Document:

<PAGE>

                                                                Exhibit 10.1

                         WAIVER AND AMENDMENT NO. 1
                                     TO
              AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

                  THIS WAIVER AND AMENDMENT NO. 1 TO AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT ("Amendment") is dated as of March 11, 2004 and
is by and among FLEET CAPITAL CORPORATION, a Rhode Island corporation, and
the other parties identified as Lenders on the signature pages hereto
(collectively, "Lenders"), on the one hand, and FALCON PRODUCTS, INC., a
Delaware corporation, SHELBY WILLIAMS INDUSTRIES, INC., a Delaware
corporation and SELLERS & JOSEPHSON INC., a New Jersey corporation
(collectively, "Borrowers"), on the other hand. Capitalized terms used
herein but not otherwise defined herein shall have the respective meanings
assigned to such terms in the Loan Agreement referred to below.

                            W I T N E S S E T H:
                            -------------------

                  WHEREAS, Lenders, Borrowers, Fleet Capital Corporation, as
Agent, and OCM Principal Opportunities Fund II, L.P., as Tranche B Agent,
are parties to an Amended and Restated Loan and Security Agreement, dated as
of January 15, 2004 (as the same has been and may be amended or modified
from time to time, the "Loan Agreement"), pursuant to which the Lenders have
agreed to make certain loans and other financial accommodations to or for
the account of Borrowers;

                  WHEREAS, Borrowers have informed Agent and Tranche B Agent
of the existence of the Events of Default listed on Exhibit A (the "Existing
Events of Default");

                  WHEREAS, Borrowers have requested that Lenders waive the
Existing Events of Default;

                  WHEREAS, Lenders have agreed to waive the Existing Events
of Default on the terms and subject to the conditions hereinafter set forth;

                  WHEREAS, Borrowers and Lenders have agreed to amend the
Loan Agreement on the terms and subject to the conditions hereinafter set
forth;

                  NOW, THEREFORE, in consideration of the premises set forth
above, the terms and conditions contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the respective parties hereto hereby agree as follows:

                  1. Waivers. Subject to the satisfaction of the conditions
                     -------
set forth in Section 4 below, the undersigned Lenders waive the Existing
Events of Default. Other than as expressly set forth above, the foregoing
waivers shall not constitute waivers of any Events of Default or Defaults
that are now in existence or that may hereafter occur or any rights or
remedies that Agent, Tranche B Agent and Lenders may have under the Loan
Agreement, the

<PAGE>
<PAGE>

other Loan Documents or applicable law with respect thereto, all of which
rights and remedies Agent, Tranche B Agent and Lenders specifically reserve.

                  2. Amendments. Subject to the satisfaction of the
                     ----------
conditions set forth in Section 4 below, and in reliance upon the
representations and warranties of Borrowers set forth herein, the Loan
Agreement is hereby amended as follows:

                  (a) Section 2.1.1(b) of the Loan Agreement is amended by
(i) deleting the reference to "15.0%" and inserting "16.0%" in its place,
(ii) by deleting the reference to "9.0%" and inserting "10.0%" in its place,
and (iii) inserting the following sentence at the end of such Section:

                  Upon the delivery of financial statements pursuant to
         Section 8.1.3(ii) showing that EBITDA for the twelve (12) months
         ended on the date of such financial statements was more than
         $20,000,000, the interest rate applicable to Term Loan B PIK
         Interest shall be reduced to 9% per annum with a resulting decrease
         to 15% per annum in the overall interest rate applicable to Term
         Loan B.

                  (b) Section 2.6(a) of the Loan Agreement is amended and
restated to read as follows:

                  (a) At the effective date of termination of this Agreement
         for any reason, any prepayment of Term Loan A pursuant to
         subsection 3.3.5 or any reduction of the Revolving Loan Commitments
         pursuant to subsection 3.3.6, Borrowers shall jointly and severally
         pay to Agent, for the ratable benefit of Revolving Credit and Term
         Loan A Lenders (in addition to the then outstanding principal,
         accrued interest and other charges then due and owing under the
         terms of this Agreement and any of the other Loan Documents and any
         amounts then due and owing pursuant to subsection 3.2.5), as
         liquidated damages for the loss of the bargain and not as a
         penalty, an amount equal to (i) 1.5% of the sum of the aggregate
         amount of the Revolving Loan Commitments then being reduced or
         terminated and the outstanding amount of Term Loan A then being
         prepaid, if such termination, prepayment or reduction occurs during
         the first 12 month period of the Term (January 15, 2004 through
         January 14, 2005), (ii) 1.0% of the sum of the aggregate amount of
         the Revolving Loan Commitments then being reduced or terminated and
         the outstanding amount of Term Loan A then being prepaid, if such
         termination, prepayment or reduction occurs during the second 12
         month period of the Term (January 15, 2005 through January 14,
         2006), and (iii) 0.5% of the sum of the aggregate amount of the
         Revolving Loan Commitment then being reduced or terminated and the
         outstanding amount of Term Loan A then being prepaid, if such
         termination, prepayment or reduction occurs after January 14, 2006,
         but prior to the scheduled end of the Term.

                                    -2-

<PAGE>
<PAGE>

                  (c) Section 8.1 of the Loan Agreement is amended by
inserting the following new subsection 8.1.13 as follows:

                  8.1.13. Consultant. Borrowers shall, within thirty (30)
                          ----------
         days after written request by the Agent to do so, retain and
         thereafter shall continue to retain, at Borrowers' joint and
         several expense, a third party consultant reasonably satisfactory
         to Agent. Borrowers shall cause such consultant to provide to
         Borrowers, Agent and Tranche B Agent a comprehensive review of
         Borrowers' cash flows and pro-forma financial statements, review
         and assist in Borrowers' cash management (liquidity management),
         review Borrowers' general operating procedures, make
         recommendations as necessary, assist Borrowers' management in
         preparing and developing reports to Agent and Lenders and to
         perform such other advisory functions as are reasonably requested
         by Agent. Borrowers shall provide Agent, Tranche B Agent and
         Lenders with access to such consultant and shall cause such
         consultant to provide Agent and Lenders with such reports as shall
         be reasonably requested by Agent. Notwithstanding the foregoing,
         upon the delivery of financial statements pursuant to Section
         8.1.3(ii) showing that EBITDA for the twelve (12) months ended on
         the date of such financial statements was more than $25,000,000,
         Borrowers' shall no longer be required to retain such consultant
         (to the extent such consultant was ever required by the Agent).

                  (d) The definition of Term Loan B Prepayment Fee in
                                        --------------------------
Appendix to the Loan Agreement is amended and restated in its entirety to
read as follows:

                  Term Loan B Prepayment Fee - (a) with respect to any
                  --------------------------
         prepayment of Term Loan B that is made on or prior to the date
         which is eighteen (18) months after the Closing Date, an amount
         equal to 10% of the amount prepaid, (b) with respect to any
         prepayment of Term Loan B that is made after the date which is
         eighteen (18) months after the Closing Date but on or prior to the
         date which is thirty-six (36) months after the Closing Date, an
         amount equal to 5% of the amount prepaid, and (c) with respect to
         any prepayment of Term Loan B that is made after the date which is
         thirty-six (36) months after the Closing Date, zero.

                  (e) Section I (Fixed Charge Coverage) of Exhibit 8.3 to
the Loan Agreement is amended by (i) deleting "0.60" appearing opposite "4
fiscal quarter period ended on or about 4/30/04" and inserting "0.50" in its
place and (ii) deleting "0.70" appearing opposite "4 fiscal quarter period
ended on or about 7/31/04" and inserting "0.60" in its place.

                  (f) Section II (EBITDA) of Exhibit 8.3 to the Loan
Agreement is amended by (i) deleting "$15,000,000" appearing opposite "4
fiscal quarter period ended on or about 4/30/04" and inserting "$14,000,000"
in its place and (ii) deleting "$19,000,000" appearing opposite "4 fiscal
quarter period ended on or about 7/31/04" and inserting "$17,000,000" in its
place.

                                    -3-

<PAGE>
<PAGE>

                  (g) Section III (Consolidated Secured Funded Debt to
Consolidated EBITDA) of Exhibit 8.3 to the Loan Agreement is amended by (i)
deleting "4.25" appearing opposite "Period ended 4/30/04" and inserting
"5.10" in its place and (ii) deleting "4.00" appearing opposite "Period
ended 7/31/04" and inserting "4.20" in its place.

                  (h) Section IV (Minimum Domestic EBITDA) of Exhibit 8.3 to
the Loan Agreement is deleted.

                  3. Scope of Amendment. Subject to the satisfaction of the
                     ------------------
conditions set forth in Section 4 below and in reliance upon the
representations and warranties of Borrowers set forth therein, this
Amendment shall have the effect of amending the Loan Agreement as
appropriate to express the agreements contained herein. In all other
respects, the Loan Agreement and the other Loan Documents shall remain in
full force and effect in accordance with their respective terms.

                  4. Conditions to Effectiveness. The effectiveness of the
                     ---------------------------
waiver contained in Section 1 hereof and the amendments contained in Section
2 hereof are subject to the satisfaction of the condition precedent that
Agent shall have received counterparts of this Amendment executed by each
Borrower and each Lender and each Guarantor.

                  5. Representations, Warranties and Covenants. To induce
                     -----------------------------------------
Lenders to execute and deliver this Amendment, Borrowers hereby represent
and warrant to Lenders that, after giving effect to this Amendment:

                  (a) All representations and warranties contained in the
Loan Agreement and the other Loan Documents are true and correct in all
material respects on and as of the date of this Amendment, in each case as
if then made, other than representations and warranties that expressly
relate solely to an earlier date (in which case such representations and
warranties remain true and correct in all material respects on and as of
such earlier date).

                  (b) No Default or Event of Default has occurred which is
continuing.

                  (c) This Amendment, and the Loan Agreement, as amended
hereby, constitute legal, valid and binding obligations of Borrowers and are
enforceable against Borrowers in accordance with their respective terms.

                  (d) The execution and delivery by Borrowers of this
Amendment does not require the consent or approval of any Person, except
such consents and approvals as have been obtained.

                  6. Governing Law. THE VALIDITY, INTERPRETATION AND
                     -------------
ENFORCEMENT OF THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS AND DECISIONS OF THE STATE OF ILLINOIS,
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

                                    -4-

<PAGE>
<PAGE>

                  7. Headings. Section headings in this Amendment are
                     --------
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose.

                  8. Counterparts. This Amendment may be executed in any
                     ------------
number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument. Any such counterpart which may be delivered by facsimile
transmission shall be deemed the equivalent of an originally signed
counterpart and shall be fully admissible in any enforcement proceedings
regarding this Amendment.

                  9. Guarantor Reaffirmation. Each Guarantor hereby
                     -----------------------
reaffirms that the Loan Documents and such Guarantor's obligations
thereunder shall continue in full force and effect after giving effect to
this Amendment.

                  10. Expenses. Borrowers shall pay all reasonable expenses
                      --------
(including reasonable legal fees and expenses) incurred by Agent and Tranche
B Agent in connection with this Amendment.

                         [Signature pages to follow]

                                    -5-

<PAGE>
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered by their proper and duly
authorized officers as of the date first set forth above.

                                   LENDERS:

                                   FLEET CAPITAL CORPORATION
                                   As Agent and as sole Revolving Credit and
                                   Term Loan A Lender

                                   By:    /s/ Edward M. Bartkowski
                                          -----------------------------------
                                   Title: Senior Vice President
                                          -----------------------------------

                                   OCM PRINCIPAL OPPORTUNITIES FUND II,
                                   L.P., as sole Term Loan B Lender and as
                                   Tranche B Agent

                                   By:    Oaktree Capital Management, LLC
                                          Its General Partner

                                          By:    /s/ Christopher S. Brothers
                                                 ----------------------------
                                          Title: Managing Director
                                                 ----------------------------

                                          By:    /s/ Michael P. Harmon
                                                 ----------------------------
                                          Title: Senior Vice President
                                                 ----------------------------

<PAGE>
<PAGE>

                                   BORROWERS:

                                   FALCON PRODUCTS, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   SHELBY WILLIAMS INDUSTRIES, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   SELLERS & JOSEPHSON INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: Vice President
                                          -----------------------------------

<PAGE>
<PAGE>

                                   GUARANTORS:

                                   HOWE FURNITURE CORPORATION

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   FALCON HOLDINGS, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   THE FALCON COMPANIES INTERNATIONAL, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   MADISON FURNITURE INDUSTRIES, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   JOHNSON INDUSTRIES, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: President
                                          -----------------------------------

                                   EPIC FURNITURE GROUP, INC.

                                   By:    /s/ David L. Morley
                                          -----------------------------------
                                   Title: Vice President
                                          -----------------------------------

<PAGE>
<PAGE>

                                  EXHIBIT A

                              EXISTING DEFAULTS

1.       Borrowers' permitting the Fixed Charge Coverage Ratio, determined
         as of January 31, 2004, for the period of four consecutive fiscal
         quarters then ending, to be less than .60 to 1.0.

2.       Borrowers' failure to have Consolidated EBITDA of at least
         $15,000,000 for the 4 fiscal quarter period ended on or about
         January 31, 2004.

3.       Borrowers' failure to have a ratio of Consolidated Secured Funded
         Debt as of January 31, 2004 to Consolidated EBITDA for the period
         of four consecutive fiscal quarters ended January 31, 2004 of not
         more than 4.60x.

4.       Borrowers' permitting the EBITDA directly generated by Borrowers
         and their Domestic Subsidiaries for the fiscal quarter period ended
         January 31, 2004, to be less than 87.5% of the EBITDA of Borrowers
         and their Subsidiaries for such fiscal quarter period.<PAGE>

                                                               Exhibit 10(q)

                                  AGREEMENT
                                  ---------

This Agreement is entered into by and between Solutia Inc., a Delaware
corporation ("Solutia") and ______________ ("Employee"), and is dated as
of ________________, ______.

WHEREAS, Employee is employed by Solutia as ____________________.

WHEREAS, Solutia has determined that the continued employment of Employee
is critical to the success of Solutia;

WHEREAS, Solutia believes that establishing an incentive arrangement for
Employee will increase the likelihood that Solutia will continue to have
Employee's advice, counsel, leadership and dedication.

NOW, THEREFORE, for good and valuable consideration, Solutia and Employee,
intending to be bound, agree as set forth in this Agreement.

1)       EMPLOYMENT
         ----------

         a)   Employee's employment with Solutia during the Employment
              Period will be under the same terms and conditions as those
              that applied immediately prior to the date of this Agreement
              (or as subsequently amended from time to time). The
              "Employment Period" for purposes of this Agreement shall mean
              the period beginning on the date of this Agreement and ending
              December 31, 2004.

         b)   Nothing in this Agreement is intended, and nothing herein will
              be construed, to conflict with or supersede the terms of any
              prior agreement(s) between Employee and Solutia regarding
              Employee's employment with Solutia, or the ability of Employee
              or Solutia to terminate such employment; the obligations
              imposed herein are in addition to the obligations imposed by
              such agreement(s) and not in substitution therefor.

         c)   During the Employment Period, Employee will:

              i)   devote all business time to the duties of employment with
                   Solutia;

              ii)  perform all duties of employment with Solutia faithfully
                   and effectively and to the best of Employee's ability;

                                Page 1 of 5

<PAGE>
<PAGE>

              iii) act in the best interests of Solutia and its shareholders
                   and engage in no conflict of interest with Solutia.

2)       COMPENSATION; INCENTIVE AGREEMENT
         ---------------------------------

         a)   During the Employment Period, Solutia will compensate Employee
              in accordance with the terms and conditions in effect
              immediately prior to the date of this Agreement (as amended
              from time to time), including eligibility for an award under
              the terms of the Solutia Inc. Annual Incentive Plan ("AIP").
              Any awards under the AIP shall be made at the same time as
              awards are generally made to other Solutia employees under the
              AIP. Nothing in this Agreement shall be construed to provide
              Employee with the right to participate in the AIP or any other
              incentive or benefit plan as in effect immediately prior to
              the date of this Agreement if Solutia determines to change or
              terminate such plan and the change or termination is generally
              applicable to employees who are similarly situated to
              Employee.

         b)   In addition to the foregoing, subject to Section 2(c) below,
              Employee shall receive a special incentive award (the "Special
              Award"). The amount of the Special Award will be ________ % of
              Employee's base salary as of the date of the Special Award
              payment.

         c)   The Special Award will be paid in two (2) equal installments,
              less any required withholding, as soon as practicable on or
              after June 30, 2004 and December 31, 2004, provided that the
              following conditions have been met:

              i)   Employee is (1) continuously employed by Solutia from the
                   date of this Agreement; or (2) Employee was involuntarily
                   terminated without Cause at any time after the date of
                   this Agreement; or (3) in the event of Employee's death
                   or total and permanent disability or disability for any
                   occupation (as defined in the applicable Solutia
                   disability plan) ("Disability"); and

              ii)  Employee has fulfilled the obligations set forth in
                   Section 1 of this Agreement, in the judgment of the CEO
                   of Solutia or his designee.

         d)   Notwithstanding anything contained herein to the contrary:

              i)   If, prior to an applicable installment payment date
                   during the Employment Period, Employee (i) retires or
                   terminates employment with Solutia (other than as a
                   result of death or Disability); (ii) announces his intent
                   to so retire or terminate employment; or (iii) is
                   terminated by Solutia for Cause, Employee will not
                   receive any portion of the Special Award installment
                   payment applicable to that installment period. "Cause" as
                   used in this Agreement shall include willful misconduct,
                   dishonesty, insubordination, conviction of a felony or
                   its equivalent, gross negligence in the performance of
                   Employee's duties, the illegal use of drugs or controlled
                   substances and violation of Solutia's

                                Page 2 of 5

<PAGE>
<PAGE>

                   policies (including without limitation Solutia's
                   Guidelines for Employee Conduct) in such a manner as to
                   expose the employer to administrative, civil or criminal
                   liability;

              ii)  If Employee is not actively employed for the entire
                   installment period due to disability, sick leave, family
                   leave, or other approved leave of absence, but is
                   otherwise eligible for a Special Award, the Award will be
                   pro-rated to cover only the time actively employed plus
                   any qualifying leave (up to 12 weeks) under the federal
                   Family Medical Leave Act, but will not cover any other
                   disability or other leave. Employee must return to active
                   employment in order to qualify for the Special Award
                   installment, and will be paid only after he or she so
                   returns.

              iii) Payment of the Special Award terminates any and all
                   obligations of Solutia under this Agreement.

              iv)  If Employee is eligible for a retention award or bonus
                   under any other Solutia retention plan, agreement, or
                   arrangement, Employee must waive his or her rights to
                   such other retention award or bonus in order to be
                   eligible for the Special Award hereunder.

              v)   If Solutia files for relief under Chapter 11 of U.S.
                   Bankruptcy Code, then this Agreement will be subject to
                   approval by the U.S. Bankruptcy Court, and shall be
                   retroactively null and void if such approval is not
                   obtained.

              vi)  Solutia retains the right to condition payment of any
                   portion of the Special Award on Employee signing a waiver
                   and release, in a form acceptable to Solutia.

3)       GENERAL
         -------

         a)   Employee agrees not to disclose the existence of this
              Agreement or any of its terms to anyone other than Employee's
              spouse and a financial or legal advisor who agrees in writing
              to be bound not to make any such disclosure. Notwithstanding
              anything to the contrary in this Agreement, in the event this
              Agreement or its terms are disclosed by Employee, Employee's
              spouse or a legal or financial advisor, Employee will not
              receive any portion of the Special Award.

         b)   All amounts required by law to be withheld from any payment
              made pursuant to this Agreement, including any and all amounts
              required to be withheld by the Internal Revenue Code or by the
              Federal Insurance Contribution Act, any applicable state or
              foreign country's income tax act, any applicable city, county
              or municipality's earnings or income tax act, will be
              withheld.

         c)   This Agreement will be binding upon and inure to the benefit
              of Employee and Employee's estate, and Solutia and any
              successor, direct or indirect, of Solutia,

                                Page 3 of 5

<PAGE>
<PAGE>

              whether such succession, direct or indirect, of Solutia,
              results from a merger, consolidation, liquidation,
              reorganization, purchase of securities, acquisition of assets
              or otherwise.

         d)   The interests of Employee under this Agreement are not subject
              to the claims of Employee's creditors and may not be
              voluntarily or involuntarily sold, transferred, alienated,
              assigned, pledged, anticipated or encumbered. Any attempt by
              Employee or any other person or entity to sell, transfer,
              alienate, assign, pledge, anticipate, encumber, charge or
              otherwise dispose of any right to benefits payable hereunder
              will be void and shall terminate any obligation of Solutia
              hereunder to make payment. At no time will any interest or
              other charge be due or payable on any amounts owing hereunder.

         e)   The payment provided under this Agreement is not intended to
              qualify under Section 401 of the Internal Revenue Code and
              will be paid from the general assets of Solutia or a third
              party. Nothing contained herein shall require Solutia to
              segregate any monies from its general funds or to create any
              trusts, or to make any special deposits for amounts payable to
              Employee. In no case will any amounts paid under this
              Agreement be taken into account in determining any of
              Employee's Solutia benefits, including without limitation
              savings and investment plan contributions, pension, life
              insurance and disability or in determining any other incentive
              award or compensation.

         f)   Any provision in this Agreement which is prohibited or
              unenforceable in any jurisdiction will, as to such
              jurisdiction, be ineffective only to the extent of such
              prohibition or unenforceability without invalidating or
              affecting the remaining provisions hereof, and any such
              prohibition or unenforceability in any jurisdiction will not
              invalidate or render unenforceable such provision in any other
              jurisdiction.

         g)   Solutia has full power and authority in its sole discretion to
              construe, interpret, and administer this Agreement. Decisions
              of Solutia shall be final, conclusive, and binding on all
              parties hereto.

         h)   This Agreement will in all respects be governed by, and
              construed in accordance with, the laws of the State of
              Delaware, without reference to conflicts of law principles
              thereunder.

         i)   This Agreement constitutes the entire agreement between the
              parties with respect to the subject matter hereof and
              supersede all prior agreements, oral and written, between the
              parties hereto with respect to the subject matter hereof, if
              any.

         j)   In the event of any breach by Employee of any term or
              condition set forth in this Agreement, Employee's right to
              receive the Special Award shall immediately be forfeited.

                                Page 4 of 5

<PAGE>
<PAGE>

         k)   The Employee acknowledges that Employee has carefully read
              this Agreement in its entirety, fully understands its
              provisions and its final and binding effect, and that Employee
              is signing this Agreement voluntarily.

         IN WITNESS WHEREOF, the parties have duly executed and delivered
         this Agreement as of the date first written above.

                                        SOLUTIA INC.

                                        By:   _____________________________
                                               Susan E. Bevington

                                        Title: Vice President, Human Resources

Accepted and Agreed to

EMPLOYEE:

By:   ________________________________

      ________________________________
      Printed Name

                                Page 5 of 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]