EX-10.16 5 dex1016.txt EXHIBIT 10.16 Exhibit 10.16 500 SEVENTH AVENUE-10TH FLOOR NEW YORK, NY 10018-4502 PHONE 212-575-5219 FAX 212-575-5228 len.imperiale@sterlingbancorp.com --------------------------------- Leonard M. Imperiale STERLING FINANCIAL SERVICES CO., INC. Administrative Vice President March 20, 2002 David Greenberg, President Easy Money Group et al 5295 Greenwich Road, Suite 108 Virginia Beach, VA 23462 Re: Loan, Security and Service Agreement ("Agreement") made this 12th day of December, 1996, and amended from time to time between Sterling Financial Services Company, Inc. (formerly known as Sterling Financial Services Co.) as Lender, and the corporations listed on Exhibit A attached hereto individually and collectively as Borrower Dear Mr. Greenberg: Section 1.1(b)(i) of the captioned Agreement is amended in its entirety as follows: Definition of Advance Limit. The term "Advance Limit" shall mean the amount of --------------------------- the Revolving Loan which the Lender may, in its sole and absolute discretion, from time to time make to Borrower, up to the lesser of One Million Three Hundred Thousand Dollars ($1,300,000) or 35% of the amount of the Borrower's "Eligible Receivables" (as hereinafter defined). The amount of the Revolving Loan shall decrease by $54,167 each month for a successive twenty-four (24) month period commencing on July 1, 2002 and terminating on June 1, 2004 as set forth in Schedule 1 attached hereto. All other terms of the Loan, Security and Service Agreement shall remain unchanged. Please signify your agreement to the foregoing by executing the enclosed two (2) copies of this letter and return them to us at your earliest convenience. Very truly yours, Leonard M. Imperiale cc: J. Gallo, President, Sterling Financial Services Company, Inc. SIGNATURE PAGE TO LETTER AGREEMENT DATED MARCH 20, 2002 Agreed To And Accepted: BORROWER: Easy Advances of MS, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money Holdings Corporation By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of California, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Colorado, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Indiana, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Kansas, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Kentucky, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Louisiana, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Maryland, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Nevada, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of NM, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Tennessee, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President Easy Money of Utah, Inc. By: /s/ David Greenberg ----------------------------------- David Greenberg, President 2 (Continued) SIGNATURE PAGE TO LETTER AGREEMENT DATED MARCH 20, 2002 Agreed To And Accepted: BORROWER (continued): Easy Money of Virginia, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President EM Holdings, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Fast Cash, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Gulf Investment Group, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Lone Star Endeavors, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Loan Alternative Corporation, The By: /s/ David Greenberg --------------------------------------- David Greenberg, President Money Express Leasing, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook of Arizona, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook of Hawaii, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook of MD, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook of Mississippi, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook of Missouri, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Sunnybrook of North Florida, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President
3 (Continued) SIGNATURE PAGE TO LETTER AGREEMENT DATED MARCH 20, 2002 Agreed To And Accepted: BORROWER (continued): Money Network Financial Services, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President The Cheyenne Servicing Corporation, LTD By: /s/ David Greenberg --------------------------------------- David Greenberg, President Easy Money Auto Sales, Inc. By: /s/ David Greenberg --------------------------------------- as successor to Easy Money Title Loans, Inc. David Greenberg, President Easy Money Check Cashing, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President EM Consumer Services of MD, Inc. By: /s/ David Greenberg --------------------------------------- formerly Dollar Express, Inc. David Greenberg, President JHF Enterprises, Inc. By: /s/ David Greenberg --------------------------------------- d/b/a Easy Money David Greenberg, President JHF Enterprises, Inc. By: /s/ David Greenberg --------------------------------------- d/b/a Cash 2 U David Greenberg, President Tidewater Services of Delaware, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President Payday Check Cashing, Inc. By: /s/ David Greenberg --------------------------------------- David Greenberg, President
4 EXHIBIT A TO LOAN SECURITY AND SERVICE AGREEMENT DATED DECEMBER 12, 1996 AND AMENDED FROM TIME TO TIME BETWEEN STERLING FINANCIAL SERVICES COMPANY, INC. (formerly known as Sterling Financial Services Co.) AND THE FOLLOWING BORROWING CORPORATIONS: CORPORATE NAME STATE OF INCORPORATION Cheyenne Servicing Corporation, Ltd, The DE Easy Advances of MS, Inc. MS Easy Money Check Cashing, Inc. NV Easy Money Holding Corporation VA Easy Money, Inc. VA Easy Money of California, Inc. CA Easy Money of Colorado, Inc. CO Easy Money of Indiana, Inc. IN Easy Money of Kansas, Inc. KS Easy Money of Kentucky, Inc. KY Easy Money of Louisiana, Inc. LA Easy Money of Maryland, Inc. MD Easy Money of Nevada, Inc. NV Easy Money of NM, Inc. NM Easy Money of Tennessee, Inc. TN Easy Money of Utah, Inc. UT Easy Money of Virginia, Inc. VA Easy Money Auto Sales, Inc. (as successor to FL Easy Money Title Loans, Inc.) EM Consumer Services, Inc. CO EM Consumer Services of MD, Inc. MD EM Holdings, Inc. VA Fast Cash, Inc. LA Gulf Investment Group, Inc. MS JHF Enterprises, Inc. (d/b/a Easy Money & Cash 2 U) FL Lone Star Endeavors, Inc. TX Loan Alternative Corporation, The TX Money Express Leasing, Inc. MD Money Network Financial Services, Inc. NV Payday Check Cashing, Inc. LA Sunnybrook, Inc. NM Sunnybrook of Arizona, Inc. AZ Sunnybrook of Hawaii, Inc. HI Sunnybrook of MD, Inc. MD Sunnybrook of Mississippi, Inc. MS Sunnybrook of Missouri, Inc. MO Sunnybrook of North Florida, Inc. FL Tidewater Services of Delaware DE 5 SCHEDULE 1: REVOLVING LOAN AMORTIZATION SCHEDULE Period Amortization Balance 1,300,000 July, 2002 54,167 1,245,833 August, 2002 54,167 1,191,666 September, 2002 54,167 1,137,499 October, 2002 54,167 1,083,332 November, 2002 54,167 1,029,165 December, 2002 54,167 974,998 January, 2003 54,167 920,831 February, 2003 54,167 866,664 March, 2003 54,167 812,497 April, 2003 54,167 758,330 May, 2003 54,167 704,163 June, 2003 54,167 649,996 July, 2003 54,167 595,829 August, 2003 54,167 541,662 September, 2003 54,167 487,495 October, 2003 54,167 433,328 November, 2003 54,167 379,161 December, 2003 54,167 324,994 January, 2004 54,167 270,827 February, 2004 54,167 216,660 March, 2004 54,167 162,493 April, 2004 54,167 108,326 May, 2004 54,167 54,159 June, 2004 54,159 0 6