EXHIBIT 10.1


 


AMENDMENT
NUMBER ONE

TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT


 


This AMENDMENT NUMBER ONE TO AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into as of November    , 2005, by WELLS FARGO FOOTHILL,
INC., a California corporation (“Lender”), and IMAGE ENTERTAINMENT, INC., a Delaware corporation, f/k/a
Image Entertainment, Inc., a California corporation, (“Borrower”),
with reference to the following:


 


WHEREAS,
Borrower and Lender are parties to that certain Amended and Restated Loan and
Security Agreement, dated as of August 10, 2005 (as amended, restated,
supplemented, or otherwise modified from time to time, the “Loan Agreement”);


 


WHEREAS,
Borrower has requested that Lender make certain amendments to the Loan
Agreement; and


 


WHEREAS,
subject to the terms and conditions set forth herein, Lender is willing to make
the amendments requested by Borrower.


 


NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:


 


1.     Defined Terms. 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Loan Agreement, as amended hereby.


 


2.     Amendments to Loan Agreement.


 


(a)           Section 1.1 of
the Loan Agreement is hereby amended by adding the following defined terms
in alphabetical order or amending and restating the following definitions in
their entirety, as the case may be:


 


“Maximum Revolving
Credit Amount” means (a) during the period from and including April 15
through and including October 31 of each year, Twenty-One Million Dollars
($21,000,000) and (b) during any other period, Twenty-Five Million Dollars
($25,000,000).


 


3.     Conditions Precedent to Amendment. 
The satisfaction of each of the following shall constitute conditions
precedent to the effectiveness of this Amendment and each and every provision
hereof:


 


(a)           Lender shall have received this Amendment, duly
executed by the parties hereto, and the same shall be in full force and effect.


 





















 


(b)           Lender shall have received a reaffirmation and consent
substantially in the form attached hereto as Exhibit A, duly executed and
delivered by each Guarantor.


 


(c)           Lender shall have received an amendment fee in the
amount of $15,000, which amount Borrower authorizes Lender to charge to the
Loan Account.


 


(d)           The representations and warranties herein and in the
Loan Agreement and the other Loan Documents shall be true and correct in all
material respects on and as of the date hereof, as though made on such date
(except to the extent that such representations and warranties relate solely to
an earlier date).


 


(e)           No Default or Event of Default shall have occurred and
be continuing on the date hereof, nor shall result from the consummation of the
transactions contemplated herein.


 


(f)            No injunction, writ, restraining order, or other order
of any nature prohibiting, directly or indirectly, the consummation of the
transactions contemplated herein shall have been issued and remain in force by
any Governmental Authority against Borrower, any Guarantor, or Lender.


 


4.     Release. 
Borrower hereby waives, releases, remises and forever discharges Lender,
each of its Affiliates, and each of its officers, directors, employees, and
agents (collectively, the “Releasees”), from any and all claims,
demands, obligations, liabilities, causes of action, damages, losses, costs and
expenses of any kind or character, known or unknown, past or present,
liquidated or unliquidated, suspected or unsuspected, which Borrower ever had,
now has or might hereafter have against any such Releasee which relates,
directly or indirectly, to the Loan Agreement or any other Loan Document, or to
any acts or omissions of any such Releasee with respect to the Loan Agreement
or any other Loan Document, or to the lender-borrower relationship evidenced by
the Loan Documents.  As to each and every
claim released hereunder, Borrower hereby represents that it has received the
advice of legal counsel with regard to the releases contained herein, and
having been so advised, Borrower specifically waives the benefit of the
provisions of Section 1542 of the Civil Code of California which provides
as follows:


 


“A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”


 


As to each and every
claim released hereunder, Borrower also waives the benefit of each other
similar provision of applicable federal or state law, if any, pertaining to
general releases after having been advised by its legal counsel with respect
thereto.


 


5.     Representations and Warranties. 
Borrower represents and warrants to Lender that (a) the execution,
delivery, and performance of this Amendment and of the Loan Agreement, as
amended hereby, (i) are within its powers, (ii) have been duly
authorized by all necessary action, and (iii) are not in contravention of
any law, rule, or regulation applicable to it, or any order,


 


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judgment, decree, writ, injunction, or award of any arbitrator, court,
or Governmental Authority, or of the terms of its Governing Documents, or of
any contract or undertaking to which it is a party or by which any of its
properties may be bound or affected; (b) this Amendment and the Loan
Agreement, as amended hereby, are legal, valid and binding obligations of
Borrower, enforceable against Borrower in accordance with their respective
terms; and (c) no Default or Event of Default has occurred and is
continuing on the date hereof or as of the date upon which the conditions
precedent set forth herein are satisfied.


 


6.     Choice of Law. 
The validity of this Amendment, its construction, interpretation and
enforcement, the rights of the parties hereunder, shall be determined under,
governed by, and construed in accordance with the laws of the State of California.


 


7.     Counterpart Execution. 
This Amendment may be executed in any number of counterparts, all of
which when taken together shall constitute one and the same instrument, and any
of the parties hereto may execute this Amendment by signing any such counterpart.  Delivery of an executed counterpart of this
Amendment by telefacsimile or electronic mail shall be equally as effective as
delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart
of this Amendment by telefacsimile or electronic mail also shall deliver an
original executed counterpart of this Amendment, but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability,
and binding effect of this Amendment.


 


8.     Effect on Loan Documents.


 


(a)           The Loan Agreement, as amended hereby, and each of the
other Loan Documents shall be and remain in full force and effect in accordance
with their respective terms and hereby are ratified and confirmed in all
respects.  The execution, delivery, and
performance of this Amendment shall not operate, except as expressly set forth
herein, as a modification or waiver of any right, power, or remedy of Lender
under the Loan Agreement or any other Loan Document.  The waivers, consents, and modifications
herein are limited to the specifics hereof, shall not apply with respect to any
facts or occurrences other than those on which the same are based, shall not
excuse future non-compliance with the Loan Documents, and shall not operate as
a consent to any further or other matter under the Loan Documents.


 


(b)           Upon and after the effectiveness of this Amendment,
each reference in the Loan Agreement to “this Agreement”, “hereunder”, “herein”,
“hereof” or words of like import referring to the Loan Agreement, and each
reference in the other Loan Documents to “the Loan Agreement”, “thereunder”, “therein”,
“thereof” or words of like import referring to the Loan Agreement, shall mean
and be a reference to the Loan Agreement as modified and amended hereby.


 


(c)           To the extent that any terms and conditions in any of
the Loan Documents shall contradict or be in conflict with any terms or
conditions of the Loan Agreement, after giving effect to this Amendment, such
terms and conditions are hereby deemed modified or amended accordingly to
reflect the terms and conditions of the Loan Agreement as modified or amended
hereby.


 


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(d)           This Amendment is a Loan Document.


 


9.     Entire Agreement. 
This Amendment embodies the entire understanding and agreement between
the parties hereto with respect to the subject matter hereof and supersedes any
and all prior or contemporaneous agreements or understandings with respect to
the subject matter hereof, whether express or implied, oral or written.


 


[signature page follows]


 


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IN WITNESS WHEREOF, the
parties have entered into this Amendment as of the date first above written.


 


 


	
   

  	
  IMAGE ENTERTAINMENT, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ JEFF M. FRAMER

  
	
   

  	
  Title: Chief Financial Officer

  



 


[SIGNATURE PAGE TO
AMENDMENT NUMBER ONE TO


AMENDED AND RESTATED LOAN
AND SECURITY AGREEMENT]


 


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  WELLS
  FARGO FOOTHILL, INC.,

  
	
   

  	
  a California
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ JOHN NOCITA

  
	
   

  	
  Title: Senior Vice President

  



 


[SIGNATURE PAGE TO
AMENDMENT NUMBER ONE TO


AMENDED AND RESTATED LOAN
AND SECURITY AGREEMENT]


 


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Exhibit A


 


REAFFIRMATION AND CONSENT


 


Dated as of November    , 2005


 


Reference hereby is made
to that certain Amendment Number One to Loan and Security Agreement, dated as
of the date hereof (the “Amendment”), between Wells Fargo Foothill, Inc.
(“Lender”), and Image Entertainment, Inc. (“Borrower”).  Capitalized terms used herein shall have the
meanings ascribed to them in that certain Amended and Restated Loan and
Security Agreement, dated as of August 10, 2005 (as amended, restated,
supplemented, or otherwise modified from time to time, the “Loan Agreement”),
between Borrower and Lender.  Each of the
undersigned hereby (a) represents and warrants that the execution and
delivery of this Reaffirmation and Consent are within its powers, have been
duly authorized by all necessary action, and are not in contravention of any
law, rule, or regulation applicable to it, or any order, judgment, decree,
writ, injunction, or award of any arbitrator, court, or Governmental Authority,
or of the terms of its Governing Documents, or of any contract or undertaking
to which it is a party or by which any of its properties may be bound or
affected, (b) consents to the amendment of the Loan Agreement set forth in
the Amendment and any waivers granted therein; (c) acknowledges and
reaffirms all obligations owing by it to Lender under any Loan Document to
which it is a party; (d) agrees that each Loan Document to which it is a
party is and shall remain in full force and effect, and (e) ratifies and
confirms its consent to any previous amendments of the Loan Agreement and any
previous waivers granted with respect to the Loan Agreement.  Although each of the undersigned have been
informed of the matters set forth herein and have acknowledged and agreed to
same, each of the undersigned understands that Lender shall have no obligation
to inform the undersigned of such matters in the future or to seek the
undersigned’s acknowledgement or agreement to future amendments, waivers, or
modifications, and nothing herein shall create such a duty.


 


[signature page follows]


 





















 


IN
WITNESS WHEREOF, the undersigned have executed this Reaffirmation and Consent
as of the date first set forth above.


 


 


	
   

  	
  HOME VISION ENTERTAINMENT, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEFF M. FRAMER

  
	
   

  	
  Name: Jeff M. Framer

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EGAMI MEDIA, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEFF M. FRAMER

  
	
   

  	
  Name: Jeff M. Framer

  
	
   

  	
  Title: Chief Financial Officer

  



 


[SIGNATURE PAGE TO
REAFFIRMATION AND CONSENT TO AMENDMENT NUMBER ONE TO AMENDED AND RESTATED LOAN AND
SECURITY AGREEMENT]


 


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