Sample Business Contracts


Loan Modification Agreement - Rentrak Corp. and Silicon Valley Bank

Loan Forms


                  LOAN MODIFICATION AGREEMENT

AMONG:    Rentrak Corporation ("Borrower"), whose address is One
          Airport Center, 7227 N.E. 55th Avenue, Portland, Oregon
          97218;

AND:           Silicon Valley Bank ("Silicon") whose address is
          3003 Tasman Drive, Santa Clara, California 95054;

DATE:          December _____, 1997.

     This Loan Modification Agreement is entered into on the
above date by Borrower and Silicon.

     1.   Background.  Borrower entered into a loan and security
agreement with Silicon dated as of October 12, 1993, which was
subsequently modified (as amended, the "Loan Agreement").
Capitalized terms used in this Loan Modification Agreement shall,
unless otherwise defined in this Agreement, have the meaning
given to such terms in the Loan Agreement.

     Silicon and Borrower are entering into this Agreement to
state the terms and conditions of certain modifications to the
Loan Agreement and the Schedule, as modified prior to the date of
this Agreement.  Silicon and Borrower are also entering into an
Interest Rate Supplement to Agreement, the terms of which shall
control in the event of any inconsistency with the Loan Agreement
or the  Schedule.

          2.   Modifications to Loan Agreement and Schedule.

          (a)  The Schedule attached to this Loan Modification
Agreement is a revised and restated Schedule, which modifies
certain terms contained in the Schedule attached to the Loan
Agreement.  The Schedule attached to this Loan Modification
supersedes in its entirety the Schedule attached to the Loan
Agreement.

          (b)  Section 3.7 of the Loan Agreement is deleted and
replaced with the following:

               "3.7 Financial Condition and Statements.  All
          financial statements now or in the future delivered to
          Silicon have been, and will be, prepared in conformity
          with generally accepted accounting principles and now
          and in the future will completely and accurately
          reflect the financial condition of the Borrower, at the
          times and for the periods therein stated. Since the
          last date covered by any such statement there has been
          no material adverse change in the financial condition
          or business of the Borrower.  The Borrower is now and
          will continue to be solvent.  The Borrower will provide
          Silicon: (i) within 45 days after the end of each
          quarter (except the fourth fiscal quarter), a quarterly
          financial statement (consisting of company-prepared 10Q
          reports), including consolidated financial statement
          details as determined by Silicon to support
          calculations of the financial covenants contained in
          the Schedule as prepared by the Borrower and certified
          as correct to the best knowledge and belief by the
          Borrower's chief financial officer or other officer or
          person acceptable to Silicon; (ii) within 20 days after
          the end of each month, an accounts receivable report
          and an accounts payable report in such form as Silicon
          shall reasonably specify; (iii) within 20 days after
          the end of each month, a Borrowing Base Certificate in
          the form attached to this Agreement as Exhibit A, as
          Silicon may reasonably modify such Certificate from
          time to time, signed by the Chief Financial Officer of
          the Borrower; (iv) within 45 days after the end of the
          first three calendar quarters of each year and within
          90 days after the end of the last calendar quarter of
          each year, a Compliance Certificate in such form as
          Silicon shall reasonably specify, signed by the Chief
          Financial Officer of the Borrower, certifying that
          throughout such quarter the Borrower was in full
          compliance with all of the terms and conditions of this
          Agreement, and setting forth calculations showing
          compliance with the financial covenants set forth on
          the Schedule hereto and such other information as
          Silicon shall reasonably request; and (v) within 90
          days following the end of the Borrower's fiscal year,
          complete annual CPA audited financial statements, such
          audit being conducted by independent certified public
          accountants reasonably acceptable to Silicon."

     3.   No Other Modifications.  Except as expressly modified
by this Loan Modification Agreement, the terms of the Loan
Agreement and Schedule, as amended prior to the date of this
Agreement, shall remain unchanged and in full force and effect.
Silicon's agreement to modify the Loan Agreement pursuant to this
Loan Modification Agreement shall not obligate Silicon to make
any future modifications to the Loan Agreement or any other loan
document.  Nothing in this Loan Modification Agreement shall
constitute a satisfaction of any indebtedness of any Borrower to
Silicon.  It is the intention of Silicon and Borrower to retain
as liable parties all makers and endorsers of the Loan Agreement
or any other loan document.  No maker, endorser, or guarantor
shall be released by virtue of this Loan Modification Agreement.
The terms of this paragraph shall apply not only to this Loan
Modification Agreement, but also to all subsequent loan
modification agreements.

     4.   Representations and Warranties.

     (a)  The Borrower represents and warrants to Silicon that
the execution, delivery and performance of this Agreement are
within the Borrower's corporate powers, and have been duly
authorized and are not in contravention of law or the terms of
the Borrower's charter, bylaws or other incorporation papers, or
of any undertaking to which the Borrower is a party or by which
it is bound.

     (b)  The Borrower understands and agrees that in entering
into this Agreement, Silicon is relying upon the Borrower's
representations, warranties and agreements as set forth in the
Loan Agreement and other loan documents.  Borrower hereby
reaffirms all representations and warranties in the Loan
Agreement, all of which are true as of the date of this
Agreement.

                         Borrower:

                              RENTRAK CORPORATION


                              By:
                              Title:


                         Silicon:

                              SILICON VALLEY BANK


                              By:
                              Title:


  AMENDED AND RESTATED SCHEDULE TO LOAN AND SECURITY AGREEMENT



Borrower:      Rentrak Corporation

Address:       7227 N.E. 55th Avenue
               Portland, OR  97218

Date:          December _____, 1997





Secured Operating Line of Credit

Credit Limit:  An amount not to exceed the lesser of: (i)
               $12,500,000.00 at any one time outstanding; or
               (ii) 80% of the Net Amount of Borrower's eligible
               accounts receivable.  "Net Amount" means the gross
               amount of the account, minus all applicable sales,
               use, excise and other similar taxes and minus all
               discounts, credits and allowances of any nature
               granted or claimed.

                         The following accounts will not be
               deemed eligible for borrowing: accounts
               outstanding for more than 60 days from the invoice
               date (except as provided below), accounts subject
               to any contingencies (such as payments due only
               upon acceptance), accounts owing from governmental
               agencies, accounts owing from an account debtor
               outside the United States or Canada (except for
               those described on the attached Exhibit B or
               otherwise pre-approved in writing by Silicon in
               its discretion, or backed by a letter of credit
               satisfactory to Silicon, or FCIA insured
               satisfactory to Silicon), accounts owing from one
               account debtor to the extent they exceed 25% of
               the total eligible accounts outstanding, accounts
               owing from an affiliate of the Borrower, and
               accounts owing from an account debtor to whom the
               Borrower is or may be liable for goods purchased
               from such account debtor or otherwise.  In
               addition, if more than 25% of the accounts owing
               from an account debtor are outstanding more than
               60 days from the invoice date or are otherwise not
               eligible accounts, then all accounts owing from
               that account debtor will be deemed ineligible for
               borrowing.  All other accounts shall be deemed
               eligible accounts unless Silicon, in its
               reasonable discretion, deems the account to be
               ineligible for valid credit reasons.  Accounts
               owing from the following customers of Borrower
               shall not be deemed ineligible merely because such
               accounts may be more than 60 days from the date of
               invoice, but shall be ineligible based on age
               according to the following eligibility periods:

               Customer                 Eligibility Period

               Moovies (Tonight's Feature         0 to 90 days
               Super Movie Exchange               0 to 90 days
               Bradley Video                 0 to 90 days
               1 Hr Photo & Video            0 to 105 days
               Sulpizio One                  0 to 120 days
               Hollywood Entertainment       0 to 120 days

Interest Rate: The interest rate applicable to the Secured
               Operating Line of Credit shall be (a) a rate equal
               to the "Prime Rate" in effect  from time to time,
               calculated on the basis of a 360-day year for the
               actual number of days elapsed; or (b) a rate equal
               to the LIBOR Rate, all as set forth in the
               Interest Rate Supplement to Agreement.

Commitment
Fee:                     $15,625, which is fully earned and
               payable at closing and which is non-refundable.
               Borrower shall pay a second commitment fee in the
               amount of $15,625 for the second year of this
               facility on or before that date which is one year
               from the date of execution of this Amended and
               Restated Schedule to Loan and Security Agreement.

Unused
Commitment Fee:Borrower shall pay an Unused Commitment Fee on the
               unused portion of the Secured Operating Line of
               Credit equivalent to one-eighth of one percent
               (0.125%) of the unused amount.  This amount shall
               be measured quarterly, and the fee shall be due
               and payable each quarter in arrears.

Maturity Date:      December 18, 1999, at which time all unpaid
               principal and accrued but unpaid interest shall be
               due and payable.

Prior Names of
Borrower:           National Video, Inc.

Trade Names of
Borrower:           See attached Exhibit C

Trademarks of
Borrower:           See attached Exhibit C

Other Locations
and Addresses:      Rentrak Corporation
                    3512 State Route 735
                    Wilmington, Ohio  45177

Material Adverse
Litigation:         None.

Financial
Covenants:     Borrower shall at all times comply with all of the
following covenants:

Quick Ratio:   Borrower shall at all times maintain a ratio of
               cash plus accounts receivable to current
               liabilities less deferred revenue of not less than
               0.60:1.00, increasing to not less than 0.75:1.00
               following the dissolution of the remaining reserve
               for discontinued operations.

Tangible Net
Worth:              Borrower shall at all times maintain a
               Tangible Net Worth (defined below) of not less
               than $10,500,000 for the quarter ending
               December 31, 1997, and not less than $10,500,000
               plus 50% of Borrower's cumulative quarterly net
               income, beginning with the quarter ending
               March 31, 1998, and continuing for each quarter
               thereafter.  Borrower's Tangible Net Worth shall
               be measured on a quarterly basis.

Debt to Tangible
Net Worth Ratio:

                         Borrower shall at all times maintain a
               ratio of total liabilities (excluding deferred
               revenues and subordinated debt) to Tangible Net
               Worth (defined below) of not more than 2.75:1.00,
               decreasing to not more than 2.00:1.00 following
               the dissolution of the remaining reserve for
               discontinued operations.  To be excluded from
               liabilities, subordinated debt must be
               subordinated to the Obligations pursuant to a
               written agreement in form and substance acceptable
               to Silicon.

Profitability: Borrower shall not incur a loss in excess of
               $350,000 for any fiscal quarter, and shall not
               incur any loss in two consecutive quarters.
               Borrower shall not incur a loss, in the aggregate,
               for any fiscal year.  For purposes of this
               paragraph, "loss" means net income, after taxes,
               of less than $0.00, determined based on Borrower's
               financial statements.

Definitions:   "Current Liabilities" shall have the meaning
               ascribed to that term in accordance with generally
               accepted accounting principles (excluding deferred
               revenues).

                         "Tangible Net Worth" means stockholders'
               equity plus debt subordinated to Silicon's debt,
               less goodwill, patents, capitalized software
               costs, deferred organizational costs, trade names,
               trademarks, and all other assets which would be
               classified as intangible assets under generally
               accepted accounting principles.

Other Covenants:

               Borrower shall at all times comply with all of the
following additional covenants:

                         Banking Relationship.  Borrower shall at
               all times maintain its primary banking
               relationship with Silicon.  Borrower shall not
               establish any deposit accounts of any type with
               any bank or other financial institution other than
               Silicon without Silicon's prior written consent.

Conditions to
Closing:            Without in any way limiting the discretionary
               nature of advances under this Agreement, before
               requesting any such advance, the Borrower shall
               satisfy each of the following conditions:

1.   Loan
               Documents:     Silicon shall have received the
               Loan Modification Agreement, this Amended and
               Restated Schedule to Loan and Security Agreement,
               a Security Agreement in Copyrighted Works, an
               Interest Rate Supplement to Agreement, and such
               other loan documents as Silicon shall require,
               each duly executed and delivered by the Borrower.

2.   Documents
  Relating to
  Authority,
               Etc.:          Silicon shall have received each of
               the following in form and substance satisfactory
               to it:

                         (a)  Certified Copies of the Articles of
               Incorporation and Bylaws of the Borrower;

                         (b)  A Certificate of Good Standing
               issued by the Oregon Secretary of State with
               respect to the Borrower;

                         (c)  A certified copy of a Resolution
               adopted by the Board of Directors of the Borrower
               authorizing the execution, delivery and
               performance of this Schedule and any other
               documents or certificates to be executed by the
               Borrower in connection with this transaction;

                         (d)  Incumbency Certificates describing
               the office and identifying the specimen signatures
               of the individuals signing all such loan documents
               on behalf of the Borrower; and

3.Perfection
 and Priority
               of Security:   Silicon shall have received
               evidence satisfactory to it that its security
               interest in the Collateral has been duly perfected
               and that such security interest is prior to all
               other liens, charges, security interests,
               encumbrances and adverse claims in or to the
               Collateral other than Permitted Liens, which
               evidence shall include, without limitation, a
               certificate from the Oregon State Secretary of
               State showing the due filing and first priority of
               the UCC Financing Statements to be signed by the
               Borrower covering the Collateral, and evidence of
               the due filing of the Security Agreement in
               Copyrighted Works with the United States Copyright
               Office.

4.             Insurance:     Silicon shall have received
               evidence satisfactory to it that all insurance
               required by this Agreement is in full force and
               effect, with loss payee designations and
               additional insured designations as required by
               this Agreement.

5.   Other
               Information:   Silicon shall have received such
               other statements, opinions, certificates,
               documents and information with respect to matters
               contemplated by this Agreement as it may
               reasonably request.

Silicon and the Borrower agree that the terms of this Schedule
supplement the Loan and Security Agreement between Silicon and
the Borrower and agree to be bound by the terms of this Schedule.

                         Borrower:

                              RENTRAK CORPORATION



                              By:
                              Title:


                         Silicon:

                              SILICON VALLEY BANK



                              By:
                              Title:


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