Document:

SWANK, INC

EXHIBIT 10.01

SWANK, INC.

1994 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

NON-QUALIFIED STOCK OPTION CONTRACT

THIS NON-QUALIFIED STOCK OPTION CONTRACT entered into as of the 10th day of August 2004, between Swank, Inc., a Delaware corporation (the "Company"), and John J. Macht (the "Optionee").

W I T N E S S E T H

	
1.
	
The Company, in accordance with the terms and conditions of the 1994 Non-Employee Director Stock Option Plan of the Company (the "Plan"), grants as of August 10, 2004 to the Optionee an option to purchase an aggregate of 1,667 shares of the Common Stock, $.10 par value per share, of the Company ("Common Stock"), at $.37 per share, being 100% of the fair market value of such shares of Common Stock on such date.

	
2.
	
The term of this option shall be 5 years from August 10, 2004, subject to earlier termination as provided in this Contract and in the Plan.  This option shall be immediately exercisable as to 100% of the number of shares of Common Stock subject hereto.

	
3.
	
This option shall be exercised by giving written notice to the Company at its principal office, presently 90 Park Avenue, New York, New York 10016, Attention: Treasurer, stating that the Optionee is exercising this stock option, specifying the number of shares being purchased and accompanied by payment in full of the aggregate purchase price thereof in cash or by check.  In no event may a fraction of a share of Common Stock be purchased under this option.

	
4.
	
Notwithstanding the foregoing, and without limiting the provisions of paragraph 11 of the Plan, this option shall not be exercisable by the Optionee unless (a) a registration statement under the Securities Act of 1933, as amended (the "Securities Act") with respect to the shares of Common stock to be received upon the exercise of the option shall be effective and current at the time of exercise or (b) there is an exemption from registration under the Securities Act for the issuance of the shares of Common Stock upon exercise.  At the request of the Board of Directors, the Optionee shall execute and deliver to the Company his representation and warranty, in form and substance satisfactory to the Board of Directors, that the shares of Common Stock to be issued upon the exercise of the option are being acquired by the Optionee for his own account, for investment only and not with a view to the resale or distribution thereof without the meaning of the Securities Act.  Nothing herein shall be construed so as to obligate the Company to register the shares subject to the option under the Securities Act.

	
5.
	
Notwithstanding anything herein to the contrary, if at any time the Board of Directors shall determine, in its discretion, that the listing or qualification of the shares of Common Stock subject to this option on any securities exchange or under any applicable law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of an option, or the issue of shares of Common Stock thereunder, this option may not be exercised in whole or in part unless such listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board of Directors, in its discretion.

	
6.
	
Nothing in the Plan or herein shall confer upon the Optionee any right to continue as a director of the Company.

 

	
 

7.
	
The Company may endorse or affix appropriate legends upon the certificates for shares of Common Stock issued upon exercise of this option and may issue such "stop transfer" instructions to its transfer agent in respect of such shares as it determines, in its discretion, to be necessary or appropriate to (a) prevent a violation of, or to perfect an exemption from, the registration requirement of the Securities Act, or (b) implement the provisions of the Plan or any agreement between the Company and the Optionee with respect to such shares of Common Stock.

	
8.
	
The Company and the Optionee agree that they will both be subject to and bound by all of the terms and conditions of the Plan, a copy of which is attached hereto and made part hereof. In the event the Optionee is no longer a director of the Company or in the event of his death or disability (as defined in the Plan), his rights hereunder shall be governed by and be subject to the provisions of the Plan.  In the event of a conflict between the terms of this Contract and the terms of the Plan, the terms of the Plan shall govern.

	
9.
	
The Optionee represents and agrees that he will comply with all applicable laws relating to the Plan and the grant and exercise of the option and the disposition of the shares of Common Stock acquired upon exercise of the option, including without limitation, federal and state securities and "blue sky" laws.

	
10.
	
This option is not transferable otherwise than by will or the laws of descent and distribution and may be exercised, during the lifetime of the Optionee, only by him or his legal representatives.

	
11.
	
This Contract shall be binding upon and inure to the benefit of any successor or assign of the Company and to any heir, distributee, executor, administrator or legal representative entitled under the Plan and by law to the Optionee's rights hereunder.

	
12.
	
This Contract shall be governed by and construed in accordance with the laws of the State of Delaware.

	
13.
	
The invalidity or illegality of any provision herein shall not affect the validity of any other provision.

	
14.
	
The Optionee agrees that the Company may amend the Plan and the options granted to the Optionee under the Plan, subject to the limitations contained in the Plan.

IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written.

	 	
SWANK, INC.

	 	 
	 	 
	 	
By:  /s/ Jerold R. Kassner

	 	 
	 	
Its:  Chief Financial Officer

	 	 
	 	 
	 	
/s/ John J. Macht 

	
	
Optionee

	 	 
	 	
                               John J. Macht                             

	
	

	 	
                                14 Valley Rd.                            

	 	
Address

	
	

	 	
                        Chestnut Hill, MA 02467SWANK, INC

EXHIBIT 10.02

SWANK, INC.

90 PARK AVENUE

NEW YORK, NEW YORK 10017

 

                                                     September 23, 2004

Mr. Eric P. Luft

15 Fenimore Lane

Huntington, New York 11743

Dear Mr. Luft:

         We refer to the Amended and Restated Employment Agreement dated December 18, 2003 between Swank, Inc. ("Swank") and you (as amended to date, the "Agreement").  Capitalized terms used but not defined in this letter have the meanings assigned to those terms in the Agreement.

         This will confirm our agreement that, notwithstanding the provisions of the Agreement, (a) the last day of the present Employment Term shall be March 31, 2005, and the notice that may be given by either you or Swank under Section 1 of the Agreement that the present Employment Term shall not be extended may be given by either Swank or you on or prior to March 14, 2005, (b) in the event that neither you nor Swank notify the other that the Employment Term shall not be extended, the Employment Term shall be extended until June 30, 2006, and thereafter, further extensions and notices that the Employment Term shall not be extended, as the case may be, shall be in accordance with the terms of the Agreement, and (c) in the event you shall provide notice on or prior to March 14, 2005 that the present Employment Term shall not be so extended, (i) Swank shall pay to you, provided you shall not at any time be in violation of paragraph 6, a severance payment, payable in installments in accordance with Swank's regular pay intervals for its executive officers, equal to $68,000, less all required deductions and withholdings, and (ii) the provisions of Section 6(a) shall be applicable for a period of three (3) months (through June 30, 2005).  

         Except as provided above, the Agreement shall remain in full force and effect in accordance with its terms.

         Kindly confirm your agreement to the foregoing by signing this letter below and returning a copy to Swank.

	 	
Very truly yours,

	 	 	 
	 	
SWANK, INC.

	 	 	 
	
	
By:
	
/s/ John Tulin

	
	
	

	 	 	
John Tulin, President

	 	 	 
	
Agreed:
	 	 
	 	 	 
	
/s/ Eric P. Luft
	 	 
	
	
	

	
Eric P. LuftFIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

This FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment") is entered into as of September 1, 2004 by and among SYNALLOY CORPORATION, a Delaware corporation ("Parent"), and each of Parent's Subsidiaries identified on the signature pages hereof (such Subsidiaries, together with Parent, are referred to hereinafter each individually as a "Borrower," and individually and collectively, jointly and severally, as "Borrowers"), and WELLS FARGO FOOTHILL, INC., formerly known as Foothill Capital Corporation, a California corporation ("Lender").

WITNESSETH:

WHEREAS, Borrowers and Lender are parties to that certain Loan and Security Agreement dated as of July 26, 2002, as amended by that certain First Amendment to Loan and Security Agreement dated as of January 28, 2003, as further amended by that certain Second Amendment to Loan and Security Agreement and Consent dated as of July 24, 2003, and as further amended by that certain Third Amendment to Loan and Security Agreement dated as of July 12, 2004 (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement") (capitalized terms used herein without definition shall have the respective meanings ascribed to such terms in the Loan Agreement); and

WHEREAS, Borrowers and Lender have agreed to amend certain terms and conditions of the Loan Agreement as set forth herein;

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

	

AMENDMENT TO THE LOAN AGREEMENT.

Amendment to Section 6.2 of the Loan Agreement.  Section 6.2 of the Loan Agreement, "Collateral Reporting", is hereby amended and modified by deleting the chart contained in such Section in its entirety and by substituting the following in lieu thereof:

	
Weekly (or more frequently upon the request of Lender)
	

	a sales journal, collection journal, and credit register since the last such schedule and a calculation of the Borrowing Base as of such date, and 
	notice of all returns, disputes, or claims.

	
Weekly 
	
(c) Inventory reports specifying each Borrower's cost and the wholesale market value of its Inventory, by location, with additional detail showing additions to and deletions from the Inventory; and

(d) a summary, by vendor, of each Borrower's accounts payable and any book overdraft.

	
Monthly (not later than the 10th day of each month)
	
(e) a detailed calculation of the Borrowing Base (including detail regarding those Accounts that are not Eligible Accounts),

(f) a detailed aging, by total, of the Accounts, together with a reconciliation to the detailed calculation of the Borrowing Base previously provided to Lender,

	 	
(g) Inventory reports specifying each Borrower's cost and wholesale market value of its Inventory, by location, in accordance with the categories set forth in the appraisals

provided to Lender, with additional detail showing additions to and deletions from the Inventory,

	 	
(h) a calculation of Dilution for the prior month, and

(i) a revised summary of the cash surrender value of each of the Life Insurance Policies.

	
Quarterly
	
(j) a detailed list of each Borrower's customers, and

(k) a report regarding each Borrower's accrued, but unpaid, ad valorem taxes.

	
Upon request by Lender
	
(l) copies of invoices in connection with the Accounts, credit memos, remittance advices, deposit slips, shipping and delivery documents in connection with the Accounts and, for Inventory and Equipment acquired by Borrowers, purchase orders and invoices, and

	 	
(m) such other reports as to the Collateral, or the financial condition of Borrowers as Lender may request.

 

	

NO OTHER AMENDMENTS AND WAIVERS.

Except as otherwise expressed herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Lender under the Loan Agreement or any of the other Loan Documents, nor constitute a waiver of any provision of the Loan Agreement or any of the other Loan Documents.  Except for the amendment and waiver set forth above, the text of the Loan Agreement and all other Loan Documents shall remain unchanged and in full force and effect and each Borrower hereby ratifies and confirms its obligations thereunder.  This Amendment shall not constitute a modification of the Loan Agreement or a course of dealing with Lender at variance with the Loan Agreement such as to require further notice by Lender to require strict compliance with the terms of the Loan Agreement and the other Loan Documents in the future, except as expressly set forth herein.  Each Borrower acknowledges and expressly agrees that Lender reserves the right to, and does in fact, require strict compliance with all terms and provisions of the Loan Agreement and the other Loan Documents.  Borrowers have no knowledge of any challenge to Lender's claims arising under the Loan Documents or the effectiveness of the Loan Documents.

	

CONDITIONS PRECEDENT TO EFFECTIVENESS.

This Amendment shall become effective and be deemed effective upon Lender's receipt of each of the following in form and substance acceptable to Lender (such date being the "Fourth Amendment Effective Date"):

	counterparts of this Amendment duly executed by Borrowers and Lender; and
	such other information, documents, instruments or approvals as Lender or Lender's counsel may reasonably require.

	

REPRESENTATIONS AND WARRANTIES OF BORROWERS.

Each Borrower represents and warrants to Lender as follows:

	Each Borrower is duly organized and existing and in good standing under the laws of the jurisdiction of its organization and qualified to do business in any state where the failure to be so qualified reasonably could be expected to have a Material Adverse Change.
	The execution, delivery, and performance by each Borrower of this Amendment and the Loan Documents to which it is a party, as amended hereby, are within such Borrower's corporate or partnership authority, have been duly authorized by all necessary corporate or partnership action and do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to such Borrower, the Governing Documents of any Borrower, or any order, judgment, or decree of any court or other Governmental Authority binding on any Borrower, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of any Borrower, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of any Borrower, other than Permitted Liens, or (iv) require any approval of any Borrower's shareholders, partners, or members or any approval or consent of any Person under any material contractual obligation of any Borrower.
	The execution, delivery, and performance by each Borrower of this Amendment and the Loan Documents to which it is a party, as amended hereby, do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority or other Person.
	This Amendment and each other Loan Document to which each Borrower is a party, and all other documents contemplated hereby and thereby, when executed and delivered by such Borrower will be the legally valid and binding obligations of such Borrower, enforceable against each Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.
	No Default or Event of Default is existing.

	

MISCELLANEOUS.

	Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same agreement.  Delivery of an executed counterpart of this Amendment by telefacsimile or by email transmission of an Adobe portable document format file (also known as a "PDF file") shall be equally as effective as delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile or by email also shall deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

	Reference to and Effect on the Loan Documents.  Upon the effectiveness of this Amendment, on and after the date hereof each reference in the Loan Agreement to "this Agreement," "hereunder," "hereof" or words of like import referring to the Loan Agreement, and each reference in the other Loan Documents to "the Loan Agreement" "thereunder," "thereof" or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as amended hereby.

	Costs, Expenses and Taxes.  Borrowers agree to pay on demand all reasonable costs and expenses in connection with the preparation, execution, and delivery of this Amendment and the other instruments and documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for Lender with respect thereto and with respect to advising Lender as to its rights and responsibilities hereunder and thereunder.

	Governing Law.  The validity of this Amendment, the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed in accordance with the laws of the State of Georgia, without regard to the conflicts of law principles thereof.

	Loan Document.  This Amendment shall be deemed to be a Loan Document for all purposes.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date first above written.

BORROWERS:SYNALLOY CORPORATION, 

a Delaware corporation

By: 

Title: Vice President, Finance

 

BRISTOL METALS, L.P., 

a Tennessee limited partnership

By: 

Title: Vice President, Finance

MANUFACTURERS CHEMICALS, 

L.P., a Tennessee limited partnership

By: 

Title: Vice President, Finance

ORGANIC-PIGMENTS CORP., 

a North Carolina corporation

By: 

Title: Vice President, Finance

BLACKMAN UHLER, LLC, 

a Delaware limited liability company

By: 

Title: Vice President, Finance

LENDER:WELLS FARGO FOOTHILL, INC. 

By: 

Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]