Execution Copy

  EXHIBIT 10.2

 

FOURTH OMNIBUS AMENDMENT

 

This Fourth Omnibus Amendment, dated as of July 11, 2005 (this “Amendment”), is
among ROWE FURNITURE, INC., a Virginia corporation (“Rowe Furniture”), THE ROWE
COMPANIES, a Nevada corporation (“Rowe Companies”), ROWE PROPERTIES, INC., a
California corporation, STOREHOUSE, INC., a Georgia corporation, ROWE
DIVERSIFIED, INC., a Delaware corporation, and ROWE FURNITURE WOOD PRODUCTS,
INC. (formerly known as The Wexford Collection, Inc.), a California corporation
(“Guarantors”), ATLANTIC FINANCIAL GROUP, LTD., a Texas limited partnership (the
“Lessor”), certain financial institutions parties hereto as a lender
(individually, a “Lender” and collectively, the “Lenders”) and SUNTRUST BANK (as
successor to Crestar Bank), a Georgia banking corporation, as agent for the
Lenders (in such capacity, the “Agent”).

 

BACKGROUND

 

1. Rowe Furniture, the Guarantors, The Mitchell Gold Co. (subsequently released
from its obligations thereunder), the Lessor, the Lenders and the Agent entered
into that certain Master Agreement, dated as of August 27, 1999, as amended by
the First Modification to Synthetic Lease Financing Operative Documents, dated
as of October 11, 2000, by the Omnibus Amendment, dated as of May 15, 2002, and
by the Second Omnibus Amendment, dated as of December 1, 2003, the Third Omnibus
Amendment, dated as of February 24, 2005, and that certain letter agreement
dated April 18, 2005 (the “Master Agreement”).

 

2. The parties hereto desire to amend the Master Agreement and certain of the
other Operative Documents.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1 Definitions. Capitalized terms used in this Amendment and not
otherwise defined herein shall have the meanings assigned thereto in the Master
Agreement.

 

SECTION 2 Covenants From Fleet Loan Agreement. The parties hereto hereby agree
that the covenants and continuing agreements set forth in Sections 9.2.9 and 9.3
of the Fleet Loan Agreement (as hereinafter defined), together with the defined
terms used therein, each as in effect on the date hereof, are hereby
incorporated by reference as if fully set forth herein. In the event that the
Fleet Loan Agreement is amended or terminated after the date hereof, Rowe
Furniture shall promptly notify the Agent thereof in writing, which notice shall
be accompanied by the form of such amendment or of any replacement loan or
credit agreement, as applicable. If requested by the Required Funding Parties,
those portions of the amendment to, or replacement of, the Fleet Loan Agreement
as are designated by the Required Funding Parties shall amend or replace the
covenants incorporated herein by reference. Unless amended or replaced pursuant
to

 

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Execution Copy

 

the foregoing sentence, or otherwise with the written agreement of the Required
Funding Parties, the covenants and definitions incorporated herein by reference
shall be those covenants and definitions as they exist on the date of this
Amendment, and shall continue as such, notwithstanding any subsequent amendment
or waiver thereof, or any subsequent termination of the Fleet Loan Agreement.

 

SECTION 3 Definitions. The definition of “Fleet Loan Agreement” set forth in
Appendix A to the Master Agreement is hereby deleted, and the following shall be
substituted therefore, in appropriate alphabetical order:

 

“Fleet Loan Agreement” means the Loan and Security Agreement, dated as of May
15, 2002, among The Rowe Companies, Rowe Diversified, Inc., Rowe Furniture Wood
Products, Inc., Rowe Properties, Inc., Storehouse, Inc., Rowe Furniture, Inc.,
The Mitchell Gold Co. (subsequently released from its obligations thereunder),
the various financial institutions party thereto and Fleet Capital Corporation,
as Agent, as amended by that certain letter amendment dated as of June 17, 2002,
the Second Amendment to Loan and Security Agreement dated October 10, 2002, the
Third Amendment to Loan and Security Agreement dated February 28, 2003, the
Fourth Amendment to Loan and Security Agreement dated April 2, 2003, the Fifth
Amendment to Loan and Security Agreement dated as of November 30, 2003, the
Sixth Amendment to Loan and Security Agreement dated as of September 23, 2004,
the Seventh Amendment to Loan and Security Agreement dated as of February 24,
2005, the letter agreement dated April 14, 2005, and the Ninth Amendment to Loan
and Security Agreement dated as of the date hereof.

 

SECTION 4 Modification Fee. The Lessee shall pay to the Agent, for its own
account, a modification fee in the amount of $20,000 in immediately available
funds on the date hereof, and all other costs and expenses incurred by the Agent
in connection with the preparation, negotiation and execution of this Amendment,
including without limitation, legal expenses of counsel to the Agent.

 

SECTION 5 Document Deliveries. The Lessee shall deliver to the Agent the
following, each of which shall be satisfactory in form and substance to the
Agent, as of the date of this Amendment: (i) the certificate the secretary or an
assistant secretary of each of the Lessee and of the Guarantors certifying to
the incumbency of the officers executing this Amendment and attaching
resolutions of each of such Persons authorizing the execution and delivery
hereof (ii) an opinion of counsel to the Lessee and the Guarantors, and (iii) a
copy of the duly executed Ninth Amendment to Loan and Security Agreement dated
as of the date hereof, among the Lessee, the Guarantors, the various financial
institutions party thereto and Fleet Capital Corporation, as agent.

 

SECTION 6 Reaffirmation of Guaranty. Each Guarantor represents, warrants and
affirms that, after giving effect to this Amendment (i) the Guaranty remains in
full force and effect and guaranties all of the payment and performance
obligations of Rowe Furniture under the Operative Documents, and (ii) the
Guaranty continues to be secured by the collateral pledged in connection
therewith.

 

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SECTION 7 Representations. The Lessee hereby represents, warrants and affirms
that, after giving effect to this Amendment, (i) no Event of Default or
Potential Event of Default has occurred and is continuing, (ii) the Operative
Documents remain in full force and effect and (iii) the deeds of trust executed
by Rowe Furniture and dated May 15, 2001 with respect to properties in
Christiansburg, Virginia, Salem, Virginia and Butler County, Missouri remain in
full force and effect and secure all of the obligations of the Lessee under the
Operative Documents.

 

SECTION 8 Miscellaneous. This Amendment shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Virginia. This Amendment may be
executed by the parties hereto in separate counterparts (including by facsimile)
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same agreement. Each of the
Master Agreement, the Lease and the Loan Agreement, as amended hereby, remains
in full force and effect. Any reference to the Master Agreement, the Lease or
the Loan Agreement from and after the date hereof shall be deemed to refer to
the Master Agreement, the Lease or the Loan Agreement, as the case may be, as
amended hereby, unless otherwise expressly stated. Rowe Furniture shall promptly
pay, or shall reimburse the Agent for, all out-of-pocket costs and expenses
incurred by the Agent in connection with this Amendment, including, without
limitation, reasonable legal fees and expenses, appraisal costs and
environmental assessment fees and expenses.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective duly authorized officers as of the year first above written.

 

ROWE FURNITURE, INC., as Lessee By:  

/s/ Garry W. Angle

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    Garry W. Angle Its:  

Assistant Secretary

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THE ROWE COMPANIES, as a Guarantor By:  

/s/ Garry W. Angle

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    Garry W. Angle Its:  

Vice President-Treasury Mgmt.

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ROWE PROPERTIES, INC., as a Guarantor By:  

/s/ Garry W. Angle

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    Garry W. Angle Its:  

Assistant Secretary

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STOREHOUSE, INC., as a Guarantor By:  

/s/ Garry W. Angle

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    Garry W. Angle Its:  

Assistant Secretary

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[signature page follows]

 

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ROWE DIVERSIFIED, INC., as a Guarantor By:  

/s/ Garry W. Angle

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    Garry W. Angle Its:  

Treasurer

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ROWE FURNITURE WOOD PRODUCTS, INC., as a Guarantor By:  

/s/ Garry W. Angle

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    Garry W. Angle Its:  

Assistant Secretary

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SUNTRUST BANK, as Lender and as Agent By:  

/s/ Susan K. Still

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Name Printed:  

Susan K. Still

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Title:  

SVP

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ATLANTIC FINANCIAL GROUP, LTD.,

as Lessor

By:  

Atlantic Financial Managers, Inc.,

its General Partner

    By:  

/s/ Stephen S. Brookshire

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    Name Printed:  

Stephen S. Brookshire

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    Title:  

President

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