The CIT Group/Credit Finance
3rd Floor
000 X. Xxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Tel: 000 000-0000
Fax: 000 000-0000
May 20, 1997
Laser Pacific Media Corporation
Laser Edit, Inc.
PDS Video Productions, Inc.
Spectra Systems, Inc.
Pacific Film Laboratories Inc.
Pacific Video, Inc.
000 Xxxxx Xxxxxxxx Xxxx.
Los Angeles, California 90038
Attention: Xxxxx Xxxxx, Chief Executive Officer
RE: Loan and Security Agreements with The CIT Group/Credit Finance, Inc.
Gentlemen:
Reference is made to your respective Loan and Security Agreemtns wherein each of
you is a "Borrower" and The CIT Group/Credit Finance, Inc. is the "Lender", all
of which Loan and Security Agreements are dated August 3, 1992
(the "Agreements").
You have requested a temporary out-of-formula loan accommodation from us of
$600,000.00 ("Loan Acommodation"). Subject to the terms and conditions of the
Agreement, we are agreeable to granting you this Loan Accomodation subject to
the following conditions:
1. The Loan Accommodation is to be repaid in installments of $32,000 per week
commencing August 4, 1997 and continuing weekly until repaid in full. The Loan
Accommodation shall be fully due and payable in no event later than
December 15, 1997.
2. Initial advance under this Loan Accommodation shall be $125,000.00. The
remaining $475,000.00 shall be asdvanced in increments as Borrower recieves
third-party, cash injections (in the form of unsecured loans, equity infusions
or otherwise) equal to the advance requested.
Pager 2 of 2
May 20, 1997
Repayment of the cash injections shall not be permitted until the loan
Accommodation is repaid in full.
3. In consideration for this Loan Accommodation you agree to pay a fee of
$20,000.00, in addition to any other charges under the Agreement, which shall
be charged into your loan account with us.
If all of the foregoing correctly sets forth our understanding, will each of you
please sign a copy of this letter where indicated below and return the original
of this document to the undersigned.
Very truly yours,
The CIT Group/
Credit Finance, Inc.
Xxxxxxx Xxxxxx
Vice President
All of the foregoing is hereby agreed to.
Laser Pacific Media Corporation Laser Edit, Inc.
By____________________________ By_____________________________
Title_________________________ Title__________________________
PDS Video Productions, Inc. Spectra Systems, Inc.
By____________________________ By______________________________
Title_________________________ Title___________________________
Pacific Laboratories, Inc. Pacific Video, Inc.
By____________________________ By______________________________
Title_________________________ Title___________________________
