Credit Agreement [Amendment] - Rentrak Corp. and Wells Fargo Bank NA
June 16, 2003
Mr. Mark Thoenes, CFO
Rentrak Corporation
One Airport Center
7700 NE Ambassador
Place Portland, OR 97220
Dear Mark:
We have approved an extension of the $4,500,000 line of credit through 10/1/03.
The only change to the existing covenant structure is a reduction in the minimum
tangible net worth from $16,000,000 to $15,000,000.
Borrower: Rentrak Corporation.
Type of Credit: Secured Revolving Line of Credit.
Principal Amount: Four Million Five Hundred Dollars ($4,5000,000).
Purpose: To assist with working capital needs.
Interest Rate: Option 1: Wells Fargo Bank's Prime Rate. As of
June 16, 2003 our Prime Rate equaled 4.25% which
would result in an initial floating
rate of 4.25%.
Option 2: A variable rate based on
the London Interbank Offering Rate
plus two percent (LIBOR + 2.00%). On
June 16, 2003 the one month LIBOR
index equaled 1.11% which would
result in an initial rate of 3.11%.
Maturity: October 1, 2003.
Commitment or Loan Fee: 0.188% of the unused commitment, payable quarterly
in arrears.
Collateral: Secured by a blanket lien on all assets of the
company.
Guaranties: All subsidiaries.
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The entire credit package shall be governed by a credit agreement that shall
include the following:
Covenants: Rentrak Corporation shall maintain a minimum
Current Ratio of 1.10:1.0, measured quarterly.
Current ratio is defined as current assets divided
by current liabilities.
Rentrak Corporation shall maintain a
maximum Leverage Ratio of 1.50:1.0,
measured quarterly. Leverage ratio
shall be defined as the ratio of
Total Liabilities to Tangible Net
Worth.
Rentrak Corporation shall maintain a
minimum Tangible Net Worth of
$15,000,000 measured quarterly.
Reporting: Annual CPA Reviewed Financial Statements of Rentrak
Corporation within 120 days of fiscal year-end.
Company Prepared Financial Statements
of Rentrak Corporation within 45 days
of each fiscal quarter-end.
If you have any questions please feel free to contact me.
Sincerely,
WELLS FARGO BANK,
NATIONAL ASSOCIATION
By: /s/ Victoria Vohs
Title: Vice President