Item 1.01 Entry into a Material Definitive Agreement
? Extended the maturity date to
June 30, 2015. ? Decreased the maximum principal amount available under the Letter of Credit subfeature from $10.0 millionto $2.5 million. ? Added two Company subsidiaries, Convergent Media Systems Corporationand Convergent Corporation, as guarantors. ? Eliminated consideration of non-cash charges relating to our legacy film projector business from the financial condition covenant pertaining maintenance of a minimum net profit before taxes. As modified, this covenant now requires the Company to maintain a minimum net profit before taxes plus or minus non-cash equity in income of the Digital Link II LLCjoint venture, of $1, measured quarterly, on a rolling 4-quarter basis. ? Replaced the aforementioned covenant with a financial covenant pertaining to the Company maintaining a minimum net profit before taxes plus or minus non cash equity in income of Digital Link II LLCjoint venture, of $1, measured quarterly, on a rolling 4-quarter basis, commencing with fiscal quarter ended December 31, 2014and continuing each fiscal quarter thereafter. ? Added a covenant requiring Working Capital of at least $20.0 millionat any time. ? Increased the maximum amount of operating lease expense in any fiscal year from $1.0 millionto $2.0 million.
The Third Amendment also contains certain other nonmaterial amendments to the Revolving Credit Agreement.
The Third Amendment preserves the Company's ability to request an increase in the Revolving Credit Agreement by up to an additional
The Note provides that borrowings under the Revolving Credit Agreement will bear interest at a rate equal to LIBOR plus 125 basis points. Interest on the Note is payable on a monthly basis beginning
This summary is qualified entirely by reference to the Revolving Credit Agreement, which was filed as Exhibit 4.1 to the Form 8-K filed on
Items 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The description of Third Amendment to the Company's
Item 9.01 Financial Statements and Exhibits
4.1 Third Amendment to Credit Agreement, dated
the Company to