The CIT Group/
Credit Finance
3rd Floor
000 X Xxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Tel: 000 000-0000
Fax: 000 000-0000
THE
CIT
GROUP
June 7, 1999
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, CA 90038
Attention: Xxxxx Xxxxx, Chief Executive Officer
Re: Loan and Security Agreements with The CIT Group/Credit Finance, Inc.
- AMENDMENT NO. 8-
Gentlemen:
Reference is made to your respective Loan and Security Agreements 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"). Lender and each Borrower have agreed to amend the Agreements as
follows effective immediately. Except as amended herein, the Agreements shall
remain unchanged and in full force and effect.
1. Accounts Receivable.
Notwithstanding any language in Section 5.1 of the Agreements, and
provided Borrower is not in Default to Lender, Borrower shall not be
obligated to remit proceeds of its accounts to Lender provided Lender is
not lending against said accounts.
If Xxxxxxxx subsequently desired to request advances against the
accounts, Borrower must provide Lender with at least 30 days prior
written notice of its intention to request such advances to allow Lender
sufficient time to conduct a field examination of Borrower's facilities,
update its reporting and conduct any other due diligence.
2. Field Examination Fees.
Notwithstanding any language in Section 6.13(d) of the Agreements,
provided Lender is not lending against accounts and provided Borrower is
not in Default to Lender, the aggregate Per Diem Charges for field
examinations shall be limited to $5,000.00 per contract year.
3. Minimum Borrowing Reduction.
Section 10.1(e) of each of the Agreements is hereby amended to provide
that the Minimum Borrowing shall equal the Term Loan balance, provided
Lender is not lending against accounts. If Lender is lending against
accounts, the Minimum Borrowing shall be $2,000,000.00.
5. Interest Rate Reduction.
Section 10.4(a) of each of the Agreements is hereby amended to read as
follows:
"(a)(1) Interest Rate for Revolving Loans: Prime Rate plus 1.0% over
a 360-day year
(a)(2) Interest Rate for Term Loans: Prime Rate plus 1.0% over
a 360-day year"
6. Facility Fee Reduction.
Section 10.4(b) of each of the Agreements is hereby amended to eliminate
the Facility Fee requirement.
