IMAGE ENTERTAINMENT INC
EXHIBIT 10.1
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<BR></FONT><FONT SIZE=2><B>AMENDMENT NUMBER FIVE TO<BR>  LOAN AND SECURITY AGREEMENT    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS AMENDMENT NUMBER FIVE TO LOAN AND SECURITY AGREEMENT </B></FONT><FONT SIZE=2>(this "Amendment") dated February&nbsp;28, 2002 (the
"Fifth Amendment Date") and effective as of December&nbsp;31, 2001 (the "Fifth Amendment Effective Date"), is made by and between </FONT><FONT SIZE=2><B>FOOTHILL CAPITAL CORPORATION,  </B></FONT><FONT SIZE=2>a California corporation ("Foothill"),
with a place of business located at 2450 Colorado Avenue, Suite 3000 West, Santa Monica, California 90404, and </FONT> <FONT SIZE=2><B>IMAGE ENTERTAINMENT,&nbsp;INC.</B></FONT><FONT SIZE=2>, a California corporation ("Borrower"), with its chief
executive office located at 9333 Oso Avenue, Chatsworth,
California 91311, with reference to the following facts: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS, </B></FONT><FONT SIZE=2>Borrower has requested that Foothill amend that certain Loan and Security Agreement dated as of December&nbsp;28, 1998, as
amended from time to time, between Foothill and Borrower (as amended, the "Agreement") as set forth herein; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS, </B></FONT><FONT SIZE=2>Foothill is willing to so amend the Agreement in accordance with the terms and conditions hereof. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW, THEREFORE, </B></FONT><FONT SIZE=2>in consideration of the above recitals and the mutual promises contained herein, Foothill and Borrower hereby agree as
follows: </FONT></P>

<P><FONT SIZE=2><B>SECTION 1. DEFINED TERMS.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement. </FONT></P>


<P><FONT SIZE=2><B>SECTION 2. AMENDMENTS TO THE AGREEMENT.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Section&nbsp;2.1(a)(i)(w) </I></FONT><FONT SIZE=2>of the Agreement is hereby amended and restated in its entirety as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;an
amount equal to Borrower's collections with respect to Accounts for the immediately preceding seventy-five (75)&nbsp;day period; </FONT> <FONT SIZE=2><I>plus</I></FONT></P>

</UL>

<P><FONT SIZE=2><B>SECTION 3. REPRESENTATIONS AND WARRANTIES.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower hereby represents and warrants to Foothill that (a)&nbsp;the execution, delivery, and performance of this Amendment and of the Agreement, as amended by
this Amendment, are within its corporate powers, have been duly authorized by all necessary corporate action, and are not in contravention of any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court, or governmental authority, or of the terms of its charter 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, and (b)&nbsp;this Amendment and the Agreement, as amended by this Amendment, constitute Borrower's legal, valid, and binding obligation, enforceable
against Borrower in accordance with its terms. </FONT></P>

<P><FONT SIZE=2><B>SECTION 4. CONDITIONS PRECEDENT TO AMENDMENT.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The satisfaction of each of the following, on or before the Fifth Amendment Date, unless waived or deferred by Foothill in its sole discretion, shall constitute
conditions precedent to the effectiveness of this Amendment: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;The
representations and warranties in this Amendment, the Agreement as amended by this Amendment, and the other Loan Documents shall be true and correct in all 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); </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;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 or Foothill; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;All
other documents, agreements, instruments, and legal matters in connection with the transactions contemplated by this Amendment shall have been delivered or executed
or recorded and shall be in form and substance satisfactory to Foothill and its counsel; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;The
due execution and delivery of this Amendment by each party hereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;Foothill
shall have received an amendment fee of $18,500, which fee shall be charged directly to Borrower's Loan Account. </FONT></P>


<P><FONT SIZE=2><B>SECTION 5. FURTHER ASSURANCES.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall execute and deliver all agreements, documents, and instruments, in form and substance satisfactory to Foothill, and take all actions as Foothill
may reasonably request from time to time fully to consummate the transactions contemplated under this Amendment and the Agreement, as amended by this Amendment. </FONT></P>

<P><FONT SIZE=2><B>SECTION 6. MISCELLANEOUS.  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Upon
the effectiveness of this Amendment, each reference in the Agreement to "this Agreement", "hereunder", "herein", "hereof" or words of like import referring to the
Agreement shall mean and refer to the Agreement as amended by this Amendment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Upon
the effectiveness of this Amendment, each reference in the Loan Documents to the "Loan Agreement", "thereunder", "therein", "thereof" or words of like import
referring to the Agreement shall mean and refer to the Agreement as amended by this Amendment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;This
Amendment shall be governed by and construed in accordance with the laws of the State of California. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;This
Amendment can only be amended by a writing signed by both Foothill and Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;This
Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be
deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by telefacsimile 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 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any
other agreement, oral or written, before the date hereof. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>[Signature
page follows.] </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above. </FONT></P>

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<TD WIDTH="49%"><FONT SIZE=2><B>IMAGE ENTERTAINMENT, INC.,</B></FONT><FONT SIZE=2><BR>
a California corporation</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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<TD WIDTH="49%"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEFF M. FRAMER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>By: Jeff M. Framer</FONT></TD>
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<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Title: CFO</FONT></TD>
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<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><B>FOOTHILL CAPITAL CORPORATION,</B></FONT><FONT SIZE=2><BR>
a California corporation</FONT></TD>
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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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<TD WIDTH="49%"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>TRENT A. SMART</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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<TD WIDTH="49%"><FONT SIZE=2>By: Trent A. Smart</FONT></TD>
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<TD WIDTH="49%"><FONT SIZE=2>Title: Vice President</FONT></TD>
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