Document:

Prepared by MerrillDirect

AMENDMENT NO. 1

TO

FINANCING AGREEMENT

                           This AMENDMENT
NO. 1 TO FINANCING AGREEMENT (this “Amendment”), made as of March 30,
2001, between FIRSTAR BANK, NATIONAL ASSOCIATION, a national banking
association (“Bank”) and VARI-LITE, INC., a Delaware corporation (“Borrower”),

WITNESSETH:

                           WHEREAS, Borrower and
Bank have entered into that certain Financing Agreement, dated as of December
29, 2000 (the “Financing Agreement”), pursuant to which Bank has made certain
loans and financial accommodations available to Borrower; and

                           WHEREAS, Borrower and
Bank desire to amend the Financing Agreement as hereinafter set forth;

                           NOW, THEREFORE, in
consideration of the mutual promises and agreements contained herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Bank and Borrower agree as follows:

1.  DEFINED TERMS.

                           Each defined term
used herein and not otherwise defined herein has the meaning ascribed to such
term in the Financing Agreement.

2.  AMENDMENT TO FINANCING AGREEMENT.

                           The Financing
Agreement is amended, effective as of the date of this Agreement, as follows:

                           2.1        Amendment to Exhibit J.
Exhibit J to the Financing Agreement is amended in its entirety to read as set
forth on Exhibit J attached hereto and by reference made a part hereof.

                           2.2        Amendment to Section 8.7 of the
Financing Agreement—Certified Quarterly Financial
Statements. Section 8.7
of the Financing Agreement is amended in its entirety to read as follows:

                                        Section
8.7 — Certified Quarterly Financial Statements.

                                        Promptly
when available and in any event not later than forty-five (45) days after the
end of each quarter, Borrower shall furnish to Bank quarterly financial
statements, on a consolidated basis, showing International’s financial condition
and results of International's operations for the periods of time covered by
such statements in such detail as Bank may from time to time require, prepared
in accordance with generally accepted accounting principles consistently
applied and containing all disclosures required to fully and accurately present
the financial position and results of International and to make such statements
not misleading under the circumstances, and in each instance certified by the
chief financial officer or other responsible officer of International as being
filed with the Securities and Exchange Commission.  Said statements shall include: (i) a comparison
prepared by International of its projected financial position and results of
operations of International provided for in Section 8.6 hereof with
the actual financial position and results of operations of International and an
explanation of any variations between them; and (ii) a comparison between
actual calculated results and the covenanted results for each of the Financial
Covenants contained in Exhibit  J attached hereto and incorporated
herein by reference.

3.  REPRESENTATIONS AND WARRANTIES.

                           Borrower
represents and warrants to Bank as follows:

                           3.1        The Amendment.  This Amendment has been duly and validly executed
by an authorized executive officer of Borrower and constitutes the legal, valid
and binding obligation of Borrower enforceable against Borrower in accordance
with its terms.

                           3.2        Financing Agreement.  The Financing Agreement as amended by this
Amendment remains in full force and effect and remains the valid and binding
obligation of Borrower enforceable against Borrower in accordance with its
terms.  Borrower hereby ratifies and
confirms the Financing Agreement as amended by this Amendment.

                           3.3        Nonwaiver. Neither the execution,
delivery, performance or effectiveness of this Amendment shall operate nor be
deemed to be nor construed as a waiver (i) of any right, power or remedy of
Bank under the Financing Agreement, nor (ii) of any term, provision, representation,
warranty or covenant contained in the Financing Agreement or any other
documentation executed in connection therewith.  Further, none of the provisions of this Amendment shall
constitute, or be deemed to be or construed as, a waiver of any Event of
Default under the Financing Agreement as amended by this Amendment.

                           3.4        Reference to and Effect on the
Financing Agreement.  Upon the
effectiveness of this Amendment, each reference in the Financing Agreement to
“this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import
shall mean and be a reference to the Financing Agreement as amended hereby, and
each reference to the Financing Agreement in any other document, instrument or
agreement executed and/or delivered in connection with the Financing Agreement
shall mean and be a reference to the Financing Agreement as amended hereby.

                           3.5        Claims and Defenses.   As of
the date of this Amendment, Borrower has no defenses, claims, counterclaims or
setoffs with respect to the Financing Agreement or its Obligations thereunder
or with respect to any actions of the Bank or any of its officers, directors,
shareholders, employees, agents or attorneys, and Borrower irrevocably and
absolutely waives any such defenses, claims, counterclaims and setoffs and
releases the Bank and each of its officers, directors, shareholders, employees,
agents and attorneys from the same.

4.  CONDITIONS PRECEDENT TO EFFECTIVENESS OF
THIS AMENDMENT NO. 1.

                           In
addition to all of the other conditions and agreements set forth herein, the
effectiveness of this Amendment is subject to the each of the following
conditions precedent:

                           4.1        Amendment No. 1 to Financing
Agreement.  Bank shall have received
an original counterpart of this Amendment No. 1 to Financing Agreement, executed
and delivered by a duly authorized officer of Borrower.

                           4.2        Acknowledgment of Guarantor.  Bank shall have received an original of the
attached Acknowledgment of Vari-Lite International, Inc., a Delaware
corporation, executed and delivered by a duly authorized officer of Vari-Lite
International, Inc..

                           4.3        No Material Adverse Change.  There shall have occurred no material and
adverse change in the Borrower’s assets, liabilities or financial condition
since the date of the last Financials delivered by Borrower to Bank nor shall
there have been any material damage to or loss of any of Borrower’s assets or
properties since such date.

5.  SECTION  
MISCELLANEOUS.

                           5.1        Governing Law.  This Amendment has been delivered and
accepted at and shall be deemed to have been made at Cleveland, Ohio.  This Amendment shall be interpreted and the
rights and liabilities of the parties hereto determined in accordance with the
laws of the State of Ohio, without regard to principles of conflict of law, and
all other laws of mandatory application.

                           5.2        Severability.  Each provision of this Amendment shall be
interpreted in such manner as to be valid under applicable law, but if any
provision hereof shall be invalid under applicable law, such provision shall be
ineffective to the extent of such invalidity, without invalidating the
remainder of such provision or the remaining provisions hereof.

                           5.3        Counterparts.  This Amendment may be executed in one or
more counterparts, each of which, when taken together, shall constitute but one
and the same agreement.

                           IN
WITNESS WHEREOF, Borrower has caused this Amendment No. 1 to Financing
Agreement to be duly executed and delivered by its duly authorized officer as
of the date first above written.

	Signed and acknowledged in the presence of:	 	VARI-LITE, INC.
	 	 
	

	 	 	 
	

	 	By:	

	 	 	 	 
	Name:	

	 	 	 
	 	 	 	 	 
	 	 	Its:	

	

	 	 	 
	 	 	 	 
	Name:	

	 	 	 

 

	STATE OF	

	  )
	 	 	  )ss:
	COUNTY OF	

	  )

                           The foregoing
instrument was acknowledged before me this ___ day of May, 2001, by
_______________, the ___________________ of Vari-Lite, Inc., a Delaware
corporation, on behalf of the corporation.

	 	

   

 
	 	Notary Public                                            
   

 

 

 

	Accepted at Cleveland,
  Ohio,

  Effective as of  March 30, 2001.FIRSTAR BANK, NATIONAL
  ASSOCIATION	 
	

	 
	By:	

	 
	 	 
	Its:	

	 

ACKNOWLEDGMENT OF
GUARANTOR

                           The undersigned,
Vari-Lite International, Inc., a Delaware corporation, having guaranteed all of
the obligations of Vari-Lite, Inc. to Firstar Bank, National Association
(“Bank”), hereby acknowledges and agrees, effective as of March 30, 2001, to
the terms of the foregoing Amendment No. 1 to Financing Agreement.  The undersigned represents and warrants to
Bank that the Guaranty executed and delivered by the undersigned to Bank, dated
as of December 29, 2000, remains the valid and binding obligation of the
undersigned, enforceable against it in accordance with its terms.

	 	 	 	VARI-LITE INTERNATIONAL, INC.
	

	 	 	 
	 	 	 	By:	

	 	 	 	 	 
	 	 	 	Its:	

	

	 	 	 	 
	STATE OF	

	  )	 	 
	 	 	  )ss:	 	 
	COUNTY OF	

	  )	 	 

                           The foregoing
instrument was acknowledged before me this ___ day of May, 2001, by
___________________, the ________________ of VARI-LITE INTERNATIONAL, INC., a
Delaware corporation, on behalf of the company.

 

	 	

	 	Notary Public                                             

 

Exhibit J

Financial Covenants

Financial Covenants.  Borrower agrees that it shall:

	(A)	Net
  Capital Expenditures.  Not make nor permit International to
  make  Net Capital Expenditures in an
  aggregate amount exceeding $9,000,000 for any fiscal year.

	(B)	Earnings
  Before Interest, Taxes, Depreciation and Amortization.  Not permit International’s Earnings Before
  Interest, Taxes, Depreciation and Amortization ("EBITDA") to be
  less than the following amounts for the following periods:

 

	                   EBIDTA               
   	Period
	

	

	$ 2,931,000	10/01/00
  - 12/31/00
	$ 6,234,000	10/01/00
  - 03/31/01
	$ 9,875,000	10/01/00
  - 06/30/01
	$14,532,000	10/01/00
  - 09/30/01
	$16,123,000	01/01/01
  - 12/31/01
	$16,272,000	04/01/01
  - 03/31/02
	$15,834,000	07/01/01
  - 06/30/02
	$15,447,000	10/01/01
  - 09/30/02
	$16,314,000	01/01/02
  - 12/31/02
	$16,882,000	04/01/02
  - 03/31/03
	$17,385,000	07/01/02
  - 06/30/03
	$18,123,000	10/01/02
  - 09/30/03

 

	(C)	Net
  Worth.  Not permit International’s Net Worth to be
  less than the following amounts as of the following dates:

 

	                 Net Date                 	Period
	

	

	$45,000,000	12/31/00
	$45,000,000	03/31/01
	$45,000,000	06/30/01
	$45,000,000	09/30/01
	$46,000,000	12/31/01
	$46,000,000	03/31/02
	$46,000,000	06/30/02
	$46,000,000	09/30/02
	$47,750,000	12/31/02
	$47,750,000	03/31/03
	$47,750,000	06/30/03
	$47,750,000	09/30/03

 

	(D)	Maximum Debt.  Not permit International’s Total Funded
  Indebtedness to exceed the following amounts at any time during the following
  periods:

 

	Total
  Funded Indebtedness	Period
	

	

	$29,000,000	01/01/01
  - 06/30/01  
	$27,000,000	07/01/01
  - 09/30/01  
	$25,000,000	10/01/01
  - 12/31/01  
	$25,000,000	01/01/02
  - 03/31/02  
	$25,000,000	04/01/02
  - 06/30/02  
	$25,000,000	07/01/02
  - 09/30/02  
	$25,000,000	10/01/02
  - 12/31/02  
	$27,000,000	01/01/03
  - 03/31/03  
	$27,000,000	04/01/03
  - 06/30/03  
	$27,000,000	07/01/03
  - 09/30/03  
	$27,000,000	at
  any time thereafter

 

	(E)	Leverage Ratio.  Not permit International’s Leverage Ratio
  to exceed the following ratios as of the following dates:

 

	                Leverage Ratio              	Date
	

	

	4.65
  to 1	03/31/01
	2.73
  to 1	06/30/01
	2.25
  to 1	09/30/01
	2.25
  to 1	12/31/01
	2.25
  to 1	03/31/02
	2.00
  to 1	06/30/02
	2.00
  to 1	09/30/02
	1.80
  to 1	12/31/02
	1.75
  to 1	03/31/03
	1.65
  to 1	06/30/03
	1.65
  to 1	09/30/03

 

	(F)	Total Debt Service Ratio.  Not permit International’s Total Debt
  Service Ratio to be less than the following ratios as of the following dates:

 

	Total Debt Service
  Ratio	Date
	

	

	1.05 to 1	09/30/01
	1.10 to 1	12/31/01
	1.10 to 1	03/31/02
	1.10 to 1	06/30/02
	1.10 to 1	09/30/02
	1.20 to 1	12/31/02
	1.20 to 1	03/31/03
	1.20 to 1	06/30/03
	1.20 to 1	09/30/03

 

	II.	Definitions

	 
	 	(A)	The
  term "Net Capital Expenditures" for purposes of this Exhibit
  J shall mean the sum of  (a)
  International’s consolidated capital expenditures (including, but not by way
  of limitation, expenditures for fixed assets or leases capitalized or
  required to be capitalized on International’s consolidated books by purchase,
  lease-purchase agreement, option or otherwise), minus  (b) the net book value of capital
  assets previously sold and replaced by such capital expenditures.

	 	(B)	The
  term "Earnings Before Interest, Taxes, Depreciation, and Amortization"
  or "EBITDA"for purposes of this Exhibit J
  shall mean International’s consolidated earnings from operations before
  income taxes and interest income or expense plus depreciation, plus
  amortization of all non-cash charges, all as determined in accordance with
  generally accepted accounting principles, and shall not include any gains or
  losses from the sale of assets outside the normal course of business or any
  other extraordinary accounting adjustments or non-recurring items of income
  or loss.

	 	(C)	The
  term "Net Worth" for purposes of this Exhibit J shall
  mean the total of International’s consolidated shareholders equity, as
  determined in accordance with generally accepted accounting principles,
  consistently applied.

	 	(D)	The
  term "Total Funded Indebtedness" for purposes of this Exhibit
  J shall have the meaning and be determined in accordance with generally
  accepted accounting principles consistently applied by International on a
  consolidated basis in accordance with past practices.
					

 

	 	(E)	The
  term "Leverage Ratio" for purposes of this Exhibit J
  shall mean:

	 	 	1.          As of 03/31/01,  the ratio of Total Funded Indebtedness as
  of such date to EBITDA as measured from 10/01/00 to 03/31/01;

	 	 	2.          As of 06/30/01, the
  ratio of Total Funded Indebtedness as of such date to EBITDA as measured from
  10/01/00 to 06/30/01; 
	 	 	3.          As of 09/30/01, the
  ratio of Total Funded Indebtedness as of such date to EBITDA as measured from
  10/01/00 to 09/30/01; and

	 	 	4.          As of 12/31/01 and as of the last
  day of any fiscal quarter thereafter, the ratio of Total
  Funded Indebtedness as of such date to EBITDA as measured on a four quarter
  trailing basis.

	 	(F)	The
  term “Unfunded Capital Expenditure Payments” for purposes of this Exhibit
  J shall mean the amount of consolidated capital expenditures of
  International which are not financed under the CapEx Facility nor any other
  financing arrangement with any other person.

	 	(G)	The term "Total
  Debt Service Ratio" for purposes of this Exhibit J shall
  mean:

	 	 	1.     
      For the period commencing
  on the 07/01/01 and ending on 09/30/01,
  the ratio of (a) EBITDA as measured from 01/01/01 to 09/30/01 to (b) the sum
  of  (i) the total consolidated
  and regularly scheduled principal and interest payments of Total Funded
  Indebtedness for the period 01/01/01 to 09/30/01,  plus  (ii)
  Unfunded Capital Expenditure Payments for the period 01/01/01 to 09/30/01, minus
  (iii) the US $1,000,000 Japanese principal payment paid by Vari-Lite
  Asia, Inc. in March, 2001;

	 	 	2.         
  For the period commencing on the 10/01/01 and ending on 12/31/01,
  the ratio of (a) EBITDA as measured on a four quarter trailing basis to (b)
  the sum of  (i) the total
  consolidated and regularly scheduled principal and interest payments of Total
  Funded Indebtedness for such four quarter trailing period,  plus (ii) Unfunded Capital
  Expenditure Payments for such four quarter trailing period,  minus  (iii) the US $1,000,000 Japanese principal payment paid by
  Vari-Lite Asia, Inc. in March, 2001, plus (iv) the amount of taxes
  paid by International on a consolidated basis during such four quarter
  trailing period, minus (v) the amount of Japanese taxes paid by
  Vari-Lite Asia, Inc. in February, 2001; and

	 	 	3.          For all periods after 12/31/01,
  the ratio of (a) EBITDA as measured on a four quarter trailing basis to (b)
  the sum of  (i) the total
  consolidated and regularly scheduled principal and interest payments of Total
  Funded Indebtedness for such four quarter trailing period,  plus (ii) Unfunded Capital
  Expenditure Payments for such four quarter trailing period, plus (iii)
  the amount of taxes paid by International on a consolidated basis during such
  four quarter trailing period.Prepared by MerrillDirect

AMENDMENT NO. 2

TO

FINANCING AGREEMENT

                           This AMENDMENT
NO. 2 TO FINANCING AGREEMENT (this “Amendment”), made as of June 30,
2001, between FIRSTAR BANK, NATIONAL ASSOCIATION, a national banking
association (“Bank”) and VARI-LITE, INC., a Delaware corporation (“Borrower”),

WITNESSETH:

                           WHEREAS, Borrower and
Bank have entered into that certain Financing Agreement, dated as of
December 29, 2000, as amended by that certain Amendment No. 1 to
Financing Agreement, dated as of March 30, 2001 (as so amended, the “Financing
Agreement”), pursuant to which Bank has made certain loans and financial
accommodations available to Borrower; and

                           WHEREAS, Borrower and
Bank desire to further amend the Financing Agreement as hereinafter set forth;

                           NOW, THEREFORE, in
consideration of the mutual promises and agreements contained herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Bank and Borrower agree as follows:

1.  DEFINED TERMS.

                           Each defined term
used herein and not otherwise defined herein has the meaning ascribed to such
term in the Financing Agreement.

2.  AMENDMENT TO FINANCING AGREEMENT.

                           The Financing
Agreement is amended, effective as of the date of this Agreement, as follows:

             Amendment
to Exhibit J. Exhibit J to the Financing Agreement is amended in
its entirety to read as set forth on Exhibit J attached hereto and by
reference made a part hereof.

3.  REPRESENTATIONS
AND WARRANTIES.

                           Borrower
represents and warrants to Bank as follows:

             3.1        The Amendment.  This Amendment has been duly and validly
executed by an authorized executive officer of Borrower and constitutes the
legal, valid and binding obligation of Borrower enforceable against Borrower in
accordance with its terms.

             3.2        Financing Agreement.  The Financing Agreement as amended by this
Amendment remains in full force and effect and remains the valid and binding
obligation of Borrower enforceable against Borrower in accordance with its
terms.  Borrower hereby ratifies and
confirms the Financing Agreement as amended by this Amendment.

             3.3        Nonwaiver. Neither the execution,
delivery, performance or effectiveness of this Amendment shall operate nor be
deemed to be nor construed as a waiver (i) of any right, power or remedy of
Bank under the Financing Agreement, nor (ii) of any term, provision,
representation, warranty or covenant contained in the Financing Agreement or
any other documentation executed in connection therewith.  Further, none of the provisions of this
Amendment shall constitute, or be deemed to be or construed as, a waiver of any
Event of Default under the Financing Agreement as amended by this Amendment.

             3.4        Reference to and Effect on the
Financing Agreement.  Upon the
effectiveness of this Amendment, each reference in the Financing Agreement to
“this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import
shall mean and be a reference to the Financing Agreement as amended hereby, and
each reference to the Financing Agreement in any other document, instrument or
agreement executed and/or delivered in connection with the Financing Agreement
shall mean and be a reference to the Financing Agreement as amended hereby.

             3.5        Claims and Defenses.   As of
the date of this Amendment, Borrower has no defenses, claims, counterclaims or setoffs
with respect to the Financing Agreement or its Obligations thereunder or with
respect to any actions of the Bank or any of its officers, directors,
shareholders, employees, agents or attorneys, and Borrower irrevocably and
absolutely waives any such defenses, claims, counterclaims and setoffs and
releases the Bank and each of its officers, directors, shareholders, employees,
agents and attorneys from the same.

4.  CONDITIONS PRECEDENT TO EFFECTIVENESS OF
THIS AMENDMENT NO. 2.

             In
addition to all of the other conditions and agreements set forth herein, the
effectiveness of this Amendment is subject to the each of the following
conditions precedent:

             4.1        Amendment No. 2 to Financing
Agreement.  Bank shall have received
an original counterpart of this Amendment No. 2 to Financing Agreement,
executed and delivered by a duly authorized officer of Borrower.

             4.2        Acknowledgment of Guarantor.  Bank shall have received an original of the
attached Acknowledgment of Vari-Lite International, Inc., a Delaware corporation,
executed and delivered by a duly authorized officer of Vari-Lite International,
Inc..

             4.3        No Material Adverse Change.  There shall have occurred no material and
adverse change in the Borrower’s assets, liabilities or financial condition
since the date of the last Financials delivered by Borrower to Bank nor shall
there have been any material damage to or loss of any of Borrower’s assets or
properties since such date.

             4.4        Amendment Fee.  Borrower shall have paid Bank an amendment
fee in an amount of Twenty Thousand Dollars ($20,000.00).

5.  SECTION   MISCELLANEOUS.

             5.1        Governing Law.  This Amendment has been delivered and
accepted at and shall be deemed to have been made at Cleveland, Ohio.  This Amendment shall be interpreted and the
rights and liabilities of the parties hereto determined in accordance with the
laws of the State of Ohio, without regard to principles of conflict of law, and
all other laws of mandatory application.

             5.2        Severability.  Each provision of this Amendment shall be
interpreted in such manner as to be valid under applicable law, but if any
provision hereof shall be invalid under applicable law, such provision shall be
ineffective to the extent of such invalidity, without invalidating the
remainder of such provision or the remaining provisions hereof.

             5.3        Counterparts.  This Amendment may be executed in one or
more counterparts, each of which, when taken together, shall constitute but one
and the same agreement.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

                           IN
WITNESS WHEREOF, Borrower has caused this Amendment No. 2 to Financing
Agreement to be duly executed and delivered by its duly authorized officer as
of the date first above written.

	Signed and
  acknowledged	VARI-LITE, INC.
	in the presence of:	 
	 	 
	_________________________	By:___________________________
	Name:____________________	 
	 	Its:__________________________
	_________________________	 
	Name:____________________	 
	 	 

 

	STATE OF	)
	 	) ss:
	COUNTY OF	)

 

             The foregoing instrument was acknowledged before me this
___ day of August, 2001, by _______________, the ___________________ of
Vari-Lite, Inc., a Delaware corporation, on behalf of the corporation.

	 	

	 	Notary Public
	 	 
	 	 
	Accepted at Cleveland,
  Ohio,	 
	Effective as of
  June 30, 2001.	 
	 	 
	FIRSTAR BANK, NATIONAL
  ASSOCIATION	 
	 	 
	By:	 	 
	 	

	 
	Its:	 	 
	 	

	 
				

 

                                                                  ACKNOWLEDGMENT
OF GUARANTOR

                           The undersigned,
Vari-Lite International, Inc., a Delaware corporation, having guaranteed all of
the obligations of Vari-Lite, Inc. to Firstar Bank, National Association
(“Bank”), hereby acknowledges and agrees, effective as of June 30, 2001,
to the terms of the foregoing Amendment No. 2 to Financing Agreement.  The undersigned represents and warrants to
Bank that the Guaranty executed and delivered by the undersigned to Bank, dated
as of December 29, 2000, remains the valid and binding obligation of the
undersigned, enforceable against it in accordance with its terms.

	 	VARI-LITE INTERNATIONAL, INC.
	 
	By:	 
	 	

	Its:	 
	 	

	 
	STATE OF	 	 	 
	 	

	)	 
	 	 	 	 
	 	 	)ss:	 
	COUNTY OF	 	 	 
	 	

	)	 
						

                           The foregoing
instrument was acknowledged before me this ___ day of August, 2001, by
___________________, the ________________ of VARI-LITE INTERNATIONAL, INC., a
Delaware corporation, on behalf of the company.

	 	 	 
	 	 	

	 	 	Notary Public

 

Exhibit J

Financial Covenants

Financial Covenants.  Borrower agrees that it shall:

	(A)	Net
  Capital Expenditures.  Not make nor permit International to
  make  Net Capital Expenditures in an
  aggregate amount exceeding $9,000,000 for any fiscal year.
	 	 
	(B)	Earnings
  Before Interest, Taxes, Depreciation and Amortization.  Not permit International’s Earnings Before
  Interest, Taxes, Depreciation and Amortization ("EBITDA") to be
  less than the following amounts for the following periods:

 

	EBIDTA	 	Period
	

	 	

	$	2,931,000	 	10/01/00 - 12/31/00
	$	6,234,000	 	10/01/00 - 03/31/01
	$	7,460,000	 	10/01/00 - 06/30/01
	$	9,491,000	 	10/01/00 - 09/30/01
	$	16,123,000	 	01/01/01 - 12/31/01
	$	16,272,000	 	04/01/01 - 03/31/02
	$	15,834,000	 	07/01/01 - 06/30/02
	$	15,447,000	 	10/01/01 - 09/30/02
	$	16,314,000	 	01/01/02 - 12/31/02
	$	16,882,000	 	04/01/02 - 03/31/03
	$	17,385,000	 	07/01/02 - 06/30/03
	$	18,123,000	 	10/01/02 - 09/30/03
	 	 	 

(C)        Net
Worth.  Not permit International’s
Net Worth to be less than the following amounts as of the following dates:

	Net Date	 	Period
	

	 	

	$	45,000,000	 	12/31/00
	$	45,000,000	 	03/31/01
	$	45,000,000	 	06/30/01
	$	44,600,000	 	09/30/01
	$	46,000,000	 	12/31/01
	$	46,000,000	 	03/31/02
	$	46,000,000	 	06/30/02
	$	46,000,000	 	09/30/02
	$	47,750,000	 	12/31/02
	$	47,750,000	 	03/31/03
	$	47,750,000	 	06/30/03
	$	47,750,000	 	09/30/03

(D)        Maximum Debt.  Not permit International’s Total Funded
Indebtedness to exceed the following amounts at any time during the following
periods:

	Total Funded
  Indebtedness	 	Period
	

	 	

	$	29,000,000	 	01/01/01 - 06/30/01
	$	27,000,000	 	07/01/01 - 09/30/01
	$	25,000,000	 	10/01/01 - 12/31/01
	$	25,000,000	 	01/01/02 - 03/31/02
	$	25,000,000	 	04/01/02 - 06/30/02
	$	25,000,000	 	07/01/02 - 09/30/02
	$	25,000,000	 	10/01/02 - 12/31/02
	$	27,000,000	 	01/01/03 - 03/31/03
	$	27,000,000	 	04/01/03 - 06/30/03
	$	27,000,000	 	07/01/03 - 09/30/03
	$	27,000,000	 	at any time thereafter

 

(E)        Leverage Ratio.  Not permit International’s Leverage Ratio to
exceed the following ratios as of the following dates:

	Leverage Ratio	Date
	

	

	4.65 to 1	03/31/01
	3.23 to 1	06/30/01
	2.56 to 1	09/30/01
	2.25 to 1	12/31/01
	2.25 to 1	03/31/02
	2.00 to 1	06/30/02
	2.00 to 1	09/30/02
	1.80 to 1	12/31/02
	1.75 to 1	03/31/03
	1.65 to 1	06/30/03
	1.65 to 1	09/30/03
	 	 

(F)        Total Debt Service Ratio.  Not permit International’s Total Debt
Service Ratio to be less than the following ratios as of the following dates:

	Total
  Debt Service Ratio	 	Date
	

	 	

	0.61
  to 1	 	09/30/01
	1.10
  to 1	 	12/31/01
	1.10
  to 1	 	03/31/02
	1.10
  to 1	 	06/30/02
	1.10
  to 1	 	09/30/02
	1.20
  to 1	 	12/31/02
	1.20
  to 1	 	03/31/03
	1.20
  to 1	 	06/30/03
	1.20
  to 1	 	09/30/03
	 	 	 

II.          Definitions

	 	(A)	The
  term "Net Capital Expenditures" for purposes of this Exhibit J
  shall mean the sum of  (a)
  International’s consolidated capital expenditures (including, but not by way
  of limitation, expenditures for fixed assets or leases capitalized or
  required to be capitalized on International’s consolidated books by purchase,
  lease-purchase agreement, option or otherwise), minus  (b) the net book value of capital
  assets previously sold and replaced by such capital expenditures.
	 	 	 
	 	(B)	The
  term "Earnings Before Interest, Taxes, Depreciation, and Amortization"
  or "EBITDA"for purposes of this Exhibit J
  shall mean International’s consolidated earnings from operations before
  income taxes and interest income or expense plus depreciation, plus
  amortization of all non-cash charges, all as determined in accordance with
  generally accepted accounting principles, and shall not include any gains or
  losses from the sale of assets outside the normal course of business or any
  other extraordinary accounting adjustments or non-recurring items of income
  or loss.
	 	 	 
	 	(C)	The
  term "Net Worth" for purposes of this Exhibit J
  shall mean the total of International’s consolidated shareholders equity, as
  determined in accordance with generally accepted accounting principles,
  consistently applied.
	 	 	 
	 	(D)	The
  term "Total Funded Indebtedness" for purposes of this Exhibit J
  shall have the meaning and be determined in accordance with generally
  accepted accounting principles consistently applied by International on a
  consolidated basis in accordance with past practices.

	 	(E)	The
  term "Leverage Ratio" for purposes of this Exhibit J
  shall mean:
	 	 	 
	 	 	1.          As of 03/31/01, 
  the ratio of Total Funded Indebtedness as of such date to EBITDA as
  measured from 10/01/00 to 03/31/01;
	 	 	 
	 	 	2.          As of 06/30/01, the ratio of Total Funded Indebtedness
  as of such date to EBITDA as measured from 10/01/00 to 06/30/01;
	 	 	 
	 	 	3.          As of 09/30/01, the ratio of Total Funded Indebtedness
  as of such date to EBITDA as measured from 10/01/00 to 09/30/01; and
	 	 	 
	 	 	4.          As of 12/31/01 and as of the last day of any fiscal quarter
  thereafter, the ratio of Total Funded Indebtedness as of such
  date to EBITDA as measured on a four quarter trailing basis.
	 	 	 
	 	(F)	The
  term “Unfunded Capital Expenditure Payments” for purposes of this Exhibit J
  shall mean the amount of consolidated capital expenditures of International
  which are not financed under the CapEx Facility nor any other financing
  arrangement with any other person.
	 	 	 
	 	(G)	The
  term "Total Debt Service Ratio" for purposes of this Exhibit J
  shall mean:
	 	 	 
	 	 	1.          For the period commencing on the 07/01/01 and ending on 09/30/01,
  the ratio of (a) EBITDA as measured from 01/01/01 to 09/30/01 to (b) the sum
  of  (i) the total consolidated
  and regularly scheduled principal and interest payments of Total Funded
  Indebtedness for the period 01/01/01 to 09/30/01,  plus  (ii)
  Unfunded Capital Expenditure Payments for the period 01/01/01 to 09/30/01, minus
  (iii) the US $1,000,000 Japanese principal payment paid by Vari-Lite
  Asia, Inc. in March, 2001;
	 	 	 
	 	 	2.          For the period commencing on the 10/01/01 and ending on 12/31/01,
  the ratio of (a) EBITDA as measured on a four quarter trailing basis to (b)
  the sum of  (i) the total
  consolidated and regularly scheduled principal and interest payments of Total
  Funded Indebtedness for such four quarter trailing period,  plus (ii) Unfunded Capital
  Expenditure Payments for such four quarter trailing period,  minus  (iii) the US $1,000,000 Japanese principal payment paid by
  Vari-Lite Asia, Inc. in March, 2001, plus (iv) the amount of taxes
  paid by International on a consolidated basis during such four quarter
  trailing period, minus (v) the amount of Japanese taxes paid by
  Vari-Lite Asia, Inc. in February, 2001; and
	 	 	 
	 	 	3.          For all periods after 12/31/01, the ratio of (a)
  EBITDA as measured on a four quarter trailing basis to (b) the sum
  of  (i) the total consolidated
  and regularly scheduled principal and interest payments of Total Funded
  Indebtedness for such four quarter trailing period,  plus (ii) Unfunded Capital Expenditure Payments for such
  four quarter trailing period, plus (iii) the amount of taxes paid by
  International on a consolidated basis during such four quarter trailing
  period.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]