Document:

Exhibit 10.1

                          WAIVER AND AMENDMENT NO. 1
                                      TO
                         LOAN AND SECURITY AGREEMENT

THIS WAIVER AND AMENDMENT NO. 1 (this "Amendment") is entered into as of October
31, 2000, by and between ATHEY PRODUCTS CORPORATION ("Borrower") and WELLS FARGO
BUSINESS CREDIT, INC., successor by assignment to Banc of America Commercial
Finance Corporation (formerly known as NationsCredit Commercial
Corporation)("Lender").

                                  BACKGROUND

      Borrower and Lender are parties to a Loan and Security Agreement dated as
of June 30, 1999 (as amended, restated, supplemented or otherwise modified from
time to time, the "Loan Agreement") pursuant to which Lender provides Borrower
with certain financial accommodations.

      Borrower has requested that Lender waiver the violation of the Maximum
Cumulative Net Loss covenant contained in the Loan Agreement and Lender is
willing to do so on the terms and conditions hereafter set forth.

      NOW, THEREFORE, in consideration of any loan or advance or grant of credit
heretofore or hereafter made to or for the account of Borrower by Lender, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

      1. Definitions. All capitalized terms not otherwise defined herein shall
have the meanings given to them in the Loan Agreement.

      2. Amendment to Loan Agreement. Subject to satisfaction of the conditions
precedent set forth in Section 4 below, Schedule A to the Loan Agreement is
hereby amended by amending Section 3 in its entirety to provide as follows:

            3. Interest Rates:

               (a)  Revolving Loans: 2.75% per annum in excess of the Prime Rate
               (b)  Term Loan: 2.75% per annum in excess of the Prime Rate

      3. Waiver. Subject to satisfaction of the conditions precedent set forth
in Section 4 below, Lender hereby waives the Event of Default which has occurred
or may occur as a result of the Maximum Cumulative Net Loss exceeding the
amounts permitted under the Loan Agreement but only to the extent that such
non-compliance occurred or occurs on or prior to November 30, 2000.

      4. Conditions of Effectiveness. This Amendment shall become effective upon
satisfaction of the following conditions precedent: (i) Lender shall have
received this Amendment in form and substance
<PAGE>

satisfactory to Lender executed by Borrower and (ii) Lender shall receive a fee
in the amount of $5,000 which shall be charged to Borrower loan account on the
date of this Amendment.

      5. Appraisal. Borrower agrees that Lender will retain an independent
appraisal firm to prepare an appraisal of the Inventory and that Borrower will
pay all costs and expenses. Additionally, Lender reserves the right to complete
appraisals on the Borrower's Equipment and Real Property where Borrower will pay
all costs and expenses.

      6. Representatives and Warranties. Borrower hereby represents and warrants
as follows:

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

            (b)Upon the effectiveness of this Amendment, Borrower hereby
reaffirms all covenants, representations and warranties made in the Loan
Agreement to the extent the same are not amended hereby and agree that all such
covenants, representations and warranties shall be deemed to have been remade as
of the effective date of this Amendment.

            (c)No Event of Default or Default has occurred and is continuing or
would exist after giving effect to this Amendment.

            (d)Borrower has no defense, counterclaim or offset with respect to
the Loan Agreement.

      7. Effect on the Loan Agreement.

            (a)Upon the effectiveness of Section 2 hereof, each reference in the
Loan Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of
like import shall mean and be a reference to the Loan Agreement as amended
hereby.

            (b)Except as specifically amended herein, the Loan Agreement, and
all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.

            (c)The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided in Section 3, operate as a waiver of any
right, power or remedy of Lender, nor constitute a waiver of any provision of
the Loan Agreement, or any other documents, instruments or agreements executed
and/or delivered under or in connection therewith.

      8. Governing Law. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns and
shall be governed by and construed in accordance with the laws of the State of
New York.
<PAGE>

      9. 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.

      10. Counterparts; Facsimile. This Amendment may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed an original
and all of which when taken together shall constitute one and the same
agreement. Any signature delivered by a party by facsimile transmission shall be
deemed to be an original signature hereto.

      IN WITNESS WHEREOF, this Amendment has been duly executed as of the day
and year first written above.

                           ATHEY PRODUCTS CORPORATION

                           By: /s/ Thomas N. Nelson
                               --------------------------
                               Name:  Thomas N. Nelson
                               Title: President and CEO

                                 WELLS FARGO BUSINESS CREDIT, INC.

                           By: /s/ John C. Bambach
                               --------------------------
                               Name:  John C. Bambach
                               Title: Vice PresidentHOMEGOLD, INC.

                       FIRST AMENDMENT TO CREDIT AGREEMENT

Household Commercial Financial Services, Inc.
Woodale, Illinois 60191

Gentlemen:

    Reference is hereby made to that certain Credit Agreement dated as of May 2,
2000 (the "Credit Agreement") between the undersigned, Homegold, Inc., a South
Carolina corporation (the "Borrower") and you (the "Lender"). All capitalized
terms used herein without definition shall have the same meanings herein as such
terms have in the Credit Agreement.

    The Borrower has requested that the Lender increase the amount of the
Commitment under the Credit Agreement from $40,000,000 to initially $50,000,000
subject to further increases, upon the satisfaction of certain conditions, up to
$100,000,000 and make certain other amendments to the Credit Agreement and the
Lender is willing to do so under the terms and conditions set forth in this
Amendment.

1.  AMENDMENTS.

    Upon your acceptance hereof in the space provided for that purpose below,
the Credit Agreement shall be and hereby is amended as follows:

    1.1. Section 1.1 of the Credit Agreement shall be amending the definition of
Commitment contained therein in its entirety to read as follows:

         "Commitment" means (i) $75,000,000 if and so long as there shall have
    been pledged (in a manner and pursuant to documentation satisfactory to the
    Lender in its sole discretion) in favor of the Lender a certificate of
    deposit (or other cash collateral acceptable to the Lender in its sole
    discretion) in an amount equal to or greater than $10,000,000 but less than
    $13,000,000, (ii) $100,000,000 if and so long as there shall have been
    pledged (in a manner and pursuant to documentation satisfactory to the
    Lender in its sole discretion) in favor of the Lender a certificate of
    deposit (or other cash collateral acceptable to the Lender in its sole
    discretion) in an amount equal to or greater than $13,000,000 and (iii)
    $50,000,000 at all other times.

    1.2. Section 2.1 of the Credit Agreement shall be amended by deleting "(i)
$40,000,000 (the "Commitment") (subject to any reductions thereof pursuant to
the terms hereof" and by substituting therefor "(i) the Commitment (subject to
any reductions thereof pursuant to the terms hereof".

    1.3. Exhibit A to the Credit Agreement shall be amended in its entirety and
as so amended shall read as set forth on Exhibit A attached hereto.
<PAGE>
    1.4. Any reference in the Credit Agreement or any other Loan Document to
"Note" or "Revolving Credit Note" shall be references to the Replacement
Revolving Credit Note delivered pursuant to 2.1 of this Amendment.

2.  CONDITIONS PRECEDENT.

    The effectiveness of this Amendment is subject to the satisfaction of all of
the following conditions precedent:

    2.1. The Borrower and the Lender shall have executed and delivered this
Amendment and the Borrower shall have executed and delivered to Lender a
replacement Revolving Credit Note in the form of Exhibit A to the Credit
Agreement as amended hereby.

    2.2. The Guarantors shall have consented hereto in the space provided for
such purpose below.

    2.3. Legal matters incident to the execution and delivery of this Amendment
shall be satisfactory to the Lender and its counsel.

    2.4. The Lender shall have received copies (executed or certified, as may be
appropriate) of all legal documents or proceedings taken in connection with the
execution and delivery of this Amendment to the extent the Lender or its counsel
may reasonably request.

3.  REPRESENTATIONS.

    In order to induce the Lender to execute and deliver this Amendment, the
Borrower hereby represents to the Lender that as of the date hereof, the
representations and warranties set forth in Section 5 of the Credit Agreement
are and shall be and remain true and correct (except that the representations
contained in Section 5.5 shall be deemed to refer to the most recent financial
statements of the Borrower delivered to the Lender) and the Borrower is in full
compliance with all of the terms and conditions of the Credit Agreement and no
Default or Event of Default has occurred and is continuing under the Credit
Agreement or shall result after giving effect to this Amendment.

4.  MISCELLANEOUS.

    4.1 The Borrower and the Guarantors have heretofore executed and delivered
to the Lender that certain Security Agreement dated as of May 2, 2000 (the
"Security Agreement"). The Borrower hereby, and the Guarantors by their consent
hereto in the space provided for that purpose below, each acknowledges and
agrees that, notwithstanding the execution and delivery of this Amendment, the
Security Agreement remains in full force and effect and the rights and remedies
of the Lender thereunder, the obligations of the Borrower and Guarantors
thereunder and the liens and security interests created and provided for
thereunder remain in full force and effect and shall not be affected, impaired
or discharged hereby. Nothing herein contained shall in any manner affect or
impair the priority of the liens and security interests created and provided for
by the Security Agreement as to the indebtedness which would be secured thereby
prior to giving effect to this Amendment.

                                      -2-
<PAGE>

    4.2. Except as specifically amended herein, the Credit Agreement shall
continue in full force and effect in accordance with its original terms.
Reference to this specific Amendment need not be made in the Credit Agreement or
any other instrument or document executed in connection therewith, or in any
certificate, letter or communication issued or made pursuant to or with respect
to the Credit Agreement, any reference in any of such items to the Credit
Agreement being sufficient to refer to the Credit Agreement as amended hereby.

    4.3. The Borrower agrees to pay on demand all costs and expenses of or
incurred by the Lender in connection with the negotiation, preparation,
execution and delivery of this Amendment, including the fees and expenses of
counsel for the Lender.

    4.4. This Amendment may be executed in any number of counterparts, and by
the different parties on different counterpart signature pages, all of which
taken together shall constitute one and the same agreement. Any of the parties
hereto may execute this Amendment by signing any such counterpart and each of
such counterparts shall for all purposes be deemed to be an original. This
Amendment shall be governed by the internal laws of the State of Illinois.

                                      -3-
<PAGE>
Dated as of May 30, 2000.

                                 HOMEGOLD, INC.

                                 By:________________________________________
                                 Name:______________________________________
                                 Its:_______________________________________

    Accepted and agreed to in Wood Dale, Illinois as of the date and year last
above written.

                                 HOUSEHOLD COMMERCIAL FINANCIAL SERVICES, INC.

                                 By:
                                    ______________________________________
                                             Michael J. Hammond
                                             Vice President

<PAGE>
                                    CONSENT

    The undersigned have heretofore executed and delivered to the Lender (i) a
Guaranty dated May 2, 2000 (the "Guaranty") and (ii) a Security Agreement dated
May 2, 2000 (the "Security Agreement"). Each of the undersigned hereby consents
to the Amendment to Credit Agreement set forth above and confirms that the
Guaranty and the Security Agreement and all of such undersigned's obligations
thereunder remain in full force and effect and, without limiting the foregoing,
acknowledges and agrees that the increased amount of credit made available to
the Borrower under the Credit Agreement pursuant to such Amendment constitutes
(a) indebtedness which is guarantied by the undersigned under the Guaranty and
(b) indebtedness which is secured by the Security Agreement. Each of the
undersigned further agrees that the consent of the undersigned to any further
amendments to the Credit Agreement shall not be required as a result of this
consent having been obtained, except to the extent, if any, required by the
Guaranty or Security Agreement.

                                    HOMEGOLD FINANCIAL, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    CAROLINA INVESTORS, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    PREMIER FINANCIAL SERVICES INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    LOAN PRO$, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>
                                    EMERGENT BUSINESS CAPITAL ASSET
                                    BASED LENDING, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    REEDY RIVER VENTURES, L.P.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT SBIC, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT COMMERCIAL MORTGAGE, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT BUSINESS CAPITAL, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>
                                    EMERGENT INSURANCE AGENCY CORP.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    EMERGENT MORTGAGE CORP. OF TENNESSEE

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

                                    HOMEGOLD REALTY, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>

                                    EXHIBIT A

                        REPLACEMENT REVOLVING CREDIT NOTE

$100,000,000                                                        May 30, 2000

    FOR VALUE RECEIVED, the undersigned, HOMEGOLD, INC., a South Carolina
corporation (the "Borrower"), promises to pay to the order of HOUSEHOLD
COMMERCIAL FINANCIAL SERVICES, INC. (the "Lender") on the Termination Date of
the hereinafter defined Credit Agreement, at the principal office of the Lender
in Wood Dale, Illinois, in immediately available funds, the principal sum of ONE
HUNDRED MILLION Dollars ($100,000,000) or, if less, the aggregate unpaid
principal amount of all Loans made by the Lender to the Borrower under the
Revolving Credit pursuant to such Credit Agreement and with each such Loan to
mature and become payable as provided in such Credit Agreement, together with
interest on the principal amount of each such Loan from time to time outstanding
hereunder at the rates, and payable in the manner and on the dates, specified in
the Credit Agreement.

    The Lender shall record on its books or records or on a schedule attached to
this Note, each Loan made by it pursuant to its Commitment, together with all
payments of principal and interest and the principal balances from time to time
outstanding hereon, provided that prior to the transfer of this Note all such
amounts shall be recorded on a schedule attached to this Note. The record
thereof, whether shown on such books or records or on the schedule to this Note,
shall be prima facie evidence of the same, provided, however, that the failure
of the Lender to record any of the foregoing or any error in any such record
shall not limit or otherwise affect the obligation of the Borrower to repay all
Loans made to it under the Revolving Credit pursuant to the Credit Agreement
together with accrued interest thereon.

    This Note is the Note referred to in the Credit Agreement dated as of May 2,
2000 as amended , between the Borrower and the Lender (such Credit Agreement as
the same may from time to time be amended or restated being referred to as the
"Credit Agreement") and payment hereof is secured by the Collateral Documents,
and this Note and the holder hereof are entitled to all the benefits provided
for thereby or referred to therein, to which Credit Agreement and Collateral
Documents reference is hereby made for a statement thereof. All defined terms
used in this Note, except terms otherwise defined herein, shall have the same
meaning as in the Credit Agreement.

    Prepayments may be made hereon, certain prepayments are required to be made
hereon and this Note may be declared due prior to the expressed maturity hereof,
all in the events, on the terms and in the manner as provided for in the Credit
Agreement and Collateral Documents.

    The Borrower hereby waives demand, presentment, protest or notice of any
kind hereunder.

<PAGE>

    This Note is issued in substitution and replacement for, and evidences the
indebtedness currently evidenced by that certain Revolving Credit Note of the
Borrower dated as of May 2, 2000 payable to the order of the Lender.

    This Note shall be governed by and construed in accordance with the laws of
the State of Illinois.

                                    HOMEGOLD, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

<PAGE>
                        REPLACEMENT REVOLVING CREDIT NOTE

$100,000,000                                                        May 30, 2000

    FOR VALUE RECEIVED, the undersigned, HOMEGOLD, INC., a South Carolina
corporation (the "Borrower"), promises to pay to the order of HOUSEHOLD
COMMERCIAL FINANCIAL SERVICES, INC. (the "Lender") on the Termination Date of
the hereinafter defined Credit Agreement, at the principal office of the Lender
in Wood Dale, Illinois, in immediately available funds, the principal sum of ONE
HUNDRED MILLION Dollars ($100,000,000) or, if less, the aggregate unpaid
principal amount of all Loans made by the Lender to the Borrower under the
Revolving Credit pursuant to such Credit Agreement and with each such Loan to
mature and become payable as provided in such Credit Agreement, together with
interest on the principal amount of each such Loan from time to time outstanding
hereunder at the rates, and payable in the manner and on the dates, specified in
the Credit Agreement.

    The Lender shall record on its books or records or on a schedule attached to
this Note, each Loan made by it pursuant to its Commitment, together with all
payments of principal and interest and the principal balances from time to time
outstanding hereon, provided that prior to the transfer of this Note all such
amounts shall be recorded on a schedule attached to this Note. The record
thereof, whether shown on such books or records or on the schedule to this Note,
shall be prima facie evidence of the same, provided, however, that the failure
of the Lender to record any of the foregoing or any error in any such record
shall not limit or otherwise affect the obligation of the Borrower to repay all
Loans made to it under the Revolving Credit pursuant to the Credit Agreement
together with accrued interest thereon.

    This Note is the Note referred to in the Credit Agreement dated as of May 2,
2000 as amended , between the Borrower and the Lender (such Credit Agreement as
the same may from time to time be amended or restated being referred to as the
"Credit Agreement") and payment hereof is secured by the Collateral Documents,
and this Note and the holder hereof are entitled to all the benefits provided
for thereby or referred to therein, to which Credit Agreement and Collateral
Documents reference is hereby made for a statement thereof. All defined terms
used in this Note, except terms otherwise defined herein, shall have the same
meaning as in the Credit Agreement.

    Prepayments may be made hereon, certain prepayments are required to be made
hereon and this Note may be declared due prior to the expressed maturity hereof,
all in the events, on the terms and in the manner as provided for in the Credit
Agreement and Collateral Documents.

    The Borrower hereby waives demand, presentment, protest or notice of any
kind hereunder.
<PAGE>

    This Note is issued in substitution and replacement for, and evidences the
indebtedness currently evidenced by that certain Revolving Credit Note of the
Borrower dated as of May 2, 2000 payable to the order of the Lender.

    This Note shall be governed by and construed in accordance with the laws of
the State of Illinois.

                                    HOMEGOLD, INC.

                                    By:________________________________________
                                    Name:______________________________________
                                    Its:_______________________________________

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