Exhibit No. 10.243
January 23, 2002
Preferred Equities Corporation
MEGO Financial Corp.
0000 Xxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxx 00000
Attention: Xx. Xxxxx Xxxxxxxx
Dear Xx. Xxxxxxxx:
Reference is made to the provisions of that certain Side Letter between
FINOVA Capital Corporation ("Lender") and Preferred Equities Corporation
("Borrower"), dated January 3, 2002 (the "January Side Letter"), wherein, among
other things, and in consideration of the agreements set forth therein, the
Borrower agreed to pay to Lender an Extension Fee in the amount of Two Hundred
Fifty Thousand Dollars ($250,000), payable in weekly installments of Twenty Five
Thousand Dollars ($25,000) each, on the last Business Day of each week
commencing December 28, 2001.
Following the preparation and execution of the January Side Letter, the
Borrower expressed an interest in making an offer to purchase from Lender the
Great Vacations Resort of Hershey presently owned by Lender. In consideration of
the Borrower's agreement to make a good faith offer to purchase the Great
Vacations Resort of Hershey from Lender, Lender agrees that the Extension Fee
shall be due and payable in its entirety on February 28, 2002, rather than in
weekly installments as contemplated in the January Side Letter. The Extension
Fee may be withheld from the proceeds of any loan advance made by Lender to
Borrower. In addition, the Extension Fee will not accrue interest until due.
However, if the Extension Fee is not paid in its entirety when due, the entire
amount of such fee shall accrue interest at the Overdue Rate referenced in the
January Side Letter.
This Side Letter may be executed in counterparts, each of which when taken
together shall constitute one and the same instrument, notwithstanding the fact
that all parties have not signed the same counterpart. In addition, this Side
Letter may be executed by facsimile and such facsimile signatures shall be
deemed original signatures for all purposes.
Preferred Equities Corporation
January 23, 2002
Page 2
In the event the foregoing represents an accurate statement of the
agreements that have been reached, please sign and return a copy of this Side
Letter to the undersigned.
Sincerely yours,
FINOVA CAPITAL CORPORATION, a
Delaware corporation
By: /s/ XXXXX XXXXXXXXX
---------------------
Name: Xxxxx Xxxxxxxxx
Title: VP
Accepted this 28 day of January, 2002
BORROWER
PREFERRED EQUITIES CORPORATION, a
Nevada corporation
By: /s/ XXXXX X. XXXXXXXX
----------------------
Name: Xxxxx X. Xxxxxxxx
Title: Sr. Vice President
Acknowledged this 28 day of January, 2002 by
--
the following Guarantor:
MEGO FINANICAL CORP., a New York
corporation
By: /s/ XXXXX X XXXXXXX
----------------------
Name: Xxxxx X. Xxxxxxx
Title: Chairman & CEO
