Exhibit 10.50.1
January 1, 2002
The Credit Store, Inc.
3401 N. Louise Avenue
Sioux Falls, SD 57107
Re: Subordinated Grid Promissory Notes made by The Credit Store, Inc., to
the order of J.L.B. of Nevada, Inc., in the respective original
principal amounts of $20,000,000, $5,000,000 and $5,000,000 dated
respectively August 1, 1997, October 23, 1997, and November 21, 1997,
and Secured Promissory Note made by American Credit Alliance, Inc., to
the order of J.L.B. of Nevada, Inc., in the original principal amount
of $880,000 dated August 16, 1997 (collectively the "Notes")
Gentlemen:
This letter supplements and amends the letter agreement (the "Letter
Agreement") between us dated May 4, 2001 with respect to the Notes.
The Letter Agreement is amended as follows:
(a) Paragraph "1" of the Letter Agreement shall read as follows and not as
heretofore:
"1. You shall not be required to pay the Interest Accrued to Date
until the later of July 15, 2003 or five days after the date
we or any subsequent holder of the Notes make written demand
for payment thereof, except that we or any such subsequent
holder may at any time demand payment of up to 20% of the
Interest Accrued to Date (the "Demand for Interest Accrued to
Date")."
(b) Paragraph "3" of the Letter Agreement shall read as follows and not as
heretofore:
"3. Future interest payments on the Notes need not be paid
monthly, but shall accrue until the later of July 15, 2003 or
five days after the
date we or any subsequent holder of the Notes make written
demand for payment thereof, except that we or any such
subsequent holder may at any time demand payment of up to 20%
of the interest accrued from the date of this letter agreement
to the date of such demand (the "Interest Payment Demand")."
(c) Paragraph "5" of the Letter Agreement shall read as follows and not as
heretofore:
"5. In all events where interest payments have heretofore
not been paid monthly or hereafter until December 31,
2001 may not be paid monthly, interest shall be
compounded, i.e. interest on any such deferred
interest payment shall accrue at the rate of 12% per
annum."
This will further confirm that from and after January 1, 2002, the rate
of interest payable on the Notes shall be an amount equal to 1 1/4% in excess of
the highest prime commercial loan rate from time to time set forth in The Wall
Street Journal, which interest rate on the Notes shall vary as and when there is
any change in such prime commercial loan rate; in no event, however, shall the
rate of interest payable on the Notes be less than 6% per annum nor more than
12% per annum.
In all other respects the terms, provisions and conditions of the
Notes, subject to the Letter Agreement as modified hereby, shall remain and
continue the same.
Please confirm your agreement to the terms hereof by signing at the
foot hereof where indicated.
Very truly yours,
J.L.B. of Nevada, Inc.
By: /s/ Jay Botchman
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Jay Botchman
Confirmed and agreed to:
The Credit Store, Inc.
By: /s/ Michael J. Philippe
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