Exhibit 10.2

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of
February 18, 2005 is by and among HOOKER FURNITURE CORPORATION, a Virginia
corporation (the “Borrower”), THE PERSONS IDENTIFIED AS THE LENDERS ON THE
SIGNATURE PAGES HERETO (the “Lenders”), and BANK OF AMERICA, N.A., as Agent for
the Lenders (the “Agent”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that certain Credit Agreement dated as of April 30, 2003,
as amended from time to time (the “Existing Credit Agreement”) among the
Borrower, the Lenders and the Agent, the Lenders have extended commitments to
make certain credit facilities available to the Borrower;

 

WHEREAS, the Borrower has requested that the Lenders make certain amendments to
the Existing Credit Agreement; and

 

WHEREAS, the Lenders have agreed to do so, as more fully set forth below, but
only on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the agreements herein contained and other
good and valuable consideration, the parties hereby agree as follows:

 

PART I

DEFINITIONS

 

SUBPART 1.1. Certain Definitions. Unless otherwise defined herein or the context
otherwise requires, the following terms used in this Amendment, including its
preamble and recitals, have the following meanings:

 

“Amended Credit Agreement” means the Existing Credit Agreement as amended
hereby.

 

“First Amendment Effective Date” shall have the meaning set forth in Subpart
3.1.

 

SUBPART 1.2. Other Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Amendment, including its preamble and
recitals, have the meanings provided in the Amended Credit Agreement.

 

--------------------------------------------------------------------------------

PART II

AMENDMENTS TO EXISTING CREDIT AGREEMENT

 

SUBPART 2.1. Amendment to Section 1.1. Effective on (and subject to the
occurrence of) the First Amendment Effective Date, the definition of “Revolving
Loan Maturity Date”, in Section 1.1 of the Existing Credit Agreement is hereby
amended in its entirety to read as follows:

 

“Revolving Loan Maturity Date” means March 1, 2008.

 

SUBPART 2.2. Amendment to Schedule 2.01. Effective on (and subject to the
occurrence of) the First Amendment Effective Date, Schedule 2.01 of the Existing
Credit Agreement is hereby amended to read as provided on Schedule 2.01 attached
hereto.

 

PART III

CONDITIONS TO EFFECTIVENESS

 

SUBPART 3.1. First Amendment Effective Date. This Amendment shall be and become
effective as of the date hereof when all of the conditions set forth in this
Part III shall have been satisfied (the “First Amendment Effective Date”), and
thereafter this Amendment shall be known, and may be referred to, as the “First
Amendment.”

 

SUBPART 3.2. Execution of Counterparts of Amendment. The Agent shall have
received counterparts of this Amendment, which collectively shall have been duly
executed on behalf of the Borrower, the Agent and the Lenders.

 

SUBPART 3.3. Fees and Expenses. The Borrower shall have paid all reasonable fees
and expenses of the Agent and the Lenders in connection with this Amendment and
the extensions of credit hereunder.

 

PART IV

MISCELLANEOUS

 

SUBPART 4.1. Cross-References. References in this Amendment to any Part or
Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

 

SUBPART 4.2. References in Other Credit Documents. At such time as this
Amendment shall become effective pursuant to the terms of Subpart 3.1, all
references in the Existing Credit Agreement to the “Credit Agreement” and all
references in the other Loan Documents to the “Credit Agreement” shall be deemed
to refer to the Amended Credit Agreement.

 

SUBPART 4.3. Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants that (a) the representations and warranties contained in
Article V of the Existing Credit Agreement (as amended by this Amendment) are
correct in all material respects on and as of the date hereof as though made on
and as of such date and after giving effect to the

 

- 2 -

--------------------------------------------------------------------------------

amendments contained herein, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be
true and correct in all material respects as of such earlier date, and except
that for purposes of this Subpart 4.3, the representations and warranties
contained in subsections (a) and (b) of Section 5.05 of the Existing Credit
Agreement shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01 and (b) no
Default or Event of Default exists under the Existing Credit Agreement on and as
of the date hereof and after giving effect to the amendments contained herein.

 

SUBPART 4.4 Ratification and Reaffirmation. Each Loan Party hereby ratifies the
Loan Documents to which it is a party and acknowledges and reaffirms (a) that it
is bound by all terms of such Loan Documents (as amended hereby) applicable to
it and (b) that it is responsible for the observance and full performance of its
respective Obligations under such Loan Documents.

 

SUBPART 4.5 Instrument Pursuant to Existing Credit Agreement. This Amendment is
a Loan Document executed pursuant to the Existing Credit Agreement and shall
(unless otherwise expressly indicated therein) be construed, administered and
applied in accordance with the terms and provisions of the Amended Credit
Agreement.

 

SUBPART 4.6 No Other Changes. Except as expressly modified and amended by this
Amendment, the Existing Credit Agreement and all other Loan Documents shall
continue in full force and effect and all the terms, provisions and conditions
of the Loan Documents shall remain unchanged.

 

SUBPART 4.7 Severability. Any provision of this Amendment held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SUBPART 4.8. Counterparts. This Amendment may be executed by the parties hereto
in several counterparts, each of which shall be deemed to be an original and all
of which shall constitute together but one and the same agreement. Delivery of
executed counterparts of this Amendment by telecopy shall be effective as an
original and shall constitute a representation that an original shall be
delivered.

 

SUBPART 4.9. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE COMMONWEALTH OF VIRGINIA WITHOUT
GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

 

SUBPART 4.10. Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

[The remainder of this page is intentionally left blank.]

 

- 3 -

--------------------------------------------------------------------------------

Each of the parties hereto has caused a counterpart of this Amendment to be duly
executed and delivered as of the date first above written.

 

BORROWER:                     HOOKER FURNITURE CORPORATION,
a Virginia corporation            

By:

  LOGO [g71833img003.jpg]            

Name:

 

Paul B. Toms, Jr.

           

Title:

 

Chief Executive Officer

           

By:

  LOGO [g71833img004.jpg]            

Name:

 

Douglas C. Williams

           

Title:

 

President

 

--------------------------------------------------------------------------------

AGENT:      

BANK OF AMERICA, N.A., as Agent

           

By:

  LOGO [g71833img006.jpg]            

Name:

 

Greg L. Richards

           

Title:

 

S.V.P.

LENDERS:      

BANK OF AMERICA, N.A., as a Lender

           

By:

  LOGO [g71833img007.jpg]            

Name:

 

Greg L. Richards

           

Title:

 

S.V.P.

        BRANCH BANKING & TRUST CO. OF VIRGINIA,
as a Lender            

By:

  LOGO [g71833img005.jpg]            

Name:

 

J. H. Sorre III

           

Title:

 

Senior Vice President

 

--------------------------------------------------------------------------------

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO RATA SHARES

 

Lender

--------------------------------------------------------------------------------

   Revolving
Commitment

--------------------------------------------------------------------------------

  

Tranche A

Term Loan
Commitment

--------------------------------------------------------------------------------

  

Tranche B

Term Loan
Commitment

--------------------------------------------------------------------------------

   Pro Rata
Share

--------------------------------------------------------------------------------

 

Bank of America, N.A.

   $ 12,000,000.00    $ 14,655,347.72    $ 19,600,000.00    80 %

Branch Banking & Trust Co. of Virginia

   $ 3,000,000.00    $ 3,663,836.93    $ 4,900,000.00    20 %

Total

   $ 15,000,000.00    $ 18,319,184.65    $ 24,500,000.00    100 %