Document:

exv10w2

 

     EXHIBIT 10.2

eXegenics INC.

October 16, 2003

VIA OVERNIGHT DELIVERY

Ronald L. Goode, Ph.D.

eXegenics Inc.

2110 Research Row

Dallas, Texas 75235

     Dear Dr. Goode:

     Reference is made to the Employment Agreement dated as of March 21, 2001,
by and between you and eXegenics Inc., as amended by that certain letter
agreement dated September 9, 2003 (together, the “Employment Agreement”).
Notwithstanding Section 3 of the Employment Agreement, and pursuant to Section
13.2 thereof, this letter will confirm that Section 3 of the Employment
Agreement is hereby amended and restated to read in its entirety as follows:

The employment of Executive by the Company hereunder (the EMPLOYMENT
PERIOD) shall commence on the date hereof and shall continue through and
including March 20, 2004, unless sooner terminated pursuant to the
provisions of this Agreement. The employment of Executive hereunder
shall be automatically renewed on a year-to-year basis on the same terms
and conditions as the preceding year, unless either party hereto, not
less than ninety (90) days prior to the end of the initial or a renewal
term hereof, serves notice on the other party of his or its intention not
to renew this Agreement for an additional one-year term.

     If you are in agreement with the foregoing, please so indicate by signing
in the space provided below.

	 	 	 	 	 
	 	 	Very truly yours,	 
	 	 	 	 	 
	 	 	eXegenics Inc.	 
	 	 	 	 	 
	 	 	By:	/s/ David Riggs	 
	 	 	 	
	 
	 	 	Name:	David Riggs	 
	 	 	Title:	Chief Financial Officer	 

Accepted and Agreed:

/s/ Ronald L. Goode

Ronald L. Goode, Ph.D.

Dated: September 9, 2003

	 	 	 
	cc:	 	
McCullough, Campbell & Lane
	 	 	
Suite 4100
	 	 	
205 North Michigan Avenue
	 	 	
Chicago, Illinois 60601
	 	 	
Attention: Carl D. Liggio, Sr.<PAGE>
                                                                   EXHIBIT 10.27

When Recorded, Return To:
THE FROST NATIONAL BANK
P.O. Box 1600
San Antonio, Texas 78296
Attention:  Loan No. 8294746-0100
Loan Documentation Department, RB-2
--------------------------------------------------------------------------------
[LOGO] MODIFICATION, RENEWAL AND EXTENSION AGREEMENT

THE STATE OF TEXAS   Section
                     Section
COUNTY OF TARRANT    Section

     THIS MODIFICATION, RENEWAL AND EXTENSION AGREEMENT ("Agreement") is entered
into this 27th day of October, 2003, by and between THE FROST NATIONAL BANK, a
national banking association ("Lender"), and CRAFTMADE INTERNATIONAL, INC., a
Delaware corporation ("Borrower").

                                   RECITALS:

     A. Lender is the sole owner and holder of that one certain Revolving
Promissory Note (the "Note") dated November 6, 2001, executed by Borrower and
payable to the order of Lender in the original principal amount of Twenty
Million and No/100 Dollars ($20,000,000).

     B. Borrower and Lender entered into a Loan Agreement, dated November 21,
2001, as amended by a First Amendment to Loan Agreement effective as of August
13, 2003 (collectively, the "Loan Agreement").

     C. The Note is secured by a Security Agreement dated November 6, 2001,
between Borrower and Lender, covering certain collateral as more particularly
described therein; a Security Agreement dated November 6, 2001, between Trade
Source International, Inc., a Delaware corporation, and Lender, covering certain
collateral as more particularly described therein; a Security Agreement dated
November 6, 2001, between Durocraft International, Inc., a Texas corporation,
and Lender, covering certain collateral as more particularly described therein;
and a Security Agreement dated November 6, 2001, between Design Trends, LLC, a
Delaware limited liability company, and Lender, covering certain collateral as
more particularly described therein (collectively, the "Security Agreements").
The Note, Loan Agreement, Security Agreements and all modifications, renewals
and extensions described below are hereafter collectively referred to as the
"Loan Documents."

     D. The Note matured in accordance with its terms on October 31, 2003.

<PAGE>

     E. Borrower has requested that Lender modify certain provisions of the Loan
Agreement, all as hereinafter provided, and in consideration thereof Borrower
has made certain agreements with Lender as hereinafter more fully set forth.

     F. Lender has agreed to such requests, subject to the terms and conditions
set forth herein.

     NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and agreed, Borrower and Lender hereby agree as follows:

     1. Acknowledgment of Outstanding Balance. The parties hereto acknowledge
that the outstanding principal balance of the Note as of the date hereof is
SEVEN MILLION SEVEN HUNDRED THOUSAND AND NO/100 DOLLARS ($7,700,000.00) and the
amount available for advances is TWELVE MILLION THREE HUNDRED THOUSAND AND
NO/100 DOLLARS ($12,300,000.00).

     2. Renewal and Extension of Maturity. The Note is hereby renewed and the
maturity of the Note is hereby extended to October 31, 2005 (the "Revised
Maturity Date").

     3. Required Payments. From and after the effective date of this Agreement,
principal and interest under the Note shall be due and payable as follows:

     Interest only shall be due and payable monthly as it accrues on the last
     day of each and every calendar month, beginning November 30, 2003, and
     continuing regularly and monthly thereafter until October 31, 2005, when
     the entire amount hereof, principal and interest then remaining unpaid,
     shall be then due and payable; interest being calculated on the unpaid
     principal each day principal is outstanding and all payments made credited
     to any collection costs and late charges, to the discharge of interest
     accrued and to the reduction of the principal, in such order as Lender
     shall determine.

     4. Interest Rate. The annual interest rate provided for in the Note shall
continue to be charged from and after the effective date of this Agreement in
accordance with the Note.

     5. Loan Agreement. The following subsections of Section 9 "Financial
Covenants" of the Loan Agreement are hereby deleted in their entirety and
replaced with:

     (a) Debt to Worth Ratio. Borrower will maintain, at all times, a ratio of
     (a) total liabilities (excluding any Subordinated Debt), to (b) Tangible
     Net Worth of not greater than 2.0 to 1.0, tested quarterly.

     (c) Fixed Charge Coverage Ratio. Borrower will maintain, as of the end of
     each fiscal quarter, a ratio of (a) net income after taxes plus
     depreciation, amortization, other non-cash expenses and interest expense
     for the 12 month period ending with

                                       2
<PAGE>

     such fiscal quarter to (b) interest expense, dividends and capital
     expenditures for such 12 month period and current portion of long-term debt
     for the prior 12 month period, of not less than 1.25 to 1.0.

     6. Usury. No provisions of this Agreement or the Loan Documents shall
require the payment or permit the collection, application or receipt of interest
in excess of the maximum permitted by applicable state or federal law. If any
excess of interest in such respect is herein or in any such other instrument
provided for, or shall be adjudicated to be so provided for herein or in any
such instrument, the provisions of this paragraph shall govern, and neither
Borrower nor any endorsers of the Note nor their respective successors, assigns
or personal representatives shall be obligated to pay the amount of such
interest to the extent it is in excess of the amount permitted by applicable
law. It is expressly stipulated and agreed to be the intent of Borrower and
Lender to at all times comply with the usury and other laws relating to the Loan
Documents and any subsequent revisions, repeals or judicial interpretations
thereof, to the extent applicable thereto. In the event Lender or other holder
of the Note ever receives, collects or applies as interest any such excess, such
amount which would be excessive interest shall be applied to the reduction of
the unpaid principal balance of the Note and, if upon such application the
principal balance of the Note is paid in full, any remaining excess shall be
forthwith paid to Borrower and the provisions of the Loan Documents shall
immediately be deemed reformed and the amounts thereafter collectible thereunder
reduced, without the necessity of execution of any new document, so as to comply
with the then applicable law, but so as to permit the recovery of the fullest
amount otherwise called for thereunder. In determining whether or not the
interest paid or payable under any specific contingency exceeds the maximum
interest allowed to be charged by applicable law, Borrower and Lender or other
holder hereof shall, to the maximum extent permitted under applicable law,
amortize, prorate, allocate and spread the total amount of interest throughout
the entire term of the Note so that the amount or rate of interest charged for
any and all periods of time during the term of the Note is to the greatest
extent possible less than the maximum amount or rate of interest allowed to be
charged by law during the relevant period of time. Notwithstanding any of the
foregoing, if at any time applicable laws shall be changed so as to permit a
higher rate or amount of interest to be charged than that permitted prior to
such change, then unless prohibited by law, references in the Note to
"applicable law" for purposes of determining the maximum interest or rate of
interest that can be charged shall be deemed to refer to such applicable law as
so amended to allow the greater amount or rate of interest.

     7. RELEASE AND WAIVER OF CLAIMS. IN CONSIDERATION OF (i) THE MODIFICATION
OF CERTAIN PROVISIONS OF THE NOTE, AS HEREIN PROVIDED, AND (II) THE OTHER
BENEFITS RECEIVED BY BORROWER HEREUNDER, BORROWER HEREBY RELEASES, RELINQUISHES
AND FOREVER DISCHARGES LENDER, AS WELL AS ITS PREDECESSORS, SUCCESSORS, ASSIGNS,
AGENTS, OFFICERS, DIRECTORS, EMPLOYEES AND REPRESENTATIVES, OF AND FROM ANY AND
ALL CLAIMS, DEMANDS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY KIND OR
CHARACTER, PAST OR PRESENT, WHICH BORROWER MAY HAVE AGAINST LENDER AND ITS
PREDECESSORS, SUCCESSORS, ASSIGNS, AGENTS, OFFICERS, DIRECTORS, EMPLOYEES AND
REPRESENTATIVES ARISING OUT OF OR WITH RESPECT TO (a) ANY RIGHT OR POWER TO
BRING ANY CLAIM AGAINST LENDER FOR USURY OR TO PURSUE ANY CAUSE OF ACTION
AGAINST LENDER BASED ON ANY CLAIM OF USURY, AND (b) ANY AND ALL TRANSACTIONS
RELATING TO THE LOAN DOCUMENTS OCCURRING PRIOR TO THE DATE HEREOF, INCLUDING ANY
LOSS, COST OR DAMAGE, OF ANY KIND

                                       3
<PAGE>

OR CHARACTER, ARISING OUT OF OR IN ANY WAY CONNECTED WITH OR IN ANY WAY
RESULTING FROM THE ACTS, ACTIONS OR OMISSIONS OF LENDER, AND ITS PREDECESSORS,
SUCCESSORS, ASSIGNS, AGENTS, OFFICERS, DIRECTORS, EMPLOYEES AND REPRESENTATIVES,
INCLUDING ANY BREACH OF FIDUCIARY DUTY, BREACH OF ANY DUTY OF FAIR DEALING,
BREACH OF CONFIDENCE, BREACH OF FUNDING COMMITMENT, UNDUE INFLUENCE, DURESS,
ECONOMIC COERCION, CONFLICT OF INTEREST, NEGLIGENCE, BAD FAITH, MALPRACTICE,
INTENTIONAL OR NEGLIGENT INFLICTION OF MENTAL DISTRESS, TORTIOUS INTERFERENCE
WITH CONTRACTUAL RELATIONS, TORTIOUS INTERFERENCE WITH CORPORATE GOVERNANCE OR
PROSPECTIVE BUSINESS ADVANTAGE, BREACH OF CONTRACT, DECEPTIVE TRADE PRACTICES,
LIBEL, SLANDER OR CONSPIRACY, BUT IN EACH CASE ONLY TO THE EXTENT PERMITTED BY
APPLICABLE LAW.

     8. Reaffirmation of Representations, Etc. Borrower hereby reaffirms to
Lender each of the representations, warranties, covenants and agreements of
Borrower set forth in the Loan Documents.

     9. Enforceable Obligations. Borrower hereby ratifies, affirms, reaffirms,
acknowledges, confirms and agrees that the Loan Documents represent valid and
enforceable obligations of Borrower, and Borrower further acknowledges that
there are no existing claims, defenses, personal or otherwise, or rights of
setoff whatsoever with respect to the Note, and Borrower further acknowledges
and represents that no event has occurred and no condition exists which would
constitute a default under the Loan Documents or this Agreement, either with or
without notice or lapse of time, or both.

     10. No Release of Liens. This Agreement in no way acts as a release or
relinquishment of the liens, security interests and rights (the "Liens") created
or evidenced by the Security Agreement. The Liens are hereby ratified and
confirmed by Borrower in all respects and are extended to secure (i) the
principal amount of the Note, (ii) all interest, charges and other sums payable
with respect thereto, and (iii) the performance of all other obligations under
the Security Agreement.

     11. Additional Renewals and Extensions. Notwithstanding anything to the
contrary contained herein or inferred hereby or in any other instrument executed
by Borrower or in any other action or conduct undertaken by Borrower on or
before the date hereof, the agreements, covenants and provisions contained
herein shall constitute the only evidence of Lender's consent to extend the
terms and provisions of the Loan Documents in the manner set forth herein. No
express or implied consent to any further extensions and/or modifications
involving any of the matters set forth in this Agreement or otherwise, shall be
inferred or implied from Lender's execution of this Agreement. Further, Lender's
execution of this Agreement shall not constitute a waiver (either express or
implied) of the requirement that any further extensions and/or modifications of
the Loan Documents shall require the express written approval of Lender, no such
approval (either express or implied) having been given as of the date hereof.

     12. Miscellaneous. (a) As modified hereby, the provisions of the Note and
the Security Agreement shall continue in full force and effect, and the Borrower
acknowledges and reaffirms its liability to Lender thereunder. In the event of
any inconsistency between this Agreement and the terms of the Loan Documents,
this Agreement shall govern.

                                       4
<PAGE>

     (b) Borrower hereby agrees to pay all costs and expenses incurred by Lender
in connection with the execution and administration of this Agreement and the
modification of the Loan Documents including, but not limited to, all appraisal
costs, title insurance costs, legal fees incurred by Lender and filing fees.

     (c) Any default by Borrower in the performance of its obligations herein
contained shall constitute a default under the Loan Documents and shall allow
Lender to exercise all of its remedies set forth in the Loan Documents.

     (d) Lender does not, by its execution of this Agreement, waive any rights
it may have against any person not a party to this Agreement.

     (e) In case any of the provisions of this Agreement shall for any reason be
held to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall not affect any other provision hereof, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.

     (f) This Agreement and the Loan Documents shall be governed and construed
according to the laws of the State of Texas (without regard to any conflict of
laws principles) and the applicable laws of the United States.

     (g) This Agreement shall be binding upon and inure to the benefit of
Lender, Borrower and their respective successors, assigns and legal
representatives.

     (h) Borrower hereby acknowledges and agrees that it has entered into this
Agreement of its own free will and accord and in accordance with its own
judgment after advice of its own legal counsel, and states that it has not been
induced to enter into this Agreement by any statement, act or representation of
any kind or character on the part of the parties hereto, except as expressly set
forth in this Agreement.

     (i) This Agreement may be executed in multiple counterparts, each of which
shall constitute an original instrument, but all of which shall constitute one
and the same agreement.

     (j) Except as modified herein, all other terms, conditions and provisions
of Loan Documents shall remain in full force and effect as of the date thereof
and Borrower acknowledges and reaffirms its liability to Lender thereunder.

     EXECUTED as of the day and year first above written.

                                       5
<PAGE>

BORROWER                                   LENDER:

CRAFTMADE INTERNATIONAL, INC., a           THE FROST NATIONAL BANK,
Delaware corporation                       a national banking

By:                                        By:
   -------------------------------            -------------------------------
   James R. Ridings, President                D. Michael Randall, Senior Vice
                                              President

                       Guarantor Ratification of Agreement

     By executing this Agreement, Design Trends, LLC, a Delaware limited
liability company; Durocraft International, Inc., a Texas corporation; Trade
Source International, Inc., a California corporation; and C/D/R/ Incorporated, a
Delaware corporation each as a Guarantor of the indebtedness evidenced by the
Note, as set forth in Guaranty Agreements (collectively, the "Guaranty") dated
November 6, 2001, hereby expressly agree (a) to all of the terms and provisions
of this Agreement, (b) to the continuing validity of the Guaranty and all duties
and obligations thereunder, (c) that its liability under the Guaranty shall not
be reduced, altered, limited, lessened or in any way affected by the execution
and delivery of this Agreement by the parties hereto, and (d) that the Guaranty
shall remain in full force and effect and enforceable in accordance with its
terms.

                                        Design Trends, LLC, a
                                        Delaware limited liability company

                                        By: Craftmade International, Inc., a
                                            Delaware corporation, Manager

                                        By:
                                           -----------------------------------
                                           James R. Ridings, President

                                        Durocraft International, Inc., a
                                        Texas corporation

                                        By:
                                           -----------------------------------
                                           Kathleen B. Oher, Secretary

                                        Trade Source International, Inc., a
                                        California corporation

                                        By:
                                           -----------------------------------
                                           Kathleen B. Oher, Secretary

                                       6
<PAGE>

                                        C/D/R Incorporated, a
                                        Delaware corporation

                                        By:
                                           -----------------------------------
                                           Clifford Crimmings, V.P. Marketing

THE STATE OF TEXAS      Section
                        Section
COUNTY OF TARRANT       Section

     This instrument was acknowledged before me on the 28th day of October,
2003, by D. Michael Randall, Senior Vice President of THE FROST NATIONAL BANK, a
national banking association, on behalf of said banking association.

                                    -------------------------------------------
                                    Notary Public in and for the State of Texas

THE STATE OF TEXAS       Section
                         Section
COUNTY OF TARRANT        Section

     This instrument was acknowledged before me on the 28th day of October,
2003, by James R. Ridings, President of Craftmade International, Inc., a
Delaware corporation, on behalf of said corporation.

                                    -------------------------------------------
                                    Notary Public in and for the State of Texas

THE STATE OF TEXAS       Section
                         Section
COUNTY OF TARRANT        Section

     This instrument was acknowledged before me on the 28th day of October,
2003, by James R. Ridings, President of Craftmade International, Inc., manager
of Design Trends, LLC, a Delaware limited liability company, on behalf of said
limited liability company.

                                    -------------------------------------------
                                    Notary Public in and for the State of Texas

                                       7
<PAGE>

THE STATE OF TEXAS       Section
                         Section
COUNTY OF TARRANT        Section

     This instrument was acknowledged before me on the 28th day of October,
2003, by Kathleen B. Oher, Secretary of each of Durocraft International, Inc., a
Texas corporation, and Trade Source International, Inc., a California
corporation, on behalf of said corporations.

                                    -------------------------------------------
                                    Notary Public in and for the State of Texas

THE STATE OF TEXAS       Section
                         Section
COUNTY OF TARRANT        Section

     This instrument was acknowledged before me on the 28th day of October,
2003, by Clifford Crimmings, Vice President of Marketing of C/D/R/ Incorporated,
a Delaware corporation, on behalf of said corporation.

                                    -------------------------------------------
                                    Notary Public in and for the State of Texas

PREPARED IN THE LAW OFFICE OF:

Cantey & Hanger, L.L.P.
Burnett Plaza, Suite 2100
801 Cherry Street, Unit #2
Fort Worth, Texas 76102-6821

                                       8

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