Document:

Image Entertainment, Inc.

 

Exhibit 10.1

AMENDMENT NUMBER FIVE

TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

This AMENDMENT NUMBER FIVE TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Amendment”) is entered into as of January 11, 2007, by WELLS FARGO FOOTHILL, INC., a
California corporation (“Lender”), and IMAGE ENTERTAINMENT, INC., a Delaware corporation,
successor to 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 amending and restating
the definition of Guarantor Security Agreement in its entirety, as follows:

““Guarantor Security Agreement” means that certain Security Agreement dated as of
January ___, 2007, by and between the Guarantors and Foothill.”

(b)   Section 1.1 of the Loan Agreement is hereby amended by amending and restating
the definition of Guaranty in its entirety, as follows:

‘“Guaranty” means that certain General Continuing Guaranty dated as of January ___,
2007, by the Guarantors in favor of Foothill.”

(c) Section 1.1 of the Loan Agreement is hereby amended by amending and restating the
definition of Trademark Security Agreement in its entirety, as follows:

‘“Trademark Security Agreement” means any trademark security agreement entered into by
Borrower or any Guarantor, on the one hand, and Foothill, on the other, to
effectuate Foothill’s existing security interests in the trademarks and other general
intangibles described therein.”

 

 

 

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 the Guarantor Security Agreement, duly executed by the
Guarantors, in form and substance satisfactory to Lender, and the same shall be in full force and
effect.

(d)   Lender shall have received the Guaranty, duly executed by the Guarantors, in form and
substance satisfactory to Lender, and the same shall be in full force and effect.

(e)   Lender shall have received that certain Trademark Security Agreement, duly executed by
the Guarantors, in form and substance satisfactory to Lender, and the same shall be in full force
and effect.

(f)   Lender shall have received that certain Amendment Number One to Trademark Security
Agreement, duly executed by the Borrower, in form and substance satisfactory to Lender, and the
same shall be in full force and effect.

(g)   Lender shall have received an opinion of Borrower’s and Guarantors’ counsel in form and
substance satisfactory to Lender in its sole discretion.

(h)   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).

(i)   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.

(j)   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.

 

2

 

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 OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST
HAVE MATERIALLY AFFECTED HIS OR HER 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,
judgment, decree, writ, injunction, or award of any arbitrator, court, or Governmental Authority,
or of the terms of its certificate of incorporation or bylaws, 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, or would result from the consummation of the
transactions contemplated hereby.

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.

 

3

 

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 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.

(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]

 

4

 

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
 	 
	 	 	Name:  	Jeff M. Framer 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

 

[Image Entertainment, Inc.]

[Signature Page To Amendment Number Five

To Amended And Restated Loan And Security Agreement]

 

 

 

	 	 	 	 	 
	 	WELLS FARGO FOOTHILL, INC.,

a California corporation

 	 
	 	By:  	/S/ TERRI LE
 	 
	 	 	Name:  	Terri Le 	 
	 	 	Title:  	Vice President 	 
	 

 

[Image Entertainment, Inc.]

[Signature Page To Amendment Number Five

To Amended And Restated Loan And Security Agreement]

 

 

 

Exhibit A

REAFFIRMATION AND CONSENT

Dated as of January 11, 2007

Reference hereby is made to that certain Amendment Number Five to Amended and Restated 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 certificate of incorporation and bylaws, 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 all previous amendments of the
Loan Agreement and all 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 	 
	 
	 	IMAGE ENTERTAINMENT (UK), INC.,

a Delaware corporation

 	 
	 	By:  	/S/ JEFF M. FRAMER
 	 
	 	 	Name:  	Jeff M. Framer 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

 

[Image Entertainment, Inc.]

[Signature Page To Reaffirmation and COnsent To Amendment Number FIVE

To Amended And Restated Loan And Security Agreement]Image Entertainment, Inc.

 

Exhibit 10.2

AMENDMENT NUMBER SIX AND WAIVER

TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

This AMENDMENT NUMBER SIX AND WAIVER TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Amendment”) is entered into as of January 11, 2007, 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
grant a waiver of certain Events of Default that have occurred under the Loan Agreement; and

WHEREAS, subject to the terms and conditions set forth herein, Lender is willing to make the
amendments and grant the consents and waiver 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
definitions in proper alphabetical order or amending and restating the following definitions, as
the case may be:

““Maximum Revolving Credit Amount” means $5,000,000.”

(b)   Section 2.1(a) of the Loan Agreement is hereby amended and restated in its
entirety as follows:

“(a) Subject to the terms and conditions of this Agreement, Foothill
agrees to make revolving advances (“Advances”) to Borrower in an
amount at any one time outstanding not to exceed at any one time the lesser
of (i) the Maximum Revolving Credit Amount less the Letter of Credit Usage,
or (ii) the Borrowing Base less the Letter of Credit Usage. For purposes of
this Agreement, “Borrowing Base,” as of any date of determination,
shall mean an amount equal to the lesser of:

 

 

 

(i) seventy percent (70%) of the amount of Eligible Accounts
less the amount, if any, of the Dilution Reserve, and

(ii) an amount equal to Borrowing Base Parties collections
with respect to Accounts for the immediately preceding
forty-five (45) day period.”

(c)   Section 6.12 of the Loan Agreement is hereby amended and restated in its
entirety as follows:

“6.12 [Intentionally Omitted.]”

3. Acknowledgements and Agreements. Borrower acknowledges and agrees that as of the
date hereof, Borrower was indebted to the Lender for obligations, advances, loans, and other
financial accommodations under the Loan Documents in the amount of $0.00 plus accrued interest
thereon, plus accrued and unpaid fees, costs and expenses due and owing in connection therewith
under the Loan Documents. Lender and Borrower hereby acknowledge that on January 5, 2006, Borrower
delivered a Notice of Termination of Amended and Restated Loan and Security Agreement to Lender
pursuant to Section 3.5 of the Loan Agreement. As a result of such termination notice,
Lender and Borrower hereby acknowledge that the Obligations shall be paid in full and the
commitment of Lender to make any advances under the Loan Agreement shall be irrevocably terminated
on or before May 5, 2007. Notwithstanding anything to the contrary in Section 3.5 of the
Loan Agreement, Borrower acknowledges and agrees that Lender is entitled to an Early Termination
Premium of $250,000, which Early Termination Premium is fully-earned as of January 5, 2006 and
shall be due and payable by Borrower in immediately available funds to Lender concurrently with the
payment in full of the Obligations; provided, however, the foregoing
notwithstanding, the Early Termination Premium shall be (a) reduced to $125,000 if Lender receives
evidence satisfactory in its sole and absolute determination that (i) on or before February 28,
2007, Borrower shall have received from institutional lenders, investment funds, prospective
buyers, or other sources of capital one or more letters of intent and/or term sheets involving
funding sufficient to repay in full in cash all of the Obligations (such letters of intent and/or
term sheets, the “Termination Proposal Letters”) and (ii) on or before March 31, 2007,
Borrower shall have received from institutional lenders, investment funds, prospective buyers, or
other sources of capital one or more signed commitment letters involving funding sufficient to
repay in full in cash all of the Obligations (such signed commitment letters, the “Termination
Commitment Letters”) and (b) waived in its entirety if Lender receives evidence satisfactory in
its sole and absolute determination that (i) on or before February 15, 2007, Borrower shall have
received the Termination Proposal Letters and (ii) on or before March 15, 2007, Borrower shall have
received the Termination Commitment Letters.

4. Waiver. Lender hereby waives (i) the Events of Default that have occurred as a
result of the failure by Borrower to comply with Section 6.12 of the Loan Agreement with
respect to the months ending October 31, 2006, November 30, 2006, and December 31, 2006 and (ii)
the Event of Default that has occurred as a result of failure by Borrower to comply with the
covenant
contained in Section 4 of that certain Limited Consent and Waiver, dated as of August
30, 2006, between Lender and Borrower.

 

2

 

5. 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)   Each condition set forth in Section 3 to that certain Amendment Number Five to
Amended and Restated Loan Agreement between Lender and Borrower shall have been satisfied in
Lender’s sole and absolute determination.

(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.

6. 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 OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS
OR HER SETTLEMENT WITH THE DEBTOR.”

 

3

 

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.

7. 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,
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 (other than as waived herein) and is continuing on the date hereof or as of the date
upon which the conditions precedent set forth herein are satisfied.

8. 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.

9. 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.

10. 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.

 

4

 

(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.

(d)   This Amendment is a Loan Document.

11. 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]

 

5

 

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
 	 
	 	 	Name:  	Jeff M. Framer 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

 

[Image Entertainment, Inc.]

[Signature Page To Amendment Number Six And Waiver

To Amended And Restated Loan And Security Agreement]

 

 

 

	 	 	 	 	 
	 	WELLS FARGO FOOTHILL, INC.,

a California corporation

 	 
	 	By:  	/S/ TERRI LE
 	 
	 	 	Name:  	Terri Le 	 
	 	 	Title:  	Vice President 	 
	 

 

[Image Entertainment, Inc.]

[Signature Page To Amendment Number Six And Waiver

To Amended And Restated Loan And Security Agreement]

 

 

 

Exhibit A

REAFFIRMATION AND CONSENT

Dated as of January 11, 2007

Reference hereby is made to that certain Amendment Number Six and Waiver 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 	 
	 
	 	IMAGE ENTERTAINMENT (UK), INC.,

a Delaware corporation

 	 
	 	By:  	/S/ JEFF M. FRAMER
 	 
	 	 	Name:  	Jeff M. Framer 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

 

[Image Entertainment, Inc.]

[Signature Page To Reaffirmation and COnsent To Amendment Number Six and Waiver

To Amended And Restated Loan And Security Agreement]

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