrants that no counterclaim, right of set-off or defense of any kind exists or
is outstanding as of the date hereof with respect to such Obligations. As of
April 15, 2003, the aggregate principal amount of the Conversion Term Loan is
$110,450,587.80 and the aggregate accrued and unpaid interest on the Conversion
Term Loan is $250,992.64.

         SECTION 3. AMENDMENTS. Subject to the satisfaction of the conditions
specified in Section 4, but with effect on and after the Effective Date (as
defined in Section 4), the Credit Agreement shall be amended as follows:

         3.1.     DEFINITIONS.

         (a)      Section 1.1 of the Credit Agreement is hereby amended by
adding the following new definitions thereto in the appropriate alphabetical
order:

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                                       -2-

                  Asta Transaction. See Section 5.5 of the Second Amendment to
         this Agreement.

                  Attorneys General Settlements. Means collectively: (i) the
         Stipulated Final Judgment and Order to be entered by consent in the
         matter of Federal Trade Commission v. Leasecomm Corporation and
         MicroFinancial Incorporated, in the United States District Court for
         the District of Massachusetts; and (ii) a final judgment or order by
         consent to be entered in various civil actions to be filed against
         Leasecomm Corporation and MicroFinancial Incorporated by the
         Commonwealth of Massachusetts and the States of Florida, Texas,
         Illinois, North Carolina, Kansas and North Dakota, and in The People of
         the State of California v. Roma Computer Solutions, Inc., et al.,
         Ventura County Superior Court Case No. CIV 207490.

                  Blocked Account. Account number 657607472 at National City
         Bank or any successor account serving as a blocked account into which
         receipts related to the Contract Assets (as defined in the MFI I
         Indenture) or Series Assets are deposited under the Securitization
         Documents.

                  Budget. See Section 5.20.

                  Co-Sale Agreement. The Co-Sale Agreement, dated as of April
         14, 2003 by and among the Parent, each of the parties listed as Lenders
         on Exhibit A thereto and each of the parties listed as Inside Investors
         on Exhibit B thereto.

                  Excess Cash Flows. As at the end of each month, the amount by
         which the amount in the line item "Cash and Cash Equivalents end of
         period", as set forth in the Excess Cash Flow reconciliation reports
         required to be delivered monthly pursuant to Section 5.19 hereof,
         exceeds the sum of (i) $6,000,000 plus (ii) the amount of Restricted
         Cash plus (iii) if approved by the Majority Lenders, the amount of the
         Redemption Deposit, in each case, as set forth in the Excess Cash Flow
         reconciliation report.

                  Iron Mountain Agreement. See Section 5.21.

                  MFI I. MFI Finance Corp. I.

                  MFI I Indenture. The Amended and Restated Indenture, dated as
         of September 1, 2001, among the Parent, MFI Finance Corp. I and Wells
         Fargo Bank Minnesota, National Association ("Wells Fargo"), as
         supplemented by (a) the Supplement to Indenture Contract Backed Notes,
         Series 2000-2, dated as of December 1, 2000, (b) the Supplement to
         Indenture, Contract-Backed Notes, Class A, Series 2001-3, dated as of
         September 1, 2001, and (c) the Supplement to Indenture Contract-Backed
         Notes, Class B, Series 2001-4, dated as of September 1, 2001.

                  MFI II. MFI Finance II, LLC.

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                  MFI II Indenture. The Indenture, dated as of September 1,
         2001, among the Parent, MFI II and Wells Fargo, as supplemented by the
         Supplement to Indenture Asset-Backed Notes, Series 2001-1, dated as of
         September 1, 2001.

                  New Entities. See Section 5.5 of the Second Amendment to the
         Credit Agreement.

                  New Subordinated Debt. Those certain subordinated capital
         notes issued by the Parent and/or the Borrower and/or a New Entity, in
         form and substance satisfactory to the Agent, issued to any persons,
         entity or entities providing funds to make a prepayment of the
         Conversion Term Loan in connection with the Asta Transaction and
         pursuant to Section 5.5 of the Second Amendment to the Credit
         Agreement, on terms and conditions satisfactory to the Agent and the
         Lenders, including but not limited to, those terms and conditions
         listed on Schedule 1.1 hereto.

                  Operating Account. Account number 52265235 at Fleet National
         Bank, or any successor operating account consented to by Fleet and
         contemplated by the Agreement Regarding Operating Account, dated as of
         September 1, 2001 among Wells Fargo, the Agent, Fleet National Bank in
         its capacity as the depository bank, the Borrower, the Parent, MFI I
         and MFI II.

                  Parent Security Agreement. The Security Agreement, dated as of
         April 14, 2003, granted to the Agent by the Parent as security for the
         Parent's obligations in respect of the Parent Guarantee.

                  Parent Stock Pledge Agreement. The Stock Pledge Agreement,
         dated as of April 14, 2003, granted to the Agent by the Parent as
         security for the Parent's obligations in respect of the Parent
         Guarantee.

                  Redemption Deposit. Cash contributed to MFI I or MFI II by
         either of the Companies and deposited to a redemption account to
         accomplish a redemption of notes under the MFI I Indenture or the MFI
         II Indenture, provided that (i) such deposit shall only be made with
         the prior written consent of the Majority Lenders and (ii) such amounts
         shall not be on deposit in such redemption account for more than thirty
         (30) days.

                  Registration Rights Agreement. The Registration Rights
         Agreement, dated as of April 14, 2003 by and among the Parent and the
         Holders (as defined therein).

                  Restricted Cash. Cash collected in respect of any of the
         Series Assets or Contract Assets (as defined in the Securitization
         Documents) and held (a) in the Operating Account, (b) in the Blocked
         Account or (c) by the Parent, pending deposit to the Blocked Account,
         in the ordinary course of performing its servicing duties under the
         Securitization Documents.

                  Securitization Documents. Each of (i) with respect to MFI I, a
         Special Purpose Subsidiary of the Borrower, (a) the MFI I Indenture,
         (b) the Servicing Agreement, dated as of March 1, 2000 among the
         Parent, MFI I and Wells Fargo

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                                       -4-

         (successor to Norwest Bank Minnesota National Association), (c) the
         Contract Acquisition Agreement, dated as of March 1, 2000 among the
         Borrower and MFI I, (d) the Series 2000-2, 2001-3 and 2001-4 Contract
         Backed Notes, dated December 18, 2000, September 21, 2001 and September
         21, 2001 respectively and related Purchase Agreements, dated December
         18, 2000, September 21, 2001 and September 21, 2001 respectively, (e)
         the Insurance and Indemnity Agreement, dated December 18, 2000, among
         Ambac Assurance Corporation, MFI I, the Borrower, the Parent and Wells
         Fargo and related Note Insurance Policy dated December 18, 2000 and (f)
         Insurance and Indemnity Agreement, dated September 21, 2001 among Ambac
         Assurance Corporation, MFI I, the Borrower, the Parent and Wells Fargo
         and related Note Insurance Policy, dated September 21, 2001; (ii) with
         respect to MFI II, a Special Purpose Subsidiary of the Borrower, (a)
         the MFI II Indenture, (b) the Series 2001-1 Asset Backed Notes, dated
         September 21, 2001 and related Purchase Agreement, dated September 21,
         2001, (c) the Contract Acquisition Agreement, dated as of September 21,
         2001, between the Borrower and MFI II and (d) the Servicing Agreement,
         dated as of September 1, 2001, among the Parent, MFI II and Wells
         Fargo; (iii) the Agreement Regarding Operating Account, dated as of
         September 1, 2001 among Wells Fargo, the Agent, Fleet National Bank in
         its capacity as the depository bank, the Borrower, the Parent, MFI I
         and MFI II and (iv) all other agreements and modifications entered into
         by the parties with respect to the foregoing agreements.

                  Series Assets. With respect to each series of notes issued
         under the MFI II Indenture, the Series Contracts, the related Contract
         Assets, and the Series Underlying Notes (as such terms are defined in
         the MFI II Indenture

                  Tax Refund Assignment. Fully-executed copies of United States
         Internal Revenue Service forms 2848 and 8821 and U.S. Treasury
         Department form 234, each in form and substance reasonably satisfactory
         to the Agent.

                  Warrant Purchase Agreement. The Warrant Purchase Agreement,
         dated as of April 14, 2003 by and among the Parent and the parties
         listed as Investors on the signature pages thereto.

                  Warrants. The Warrants to purchase shares of Common Stock of
         the Parent, issued to the Lenders pursuant to Section 5.8 of the Second
         Amendment to the Credit Agreement.

                  Wells Fargo. Wells Fargo Bank, National Association.

         (b)      The definition of "Conversion Term Loan Maturity Date"
contained in Section 1.1 of the Credit Agreement is hereby amended to read, in
its entirety, as follows:

                  "Conversion Term Loan Maturity Date. January 31, 2005."

         (c)      The definition of "Loan Documents" set forth in Section 1.1 of
the Credit Agreement is hereby amended to add the following text after the
phrase "Subsidiary Guarantees" contained therein:

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                                       -5-

                  ", the Warrants, the Registration Rights Agreement and the
                  Co-Sale Agreement".

         (d)      The definition of "Lease" set forth in Section 1.1 of the
Credit Agreement is hereby amended to read, in its entirety, as follows:

                  "Any lease agreement, installment sales contract or other
agreement (including any and all schedules, supplements and amendments thereon
and modifications thereof) entered into by the Borrower or the Parent as lessor
or seller".

         (e)      The definition of "Security Documents" set forth in Section
1.1 of the Credit Agreement is hereby amended to add the following text after
the phrase "Security Agreement" contained therein:

                  ", the Parent Security Agreement, the Parent Stock Pledge
Agreement".

         (f)      The definition of "Subordinated Debt" set forth in Section 1.1
of the Credit Agreement is hereby amended to read, in its entirety, as follows:

                  "Indebtedness of the Parent or any of its Subsidiaries,
                  including the Borrower, which is expressly subordinated and
                  made junior to the payment and performance in full of the
                  Obligations and the Guaranteed Obligations (as defined in the
                  Parent Guaranty) on terms and conditions satisfactory to the
                  Agent and the Majority Lenders including, without limitation,
                  (a) those certain subordinated capital notes of the Parent
                  issued to Andrew G. Mills, Dkfm. Fritz Froehlich, Judith B.
                  Keyes Trust, Jonathan M. Keyes Trust, Henry M. Keyes
                  Irrevocable Trust, Henry M. Keyes Trust, Richard F. Latour,
                  Bay Resource Corporation Money Purchase Pension Plan FBO PGR
                  Lloyd IRA R/O, John Bryan Mims, Susan A. Mims, Peter R. and
                  Christa R. Bleyleben, Salomon Smith Barney Custodian FBO Brian
                  E. Boyle IRA (676- 65812) and Torrence C. Harder and (b) the
                  New Subordinated Debt".

         3.2.     LIBOR LOANS. Section 2.6(b) of the Credit Agreement is hereby
amended to read, in its entirety, as follows:

         "(b)     LIBOR Loans. Notwithstanding anything contained herein to the
contrary, LIBOR Loans shall not be available after the Borrowing Base Maturity
Date."

         3.3.     INTEREST ON CONVERSION TERM LOAN. Section 2.6(d) of the Credit
Agreement is hereby amended to read, in its entirety, as follows:

         "(d)     Conversion Term Loan. Any Conversion Term Loan shall bear
interest on the outstanding principal amount at a rate per annum equal to the
Alternate Base Rate, plus 2.00%"

         3.4.     DEFAULT INTEREST. Section 2.6(e) of the Credit Agreement is
hereby amended to read, in its entirety, as follows:

         "(e)     Default Interest. If an Event of Default shall occur as result
of (i) the occurrence of any of the events listed in, or the Companies' failure
to comply with any of the

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                                       -6-

following Sections of the Credit Agreement: 5.14, 5.20, 7.1, through 7.8, 7.10,
7.13, 8.l(a), 8.l(e) (provided that the Borrower may pay any Indebtedness within
the scope of Section 7.l(d) hereof, within the time period specified in such
Section 7.l(d)), 8.l(f), 8.l(g), 8.l(h), 8.1(j) or 8.1(o) or with any of the
following Sections of the Second Amendment to the Credit Agreement: 5.1, 5.2,
5.4, 5.6, 5.7 (only as it applies to Sections 7.1 through 7.8, 7.10 and 7.13 of
the Credit Agreement), 5.8, or 5.9 or (ii) for a continuous period of fourteen
(14) days, the Companies' failure to comply with any other term, covenant or
agreement contained in the Credit Agreement or any other Loan Document, then, at
the option of the Agent, or at the direction of the Majority Lenders, the unpaid
balance of the Loans shall bear interest, to the extent permitted by law,
compounded daily at an interest rate equal to 3% per annum above the interest
rate applicable to each such Loan in effect on the day such Event of Default
occurs, until such Event of Default is cured or waived.".

         3.5.     AMORTIZATION OF CONVERSION TERM LOAN. Section 2.8(a) of the
Credit Agreement is hereby amended to read, in its entirety, as follows:

         "(a)     The Revolving Credit Loans have been converted into a term
         loan (the "Conversion Term Loan"). The principal of the Conversion Term
         Loan shall be payable in accordance with the amortization schedule set
         forth in Schedule 2.8(a), or, if any payment date set forth on Schedule
         2.8(a) is not a Business Day, such payment shall be due on the next
         Business Day thereafter. In addition to the payments set forth on
         Schedule 2.8(a), the remaining unpaid principal balance of the
         Conversion Term Loan, together with all unpaid interest thereon and all
         fees and other amounts due with respect thereto, shall be due and
         payable on the Conversion Term Loan Maturity Date."

         3.6.     TAXES. Section 5.4 of the Credit Agreement is hereby amended
to read, in its entirety, as follows:

         "5.4     Taxes. The Borrower shall pay or cause to be paid all taxes,
         assessments or governmental charges on or against it or any of its
         Subsidiaries or its or their properties on or prior to the time when
         they become due, except for any tax, assessment or charge that is being
         contested in good faith by appropriate proceedings, and so long as no
         Encumbrance securing such tax, assessment or charge shall be enforced."

         3.7.     LENDERS' CONSULTANT. Section 5.15(e) of the Credit Agreement
is hereby amended to read, in its entirety, as follows:

         "(e)     (i) a review of (A) the Budget, (B) tax refund issues, (C)
         Collateral monitoring procedures with respect to the maintenance of
         Leases at the offices of Iron Mountain Incorporated and (ii) the
         performance of quarterly field examinations, monthly validation of
         Excess Cash Flows, monitoring payroll and review and verification of
         all executed offers, executed term sheets and executed letters of
         intent provided in connection with a refinancing of either of the
         Companies."

         3.8.     BORROWER'S CONSULTANT. Section 5.16 of the Credit Agreement is
hereby amended by adding the following text to the end of existing Section 5.16:

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                                       -7-

         "Additionally, the Borrower's Consultant shall, immediately upon
         receipt, provide the Agent, counsel to the Agent and the Lenders'
         Consultant with copies of any and all executed offers, executed term
         sheets and executed letters of intent, along with all material
         subsequent or related documents, in connection with a refinancing of
         either of the Companies."

         3.9.     TAX REFUND; PREPAYMENT. Section 5 of the Credit Agreement is
hereby amended by adding the following Section 5.18 thereto:

         "5.18    Tax Refund. The Companies shall prepay the Conversion Term
         Loan in an amount equal to 100% of all tax refund proceeds received by
         the Companies (including, without limitation, tax refunds in respect of
         United States federal income taxes and all state taxes), minus
         $1,500,000 (the "Reserve Amount") to be held in reserve for the payment
         of state taxes owed in respect of fiscal years 1998 and 1999. Such
         prepayments shall be (a) made in accordance with Section 2.9, (b) made
         contemporaneously with the receipt of any such tax refund and (c)
         applied to the remaining scheduled principal repayments of the
         Conversion Term Loan in the inverse order of maturity. The Companies
         further agree that they shall file all tax returns in a timely manner
         and that they, in consultation with their outside professionals, will
         diligently and expeditiously pursue the tax refunds contemplated by
         this Section 5.18. To the extent that the Agent receives any tax refund
         proceeds from the Internal Revenue Service, the Agent agrees that it
         shall deliver to the Companies such Reserve Amount".

         3.10.    EXCESS CASH FLOW; PREPAYMENT. Section 5 of the Credit
Agreement is hereby amended by adding the following new Section 5.19 thereto:

         "5.19    Excess Cash Flow. Within five (5) days of the end of each
         month, commencing with the month ending on March 31, 2003, the Borrower
         shall (i) deliver to the Agent an Excess Cash Flow reconciliation
         report, in form of Exhibit G hereto and (ii) apply all Excess Cash
         Flows, as determined on a monthly basis and tested on the last day of
         such month, to prepay the Conversion Term Loan in accordance with
         Section 2.9, with such prepayments being applied to the remaining
         scheduled principal repayments of the Conversion Term Loan in the
         inverse order of maturity, provided that, with respect to the month
         ending March 31, 2003, such report and such payment shall be due not
         later than April 21, 2003 and shall not include those payments which
         are (a) acceptable to the Agent and listed on the Excess Cash Flow
         reconciliation report delivered on the Effective Date (as defined in
         the Second Amendment to the Credit Agreement) as payments to be made in
         connection with the closing of the Second Amendment to the Credit
         Agreement and (b) made on or about the Effective Date.".

         3.11.    BUDGET. Section 5 of the Credit Agreement is hereby amended by
adding the following new Section 5.20 thereto:

         "5.20    Budget. The 2003-2004 budget, attached hereto as Exhibit H,
         and which includes, among other things, line items for payroll
         disbursements and for payments, disbursements, fees and other amounts
         paid or to be paid in connection

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                                       -8-

         with the Attorneys General Settlements (the "Budget") shall be the
         Budget of the Companies until the Conversion Term Loan Maturity Date."

         3.12.    COLLATERAL. Section 5 of the Credit Agreement is hereby
amended by adding the following new Section 5.21 thereto:

         "5.21    Maintenance of Leases. The Borrower shall maintain all
         original Leases that constitute Collateral of the Lenders at the
         offices of Iron Mountain Incorporated located at 96 High Street,
         Billerica, MA 01862, or at the offices of another document management
         company reasonably acceptable to the Agent ("Iron"). The process to
         move such Leases to Iron shall be completed by May 31, 2003. The
         maintenance procedures with respect to such Leases, shall be set forth
         in an agreement between the Agent, the Borrower, the Parent and Iron,
         in form and substance reasonably satisfactory to the Agent (the "Iron
         Mountain Agreement") and shall include, among other things, provisions
         stating that (i) the Companies, the Agent, counsel to the Agent and the
         Lenders' Consultant shall have access to the Leases, on terms and
         conditions satisfactory to the Agent, (ii) on a quarterly basis, from
         and after April 14, 2003, a digital image of all such Leases (together
         with all related documentation and correspondence which is imaged by
         the Borrower in the ordinary course of its business, but exclusive of
         those Leases reasonably identified to the Agent and as to which the
         Agent shall have agreed) will be provided to the Agent, (iii) the
         Agent, counsel to the Agent or the Lenders' Consultant may retain an
         information technologies consultant to establish procedures through
         which the Agent and the Lenders may access such digital images and (iv)
         the Companies may not remove any original Leases from Iron, provided
         that the Borrower may temporarily remove an original Lease from Iron if
         (a) the Borrower's possession of the original Lease is required in
         order for the Borrower to enforce its rights and remedies in respect of
         the Lease and (b) the Borrower has obtained the prior written consent
         of the Agent to remove such original Leases from Iron, such consent not
         to be unreasonably withheld. The Companies shall provide to the Agent a
         fully-executed copy of the Iron Mountain Agreement, in form and
         substance reasonably acceptable to the Agent, no later than April 30,
         2003."

         3.13.    FINANCIAL COVENANTS. Section 6 of the Credit Agreement is
hereby amended by deleting Section 6 in its entirety and replacing it with the
following:

                  "Intentionally Omitted"

         3.14.    INDEBTEDNESS. Section 7.1 of the Credit Agreement is hereby
amended by:

         (a)      adding the following new text to subsection (d) immediately
         following the text reading "in conformity with customary trade terms
         and practices":

                  "(the parties hereto agree that, for the purposes of this
         subsection (d), so long as such liabilities are paid and discharged
         within 90 days of the date that they become due and payable, such
         payment and discharge shall be deemed to be in conformity with
         customary trade terms and practices)"; and

         (b)      adding the following new subsection (i) thereto:

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                                       -9-

                  "(i)     Indebtedness in respect of pending litigation and /or
         in respect of judgment liens that would not otherwise constitute a
         Default hereunder".

         3.15.    RESTRICTED PAYMENTS. Section 7.6 of the Credit Agreement is
hereby amended by deleting subsections (b), (c) and (d) of Section 7.6 in their
entirety.

         3.16.    PAYMENTS ON SUBORDINATED DEBT. Section 7.7 of the Credit
Agreement is hereby amended to read, in its entirety, as follows:

         "7.7     Payments on Subordinated Debt. The Borrower shall not make any
         payment or prepayment of principal of or interest on, or any other
         payment in respect of Subordinated Debt, except regularly scheduled
         payments of cash interest on the New Subordinated Debt, until the
         Obligations have been paid in full, in cash."

         3.17.    DISBURSEMENTS IN ACCORDANCE WITH BUDGET. Section 7 of the
Credit Agreement is hereby amended by adding the following new Section 7.13
thereto:

         "7.13    The Companies may not make disbursements that, on a monthly
         and cumulative basis, exceed (i) on an aggregate basis, by more than
         l0%, those disbursements set forth in the Budget or (ii) with respect
         to any of the following line items: "Payroll Related"; "Net Cash Used
         in Investing Activities"; and "Subtotal SG&A" by more than l0%, the
         amounts set forth in the Budget for such line items, in each case,
         without the express written consent of the Agent and the Majority
         Lenders, provided that notwithstanding anything to the contrary in this
         paragraph the Companies may, (a) make disbursements in excess of such
         amounts (on a monthly and cumulative basis) in an amount not in excess
         of the amount by which the actual amount of the line item "Debt Balance
         After Principal, Tax, Additional and Excess Payments" is less than the
         amount set forth in the Budget for such line item, as tested on a
         monthly or cumulative basis, as applicable; (b) make payments in
         connection with the termination of its leases or leasehold interests in
         real property in Waltham, Massachusetts, Newark California and Herndon,
         Virginia up to the maximum amount of $800,000; (c) make payments of
         fees, expenses and other charges to the Agent and the Lenders,
         including without limitation, fees and expenses specified in Section 10
         of this Second Amendment (except with respect to Agent fees and fees
         paid pursuant to Section 5.1 of this Second Amendment); (d) make
         payments to federal, state and local taxing authorities with respect to
         taxes and estimated taxes owed for its fiscal years 2003 and 2004; (e)
         make any disbursements necessary to discharge their obligations in
         respect of the Securitization Documents and (f) with the prior written
         consent of the Majority Lenders, make Redemption Deposits and apply
         such Redemption Deposits to accomplish a redemption of notes under the
         MFI I Indenture or the MFI II Indenture."

         3.18.    EVENTS OF DEFAULT. Section 8 of the Credit Agreement is hereby
amended by (a) adding the text "or the Parent" immediately following the text
"the Borrower" and (b) as applicable, amending the text "its Subsidiaries" to
read "their Subsidiaries" in each of the following subsections: Section 8.l(b),
8.l(c), 8.l(d), 8.l(h) and 8.l(k).

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                                      -10-

         3.19.    DISBURSEMENTS TO ATTORNEYS GENERAL. Section 8 of the Credit
Agreement is hereby amended by adding the following new Section 8.1(o) thereto:

         "(o)     the aggregate payments, disbursements, fees and other amounts
         paid by either of the Companies in connection with the Attorneys
         General Settlements, prior to the Conversion Term Loan Maturity Date,
         exceeds $1,000,000.".

         3.20.    EVENTS OF DEFAULT. Section 8.l(b) of the Credit Agreement is
hereby amended to read, in its entirety as follows:

         "(b)     the Borrower shall fail to perform or comply with any term,
covenant or agreement applicable to it contained in Sections 5.1, 5.2(b), 5.5,
5.6, 5.7, 5.9, 5.11, 5.12, 5.13, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, 5.20, 5.21
or 7 of this Agreement or in Sections 5.1, 5.2, 5.3, 5.4, 5.6, 5.7, 5.8 or 5.11
of the Second Amendment to the Credit Agreement; or"

         3.21.    NOTICES. Section 11.1 of the Credit Agreement is hereby
amended by replacing the existing notice addresses with the following:

          If to the Borrower, at:
          Leasecomm Corporation
          10-M Commerce Way, Suite 102
          Woburn, MA 01801
          Attention: President and Chief Financial Office

          with a copy to:

          Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
          One Financial Center
          Boston, MA 02111
          Attention: Richard Mikels

          If to the Parent, at:

          MicroFinancial Incorporated, Suite 101
          10-M Commerce Way
          Woburn, MA 01801
          Attention: President and Chief Financial Office

          with a copy to:

          Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
          One Financial Center
          Boston, MA 02111
          Attention: Richard Mikels

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                                      -11-

         If to the Agent or Fleet, at:

         Fleet National Bank
         111 Westminster Street
         Providence, RI 02903-0368
         Attention: Daniel Butler

         with a copy to:

         Bingham McCutchen LLP
         150 Federal Street
         Boston, MA 02110
         Attention: Jonathan K. Bernstein

         3.22.    SCHEDULES AND EXHIBITS. The Credit Agreement is hereby further
amended by: (i) adding new Schedule 1.1 (Terms and Conditions of New
Subordinated Debt) Schedule 2.8(a) (Amortization of Conversion Term Loan),
Exhibit G (Excess Cash Flow Certificate) and Exhibit H (Budget) thereto and (ii)
amending Exhibit C thereto to include the indebtedness of the Parent listed on
Schedule 6 to this Second Amendment.

         SECTION 4. CONDITIONS TO EFFECTIVENESS. This Second Amendment shall
become effective as of the date hereof upon receipt by the Agent of each of the
following, in form and substance satisfactory to the Agent (with the date on
which the Agent receives the following being hereinafter referred to as the
"Effective Date"):

         (a)      A counterpart of this Second Amendment, executed by the
Companies and the Lenders;

         (b)      Payment by the Borrower to the Agent of the portion of the
Amendment Fee (defined in Section 5.1 below) due on the Effective Date;

         (c)      Payment by the Borrower of $250,992.64, consisting of the
accrued Default Spread (defined in Section 7.2 of that certain Forbearance and
Modification Agreement, dated as of January 3, 2003 by and among the Companies
and the Lenders) and any other accrued and unpaid interest on the Loans;

         (d)      The Warrants, the Warrant Purchase Agreement, the Registration
Rights Agreement, and the Co-Sale Agreement, in each case, in form and substance
acceptable to the Agent and the Majority Lenders;

         (e)      There shall have occurred no Default or Event of Default
(other than the Specified Defaults);

         (f)      The Agent shall have received evidence that all corporate
action necessary for the valid execution and delivery by the Companies of this
Second Amendment and the other documents referenced herein shall have been
taken;

         (g)      The Agent shall have received opinions of counsel to the
Companies;

<PAGE>

                                      -12-

         (h)      The Agent and the Lenders shall have received payment for all
fees and expenses including, without limitation, reasonable legal fees and
expenses, for which invoices or reasonable estimates therefor have been provided
to the Borrower on or prior to the Effective Date;

         (i)      The Agent's receipt of evidence satisfactory to it as to the
perfection and priority of all security interests, mortgages and deeds of trust
of the Lenders with respect to the Companies;

         (j)      The Agent shall have received a fully executed security
agreement from the Parent, providing the Lenders with a first priority lien on
all assets of the Parent as collateral for the Parent's obligations in respect
of the Parent Guaranty;

         (k)      The Agent shall have received a fully executed security
agreement from the Borrower, providing the Lenders with a first priority lien on
all assets of the Borrower as collateral for the Obligations, provided that with
respect to the pledge of common stock of the MFI I and equity interest of MFI
II, such pledge shall be subject to the provisions of Section 4.01(r) of the
Contract Acquisition Agreement related to MFI I and Section 4.01(r) of the
Contract Acquisition Agreement related to MFI II;

         (1)      The Agent shall have received fully executed employment and
non-competition agreements of all key employees of the Companies, in form and
substance satisfactory to the Agent;

         (m)      The representations and warranties of the Borrower in each of
the Loan Documents shall be true and correct as of the Effective Date, except
with respect to the occurrence of the Specified Defaults waived herein and to
the extent that any of such representations and warranties relate by their terms
to a prior date they shall be true and correct as of such prior date;

         (n)      Amendments to the notes and Subordinated Debt documents of the
Parent, in form and substance satisfactory to the Agent, with such amendments to
include, among other things, revisions to interest rates, maturity and
subordination provisions, executed by the Parent and the following holders of
such Subordinated Debt; (a) Richard F. Latour, (b) Peter R. and Christa R.
Bleyleben, (c) Salomon Smith Barney Custodian FBO Brian E. Boyle IRA (676-65812)
and (d) Torrence C. Harder.

         (o)      Waiver documents, in form and substance reasonably
satisfactory to the Agent, in its sole discretion, from (i) Ambac Assurance
Corporation ("Ambac") permanently waiving any and all identified defaults,
events of default and servicer events of default under the Securitization
Documents and (ii) NM Rothschild & Sons Limited ("Rothschild") permanently
waiving any and all identified defaults, events of default and servicer events
of default under the Securitization Documents;

         (p)      The Lenders shall be satisfied, in their sole discretion, that
there have been no further material adverse changes to either of the Companies'
business, assets, operations or condition, financial or otherwise;

<PAGE>

                                      -13-

         (q)      The Agent shall have received a fully-executed stock pledge
agreement from the Parent, providing the Lenders with a pledge of 100% of the
capital stock of the Borrower as collateral for the Obligations;

         (r)      The Agent shall have received the Tax Refund Assignment;

         (s)      The Agent shall have received a prepayment of the Conversion
Term Loan in the amount of $1,500,000, in accordance with Section 2.9 of the
Credit Agreement, with such prepayment to be applied to the remaining scheduled
principal repayments of the Conversion Term Loan in the inverse order of
maturity;

         (t)      An updated perfection certificate, in form and substance
acceptable to the Agent, executed by the Borrower and, evidence that, among
other things, there exists no liens or security interests on the assets of the
Borrower other than Permitted Encumbrances;

         (u)      A perfection certificate, in form and substance acceptable to
the Agent, executed by the Parent and, evidence that, among other things, there
exists no liens or security interests on the assets of the Parent other than
Permitted Encumbrances;

         (v)      The Agent shall have received a fully-executed trademark
security agreement from the Borrower, providing the Lenders with a first
priority security interest in all of the trademarks of the Borrower as
collateral for the Obligations; and

         (w)      Amendments to the 7.5% term notes of the Parent issued to (a)
Torrence C. Harder, (b) Peter R. Bleyleben and (c) Salomon Smith Barney
Custodian FBO Brian E. Boyle IRA (676-65812) in form and substance reasonably
satisfactory to the Agent.

         SECTION 5. ADDITIONAL COVENANTS OF THE BORROWER. The Borrower covenants
and agrees with and for the benefit of the Agent and the Lenders that,
notwithstanding anything to the contrary contained in the Credit Agreement or
any of the other Loan Documents, it shall comply with the following covenants
and further agrees that failure to comply with any of the covenants contained in
this Section 5 shall constitute an Event of Default under the Loan Agreement:

         5.1.     AMENDMENT FEE. The Borrower shall pay to the Agent, for the
pro rata account of the Lenders, a fee equal to $2,000,000 (the "Amendment
Fee"). The Amendment Fee shall be fully-earned as of the date hereof and shall
be paid by the Borrower to the Agent as follows: $500,000 on the Effective Date;
$500,000 on June 27, 2003; $250,000 on September 29, 2003; $250,000 on December
30, 2003; $250,000 on June 29, 2004 and $250,000 on the December 30, 2004 or, in
each case, on the earlier acceleration of the Obligations, provided however that
in the event that the Obligations have been repaid in full (other than as a
result of a repayment following an Event of Default) on or before any
installment of Amendment Fee is due to be paid, the payment of such installment
shall be waived.

         5.2.     BORROWING BASE. Notwithstanding anything in the Credit
Agreement or the other Loan Documents to the contrary, if at any time the
outstanding balance of the Conversion Term Loan exceeds the Borrowing Base by
more than that contemplated by

<PAGE>

                                      -14-

Annex B hereto, the Borrower shall prepay the Loans such that it is in
compliance with Annex B.

                  5.3.     TRANSFER OF SECURITIZATION RENTS. The Borrower shall
use its best efforts to cause, not later than April 30, 2003 and on a quarterly
basis thereafter, each of its Special Purpose Subsidiaries to (a) exercise its
rights pursuant to Section 4.06(a)(iii) of each of the MFI I Indenture and the
MFI II Indenture (together, the "Indentures" and each an "Indenture"), to obtain
releases of any individual Contract (as defined in the Indentures) and the
related Contract Assets (as defined in the Indentures) to the extent permitted
by Section 4.06(a)(iii) of either of the Indentures, from the lien created by
(i) the MFI I Indenture or (ii) the MFI II Indenture, as applicable and (b)
provide the officer's certificate required by Section 4.06(a) of the Indentures
and any other documents required for the release of such liens. Further, to the
extent and in the amount it is directed to do so by the Lenders' Consultant, the
Borrower shall use its best efforts to cause each of its Special Purpose
Subsidiaries, to the extent permitted by the Securitization Documents (and at a
price not in excess of that reasonably acceptable to the Lenders' Consultant),
to obtain releases of individual Contracts less than twelve months past their
final due date and the related Contract Assets from the liens created the
Indentures. Once the liens on any Contracts and related Contract Assets have
been released, (i) the Borrower shall use its best efforts to cause (a) MFI I to
sell such Contracts and related Contract Assets to the Borrower for fair value
and declare a dividend so that any available cash resulting from such sale in
excess of that required for reasonable reserves or otherwise to be retained by
MFI I under applicable law or MFI I's Articles of Incorporation or Bylaws can be
transferred to the Borrower, and (b) MFI II to distribute such Contracts and
related Contract Assets to the Borrower (to the extent retention of such
Contracts and related Contract Assets is not required to maintain adequate
capital or other wise under applicable law or MFI II's Limited Liability Company
Agreement) and (ii) the Borrower shall pledge any Contracts and Contract Assets
so acquired to the Lenders as Collateral for the Obligations. Such transfer and
pledge shall take place within thirty (30) days of the release of the liens.

                  5.4.     RELEASE OF SECURITIZATION/RESTRICTED CASH. When a
series of notes issued by a Special Purpose Subsidiary is redeemed, retired or
paid in full, the Borrower shall use its best efforts to cause the applicable
Special Purpose Subsidiary to, within five (5) days of the date or dates on
which the applicable Special Purpose Subsidiary is entitled to obtain such
release (i) pursuant to its rights under Section 4.06(b) of the applicable
Indenture (following redemption or retirement of a single series of notes when
other series of notes remain outstanding), obtain a release from the lien of the
applicable Indenture for the Series Contracts and related Contract Assets (as
defined in the MFI I Indenture) or the Series Assets, as applicable and (ii)
pursuant to its rights under Section 5.01(b) of the applicable Indenture (upon
payment in full of the last series of notes outstanding under such Indenture and
release of the applicable portion of the Trust Estate), provide the officer's
certificate(s) and opinion(s) of counsel required by Section 5.01(b) of the
applicable Indenture (unless such obligation is waived by the Controlling Party
(as defined in the MFI I Indenture) or Majority Holders (as defined in the MFI
II Indenture) in accordance with the provisions of the applicable Indenture) to
obtain (a) a release of the Withdrawn Collateral (as defined in each Indenture,
as applicable) from the lien created by the Indenture and (b) the delivery of
the Withdrawn Collateral to the applicable Special Purpose Subsidiary, or its
designee. The Borrower shall use its best efforts to cause the

<PAGE>

                                      -15-

Special Purpose Subsidiary to designate the Borrower as its designee to receive
the Withdrawn Collateral (other than the underlying note payable to MFI I, which
may instead be cancelled). The Borrower shall then, within five (5) days of
receipt of such Withdrawn Collateral, apply such Withdrawn Collateral to prepay
the Conversion Term Loan in accordance with Section 2.9 of the Credit Agreement,
with such prepayments to be applied to the remaining scheduled principal
repayments of the Conversion Term Loan in the inverse order of maturity.
Further, once the liens on any such Contract Assets or Series Assets have been
released, (i) the Borrower shall use its best efforts to cause (a) MFI I to sell
such Contract Assets to the Borrower for fair value and declare a dividend so
that any available cash resulting from such sale in excess of that required for
reasonable reserves or otherwise to be retained by MFI I under applicable law or
MFI I's Articles of Incorporation or Bylaws can be transferred to the Borrower,
and (b) MFI II to distribute such Series Assets (other than the underlying note)
to the Borrower (to the extent retention of such Series Assets is not required
to maintain adequate capital or otherwise under applicable law or MFI II's
Limited Liability Company Agreement, and (ii) the Borrower shall pledge any
Contract Assets or Series Assets so acquired to the Lenders as Collateral for
the Obligations. Such transfer and pledge shall take place within thirty (30)
days of the release of the liens.

         5.5.     ASTA TRANSACTION: PREPAYMENTS.

         (a)      CONSENT OF LENDERS IN CONNECTION WITH ASTA TRANSACTION. The
Parent has advised the Lenders that it may desire to enter into the transaction
described on Annex C hereto (the "Asta Transaction"), which would, absent the
consent of the requisite Lenders, violate certain terms of the Loan Documents.
Provided that the terms and conditions set forth in Section 5.5 and on Annex C
are met, the Lenders hereby consent to the following:

         (i)      THE ASTA TRANSACTION;

         (ii)     To the extent that the Asta Transaction requires the creation
         of any new parent, subsidiary or affiliated company of either the
         Borrower or the Parent (the "New Entity or the New Entities"), the
         Lenders approve the creation of such New Entities and consent to the
         incurrence of debt by such New Entities, provided that (a) the
         collateral for any such debt may be only collateral generated by such
         New Entity; (b) each New Entity that utilizes any of the personnel,
         software or other assets of either of the Companies enters into an
         agreement with the applicable Company, pursuant to Section 5.6 hereof
         and (c) such New Entities shall be capitalized solely from outside
         sources and that the Companies shall not make any contributions of cash
         or other assets to such New Entities other than de minimus amounts in
         connection with corporate formation and maintenance;

         (iii)    The payment to the shareholders of the Parent (other than the
         Insiders) of cash consideration received in connection with the Asta
         Transaction in excess of the amount of cash consideration required to
         prepay the Conversion Term Loan pursuant to Section 5.5(b);

<PAGE>

                                      -16-

         (iv)     The payment of a fee of up to 5% of the total purchase price
         of the Asta Transaction to BCA One, LLC as set forth in the agreement
         dated October 15, 2002, between BCA One, LLC, and the Parent; and

         (v)      The sale by the Insiders (as defined in Section 5.5(b)) of any
         non-cash consideration received as part of the Asta Transaction on
         terms and conditions set forth in Section 5.5(b) but otherwise
         determined by the Insiders in their sole discretion.

         (b)      TERMS AND CONDITIONS OF CONSENT TO ASTA TRANSACTION. The
Lenders consent to the Asta Transaction is subject to the following terms and
conditions along with those terms and conditions set forth on Annex C: (i) a
prepayment of the Conversion Term Loan is made in an amount equal to the greater
of (a) $3,800,000 and (b) the amount equal to the amount that would otherwise
constitute the total cash consideration provided to any and all officers and
directors of either of the Companies, (together with those persons listed on
Annex D hereto, the "Insiders") as part of the Asta Transaction, either directly
or indirectly, including cash consideration provided after the closing date of
the Asta Transaction from funds that are released from escrow, with such
prepayment to be made contemporaneously with the closing of the Asta
Transaction, or, in the case of a prepayment from funds that were initially held
in escrow, contemporaneously with the release of such funds from escrow and with
the total amount of the cash consideration provided as a prepayment of the
Conversion Term Loan in accordance with this subsection (i) comprising New
Subordinated Debt and (ii) the Insiders pledge all non-cash consideration
received as part of the Asta Transaction, including, without limitation, all of
their shares of Asta Funding, Inc., any other equity or rights to obtain equity
received as part of the Asta Transaction and any and all rights associated with
such shares, other equity or rights to obtain equity, including without
limitation, rights under any registration rights, co-sale, stockholders and
voting agreements to the Lenders as additional Collateral for the Obligations
and further agree that if any such non-cash consideration is sold or redeemed
the proceeds of such sale or redemption, net of taxes paid in connection with
such sale or redemption, shall be used to prepay the Conversion Term Loan and
the selling Insider shall then hold New Subordinated Debt in the amount of such
prepayment. All prepayments of the Conversion Term Loan contemplated hereby
shall be made in accordance with Section 2.9 of the Credit Agreement, with such
prepayments applied to the remaining scheduled principal repayments of the
Conversion Term Loan in the inverse order of maturity

         5.6.     SERVICER FEE. The Companies shall require that any entity that
commences utilizing either the personnel, software or other assets of either of
the Companies for collection of amounts due to it under any lease, contract or
agreement after the Effective Date of this Second Amendment enter into a
servicer agreement with the applicable Company, in form and substance
satisfactory to the Agent. Such agreement shall be on arm's length terms on an
ongoing basis, and shall require such entity to, among other things, pay to the
applicable Company a fair market value servicing fee, in cash, which shall not
be less than a monthly fee of $3 per lease, contract or agreement being serviced
by the personnel, software or assets of either of the Companies. Further, the
Companies shall provide evidence of the fair market value of each such servicing
fee to the Agent and the Lenders.

<PAGE>

                                      -17-

         5.7.     NEGATIVE COVENANTS OF PARENT. The Parent covenants and agrees
to be bound by the negative covenants contained in Sections 7.1 through 7.12 of
the Credit Agreement to the same extent and with the same effect, as if it were
the Borrower thereunder, provided that (a) the Parent shall be permitted to make
cash payments of principal, interest or other amounts on or in respect of the
Subordinated Debt and all other indebtedness of the Parent, other than the New
Subordinated Debt, in an aggregate amount of not more than $35,000 per month;
(b) the Parent shall be permitted to make regularly scheduled payments to the
holders of the New Subordinated Debt and (c) the Parent shall be permitted to
make any payments required to be made by it under the Securitization Documents.
In addition, the Parent covenants and agrees that it will not make payments in
respect of any indebtedness of the Parent in excess of the $35,000 per month
payments contemplated by subsection (a) above other than (w) payments in respect
of the Credit Agreement, (x) payments in respect of the other Loan Documents,
(y) payments of regularly scheduled interest in respect of the New Subordinated
Debt and (z) a principal payment in respect of that certain demand note of the
Parent, dated May 28, 1999 and issued to Colleen Burke, in an amount not in
excess of $30,000,

         5.8.     WARRANTS. The Parent shall provide the Lenders with warrants
(the "Warrants") to purchase 2.00% of the capital stock the Parent (the "Warrant
Shares"), on a fully-diluted basis (exclusive of 1,675,000 shares of Common
Stock of the Parent issuable upon exercise of options to purchase shares of the
Parent with a strike price above the fair market value of the stock of the
Parent on the date hereof) at an exercise price of equal to $.82 1/2 per share
of common stock; provided that, in the event that if the Asta Transaction has
closed on or before August 31, 2003 and the Company has complied with the
provisions set forth in Section 5.5 of this Second Amendment the Warrants shall
automatically terminate and shall be of no further force or effect. The Warrants
shall be exercisable as follows: (i) if all of the Obligations shall not have
been repaid in full (other than as a result of a repayment following an Event of
Default), on or before June 30, 2004, the Warrants shall be exercisable for up
to 50% of the Warrant Shares and (ii) if all of the Obligations shall not have
been repaid in full (other than as a result of a repayment following an Event of
Default), on or before September 30, 2004, the Warrants shall be exercisable for
up to 100% of the Warrant Shares.

         5.9.     NEW SUBSIDIARY. The Lenders shall permit, to the extent
requested, the Parent to create a new Subsidiary and shall allow such Subsidiary
to incur debt provided that (i) the collateral for any such debt may be only
collateral generated by such new Subsidiary; (ii) to the extent that such new
Subsidiary utilizes any of the personnel, software or other assets of either of
the Companies, it shall enter into an agreement with the applicable Company,
pursuant to Section 5.6 hereof and (iii) such Subsidiary shall be capitalized
solely from outside sources and the Companies shall not make any contributions
of cash or other assets to such Subsidiary other than de minimis amounts in
connection with corporate formation and maintenance.

         5.10.    AUTHORIZATION TO FILE FINANCING STATEMENTS. The Companies
hereby irrevocably authorize the Agent at any time and from time to time during
which any Loans are outstanding, to file, in any filing office in any Uniform
Commercial Code jurisdiction where the filing of an initial financing statement
is necessary or desirable to perfect the interests of the Agent or the Lenders
in the collateral for the Obligations and for the obligations of the Parent in
respect of the Parent Guarantee, any initial financing

<PAGE>

                                      -18-

statements and amendments thereto that (a) indicate the collateral (i) as all
assets of the Companies or words of similar effect, regardless of whether any
particular asset comprised in the collateral falls within the scope of Article 9
of the Uniform Commercial Code of the state or such jurisdiction, or (ii) as
being of an equal or lesser scope or with greater detail, and (b) provide any
other information required by part 5 of Article 9 of the Uniform Commercial Code
of the state or such other jurisdiction for the sufficiency or filing office
acceptance of any financing statement or amendment, including whether each of
the Companies is an organization, the type of organization and any organization
identification numbers issued to either of the Companies. Each of the Companies
agree to furnish any such information to the Agent as soon as reasonably
practicable upon the Agent's request. Each of the Companies also ratifies its
authorization for the Agent to have filed in any Uniform Commercial Code
jurisdiction any like initial financing statements or amendments thereto if
filed prior to the date hereof.

         5.11.    AMENDMENT TO SUBORDINATED DEBT DOCUMENTS OF PARENT. The
Companies shall deliver to the Agent. no later than July 14, 2003, amendments to
notes issued to each of the holders of Subordinated Debt of the Parent, in form
and substance satisfactory to the Agent, with such amendments to include, among
other things, revisions to interest rates, maturity and subordination
provisions, executed by each of the holders of Subordinated Debt of the Parent,
other than those noteholders identified in Section 4(n).

         SECTION 6. REPRESENTATIONS AND WARRANTIES. The Borrower hereby repeats,
on and as of the date hereof, each of the representations and warranties made by
it in Section 4 of the Credit Agreement, provided, that all references therein
to the Credit Agreement shall refer to such Credit Agreement as amended hereby.
In addition, each of the Companies hereby represent and warrant (a) that the
execution and delivery by the Companies of this Second Amendment and the
performance by the Companies of all of their agreements and obligations under
the Credit Agreement, as amended hereby, are within the corporate authority of
the Companies and have been duly authorized by all necessary corporate or other
similar action on the part of the Companies; (b) that the investigations brought
by the attorneys general in connection with the Attorneys General Settlements
are the only virtual-terminal-related suits or investigations pending or
threatened against either of the Companies by any attorneys general; (c) that
the Insiders listed on Annex D hereto represent all of the officers and
directors of the Companies who hold shares or options to purchase shares of
either of the Companies as of the date hereof; (d) that the Companies do not
own, and have not applied for, any patents, trademarks or copyrights other than
those disclosed on the perfection certificates of the Companies delivered to the
Agent pursuant to Sections 4(u) and 4(v) and (e) that the Parent has no
indebtedness for borrowed money other than that disclosed on Schedule 6 hereto.

         SECTION 7. NO PRESENT CLAIMS. The Companies acknowledge and agree that,
as of the date hereof: (a) none of the Companies or, to the knowledge of any of
the Companies, any of their affiliates has any claim or cause of action against
any of the Lenders or the Agent (or any of their directors, officers, employees,
attorneys or agents); (b) none of the Companies, or to the knowledge of any of
the Companies, any of their affiliates has offset rights, counterclaims or
defenses of any kind against any of their obligations, indebtedness or
liabilities to any of the Lenders or the Agent; and (c) each of the Lenders and
the Agent has heretofore properly performed and satisfied in a timely manner all
of its obligations to the Companies and, to the knowledge of each of the
Companies, each of their affiliates. The

<PAGE>

                                      -19-

Lenders and the Agent wish (and the Companies agree) to eliminate any
possibility that any past conditions, acts, omissions, events, circumstances or
matters would impair or otherwise adversely affect any of the rights, interests,
contracts, collateral security or remedies of the Lenders or the Agent.
Therefore, Companies, each on its own behalf and on behalf of each of its
respective successors and assigns, hereby waives, releases and discharges the
Lenders and the Agent and all of their directors, officers, employees, attorneys
and agents, from any and all claims, demands, actions or causes of action on or
before the date hereof and arising out of or in any way relating to the Loan
Documents and any documents, instruments, agreements (including this Second
Amendment), dealings or other matters connected with the Loan Documents,
including, without limitation, all known and unknown matters, claims,
transactions or things occurring on or prior to the date of this Second
Amendment related to the Loan Documents. The waivers, releases, and discharges
in this paragraph shall be effective regardless of any other event that may
occur or not occur prior to, or on or after the date hereof.

         SECTION 8. MARSHALLING. Neither the Agent nor the Lenders shall be
required to marshal any present or future collateral security for the Companies'
obligations to the Agent or such Bank under the Loan Documents or to resort to
such collateral security or other assurances of payment in any particular order,
and all of their rights in respect of such collateral security shall be
cumulative and in addition to all other rights, however existing or arising. To
the extent that they lawfully may, the Companies hereby agree that they will not
invoke any law relating to the marshalling of collateral which might cause delay
in or impede the Agent's or such Bank's rights under any document, agreement or
instrument evidencing or securing the Borrower's obligations to the Agent and
the Lenders under the Loan Documents and, to the extent that it lawfully may,
the Borrower hereby irrevocably waives the benefits of all such laws.

         SECTION 9. NO WAIVER. Except as otherwise expressly provided for in
this Second Amendment, nothing in this Second Amendment shall extend to or
affect in any way any of the rights or obligations of the Borrower or any of the
Agent's or the Lenders' obligations, rights and remedies arising under the Loan
Documents. Neither the Agent nor any Lender shall be deemed to have waived any
or all of its rights or remedies with respect to any Default or Event of
Default, other than the Specified Defaults, existing on the date hereof or
arising hereafter.

         SECTION 10. EXPENSES. The Borrower agrees to pay to the Agent and the
Lenders upon written demand therefor (i) an amount equal to any and all
reasonable out-of-pocket costs, expenses, and liabilities (including, without
limitation, fees, disbursements, expenses and liabilities of or relating to,
commercial finance examinations, collateral audits, appraisals, the Lender's
Consultant, collateral examinations referred to in Section 5.15 of the Credit
Agreement, the information technologies consultant referred to in Section
5.2l(iii) of the Credit Agreement, Uniform Commercial Code and other lien
searches and filing fees, and legal counsel) incurred or sustained by the Agent
or any of the Lenders in connection with the preparation of this Second
Amendment, the documents and instruments contemplated hereby, the administration
or interpretation of the Loan Documents, and (ii) from time to time any and all
reasonable out-of-pocket costs or expenses, legal fees, disbursements and other
expenses hereafter incurred or sustained by the Agent or any of the Lenders in
connection with the administration of credit extended by the Agent to the
Borrower, the preservation of or enforcement of their rights under the Loan
Documents, in respect of the

<PAGE>

                                      -20-

collateral, and/or in respect of any of the Borrower's other obligations to the
Agent. The Lenders and the Borrower authorize the Agent and the Lenders to, with
prior written notice to the Borrower, to debit any accounts maintained by the
Borrower with such any such Lender for any fees, expenses, or other amounts due
and payable by the Borrower hereunder, under the Credit Agreement or any of the
other Loan Documents.

         SECTION 11. MISCELLANEOUS.

         (a)      This Second Amendment shall be governed by and construed in
accordance with the internal laws of the Commonwealth of Massachusetts.

         (b)      This Second Amendment shall constitute a Loan Document under
the Credit Agreement; the failure to comply with the covenants contained herein
shall constitute an Event of Default under the Credit Agreement; and all
obligations included in this Second Amendment (including, without limitation,
all obligations for the payment of principal, interest, fees, and other amounts
and expenses) shall constitute obligations under the Loan Documents and secured
by the collateral security for the Obligations.

         SECTION 12. ACKNOWLEDGEMENT. Each of the Companies hereby acknowledges
that it was advised by counsel before executing this Second Amendment. Further,
each of the Companies, the Agent and the Lenders acknowledges and agrees that
this Second Amendment shall not be construed against any of the Companies, the
Agent or the Lenders as the drafter of this Second Amendment.

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Second Amendment as a document under seal as of the date first above written.

                                    FLEET NATIONAL BANK, individually and
                                    as Agent

                                    By: /s/ DAVID D. BUTLER
                                        -----------------------------
                                        Name: DAVID D. BUTLER
                                        Title: AUTHORIZED OFFICER

                                    BANKNORTH, N.A.

                                    By: /s/ DANA P. WEDGE
                                        -----------------------------
                                        Name: Dana P. Wedge
                                        Title: SVP

                                    BROWN BROTHERS HARRIMAN & CO.

                                    By: /s/ Jared S. Keyes
                                        -----------------------------
                                        Name: Jared S. Keyes
                                        Title: Managing Director

                                    CITIBANK

                                    By: /s/ George V. Milbury
                                        -----------------------------
                                        Name: George V. Milbury
                                        Title: Vice President

                                    CITIZENS BANK OF MASSACHUSETTS

                                    By: /s/ ROBERT D. MACE
                                        -----------------------------
                                        Name: ROBERT D. MACE
                                        Title: Vice President

                                    KEYBANK NATIONAL ASSOCIATION

                                    By: /s/ PETER A. LANDAUER
                                        -----------------------------
                                        Name: PETER A. LANDAUER
                                        Title: VICE PRESIDENT

<PAGE>

                                      -21-

                                    NATIONAL CITY BANK

                                    By: /s/ Michael J. Labrum
                                        ---------------------------
                                        Name: Michael J. Labrum
                                        Title: Senior Vice President

                                    U.S. BANK

                                    By: /s/ Joseph P. Howard
                                        ----------------------------
                                        Name: Joseph P. Howard
                                        Title: Vice President

                                    UNION BANK OF CALIFORNIA

                                    By: /s/ CECILIA M. VALENTE
                                        ----------------------------
                                        Name: CECILIA M. VALENTE
                                        Title: SENIOR VICE PRESIDENT

ACCEPTED and AGREED as of
April 14, 2003:

Borrower:

LEASECOMM CORPORATION

By : /s/ PETER BLEYLEBEN
     ------------------------------
     Name: PETER BLEYLEBEN
     Title: President

Parent:

MICROFINANCIAL INCORPORATED

By: /s/ RICHARD F. LATOUR
    -------------------------------
    Name: RICHARD F. LATOUR
    Title: President and CEO<PAGE>

                                                                    EXHIBIT 10.2

                           MICROFINANCIAL INCORPORATED

                                10-M Commerce Way
                                Woburn, MA 01801

                           WARRANT PURCHASE AGREEMENT

Fleet National Bank, as Agent
111 Westminster Street
Providence, Rhode Massachusetts 02110

The Lenders on the
signature page attached hereto

                                                                  April 14, 2003

Ladies and Gentlemen:

             The undersigned, MicroFinancial Incorporated, a Massachusetts
corporation (the "Company"), agrees to issue and sell to Fleet National Bank, a
national banking association ("Fleet"), Banknorth, N.A., ("Banknorth"), Brown
Brothers Harriman & Co. ("Brown Bros."), Citibank ("Citibank"), Citizens Bank of
Massachusetts ("Citizens"), Keybank National Association ("Key"), National City
Bank ("National City"), U.S. Bank ("U.S. Bank") and Union Bank of California,
N.A. ("UBOC" and together with Fleet, Banknorth, Brown Bros., Citibank,
Citizens, Key, National City and U.S. Bank, the "Lenders") the Common Stock
Purchase Warrants of the Company in the form of Exhibit A hereto, all being on
the terms and subject to the conditions contained in this Agreement.

             Accordingly, the parties hereto agree as follows:

                                    ARTICLE I

                              CERTAIN DEFINED TERMS

         As used herein, the following terms shall have the respective meanings
assigned to them in this Article I:

         "Articles of Organization" shall have the meaning ascribed to that term
in Section 2.1(a) hereof.

         "Closing" shall have the meaning ascribed to that term in Article IV
hereof.

         "Closing Date" means the date of the Closing.

         "Commission" means the Securities and Exchange Commission.

         "Common Stock" shall have the meaning ascribed to that term in
Section 2.1(a) hereof.

<PAGE>

         "Company" shall have the meaning ascribed to that term in the preamble
hereto.

         "GAAP" shall have the meaning ascribed to that term in the Loan
Agreement.

         "Investor Consent" means, at any particular date, the consent, approval
or vote of the Majority Investors.

         "Investors" means, collectively, (i) each Lender so long as such Lender
shall continue to own and hold of record any of the Securities, (ii) each
Permitted Transferee of a Lender so long as such Permitted Transferee shall
continue to own and hold of record any of the Securities, and (iii) each
Permitted Transferee of any other Investor so long as such Permitted Transferee
shall continue to own and hold of record any of the Securities.

         "Lenders" shall have the meaning ascribed to that term in the preamble
hereto.

         "Loan Agreement" means that certain Fourth Amended and Restated Loan
Agreement, as amended or modified from time to time, dated as of August 22,
2000, by and among Leasecomm Corporation (the "Borrower"), the Lenders, the
other lending institutions party thereto and the Agent (as defined therein).

         "Majority Investors" means those Investors holding at least 50.1% of
the Common Stock issued or issuable upon exercise of the Warrants.

         "NASDAQ" means the National Association of Securities Dealers automated
quotation system.

         "Permitted Transferee" means any Person.

         "Person" means an individual, corporation, partnership, joint venture,
trust, or unincorporated organization, or a government or any agency or
political subdivision thereof.

         "Registration Rights Agreement" means that certain Registration Rights
Agreement dated April __, 2003 among the Company and the Lenders.

         "Securities" means the Warrants and the Warrant Shares.

         "Securities Act" means the Securities Act of 1933, as amended, or any
federal statute or code which is a successor thereto.

         "Subsidiary" means, in relation to the Company at any particular time,
any other corporation more than fifty percent (50%) of the outstanding voting
shares in the capital of which shall be owned or controlled (whether directly or
indirectly) by the Company and/or by any one or more of the Company's other
Subsidiaries.

         "Warrants" shall have the meaning ascribed to that term in Section
2.2(a) hereof and shall in any event include all other warrants delivered in
exchange or in substitution therefor.

         "Warrant Shares" means the shares of Common Stock issuable upon
exercise of the Warrants.

                                      - 2 -

<PAGE>

                                   ARTICLE II

                         REPRESENTATIONS OF THE COMPANY

             The Company represents and warrants to the Lenders as follows:

         SECTION 2.1. CAPITALIZATION OF COMPANY.

         (a) The authorized capital stock of the Company will, on and as of the
Closing Date, consist of (i) 25,000,000 shares of Common Stock, par value $0.01
per share (the "Common Stock"), of which 13,141,800 shares were outstanding as
of April 14, 2003, and (ii) 5,000,000 shares of preferred stock, of which no
shares are outstanding as of April 14, 2003. A description of the capital stock
and of the voting powers, rights, and privileges thereof is stated in the
Company's Articles of Organization (herein, the "Articles of Organization")

         (b) Except as set forth in Schedule 2.1(b) hereto, there are no
existing options, warrants, calls, preemptive (or similar) rights, subscriptions
or other rights, agreements, arrangements or commitments of any character
obligating the Company to issue, transfer or sell, or cause to be issued,
transferred or sold, any shares of the capital stock of the Company or other
equity interests in the Company or any securities convertible into or
exchangeable for such shares of capital stock or other equity interests, and
there are no outstanding contractual obligations of the Company to repurchase,
redeem or otherwise acquire any shares of its capital stock or other equity
interests.

         SECTION 2.2.  AUTHORIZATION OF WARRANTS.

         (a) The Company will, prior to the Closing Date, duly and properly
authorize the issuance to each of the Lenders (i) a Warrant evidencing rights to
purchase shares of the Company's Common Stock (each a "Warrant" and
collectively, the "Warrants") and (ii) the shares of Common Stock issuable by
the Company upon exercise of the Warrants.

         (b) The Warrants will be exercisable commencing as of June 30, 2004 in
accordance with the terms thereof at a price, subject to adjustment as therein
provided,of eighty-two and one-half cents ($.82 1/2 ) per Warrant Share. The
Warrants will be in substantially the form of Exhibit A annexed to this
Agreement.

         SECTION 2.3  ADDITIONAL REPRESENTATIONS.

         (a) Incorporation. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the Commonwealth of
Massachusetts and is qualified to do business in each jurisdiction in which the
character of its properties or the nature of its business requires such
qualification, except where the failure to so qualify would not have a material
adverse effect upon the Company. The Company has all requisite corporate power
and authority to carry on its business as now conducted and to carry out the
transactions contemplated hereby.

         (b) Authorization. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization, execution,
delivery and performance of the Warrants, this Agreement and the Registration
Rights Agreement and the consummation of the transactions contemplated herein
and therein has been taken. When executed and delivered by the Company, each of
this Agreement, the Warrants and the Registration Rights Agreement shall

                                      - 3 -

<PAGE>

constitute the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such may be limited
by bankruptcy, insolvency, reorganization or other laws affecting creditors'
rights generally and by general equitable principles, and except as the same may
be limited by the indemnification obligations of the Company under the
Registration Rights Agreement. The Company has all requisite corporate power to
enter into this Agreement, the Warrants and the Registration Rights Agreement
and to carry out and perform its obligations under the terms of this Agreement,
the Warrants and the Registration Rights Agreement.

         (c) Valid Issuance of the Shares. The Warrant Shares will, upon
issuance pursuant to the terms hereof, be duly authorized and validly issued,
fully paid and nonassessable and not subject to any encumbrances, preemptive
rights or any other similar contractual rights of the stockholders of the
Company or others.

         (d) Financial Statements. The Company shall, by April 14, 2003, furnish
to each Investor its audited Statements of Income, Stockholders' Equity and Cash
Flows for the fiscal year ended December 31, 2002 and its audited Consolidated
Balance Sheet as of December 31, 2002. All such financial statements are
hereinafter referred to collectively as the "Financial Statements". The
Financial Statements have been prepared in accordance with GAAP applied on a
consistent basis during the periods involved, and fairly present, in all
material respects, the financial position of the Company and the results of its
operations as of the date and for the period indicated thereon. Since December
31, 2002, there has been no material adverse change (actual or threatened) in
the assets, liabilities (contingent or other), affairs, operations, prospects or
condition (financial or other) of the Company.

         (e) SEC Documents. The Company shall, by April 14, 2003, furnish to
each Investor, a true and complete copy of the Company's Annual Report on Form
10-K for the year ended December 31, 2002 (the "Annual Report") and any other
statement, report, registration statement (other than registration statements on
Form S-8) or definitive proxy statement filed by the Company with the SEC during
the period commencing December 31, 2002 and ending on the date hereof (the "SEC
Documents"). As of their respective filing dates, the SEC Documents complied in
all material respects with the requirements of the Exchange Act or the
Securities Act, as applicable, and none of the SEC Documents contained any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading, as of
their respective filing dates.

         (f) Consents. Except for (i) the filing and effectiveness of any
registration required to be filed by the Company under the Securities Act in
connection with the exercise by any Investor of its rights under the
Registration Rights Agreement and (ii) any required state "blue sky" law filings
in connection with the transactions contemplated under such registration
statement, all consents, approvals, orders and authorizations required on the
part of the Company in connection with the execution, delivery or performance of
this Agreement, the Warrants and the Registration Rights Agreement and the
consummation of the transactions contemplated herein and therein have been
obtained and will be effective as of the Effective Date of Amendment No. 2 to
the Loan Agreement.

         (g) No Conflict. The execution and delivery of this Agreement, the
Warrants and the Registration Rights Agreement by the Company and the
consummation of the transactions contemplated hereby and thereby will not
conflict with or result in any violation of or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to a loss of a material
benefit under (i) any provision of the

                                      - 4 -

<PAGE>

Articles of Organization or By-laws of the Company or (ii) any material or
instrument, permit, franchise, license, judgment, order, statute, law,
ordinance, rule or regulation, applicable to the Company or its properties or
assets.

         (h) Brokers or Finders. Except as set forth on Schedule 2.3(h), the
Company has not dealt with any broker or finder in connection with the
transactions contemplated by this Agreement, and the Company has not incurred,
and shall not incur, directly or indirectly, any liability for any brokerage or
finders' fees or agents commissions or any similar charges in connection with
this Agreement or any transaction contemplated hereby.

         (i) New York Stock Exchange. The Common Stock is listed on the New York
Stock Exchange.

         (j) Absence of Litigation. There is no pending (or to the best of the
Company's knowledge, threatened) action, suit, proceeding or investigation
against the Company or any of its direct or indirect subsidiaries, other than
that described on Schedule 2.3(j) hereto.

         (k) No Undisclosed Liabilities. Other than as disclosed on the
Financial Statements delivered to Purchaser, since December 31, 2002, the
Company has incurred no material liabilities or obligations, fixed or
contingent, matured or unmatured or otherwise, except for liabilities or
obligations that, individually or in the aggregate, do not or would not have a
material adverse effect on the financial condition or business of the Company
and its subsidiaries other than (a) liabilities and obligations arising in the
ordinary course of business and (b) other liabilities disclosed in the schedules
to this Agreement.

         (l) Contracts. All contracts, agreements and instruments required to be
filed as an exhibit to the annual report of the Company are legal, valid,
binding and in full force and effect and, to the knowledge of the Company, are
enforceable by the Company in accordance with their respective terms, subject to
(a) laws of general application relating to bankruptcy, insolvency and the
relief of debtors, (b) rules of law governing specific performance, injunctive
relief or other equitable remedies, and (c) actions or omissions of Persons
other than the Company, provided, however, that the Company has no actual
knowledge of any material actions or omissions by such other Persons. Except as
disclosed in the Annual Report and other than contracts or agreements relating
exclusively to the Company's pre-clinical and clinical development and
manufacturing activities, the Company has not granted rights to manufacture,
produce, assemble, license, market or sell its products to any other person and
is not bound by any contract or agreement that materially restricts the
Company's exclusive right to develop, manufacture, assemble, distribute or sell
its products.

         (m) Subsidiaries; Joint Ventures. The Company has no subsidiaries other
than Leasecomm Corporation, a company organized under the laws of the
Commonwealth of Massachusetts and a wholly-owned Subsidiary of the Company, and
does not otherwise own or control, directly or indirectly, any other Person,
other than MFI Finance Corp. I, a corporation organzied under the laws of the
Commonwealth of Massachusetts and a wholly-owned Subsidiary of Leasecomm
Corporation and MFI Finance II, LLC, a limited liability company organized under
the laws of the Commonwealth of Massachusetts and a wholly-owned Subsidiary of
Leasecomm Corporation. The Company is not a participant in any joint venture,
partnership, or similar arrangement material to its business.

                                      - 5 -

<PAGE>

         (n) Taxes. Each of the Company and any Subsidiary of the Company has
filed (or has had filed on its behalf) or will timely file or will cause to be
timely filed, all material Tax Returns (as defined below) required by applicable
law to be filed by it prior to or as of the date of the Effective Date of
Amendment No. 2 to the Loan Agreement, and such Tax Returns are, or will be at
the time of filing, true, correct and complete in all material respects. Each of
the Company and any Subsidiary of the Company has paid (or has had paid on its
behalf) or, where payment is not yet due, has established (or has had
established on its behalf and for its sole benefit and recourse) or will
establish or cause to be established in accordance with GAAP on or before the
Effective Date of Amendment No. 2 to the Loan Agreement, an adequate accrual for
the payment of, all material Taxes (as defined below) due with respect to any
period ending prior to or as of the Effective Date of Amendment No. 2 to the
Loan Agreement. "Taxes" shall mean any and all taxes, charges, fees, levies or
other assessments, including income, gross receipts, excise, real or personal
property, sales, withholding, social security, retirement, unemployment,
occupation, use, goods and services, license, value added, capital, net worth,
payroll, profits, franchise, transfer and recording taxes, fees and charges, and
any other taxes, assessment or similar charges imposed by the Internal Revenue
Service or any taxing authority (whether state, county, local or foreign) (each,
a "Taxing Authority"), including any interest, fines, penalties or additional
amounts attributable to or imposed upon any such taxes or other assessments.
"Tax Return" shall mean any report, return, document, declaration or other
information or filing required to be supplied to any Taxing Authority, including
information returns, any documents with respect to accompanying payments of
estimated Taxes, or with respect to or accompanying requests for extensions of
time in which to file any such return, report, document, declaration or other
information. There are no claims or assessments pending against the Company or
any subsidiary of the Company for any material alleged deficiency in any Tax,
and neither the Company nor any Subsidiary of the Company has been notified in
writing of any material proposed Tax claims or assessments against the Company
or any Subsidiary of the Company. Each of the Company and any Subsidiary of the
Company has withheld from each payment made to any of its past or present
employees, officers and directors, and any other person, the amount of all
material Taxes and other deductions required to be withheld therefrom and paid
the same to the proper Taxing Authority within the time required by law.

         (o) Percentage. The Warrant Shares represent in the aggregate two
percent (2%) of the issued and outstanding capital stock of the Company as of
the date hereof calculated on a fully diluted basis, after giving effect to all
options and warrants (whether issued and outstanding or reserved for issuance
for the purchase of capital stock of the Company but exclusive of 1,675,000
shares of Common Stock of the Company issuable upon exercise of options to
purchase shares of the Company, outstanding on the date hereof, with a strike
price above the fair market value of the stock of the Company on the date
hereof).

                                   ARTICLE III

                              SALE AND PURCHASE OF

                               WARRANTS AT CLOSING

         At the Closing hereunder, the Company will issue and sell to each of
the Lenders, subject to the terms and conditions hereof and in reliance upon the
written representations and warranties of the Company, in consideration for each
of the Lenders entering into Amendment No. 2 to the Loan Agreement, a Warrant to
subscribe for and purchase the number of share of Common Stock indicated next to
such Lender's name on Exhibit B hereto and the Company hereby acknowledges
receipt of such consideration.

                                      - 6 -

<PAGE>

                                   ARTICLE IV

                                   THE CLOSING

         The closing under this Agreement (the "Closing") will take place at
9:00 a.m., local time, on April 14, 2003, or at such other time and on such
other date as may be mutually agreed upon in writing by the Lenders and the
Company. At the Closing, the Company will (among other things) deliver to the
Lenders the Warrants purchased by the Lenders hereunder, and each Lender will
deliver to the Company the total consideration payable by such Lender for the
Warrant.

                                    ARTICLE V

                         REPRESENTATIONS OF THE LENDERS

         Each Lender severally represents and warrants to the Company that:

         (a) Such Lender is purchasing the Warrant from the Company in
accordance with the terms hereof for such Lender's own account without a view to
any distribution thereof in violation of the Securities Act, but, subject,
nevertheless, to any requirement of law that the disposition of such Lender's
property shall at all times be within such Lender's control. Each Lender has
been informed and understands that the Securities have not been registered
pursuant to the provisions of Section 5 of the Securities Act and therefore
cannot be offered, sold or transferred unless such Securities are registered
under the provisions of the Securities Act or an exemption from such
registration is available.

         (b) Each Lender represents that it is an "accredited investor" within
the meaning of Rule 501(a) promulgated under the Securities Act. Each Lender has
sufficient knowledge and experience in investing in companies similar to the
Company so as to be able to evaluate the risks and merits of such an investment
and is able financially to bear the risks thereof.

         (c) It agrees that each stock certificate or instrument representing or
evidencing any Securities shall bear a legend in or substantially in the
following form:

         "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER, AND ARE SUBJECT TO,
         THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), AND MAY NOT BE
         SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE
         REGISTRATION UNDER THE 1933 ACT OR IN A TRANSACTION EXEMPT FROM
         REGISTRATION UNDER THE 1933 ACT."

                                   ARTICLE VI

                              COVENANTS OF COMPANY

         The Company hereby covenants with each of the Investors that, except as
otherwise expressly permitted or provided, in any particular instance, by a
written Investor Consent:

                                      - 7 -

<PAGE>

         SECTION 6.1. RECORDS AND ACCOUNTS. The Company will (i) keep, and
cause each of its Subsidiaries to keep, true and accurate records and books of
account in which full, true and correct entries will be made in accordance with
GAAP and (ii) maintain adequate accounts and reserves for all taxes (including
income taxes), depreciation, depletion, obsolescence and amortization of its
properties and the properties of its Subsidiaries, contingencies, and other
reserves.

         SECTION 6.2. FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION. The
Company will deliver to each of the Investors at their request:

         (a) as soon as practicable after the end of each Company fiscal year
and in any event within 90 days after the end of each such fiscal year, a
consolidated balance sheet of the Company and Subsidiaries as at the end of such
year, and the related statements of income and cash flows or shareholders'
equity of the Company and Subsidiaries setting forth in each case the
corresponding figures for the preceding fiscal year, such statements to be
certified by a firm of independent certified public accountants selected by the
Company;

         (b) as soon as is practicable after the end of each fiscal quarter of
each Company fiscal year and in any event within 45 days thereafter,
consolidated balance sheet of the Company and Subsidiaries as of the end of such
period and the related statements of income and cash flows and shareholders'
equity of the Company and Subsidiaries, subject to changes resulting from
year-end adjustments, such balance sheet and statements to be prepared and
certified by an authorized representative of the company in an officer's
certificate as having been prepared in accordance with GAAP except for footnotes
and year-end adjustments; and

         (c) contemporaneously with the filing or mailing thereof, copies of all
material of a financial nature filed with the Securities and Exchange Commission
or sent to the stockholders of the Company.

                                   ARTICLE VII

                  SURVIVAL OF REPRESENTATIONS; INDEMNIFICATION.

         SECTION 7.1. SURVIVAL OF REPRESENTATIONS. The representations and
warranties of the Company and of the Lenders and the Investors contained in this
Agreement, or any agreement, instrument or document delivered pursuant to any of
the provisions of this Agreement, shall survive the execution and delivery of
this Agreement, any examination or investigation conducted by or on behalf of
the Company or the Lender, and the Closing hereunder.

         SECTION 7.2. INDEMNIFICATION FOR MISREPRESENTATIONS. The Company agrees
to indemnify and hold the Lenders harmless from and against, and to pay to the
Lenders, on demand by the Lenders from time to time, the full amount of any
loss, claim, damage, liability, cost or expense (including reasonable attorneys'
fees) resulting to the Lenders from any false, incorrect or misleading
representation or warranty of the Company contained in this Agreement, or any
agreement, instrument or document delivered by the Company to the Lenders
pursuant to any of the provisions of this Agreement.

         SECTION 7.3. EXPENSES. Whether or not all or any of the arrangements or
transactions contemplated by this Agreement or by any of the Warrants shall be
consummated, the Company agrees to pay to the Investors, on demand by the
Investors at any time and as often as the occasion

                                      - 8 -

<PAGE>

therefor may require: (a) all of the reasonable legal fees, plus all reasonable
out-of-pocket expenses and disbursements, of one set of counsel to the
Investors, which have been or shall be incurred or sustained at any time in
connection with the preparation, negotiation, execution or delivery of this
Agreement, any of the Warrants, the Co-Sale Agreement, the Registration Rights
Agreement or any other agreements, instruments or documents relating thereto;
and (b) all reasonable out-of-pocket costs and expenses which shall be incurred
or sustained by any Investor at any time in connection with any modifications or
amendments to or consents, approvals or waivers under this Agreement, any of the
Warrants, the Co-Sale Agreement or the Registration Rights Agreement or in
connection with any litigation, proceeding or dispute arising out of or relating
to this Agreement, any of the Warrants, the Co-Sale Agreement, the Registration
Rights Agreement or relationships created thereby, or in connection with any
action or proceeding taken by any Investor to protect or preserve all or any of
the rights, remedies, powers or privileges of such Investor under any of such
documents or to enforce any of the covenants, agreements or obligations of the
Company under any of such documents (including, without limitation, all of the
reasonable fees and disbursements of legal counsel for each Investor).

                                  ARTICLE VIII

                                PREEMPTIVE RIGHTS

         (a) The Company shall not issue or sell any of its equity securities
(including securities convertible into equity securities) (collectively, the
"Future Shares") to any Person without first providing each Investor the right
to subscribe for its Proportionate Percentage (as defined in Section 8(f)) of
such Future Shares at the same price and on the same terms (including the method
of purchase; provided, however, that the Investors shall have the option of
purchasing Future Shares with cash, regardless of the method of purchase offered
to such Person) as shall be offered to such third party and which shall have
been specified by the Company in a writing delivered to each Investor (the
"Proposal"). The Proposal by its terms shall remain open and irrevocable for a
period of 20 days from the date it is delivered by the Company to each Investor
(the "Future Shares Exercise Period"). The Proposal shall also certify that the
Company has either (i) received a firm offer from a prospective purchaser, who
shall be identified in such certification, so that the Company in good faith
believes a binding agreement of sale is obtainable for consideration having a
fair market, cash equivalent or present value set forth in such certification;
or (ii) intends in good faith to make an offering of its securities at the price
and on the terms set forth in such certification.

         (b) Notice of each Investor's acceptance, in whole or in part, of the
Proposal made pursuant to Article 8(a) hereof shall be evidenced by a writing
signed by such Investor delivered to the Company prior to the end of the Future
Shares Exercise Period setting forth that portion of the Future Shares, as the
case may be, which the Investor elects to purchase (the "Notice of Purchase").
If an Investor does not deliver such written notice within the Future Shares
Exercise Period, such Investor shall be deemed to have elected not to purchase
all or any part of such Future Shares.

         (c) The Company shall promptly, in writing, inform each Investor which
purchases all the shares available to it ("Fully-Exercising Investor") of any
other Investor's failure to do likewise. During the ten-day period commencing
after the delivery by the Company of such information, each Fully-Exercising
Investor shall be entitled to obtain that portion of the Future Shares for which
Investors were entitled to subscribe but which were not subscribed for by the
Investors which is equal to the proportion that the number of shares of Common
Stock, and other securities, issued and

                                      - 9 -

<PAGE>

held, or issuable (whether directly or indirectly) upon exercise of the Warrant,
or other derivative securities, held by such Fully-Exercising Investor, as the
case may be, then held, by such Fully-Exercising Investor bears to the total
number of shares of Common Stock, and other securities, issued and held, or
issuable (whether directly or indirectly) upon exercise of the Warrant, or other
derivative securities, held by such Fully-Exercising Investor, as the case may
be, then held, by all Fully-Exercising Investors who wish to purchase some of
the unsubscribed shares.

         (d) In the event that the Investors do not purchase all of the
remaining Future Shares pursuant to Article 8(c) above, the Company shall have
120 days from the expiration of the Future Shares Exercise Period to offer and
sell any part of such Future Shares not elected to be purchased by the Investors
(the "Refused Future Shares") to any other Person(s), but only upon terms and
conditions in all respects (including, without limitation, price, seniority,
dividends and liquidation, redemption and conversion rights) which are no more
favorable to such other Person(s) or less favorable to the Company than those
set forth in the Proposal; provided, however, that such sale be to the same
Person(s) or their affiliates identified in the Proposal, if so identified
pursuant to Article 8(a). In the event that the Company so sells the Refused
Future Shares to such identified Person(s), the sale to each Investor of the
Future Shares in respect of which a Notice of Purchase was delivered to the
Company by such Investor shall occur upon the closing of the sale to such other
Person(s) of Refused Future Shares (which closing shall include full payment to
the Company). If there are no Refused Future Shares, the sale to such Investor
of such Future Shares shall occur within 20 days of the expiration of the Future
Shares Exercise Period. In any event, the sale to such Investor of such Future
Shares shall be on the terms specified in the Proposal. Any Refused Future
Shares not purchased by such other Person(s) within such 120-day period shall
remain subject to this Article 8.

         (e) The term "Proportionate Percentage" in Article 8(a) shall mean, as
to any Investor, that percentage figure which expresses the ratio which (i) the
aggregate number of shares of Common Stock, and other securities, then (a)
outstanding and owned by such Investor and (b) issuable (whether directly or
indirectly) upon exercise of such Investor's Warrant bears to (ii) the aggregate
number of shares of Common Stock, and other securities, (a) outstanding and
owned by all Investors and (b) issuable (whether directly or indirectly) upon
conversion of the Warrants of all Investors. An Investor shall be entitled to
apportion the preemptive rights hereby granted it among its partners, members
and affiliates in such proportion as it deems appropriate.

         (f) Notwithstanding anything in this Article 8 to the contrary, a
Investor shall not be entitled to any preemptive rights in connection with any
issuance of shares of Common Stock (i) upon exercise of any of the Warrants (and
other convertible securities outstanding as of the date hereof); (ii) upon
exercise of options or warrants to purchase Common Stock of the Company that are
outstanding on the date of this Agreement; (iii) issued pursuant to, or upon
exercise of options granted under, the Company's existing stock plan entitled
MicroFinancial Incorporated 1998 Equity Incentive Plan; (iv) issued as a stock
dividend to accomplish a stock spilt or subdivision of shares or upon any
subdivision of shares; (v) issued in connection with the acquisition of another
corporation or other business entity by the Company by merger, purchase of
substantially all assets or other reorganization whereby the Company owns, upon
consummation of such acquisition, greater than fifty percent (50%) of the voting
power to elect the directors of such corporation or other business entity; (vi)
to underwriters and/or the public pursuant to a qualified public offering and
(vii) issued in any merger or consolidation of the Company, provided that such
merger or consolidation is approved by the Majority Investors; provided,
however, that notwithstanding anything in this Article 8(f) to the contrary, to
the extent legally permissible, the Investors (excluding any individuals) shall
have the preemptive rights described in Article 8(a) hereof to purchase a number

                                     - 10 -

<PAGE>

of shares equal, in the aggregate, to 5% of the shares of the Company (other
than underwriters' warrants) sold in the qualified public offering (excluding
the over-allotment option), such shares to be allocated by the Investors on a
pro rata basis determined in accordance with the number of shares of Common
Stock issuable upon exercise of the Warrants; and provided further, that (i)
such shares are purchased at the price at which such securities are sold by the
underwriters to the public, (ii) the Investors shall purchase such shares
directly from the Company in a transaction that is exempt from registration
under the 1933 Act and that will close prior to or concurrently with the
qualified public offering, (iii) such offering shall occur on or after that date
which is one year from the date hereof; (iv) Investors who purchase such shares
shall be qualified institutional buyers (as such term is defined in Rule 144A
promulgated under the Securities Act); and (v) Investors shall comply with all
federal and state securities laws in connection with such purchase.

                                   ARTICLE IX

                                  MISCELLANEOUS

         SECTION 9.1.  NOTICES.

         (a) All notices and other communications pursuant to this Agreement
shall be in writing, either delivered in hand, mailed by United States
registered or certified first-class mail, postage prepaid, sent by overnight
courier, or sent by telegraph, telecopy, facsimile or telex and confirmed by
delivery via courier or postal service, addressed as follows:

             (i) if to the Company, at the address of the Company set forth on
the first page hereof, or at such other address as shall have been furnished to
each of the Investors in writing by the Company and a copy thereof shall in any
event be simultaneously transmitted to Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C., One Financial Center, Boston, MA 02111, Attention: Richard Mikels;

             (ii) if to any Investor, at such addresses (in each case) as shall
         have been furnished to the Company and to the other Investors by such
         Investor in writing, and a copy thereof shall in any event be
         simultaneously transmitted to Jonathan K. Bernstein, Esq., Bingham
         McCutchen LLP, 150 Federal Street, Boston, MA 02110.

         (b) Any notice or other communication pursuant to this Agreement shall
be deemed to have been duly given or made and to have become effective (i) if
delivered by hand, overnight courier or facsimile to a responsible officer of
the party to which it is directed, at the time of receipt thereof by such
officer or the sending of such facsimile or (ii) if sent by registered or
certified first-class mail, postage prepaid, on the third business day following
the mailing thereof.

         SECTION 9.2. GOVERNING LAW. THIS AGREEMENT IS INTENDED TO TAKE EFFECT
AS A SEALED INSTRUMENT. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.

         SECTION 9.3. AMENDMENTS AND WAIVERS.

         (a) Except as otherwise provided by paragraph (b) of this Section 9.3,
and except as otherwise expressly required by any other provisions of this
Agreement, none of the terms or provisions contained in this Agreement, and none
of the agreements, obligations or covenants of the Company

                                      - 11 -

<PAGE>

contained in this Agreement, may be amended, modified, supplemented, waived or
terminated unless (i) the Company shall execute an instrument in writing
agreeing or consenting to such amendment, modification, supplement, waiver or
termination, and (ii) the Company shall receive a prior written Investor Consent
therefor.

         (b) Each of the terms and provisions contained in this Section 9.3 or
in the definitions of Permitted Transferee, Investor Consent or Majority
Investors contained in Article I hereof may be amended, modified, supplemented,
waived or terminated only by a written instrument or consent signed by the
Company and by each of the Investors holding of record any Securities at the
effective date thereof.

         (c) In connection with any action taken or to be taken pursuant to
paragraph (a) of this Section 9.3, there shall be no obligation or requirement
on the part of the Company, any of the Investors or any other Persons (i) to
solicit or to attempt to solicit from all of the Investors the consent or
approval of all of the Investors for such action, or (ii) to submit any notices
of any kind to all of the Investors in advance of any action proposed to be
taken pursuant to paragraph (a) of this Section 9.3. However, copies of all
written consents or approvals given by Investors in connection with any action
taken or to be taken pursuant to and in compliance with paragraph (a) of this
Section 9.3 shall be sent by the Company, promptly after the receipt thereof by
the Company, to each Investor who shall have failed or refused to give a written
consent or approval for such action.

         (d) Any action taken pursuant to and in compliance with paragraph (a)
of this Section 9.3 shall be binding upon the Company and upon all of the
Investors, including all of the Investors who shall have failed or refused to
give a written consent or approval for such action.

         SECTION 9.4. RIGHTS AND OBLIGATIONS SEVERAL. The rights and obligations
of each of the parties hereto shall be several (and not joint), except as
otherwise expressly provided by this Agreement.

         SECTION 9.5. NO WAIVER; CUMULATIVE REMEDIES. No failure or delay on the
part of any Investor in exercising any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

         SECTION 9.6. ASSIGNMENT. This Agreement shall inure to the benefit and
be binding upon each Lender and its heirs, successors and assigns. The Company's
obligations under this Agreement shall not be assigned, and its duties under
this Agreement shall not be delegated.

         SECTION 9.7. ENTIRE AGREEMENT. This Agreement, including Exhibit A
hereto, and the Warrants constitutes the entire agreement among the parties
hereto with respect to the subject matter hereof and supersede any prior
understandings or agreements concerning the subject matter hereof.

         SECTION 9.8. SEVERABILITY. The invalidity or unenforceability of any
provision hereof shall in no way affect the validity or enforceability of any
other provision.

         SECTION 9.9. BINDING EFFECT. All of the covenants and agreements of the
Company contained in, and all of the rights granted by the Company pursuant to,
this Agreement, shall inure to the benefit of each Investor, including each of
the Permitted Transferees of such Investor. None of such

                                     - 12 -

<PAGE>

covenants, agreements or rights shall be assignable or transferable by any
Investor to any Person except to a Person who is a Permitted Transferee of such
Investor.

         SECTION 9.10. COUNTERPARTS. This Agreement may be executed
simultaneously in several counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same agreement.
In making proof of this Agreement, it shall not be necessary to produce or
account for more than one such counterpart signed by each of the parties hereto.

                                     - 13 -

<PAGE>

         If you are in agreement with the foregoing, please sign the form of
acceptance on the enclosed counterpart of this Agreement and return such
counterpart to the undersigned, whereupon this Agreement, as so accepted by you,
shall become a binding agreement under seal between you and the undersigned.

                                                Very truly yours,

                                                MICROFINANCIAL INCORPORATED

                                                By: /s/ Authorized Signatory
                                                    --------------------------
                                                    Name:
                                                    Title:

                                                Dated as of: April 14, 2003

<PAGE>

         The foregoing Warrant Purchase Agreement with MicroFinancial
Incorporated is hereby accepted by the undersigned on and as of the date
thereof.

                                          INVESTORS:

                                          FLEET NATIONAL BANK,  individually and
                                          as  Agent

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          BANKNORTH, N.A.

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          BROWN BROTHERS HARRIMAN & CO.

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          CITIBANK

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          CITIZENS BANK OF MASSACHUSETTS

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                      - 2 -

<PAGE>

                                          KEYBANK NATIONAL ASSOCIATION

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          NATIONAL CITY BANK

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                          UNION BANK OF CALIFORNIA, N.A.

                                          By: /s/ Authorized Signatory
                                              ----------------------------------
                                              Name:
                                              Title:

                                      - 3 -

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