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EXHIBIT 10
FINET HOLDINGS CORPORATION
000 Xxxxxxxxxx Xxxxxx, #000
Xxx Xxxxxxxxx, XX 00000
415/000-0000 Fax: 415/000-0000
Xxxxx 0, 0000
Xxx Fax 000 000-0000
Xx. Xxxxx Xxxxxx
Cumberland Associates, 38th Floor
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Dear Xxxxx:
In accordance with our agreement, the time has come to convert the
Cumberland Partners $800,000 debenture to equity. This letter will confirm that,
pursuant to our recent discussions regarding the accrued interest and penalty
interest due, we have mutually agreed that the Company will issue 1,850,000
shares of its common stock as consideration for the conversion of the debenture
and all accrued interest of Finet's common stock. I will direct our transfer
agent to issue those shares in the name of Cumberland Partners. Once you have
received the shares, you will release your security interest. Additionally, when
Finet completes its current equity financings, in accordance with our agreement,
the Company will issue to Cumberland warrants for the purchase of the Company's
common stock in the amount of the greater of 200,000 or 25% of the number as are
issued to Commonwealth Associates pursuant thereto, under identical terms.
Please indicate below your concurrence with these actions:
I assent to the conversion of Cumberland Partners $800,000 convertible debenture
and accrued interest to Finet common stock under the terms stated above.
/s/ Xxxxx X. Xxxxxx Date: 3/6/97
Xxxxx X. Xxxxxx
Xxxxx, I want to take this opportunity to thank you for your
substantial assistance and cooperation in helping Finet complete its voluntary
recapitalization. Literally, we could not have done it without you.
Sincerely,
/s/ Xxx Xxxxxxx
Xxx Xxxxxxx, President
