April 14, 1997
Medical Graphics Corporation
000 Xxx Xxxxx Xxxxxxx
Xx. Xxxx, Xxxxxxxxx 00000
Attention: Xxxx X. Xxxxxxx, CFO
Xxxxx Xxxxxx, CEO
Re: First Letter Amendment to NBCI Credit Agreement
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Ladies and Gentlemen:
Medical Graphics Corporation, a Minnesota corporation (the "Borrower")
and Norwest Business Credit, Inc., a Minnesota corporation (the "Lender") are
parties to a Credit and Security Agreement dated as of March 31, 1997 (the
"Credit Agreement"). All terms defined in the Credit Agreement that are not
otherwise defined herein have the same meaning given therein.
It has come to our attention that Section 6.14 of the Credit
Agreement, the minimum Net Income covenant, incorrectly states that the Borrower
shall achieve, as of May 31, 1997, Net Income of not less than < 2,195,000 >.
To remedy this error, the Borrower has requested, and the Lender has agreed, to
amend Section 6.14 as set forth below.
The Borrower and the Lender hereby agree that Section 6.14 of the
Credit Agreement is hereby amended by deleting the amount "< $2,195,000 >" as
set forth parallel to the date "May 31, 1997" and insert the amount
"< $2,625,000 >" in place thereof.
This letter shall not be deemed to be a waiver of any other Default or
Event of Default now existing or hereafter arising under the Credit Agreement,
whether or not known to the Lender. Except as set forth above, all of the
original terms of the Credit Agreement and Loan Documents shall remain in full
force and effect.
Medical Graphics Corporation
April 15, 1997
Page 2
Please evidence the Borrower's agreement with the terms of this letter
by signing the acknowledgment on the duplicate original of this letter, faxing
the signed duplicate to the Lender at (000) 000-0000, Attention: Xxxxxx Xxxxxxx
and sending a duplicate original to the Lender.
NORWEST BUSINESS CREDIT, INC.
________/s/_________________
Xxxxxx X. Xxxxxxx
Its Assistant Vice President
Acknowledgment
April 14, 1997
MEDICAL GRAPHICS CORPORATION
______/s/_________________________
Xxxx Xxxxxxx
Its CFO
cc: Xxxxxxx XxXxxxx (Xxxxxxxxx & Xxxxxx PLLP)
Xxxxxxxxxxx X. Xxxxx (Norwest Bank Minnesota)
Xx. Xxxxx Xxxxxxxx (Deloitte & Touche LLP)
