LCA VISION INC
AMENDMENT TO CASH FLOW COVENANT 12/21/98
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<DESCRIPTION>AMENDMENT TO CASH FLOW COVENANT 12/21/98
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt" align=right><B>Exhibit 10(k)</B></P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:186.9pt; line-height:10pt; font-size:10pt">December 21, 1998</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">Larry Rapp</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">Chief Financial Officer</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">LCA-Vision, Inc.</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">7840 Montgomery Road</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">Cincinnati, OH 45236</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:-11pt; padding:0pt; text-indent:0pt; line-height:11pt; font-size:11pt">RE:</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:20.65pt; line-height:11pt; font-size:11pt">Amendment to cash flow<I> </I>coverage covenant </P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">Dear Larry,</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:36pt; font-size:11pt">This letter will serve as Provident Bank&#8217;s consent to amend Section 6.5 and 6.5.1 of the Loan and Security Agreement between LCA-Vision and the Bank dated June 29, 1998 as follows:</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt"><U>EBITDA to Debt Service</U></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt"><BR></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:-11pt; padding-left:70pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-34.85pt; line-height:11pt; font-size:11pt">6.5</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding-left:70pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:0pt; line-height:11pt; font-size:11pt">Permit the ratio of EBITDA to the sum of: (i) current maturities of Senior Debt (for purposes of this covenant, current maturities of senior debt will include only 12 monthly payments totaling $139,992 which represents the current portion of a certain term loan in the original amount of $2,100,000 secured by a C.D. in the amount of $2,100,000) and capitalized lease payments plus (ii) interest expense, each to be calculated for the same period, to be less than 1.5 for the following periods:</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; line-height:-12.15pt; font-size:11pt"><BR></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; line-height:-12.15pt; font-size:11pt"><BR></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:-11pt; padding-left:103.75pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-33.75pt; line-height:11pt; font-size:11pt">6.5.1</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding-left:103.75pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-0.05pt; line-height:11pt; font-size:11pt">For the quarter ending 12/31/98, EBITDA for the quarter ending 12/31/98 will be annualized; for the quarter ending 3/31/99, accumulated EBITDA for the quarters ending 12/31/98 and 3/31/99 will be annualized; for the quarter ending 6/30/99, accumulated EBITDA for the quarters ending 12/31/98, 3/31/99, and 6/30/99 will be annualized.</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; line-height:-12.15pt; font-size:11pt"><BR></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:-11pt; padding-left:103.75pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-33.75pt; line-height:11pt; font-size:11pt">6.5.2</P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding-left:103.75pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-0.05pt; line-height:11pt; font-size:11pt"><I></I>For the fiscal quarters ending on 9/30/99<B> </B>and thereafter, calculated at the end of each fiscal quarter on an historical trailing four quarter basis.</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:27pt; line-height:-12.15pt; font-size:11pt">Larry, if you are in agreement, please indicate by signing below, otherwise call me with questions. Thank you for your help on this matter and, Happy Holidays!</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; line-height:-12.15pt; font-size:11pt"><BR></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding-left:265.9pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-63.4pt; font-size:11pt">Sincerely</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding-left:265.9pt; padding-top:0pt; padding-right:0pt; padding-bottom:0pt; text-indent:-63.4pt; font-size:11pt">Vice President</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">AGREED AND ACKNOWLEDGED:</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">LCA-Vision, Inc.</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">By: &nbsp;<U>/s/ Larry Rapp</U></P>
<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Larry Rapp</P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">Its: &nbsp;<U>CFO and Treasurer</U></P>
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<P style="margin-left:79.2pt; margin-top:0pt; margin-bottom:0pt; padding:0pt; text-indent:0pt; font-size:11pt">Date: &nbsp;<U>23 December 1998</U></P>
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