Exhibit 10.15
April 14, 2003
Fleet National Bank
111 Westminster Street
Providence, RI 02903-0368
MicroFinancial Incorporated
10-M Commerce Way
Woburn, MA 01801
Attention: Peter R. Bleyleben, President
Re: Subordinated Capital Notes
--------------------------
Ladies and Gentlemen:
1. Reference is hereby made to (i) those certain subordinated capital
notes of MicroFinancial, Inc. (the "Company") issued to (a) Andrew G. Mills, (b)
Dkfm. Fritz Froehlich, (c) Judith B. Keyes Trust, (d) Jonathan M. Keyes Trust,
(e) Henry M. Keyes Irrevocable Trust, (f) Henry M. Keyes Trust, (g) Richard F.
Latour, (h) Bay Resource Corporation Money Purchase Pension Plan FBO PGR Lloyd
IRA R/O, (i) John Bryan Mims, (j) Susan A. Mims, (k) Peter R. and Christa R.
Bleyleben, (1) Salomon Smith Barney Custodian FBO Brian E. Boyle IRA (67665812)
and (m) Torrence C. Harder, more fully described on Annex A hereto
(collectively, the "Notes") and (ii) the Fourth Amended and Restated Credit
Agreement (as amended, the "Credit Agreement"), made as of August 22, 2000, 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, as agent for the Lenders (the "Agent"). Each capitalized
term used herein without definition and defined in the Notes shall have the same
meaning herein as set forth in the Notes.
2. Pursuant to that certain Fourth Amended and Restated Guaranty, dated
as of August 22, 2000 (the "Guaranty"), the Company has guaranteed all of the
Obligations (as defined in the Credit Agreement) of the Borrower under the
Credit Agreement and other Loan Documents (as defined in the Credit Agreement)
(the obligations of the Company under the Guaranty referred to herein as the
"Guaranteed Obligations").
3. In order to induce the Lenders to enter into the Second Amendment to
the Credit Agreement, the Company and each of the undersigned holders of the
Notes hereby confirms, acknowledges and agrees as follows (it being understood
that each holder is so confirming, acknowledging and agreeing only as to itself
and the Note(s) held by such holder):
(a) The Guaranteed Obligations, whether contingent or liquidated,
constitute "Senior Indebtedness" under the Notes and the Agent and the
Lenders shall be entitled to the benefit of the subordination provisions
contained in the Notes.
(b) Notwithstanding anything to the contrary contained in the Notes,
no payment of principal shall be made with respect to any of the Notes
until all of the Obligations (as defined in the Credit Agreement) have been
paid in full, in cash.
(c) In addition to and without limiting the Section in each of the
Notes entitled "Permitted Payments of Note", if prior to the time of any
regularly scheduled payment under any of the Notes, the Agent has delivered
to the Company written notice of any Event of Default (as defined the
Credit Agreement) under the Credit Agreement or any of the other Loan
Documents (as defined in the Credit Agreement), other than with respect to
a payment default referred to in the Section in each of the Notes entitled
"Permitted Payments of Note", no regularly scheduled payments under the
Notes shall be made commencing on the date of such notice and ending 180
days thereafter.
(d) The Note held by each holder as indicated on Annex A hereto has
not been amended or modified since the date of the issuance thereof. Each
holder of a Note will not consent to any amendment or modification of its
Note, will not sell or transfer such Note and will not consent to or accept
any prepayment, redemption or purchase of such Note by the Company, in each
case, without the prior written consent of the Agent.
Remainder of page intentionally left blank
IN WITNESS WHEREOF, the parties hereto have executed this Agreement of the date
first written above.
FLEET NATIONAL BANK, individual and as Agent
By: /s/ Daniel Butler
----------------------------------------
Name: Daniel Butler
Title: Authorized Officer
Company:
--------
MICROFINANCIAL INCORPORATED
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
Holders of the Notes:
---------------------
ANDREWS G. MILLS
By: /s/ Andrews G. Mills
-----------------------------------------
Name:
Title:
DKFM. FRITZ FROEHLICH
By: /s/ Fritz Froehlich
-----------------------------------------
Name:
Title:
JUDITH B. KEYES TRUST
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
JONATHAN M. KEYES TRUST
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
HENRY M. KEYES IRREVOCABLE TRUST
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
HENRY M. KEYES TRUST
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
RICHARD F. LATOUR
By: /s/ Richard F. Latour
-----------------------------------------
Name: Richard F. Latour
Title:
BAY RESOURCES CORPORATIION MONEY PURCHASE
PENSION PLAN FBO PGR LLOYD IRA R/0
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
JOHN BRYAN MIMS
By: /s/ John Bryan Mims
-----------------------------------------
Name:
Title:
SUSAN A. MIMS
By: /s/ Susan A. Mims
-----------------------------------------
Name:
Title:
PETER R. AND CHRISTA R. BLEYLEBEN
By: /s/ Peter R. and Christa R. Bleyleben
-----------------------------------------
Name:
Title:
SALOMON SMITH BARNEY CUSTODIAN FBO
BRIAN E. BOYLE IRA (676-65812)
By: /s/ Authorized Signatory
-----------------------------------------
Name:
Title:
TORRENCE C. HARDER
By: /s/ Torrence C. Harder
-----------------------------------------
Name: Torrence C. Harder
Title:
ANNEX A
NOTES
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NOTEHOLDER TYPE OF DEBT AMOUNT DATE
- ----------------------------------------------------------------------------------------------
Andrew G. Mills 11.25% capital note $ 500,000 4/10/01 - 5/1/04
- ----------------------------------------------------------------------------------------------
Dkfm. Fritz Froehlich 8% capital note $ 35,000 12/1/98- 12/1/03
- ----------------------------------------------------------------------------------------------
Judith B. Keyes Trust 12% capital note $ 150,000 10/22/01 - 11/1/06
Type of Debt:
- ----------------------------------------------------------------------------------------------
Jonathan M. Keyes 12% capital note $ 150,000 10/22/01 - 11/1/06
Trust
- ----------------------------------------------------------------------------------------------
Henry M. Keyes 11% capital note $ 25,000 10/22/01 - 11/1/04
Irrevocable Trust
- ----------------------------------------------------------------------------------------------
Henry M. Keyes Trust 11% capital note $ 25,000 10/22/01 - 11/1/04
- ----------------------------------------------------------------------------------------------
Note to Richard F. Latour 9% capital note $ 75,000 5/1/01 - 5/1/03
- ----------------------------------------------------------------------------------------------
Bay Resource 12.5% capital note $1,300,000 2/20/01 - 3/1/06
Corporation Money
Purchase Pension Plan
FBO PGR Lloyd IRA
R/O
- ----------------------------------------------------------------------------------------------
John Bryan Mims 12.25% capital note $ 250,000 3/30/01 - 3/29/06
- ----------------------------------------------------------------------------------------------
Susan A. Mims 12.25% capital note $ 250,000 3/30/01 - 3/29/06
- ----------------------------------------------------------------------------------------------
Peter R. and Christa 12% capital note $ 200,000 5/1/01 - 5/1/06
R. Bleyleben
- ----------------------------------------------------------------------------------------------
Salomon Smith 12% capital note $ 200,000 5/10/01 - 5/1/06
Barney Custodian
FBO Brian E. Boyle
IRA (676-65812)
- ----------------------------------------------------------------------------------------------
Torrence C. Harder 12% capital note $ 100,000 5/22/01 - 5/1/06
- ----------------------------------------------------------------------------------------------