EXHIBIT 10.2
July 13, 1998
Xxxx Xxxxxx, CFO
Image Entertainment, Inc.
0000 Xxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Via Fax (818407-9331
Re: Seventh Amendment ("Amendment") to the Business Loan Agreement dated
December 17, 1996 (the Business Loan Agreement, as previously amended,
herein called the "Agreement")
Dear Xxxx:
In reference to the Agreement between Union Bank of California, N.A.
("Bank") and Image Entertainment, Inc. ("Borrower"), the Bank and the Borrower
desire to amend the Agreement. Capitalized terms used herein which are not
otherwise defined shall have the same meanings given them in the Agreement.
Amendments to the Agreement
(a) Section 1.1.1 The Standby L/C Sublimit shall be deleted in its entirety
and a new Section 1.1.1 shall be added as follows:
1.1.1 The Standby L/C Sublimit. As a sublimit to the Revolving Loan,
Bank shall issue, for the account of the Borrower, one or more irrevocable,
standby letters of credit (individually, an "L/C" and collectively, the "L/Cs").
All such L/Cs shall be drawn on such terms and conditions as are acceptable to
Bank. The aggregate amount available to the drawn under all outstanding L/Cs
and the aggregate amount of unpaid reimbursement obligations under drawn L/Cs
shall not exceed Four Million Dollars ($4,000,000) and shall reduce, dollar for
dollar, the maximum amount available at such time under the Revolving Loan. No
L/C shall expire after June 30, 1999.
(b) The first sentence of Section 1.3 of the Agreement shall be amended to
read as follows:
"1.3 Borrowing Base. Notwithstanding any other provision of this
Agreement, Bank shall not be obligated to advance funds under the Revolving
Loan, if at any time the aggregate of Borrower's obligations to Bank thereunder
shall exceed eighty percent (80%) of Borrower's Eligible Accounts."
Except as specifically amended hereby, the Agreement shall remain in full
force and effect and is hereby ratified and confirmed. This Amendment shall not
be a waiver of any existing or future default or breach of a condition or
covenant unless specified herein.
This Amendment shall become effective when the Bank shall have received the
acknowledgment copy of this Amendment executed by the Borrower, which the Bank
must be received before July 21, 1998.
Very truly yours,
By: /s/ XXXX XXXX
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Title: Xxxx Xxxx, Vice President
Agreed and Accepted to this 16/th/ day of
July 1998.
Image Entertainment, Inc.
By: /s/ XXXX X. XXXXXX
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Title: Xxxx Xxxxxx, CFO
