Document:

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                                                                    EXHIBIT 4.1

                                AMENDMENT NO. 2
                                       to
                AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

         THIS AMENDMENT NO. 2 entered into as of May 4, 2000 (this
"Amendment"), among CMI INDUSTRIES, INC., a Delaware corporation (the
"Borrower"), the financial institutions party to the Loan Agreement (as
hereinafter defined) from time to time (the "Lenders") and FLEET CAPITAL
CORPORATION, a Rhode Island corporation, as agent for the Lenders (the
"Agent").

                             PRELIMINARY STATEMENT

         The Borrower, the Lenders and the Agent are parties to the Amended and
Restated Loan and Security Agreement dated as of May 28, 1999 (as amended and
in effect, the "Loan Agreement"; unless otherwise defined herein, capitalized
terms used herein have the meanings ascribed to them in the Loan Agreement). In
connection with the sale by the Borrower of certain assets of the furniture
division of Chatham Fabrics, LLC to Interface Fabrics Group, Inc. (the "Chatham
Asset Sale"), the Borrower has requested and the Lenders have agreed to make
certain modifications to the Loan Agreement. In addition, effective March 15,
2000, Fleet National Bank, formerly BankBoston, N.A., assigned to FCC, and FCC
purchased and assumed from Fleet National Bank, an interest in and to 100% of
Fleet National Bank's rights and obligations as a Lender under the Loan
Agreement. In connection with such assignment, Fleet National Bank resigned as
Agent under the Loan Agreement and FCC was appointed successor Agent
thereunder. For the convenience of the parties, the parties have further agreed
to amend the Loan Agreement in certain respects to reflect the foregoing
changes, all upon and subject to all of the terms and conditions hereinafter
set forth.

                             STATEMENT OF AGREEMENT

         NOW, THEREFORE, in consideration of the Loan Agreement, the Loans made
by the Lenders and outstanding thereunder, the mutual promises hereinafter set
forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

         Section 1.        AMENDMENT TO LOAN AGREEMENT PROVISIONS. Effective in
accordance with Section 3 hereof, the Loan Agreement is hereby amended by

         (a)      amending Appendix I referred to in Section 1.1 Definitions by
substituting the following definitions for the corresponding definitions
currently appearing therein:

                  "Agent" means FCC in its capacity as agent for the Lenders
and any

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successor agent appointed pursuant to Section 13.9 hereof.

         "Base Rate" means a fluctuating interest rate per annum equal to the
higher from time to time of: (i) the rate of interest announced or quoted by
Fleet Bank from time to time as its prime rate for commercial loans, which rate
might not be the lowest rate charged by Fleet Bank, and, if such prime rate for
commercial loans is discontinued by Fleet Bank as a standard, a comparable
reference rate designated by Fleet Bank as a substitute therefor, and (ii) a
rate of interest equal to 0.5% above the Federal Funds Effective Rate.

         "Borrowing Base" means at any time an amount equal to the sum of:

         (a)      eighty-five percent (85%) of the face amount of Eligible
Receivables of the Borrower due and owing at such time, plus

         (b)      as to Eligible Inventory,

                  (i)      fifty percent (50%) of the lesser of cost,
         determined on a first-in-first-out or FIFO basis, and market value (as
         determined in accordance with GAAP) of finished goods inventory of the
         Borrower's Chatham Division (excluding any finished goods of Chatham
         Fabrics, LLC) at such time, plus (ii) sixty percent (60%) of the lesser
         of cost, determined on a first in, first out or FIFO basis, and market
         value (as determined in accordance with GAAP) of finished greige goods
         inventory of the Borrower at such time, plus (iii) seventy percent
         (70%) of the lesser of cost, determined on a first in, first out or
         FIFO basis and market value of raw baled fiber inventory of the
         Borrower at such time, plus (iv) fifty percent (50%) of the lesser of
         cost, determined on a first in, first out or FIFO basis and market
         value of other raw materials of the Borrower at such time, plus (v)
         fifty percent (50%) of the lesser of cost, determined on a first in,
         first out or FIFO basis and market value of uninspected finished fabric
         which is included in work in progress, less

         (c)      the aggregate Stated Amount of all Letters of Credit
outstanding at such time and the amount of any reimbursed Drawing under any
Letters of Credit and (without duplication) unreimbursed payments under any
related LC Support, less

         (d)      the Interest Rate Exposure Reserve, less

         (e)      the Swap Reserve.

The Agent may adjust the percentages set forth in clause (a) and clause (b)
above if, as a result of an examination, on-site review or other audit of the
Borrower's business

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performed by the Agent's in-house auditors from time to time, the Agent
reasonably determines that the quality or collectibility of the Receivables or
the Inventory is materially worse than the quality or collectibility as of the
Agreement Date. Any such adjustment shall be proportionate to reflect the
change in the Collateral quality or collectibility, and shall be reversed by
the Agent if the condition of the Collateral subsequently improves so that the
quality and collectibility of the Receivables or Inventory is comparable to the
quality and collectibility as of the date hereof. The Agent shall give the
Borrower 60 days' notice of any decrease in the percentages.

         "Clearing Bank" means Fleet Bank and any other banking institution
with which an Agency Account has been established pursuant to an Agency Account
Agreement.

         "Designated Deposit Account" means a deposit account or accounts
maintained by the Borrower with Fleet Bank, or any other financial institution,
as from time to time designated by the Borrower by written notice to the Agent.

         "EBITDA" means, with respect to any specified period of consecutive
Fiscal Quarters, EBIT (excluding therefrom any net gain or loss arising out of
any purchases of Senior Subordinated Notes or any asset sales occurring out of
the ordinary course of business, provided that there shall also be excluded any
related charges for taxes thereon) plus, without duplication, depreciation and
amortization expense of the Borrower and its consolidated Subsidiaries for such
period, plus, for any such period that includes the second Fiscal Quarter of
Fiscal Year 1999, an amount (such amount, the "Restructuring Charge") equal to
the lesser of (i) the amount of the non-recurring restructuring charges
actually recorded in such Fiscal Quarter minus the excess, if any, of such
charges that are paid in cash over $1,000,000 (such excess, the "excess cash
restructuring charge") and (ii) $10,000,000 minus the excess cash restructuring
charge.

         "Eurodollar Rate" means for each Interest Period for each Eurodollar
Loan a rate per annum equal to the rate per annum at which deposits in Dollars
are offered to Fleet Bank by prime banks in the London interbank market at
10:00 a.m. two Business Days before the first day of such Interest Period in an
amount approximately equal to the principal amount of such Eurodollar Loan and
for a period approximately equal to such Interest Period, divided by the result
of 1 minus the Eurodollar Reserve Percentage (expressed as a decimal).

         "Facing Bank" means either Fleet Bank or, so long as it is a Lender,
Bank of America, N.A. (formerly NationsBank, N.A.).

         "Interest Rate Protection Agreement" means any interest rate swap, cap
or collar agreement or similar arrangement between the Borrower and Fleet Bank
or the Borrower

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and a Lender selected by the Borrower in its discretion providing for the
transfer or mitigation of interest rate risks either generally or under
specific contingencies.

         "IRPA Obligation" shall mean any amount due and owing by the Borrower
to a Lender or Fleet Bank pursuant to an Interest Rate Protection Agreement.

         "IRPA Reserve" with respect to any Interest Rate Protection Agreement,
means an amount equal to the Borrower's estimated contingent liability
thereunder, as determined by Fleet Bank or the Lender that is the counterparty
to such Interest Rate Protection Agreement in accordance with Fleet Bank's or
such Lender's customary methodology for similar agreements.

         "Net Worth" means, with respect to any Person, such Person's total
shareholder's equity (including capital stock, additional paid-in capital and
retained earnings, after deducting treasury stock) which would appear as such
on a balance sheet of such Person prepared in accordance with GAAP, but shall
in no event include (a) subordinated debt or (b) any net gain or loss arising
after April 2, 2000 out of any purchases of Senior Subordinated Notes or any
asset sales occurring out of the ordinary course of business, provided that
there shall also be excluded any related charges for taxes thereon.

         "Revolving Facility Amount" means $40,000,000, as reduced pursuant to
the provisions of Section 2.6 of the Agreement, less the sum of (a) the Stated
Amount of any outstanding Letter of Credit from time to time and the amount of
any unreimbursed Drawing under any Letters of Credit and (without duplication)
unreimbursed payments under any related LC Supports, (b) the Interest Rate
Exposure Reserve and (c) the Swap Reserve.

         "Revolving Facility Percentage Amount" means: as to FCC, $22,400,000,
and as to Bank of America, N.A., $17,600,000, or such other amount as may from
time to time be reflected on the records of the Agent as a result of an
assignment by a Lender pursuant to Section 14.9 hereof

         "Secured Obligations" means, in each case, whether now in existence or
hereafter arising,

         (a)      the principal of, and interest and premium, if any, on the
Revolving Credit Loans,

         (b)      the aggregate Stated Amount of all outstanding Letters of
Credit,

         (c)      the principal of, and interest and premium, if any, on the
amounts drawn under any Letter of Credit or paid under any LC Support,

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         (d)      amounts due to any Lender or Fleet Bank under any Interest
Rate Protection Agreement or to any Swap Counterparty, and

         (e)      all other indebtedness, loans, liabilities, financial
accommodations, obligations, covenants and duties owing by the Borrower to the
Lenders or to the Agent, of every kind, nature and description, direct or
indirect, absolute or contingent, due or to become due, contractual or
tortious, liquidated or unliquidated, and whether or not evidenced by any note,
and whether or not for the payment of money under or in respect of the
Agreement, any Note, or any of the other Loan Documents.

         "Swap" means any derivative or capital markets transaction entered
into between the Borrower and Fleet Bank or the Borrower and a Lender designed
to maximize the total rate of return to the Borrower on a portion of the Senior
Subordinated Notes through a combination of an interest rate swap and a hedge
on the price of said Notes, PROVIDED THAT such hedging arrangements shall not
cover more than $15,000,000 in aggregate principal amount of said Notes.

         "Swap Counterparty" means with respect to any Swap, Fleet Bank or the
Lender party thereto, as applicable.

         (b)      further amending Appendix I referred to in Section 1.1
Definitions by adding the following definitions in the appropriate alphabetical
order:

         "Amendment No. 2 Effective Date" means the date upon which Amendment
No. 2 to this Agreement shall have become effective by its terms.

         "FCC" means Fleet Capital Corporation, a Rhode Island corporation.

         "Fleet Bank" means Fleet National Bank (f/k/a BankBoston, N.A.), a
national banking association, and the survivor of the merger of Fleet National
Bank with and into BankBoston.

         "LC Support" means a Guaranty or other support agreement from FCC in
favor of Fleet Bank as issuer of a Letter of Credit pursuant to which FCC shall
Guarantee or otherwise assure the payment or performance by the Borrower with
respect to reimbursement obligations of the Borrower in favor of Fleet Bank
pursuant to Article 3 or pursuant to a reimbursement agreement with respect to
amounts that have been drawn under Letters of Credit.

         (c)      by amending Article 3 Letter of Credit to read in its
entirety as follows:

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                                  ARTICLE III

                         LETTER OF CREDIT FACILITY AND
                      INTEREST RATE PROTECTION AGREEMENTS

                  SECTION 3.1 Letter of Credit Facility. Subject to the terms
         and conditions hereof, each Facing Bank severally agrees to issue (or
         in the case of Fleet Bank, FCC agrees to cause Fleet Bank to issue)
         for the account of the Borrower one or more documentary or standby
         nontransferable letters of credit, in form and substance satisfactory
         to the Designated Facing Bank (and if Fleet Bank is the Designated
         Facing Bank, then satisfactory also to FCC), in its sole discretion,
         from and including the Amendment No. 2 Effective Date to the
         Termination Date, up to a maximum aggregate Stated Amount at any one
         time outstanding equal to S5,000,000, provided. however, that the
         Stated Amount of any Letter of Credit issued pursuant to this Section
         3.1 shall not exceed the lesser of (a) the Revolving Facility Amount
         less all outstanding Revolving Credit Loans and (b) the Borrowing Base
         less all outstanding Revolving Credit Loans.

                  SECTION 3.2 Method of Issuance of Letters of Credit.

                  (a)     The Borrower shall give the Agent and the Designated
         Facing Bank (and FCC, if Fleet Bank is the Designated Facing Bank)
         written notice or telephonic notice confirmed in writing at least five
         (5) Business Days prior to the requested Date of Issuance of a Letter
         of Credit. Such notice shall specify (i) the Stated Amount, (ii) the
         requested Date of Issuance, (iii) the Beneficiary and the address at
         which the Letter of Credit is to be delivered to the Beneficiary, (iv)
         the Expiration Date, which date shall not be later than five (5) days
         prior to the Termination Date, (v) a description of the stipulated
         documents, if any, against which payment under such Letter of Credit
         is conditioned, (vi) the anticipated Payment Date, which date shall
         not be later than five (5) days prior to the Termination Date, (vii)
         the name of the Designated Facing Bank, and (viii) a duly executed
         application and reimbursement agreement with respect to such Letter of
         Credit, in form and substance satisfactory to the Designated Facing
         Bank (and FCC, if Fleet Bank is the Designated Facing Bank), together
         with such other information the Designated Facing Bank (and FCC, if
         Fleet Bank is the Designated Facing Bank) shall reasonably request in
         connection with the issuance of such Letter of Credit.

                  (b)     Provided the Borrower has given the notice prescribed
         by Section 3.2(a) and subject to the other terms and conditions of
         this Agreement, the Designated Facing Bank shall issue (or if Fleet
         Bank is the Designated Facing Bank, FCC shall cause Fleet Bank to
         issue) the Letter of Credit on the Date of Issuance for the benefit of
         the stipulated Beneficiary and the Designated Facing Bank shall
         thereafter deliver the original of such Letter of Credit to the
         Beneficiary at the address specified in such notice. The

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         Designated Facing Bank (or FCC, if Fleet Bank is the Designated Facing
         Bank) shall deliver a copy of each Letter of Credit to the Borrower
         and the Agent within a reasonable time after the Date of Issuance
         thereof and shall notify the Lenders in writing of the terms of the
         Letter of Credit.

          SECTION 3.3 Drawings; Interest Rate Protection Obligations.

                  (a)      Upon a Drawing by a Beneficiary on a Letter of
         Credit or the occurrence of an IRPA Obligation, the Designated Facing
         Bank or the Agent, as the case may be, shall immediately notify the
         Lenders and the Borrower of such Drawing or IRPA Obligation. Such
         notice shall specify either (a) the Beneficiary, the Letter of Credit
         with the aggregate amount of the Drawing, or (b) the amount of any
         such IRPA Obligation.

                  (b)      Each Lender severally agrees that it shall be
         unconditionally and irrevocably liable, without regard to the
         occurrence of any Default or Event of Default or any condition
         precedent whatsoever, to the extent of such Lender's Revolving
         Facility Percentage of the amount of any Drawing or payment under any
         LC Support or of any IRPA Obligation, to reimburse the Designated
         Facing Bank, FCC or the Agent, as the case may be, on demand, the
         amount of each Drawing paid by the Designated Facing Bank or (without
         duplication) the amount paid by FCC under any LC support or IRPA
         Obligation to the extent such amount is not reimbursed or paid by the
         Borrower pursuant to Section 3.4. Each Lender's obligation to
         reimburse the Designated Facing Bank or FCC or to pay the Agent, as
         the case may be, pursuant to this subsection shall not be affected or
         limited in any way by any circumstance, including without limitation,
         (i) any set-off, counterclaim, recoupment, defense or other right
         which such Lender may have against the Designated Facing Bank, FCC,
         the Borrower, any Beneficiary of any Letter of Credit, the Agent, or
         any other Person whatsoever, (ii) the occurrence or continuance of a
         Default or an Event of Default (including any Event of Default
         described in Section 12-1(g) or (h)); (iii) any adverse change in the
         condition (financial or otherwise) of the Borrower; (iv) any breach of
         this Agreement by the Borrower, the Agent, FCC or any other Lender; or
         (v) any other circumstance, happening or event whatsoever, whether or
         not similar to any of the foregoing. Each Lender's obligation to
         reimburse the Designated Facing Bank, FCC or the Agent, as the case
         may be, shall continue to be effective, or be reinstated, as the case
         may be, if at any time payment, or any part thereof, of any
         reimbursement obligation of the Borrower is rescinded or must
         otherwise be restored or returned by the Designated Facing Bank, FCC
         or the Agent upon the occurrence of any event described in Section
         12.1(g) or (h).

                  (c)      Each such payment made by a Lender pursuant to
         Section 3.3(b) shall be treated as the purchase by such Lender of a
         participating interest in the Borrower's reimbursement and payment
         obligations under Section 3.4 in an amount equal to such

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         payment. Each Lender, so long as it has made the payment required to
         be made by it pursuant to Section 3.3(b), shall share in accordance
         with its Revolving Facility Percentage in any interest which accrues
         pursuant to Section 3.4(a)(ii).

                  (d)      If and to the extent that a Lender shall fail to
         make available to the Designated Facing Bank, FCC or the Agent, as the
         case may be, the amount required to be paid by such Lender pursuant to
         Section 3.3(b), (i) the Agent, FCC or the Designated Facing Bank, as
         the case may be, shall be subrogated to the rights under this
         Agreement of the Lender so failing to make available such amount to
         the extent of such failure and shall thereafter (until such defaulting
         Lender shall make such amount available) be entitled to the voting
         rights of such defaulting Lender under this Agreement and (ii) such
         unpaid or unreimbursed amount shall bear interest from the date of
         demand therefor until paid at the Base Rate for the account of the
         Designated Facing Bank, FCC or the Agent, as the case may be.

                  (e)      [Reserved]

                  (f)      Neither the Designated Facing Bank, nor any of its
         directors, officers, agents, employees or counsel shall be liable for
         any action taken or omitted to be taken by it or them under or in
         connection with any Letter of Credit issued by the Designated Facing
         Bank, except for its or their own gross negligence or willful
         misconduct. Without limiting the generality of the foregoing, such
         Designated Facing Bank: (a) may consult with legal counsel (including
         counsel for the Borrower), independent public accountants and other
         experts selected by it and shall not be liable for any action taken or
         omitted to be taken in good faith by it in accordance with the advice
         of such counsel, accountants or experts; (b) makes no warranty or
         representation to any other Lender with respect to such Letter of
         Credit; and (c) except as otherwise provided in Section 3.3(b), shall
         incur no liability under or in respect of this Agreement or any other
         Loan Document by acting upon any notice, consent, certificate or other
         instrument or writing (which may be by telegram, telecopy, cable or
         telex) delivered or given to it in connection with such Letter of
         Credit believed by it to be genuine and signed or sent by the proper
         party or parties. In determining whether to pay under any LC Support,
         FCC shall have no obligation to any Lender to confirm that Fleet Bank
         acted properly in honoring any Drawing under any related Letter of
         Credit and shall be entitled to rely on Fleet Bank's demand for payment
         as sufficient evidence as Fleet Bank's entitlement thereto.

                  (g)      Each other Lender expressly acknowledges that
         neither the Designated Facing Bank nor any of its officers, directors,
         employees, agents, attorneys-in-fact or affiliates has made, or will
         make, any representations or warranties to such Lender and that no act
         by the Designated Facing Bank hereafter taken, including any review of
         the affairs of the Borrower, shall be deemed to constitute any
         representation or warranty by

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         the Designated Facing Bank to any Lender. Each other Lender
         acknowledges that it has, independently and without reliance upon the
         Designated Facing Bank, and based on the financial statements of the
         Borrower, its review of the Loan Documents, the legal opinions
         required to be delivered to it hereunder, the advice of its own
         counsel and such other documents and information as it has deemed
         appropriate, made its own credit and legal analysis and decision to
         enter into this Agreement and the transactions contemplated hereby.

                  (h)      The other Lenders agree to indemnify the Designated
         Facing Bank (and FCC, if Fleet Bank is the Designated Facing Bank) and
         the Agent (to the extent not reimbursed by the Borrower, and without
         limiting the obligation of the Borrower to do so) pro rata in
         accordance with the Lenders' respective Revolving Facility
         Percentages, from and against any and all liabilities, obligations,
         losses, damages, penalties, actions, judgments, suits, costs, expenses
         or disbursements of any kind or nature whatsoever which may at any
         time be imposed on, incurred by, or asserted against the Designated
         Facing Bank, FCC or the Agent in any way relating to or arising out of
         each Letter of Credit issued by the Designated Facing Bank or any
         action taken or omitted by the Designated Facing Bank, FCC or the
         Agent; provided, however, that no Lender shall be liable for any
         portion of such liabilities, obligations, losses, damages, penalties,
         actions, judgments, suits, costs, expenses or disbursements resulting
         solely from the gross negligence or willful misconduct of the
         Designated Facing Bank, FCC or the Agent. Without limiting the
         generality of the foregoing, each Lender agrees to reimburse the
         Designated Facing Bank, FCC or the Agent promptly upon demand for its
         ratable share of any out-of-pocket expenses (including reasonable
         counsel fees) incurred by the Designated Facing Bank, FCC or the Agent
         in connection with the administration or enforcement of, or legal
         advice with respect to the rights or responsibilities of the parties
         under, each Letter of Credit issued by the Designated Facing Bank, to
         the extent that such Designated Facing Bank, FCC or the Agent is not
         reimbursed for such expenses by the Borrower. The agreements in this
         Section shall survive the termination of this Agreement.

                  (i)      The failure of any Lender to honor its obligations
         hereunder or under a Letter of Credit shall not relieve any other
         Lender of its duty to honor its obligations hereunder or under a
         Letter of Credit.

                  SECTION 3.4 Letter of Credit Reimbursement; LC Support
Reimbursement; IRPA Obligation Reimbursement.

                  (a)      The Borrower hereby agrees to pay to the Agent for
         the account of the Agent, FCC or the Designated Facing Bank, as
         applicable, in the manner provided in Section 4.4:

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                           (i)      On each Payment Date, an amount equal to
                  the amount paid by the Designated Facing Bank under any
                  Letter of Credit (or (without duplication) an amount equal to
                  the amount paid by FCC under any related LC Support) plus
                  associated fees and charges and an amount equal to the IRPA
                  Obligation plus associated fees and charges; and

                           (ii)     If any Drawing, payment under any LC
                  Support or any IRPA Obligation is reimbursed to the Agent
                  for its own account or the account of FCC or the Designated
                  Facing Bank after 2:00 p.m. (Boston time) on the Payment
                  Date, interest on any and all amounts required to be paid
                  pursuant to the immediately preceding clause (i), from and
                  after the due date thereof until paid in full, payable on
                  demand, at an annual rate of interest equal to the Base Rate
                  plus two (2) percent.

                  (b)      If the Borrower fails to make the payment required
         by Section 3.4(a)(i), and if the conditions set forth in Section 5.2
         have been fulfilled and sufficient funds are available within the
         limits of the amount of Revolving Credit Loans that may be borrowed as
         provided in Section 2.1, then the Borrower shall be deemed to have
         requested a Revolving Credit Loan in accordance with the provisions of
         Section 2.2(a)(iii) the proceeds of which the Lenders shall be deemed
         to have disbursed by making available to the Designated Facing Bank,
         FCC or the Agent, as the case may be, the amounts required under
         Section 3.3(b). Such Revolving Credit Loan shall initially be a Base
         Rate Loan. In the event a Revolving Credit Loan is advanced in the
         amounts required under Section 3.3(b), the Borrower's failure to have
         made the direct payment required by Section 3.4(a)(i) shall not be
         deemed a Default.

                  (c)      The obligation of the Borrower under this Section to
         repay the Designated Facing Bank for a Drawing under a Letter of
         Credit, to repay FCC for its payment under any LC Support and to pay
         the Agent for an IRPA Obligation shall be absolute, unconditional and
         irrevocable, and shall be performed strictly in accordance with the
         terms of this Agreement, under A circumstances whatsoever, including
         without limitation, the following circumstances:

                           (i)      any lack of validity or enforceability of
                  all or any of this Agreement, any of the other Loan Documents
                  or any Interest Rate Protection Agreement, document,
                  instrument or agreement evidencing or relating to the
                  underlying transaction between the Borrower and the Agent or
                  the Borrower and the Beneficiary of such Letter of Credit
                  (all of the foregoing, collectively the "Related Documents"),

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                  (ii)     any amendment or waiver of or any consent to or
         departure from the terms of the Related Documents,

                   (iii)    the existence of any claim, set-off, defense or
         other rights which the Borrower may have at any time against such
         Beneficiary, any Lender, the Agent, the Designated Facing Bank or any
         other Person, whether in connection with the Related Documents or any
         unrelated transaction,

                   (iv)    any statement or any other document presented under
         any Letter of Credit proving to be forged, fraudulent, invalid or
         insufficient in any respect or any statement therein being untrue or
         inaccurate in any respect whatsoever,

                   (v)     payment by the Designated Facing Bank under such
         Letter of Credit against presentation of a sight draft or certificate
         which does not comply with the terms of such Letter of Credit, and

                   (vi)    any other circumstance or happening whatsoever,
         whether or not similar to any of the foregoing.

         SECTION 3.5 Supporting Letter of Credit; Cash Collateral Account.

         In connection with any proposed reduction of the Revolving Credit
Facility contemplated by Section 2.6 to an amount which, after deducting the
Interest Rate Protection Reserve and the Swap Reserve is less than the aggregate
Stated Amount of all Letters of Credit outstanding and the amount of any
unreimbursed Drawings under Letters of Credit and unreimbursed payments under LC
Supports, or in addition to the rights provided in Section 12.2, if,
notwithstanding the provisions of Section 3.2, any Letter of Credit is
outstanding on the Termination Date, then on or prior to the Termination Date,
the Borrower shall promptly on demand by the Agent, deposit with the Agent, for
the ratable benefit of the Lenders, with respect to each Letter of Credit then
outstanding, as the Agent shall specify, either (a) a standby letter of credit
(a "Supporting Letter of Credit") in form and substance satisfactory to the
Agent and the Designated Facing Bank (and if Fleet Bank is the Designated Facing
Bank, then satisfactory also to FCC) issued by an issuer satisfactory to each of
the Agent, the Designated Facing Bank and FCC, as appropriate, in its sole and
absolute judgment, in an amount equal to 105% of the greatest amount for which
such Letter of Credit may be drawn, under which Supporting Letter of Credit the
Agent shall be entitled to draw amounts necessary to reimburse the Agent and the
Lenders for payments made by the Designated Facing Bank or the Agent and the
Lenders under such Letter of Credit or FCC for payments made by FCC under any LC
Support or under any reimbursement or guaranty agreement with respect thereto,
plus, in each case, all related fees and expenses then accrued or which

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may become payable or (b) cash Collateral in an amount equal to 105% of the
greatest amount for which such Letter of Credit may be drawn, which the Agent
shall be entitled to apply as necessary to reimburse the Agent and the Lenders
for payments made by the Designated Facing Bank or the Agent and the Lenders
under such Letter of Credit or FCC for payments made by FCC under any LC Support
or under any reimbursement or guaranty agreement with respect thereto, plus, in
each case, all related fees and expenses then accrued or which may become
payable. Such Supporting Letter of Credit or cash Collateral shall be held by
the Agent for the benefit of the Lenders, as security for, and to provide for
the payment of, the Secured Obligations arising under any and all Letters of
Credit. In addition, the Agent may at any time pursuant to Section 12.2 or after
the Termination Date apply any or all of such cash Collateral to the payment of
any or all of the Secured Obligations then due and payable. The cash Collateral
shall be deposited in the Cash Collateral Account and, so long as no Event of
Default has occurred and is continuing, be invested and reinvested by the Agent
in instruments of the types described in clauses (a)(i) and (a)(ii) of the
definition "Permitted Investments." Upon receipt of such Supporting Letter of
Credit or cash Collateral and repayment in full of all other outstanding Secured
Obligations, all Collateral (other than such Supporting Letter of Credit or cash
Collateral) shall be released from the Security Interest and the covenants
contained in Articles VIII, IX, X and XI shall be terminated and be of no
further force and effect.

(d) by amending Section 4.3(c) in its entirety to read as follows:

         (c) With respect to each Letter of Credit, the Borrower shall pay to
the Agent through its Treasury and International Services Group (i) for the
account of the Lenders a Letter of Credit fee (x) at a rate per annum equal to
the Applicable Margin for Eurodollar Rate Loans in effect on the date of
issuance thereof on the average daily Stated Amount of any standby Letter of
Credit, and (y) equal to 3/8% per annum of the Stated Amount of any documentary
Letter of Credit, such Letter of Credit fees to be calculated on the average
daily Stated Amount from the date of issuance to the earlier of the Expiration
Date or of the final drawing with respect to such Letter of Credit, based on a
year of 360 days and the actual number of days elapsed, and payable quarterly in
arrears and (ii) for the account of the Designated Facing Bank, all
out-of-pocket fees and disbursements incurred by the Designated Facing Bank in
connection with the issuance or amendment of a Letter of Credit and any
administrative fees normally charged by the Designated Facing Bank in
connection with the issuance, amendment or administration of a letter of credit.

         (f) by amending Section 11.1 Financial Covenants of the Loan Agreement
by amending subsections (a), (c) and (d) thereof in their entirety to read as
follows:

                                       12
<PAGE>   13

                   (a) Interest Coverage. Permit the ratio of EBITDA to Interest
         for any period of four consecutive Fiscal Quarters ending (i) on the
         last day of the second Fiscal Quarter of Fiscal Year 2000, to be less
         than .85 to 1, (ii) on the last day of the third Fiscal Quarter of
         Fiscal Year 2000, to be less than .95 to 1, (iii) on the last day of
         Fiscal Year 2000, to be less than 1.2 to 1, or (iv) after the last day
         of Fiscal Year 2000, to be less than 1.5 to 1.0.

                   (c) Fixed Charge Coverage Ratio. Permit the Fixed Charge
         Coverage Ratio for any period of four consecutive Fiscal Quarters
         ending (i) on the last day of the second Fiscal Quarter of Fiscal Year
         2000, to be less than .40 to 1, (ii) on the last day of the third
         Fiscal Quarter of Fiscal Year 2000 to be less than .50 to 1, (iii) on
         the last day of Fiscal Year 2000, to be less than 1.0 to 1, or (iv)
         after the last day of Fiscal Year 2000, to be less than 1.1 to 1.

                   (d) Minimum Availability. Permit Availability at any time to
         be less than $5,000,000.

         Section 2. CONDITIONS TO EFFECTIVENESS OF AMENDMENT. This Amendment
shall become effective on the date (the "Amendment No. 2 Effective Date") on
which the Agent receives (i) counterparts of this Amendment, duly executed and
delivered by each party hereto, and (ii) for the ratable benefit of the Lenders,
a fee in the amount of $50,000 in consideration of the agreements set forth
herein and the Lenders' consent to the Chatham Asset Sale evidenced by the
letter agreement dated April 19, 2000 and addressed to the Borrower.

         Section 3. LC SUPPORT. Effective on the Amendment No. 2 Effective Date,
FCC has entered into agreements constituting LC Support with respect to the
obligations of the Borrower under Letters of Credit outstanding on the Amendment
No. 2 Effective Date and issued by Fleet National Bank. The Borrower hereby
acknowledges and confirms its obligations under Section 3.4 of the Loan
Agreement to pay or reimburse FCC for all payments made under such LC Support
plus interest thereon on demand and the Lenders hereby acknowledge and confirm
their respective participations in such LC Support.

         Section 4. AGENT'S ADDRESSES. FCC hereby gives notice to all parties
hereto that for the purposes of Section 14.1(b) of the Loan Agreement the
address of the Agent for notices is its office located at 6100 Fairview Road,
Suite 200, Charlotte, North Carolina 28210 to the attention of Roland Robinson,
Facsimile No. (704) 553-6738; Telephone No. (704) 553-6701. Pursuant to the
provisions of Section 14.1(c) of the Loan Agreement, FCC hereby designates its
account at the office of Fleet National Bank located at 1 Constitution Plaza,
Hartford, Connecticut 06115 as the location to which payments due under the Loan
Agreement shall be made and from which Loans Will be disbursed.

                                       13
<PAGE>   14

         Section 5. EFFECT OF AMENDMENT. From and after the effectiveness of
this Amendment, all references in the Loan Agreement and in any other Loan
Document to "this Agreement," "the Loan Agreement," "hereunder," "hereof" and
words of like import referring to the Loan Agreement, shall mean and be
references to the Loan Agreement as amended by this Amendment. Except as
expressly amended hereby, the Loan Agreement and all terms, conditions and
provisions thereof remain in full force and effect and are hereby ratified and
confirmed. The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided herein, operate as a waiver of any right,
power or remedy of any Lender or the Agent under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents.

         Section 6. EXPENSES. The Borrower shall not be obligated to pay or
reimburse any costs or expenses incurred by FCC, Fleet National Bank or the
Agent in connection with the negotiation, preparation, execution and delivery of
this Amendment, except to the extent solely related to the Chatham Asset Sale.

         Section 7. GOVERNING LAW. This Amendment shall be construed in
accordance with, and governed by, the laws of the State of Georgia, without
giving effect to the conflict of laws provisions thereof.

         Section 8. COUNTERPARTS. This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and shall be binding
upon all parties and their respective successors and assigns and all of which
taken together shall constitute one and the same agreement. Delivery of an
executed signature page of any party hereto by facsimile transmission shall be
effective as delivery of a manually executed counterpart thereof.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       14
<PAGE>   15

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

                        CMI INDUSTRIES, INC.

                        By:
                           -----------------------------
                        Name:
                             ---------------------------
                        Title:
                              --------------------------

                        FLEET CAPITAL CORPORATION, as
                        the Agent and a Lender

                        By:
                           -----------------------------
                             Roland J. Robinson
                             Senior Vice President

                        BANK OF AMERICA, N.A. (formerly
                        NATIONSBANK, N.A.), as a Lender

                        By:
                           -----------------------------
                        Name:
                             ---------------------------
                        Title:
                              --------------------------

                                       15<PAGE>   1
                                                                  EXHIBIT 10.18

                                                                 Execution Copy

                 FIRST AMENDMENT TO TRADEMARK LICENSE AGREEMENT

         This First Amendment to Trademark License Agreement (the "Amendment")
dated as of this ___ day of __________, 1999, between (a) Pelikan Holding AG, a
company organized under the laws of Switzerland ("Pelikan Holding"); Pelikan
Vertriebsgesellschaft mbH & Co. KG ("PVG"), (formerly known as Pelikan
International Handelsgesellschaft mbH & Co. KG (Hannover)), a company
organized under the laws of Germany; and Pelikan GmbH (Hannover), a company
organized under the laws of Germany (collectively, "Licensors"), on the one
hand, and (b) Nu-kote Holding, Inc., a Delaware corporation ("Licensee"), on the
other hand.

                                   WITNESSETH:

         WHEREAS, pursuant to the Asset and Stock Purchase Agreement, dated as
of November 15, 1994, as amended, between Pelikan Holding and Licensee (the
"Purchase Agreement"; capitalized terms used herein without definition being
used as defined therein), the Licensee purchased or acquired, directly or
indirectly through Subsidiaries, from Pelikan Holding or the Selling
Subsidiaries, and Pelikan Holding and such Selling Subsidiaries sold, assigned
or transferred to the Licensee, the Hardcopy Business, and executed and
delivered the Trademark License;

         WHEREAS, at the time of the Closing, PIH was the owner of the Licensed
Mark;

         WHEREAS, PVG changed its name from Pelikan International
Handelsgesellschaft mbH & Co. KG (Hannover) effective January 1, 1996 and is the
owner of the Licensed Mark;

         WHEREAS, Pelikan GmbH is the successor of Pelikan AG which transferred
all of its ownership rights in the Licensed Mark to PIH but retains for fiscal
reasons an option of retransfer at first demand; and

         WHEREAS, on February 13, 1998 Licensors sent a Notice of Breach in
accordance with the provisions of the Trademark License, and on both June 9,
1998 and June 22, 1998, and again on October 9, 1998, Licensors sent Notices of
Termination pursuant to Section 11(b) of the Trademark License giving 30 days
notice of termination of the Trademark License;

         WHEREAS thereafter Nu-kote and certain of its subsidiaries commenced
cases under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Middle District of Tennessee designated numbers
98-10600 through 98-10606 on the docket of said Court, which cases said Court
has ordered substantively consolidated for certain purposes under Case No.
98-10600;

         WHEREAS, Nu-kote desires to sell a portion of the Hardcopy Business,
including Produktions, indirectly to Pelikan Hardcopy Europe Limited, a
corporation organized under the laws of Scotland ("PHE"), and thereby to cause
Produktions to cease to be an Affiliate of Nu-kote, and, in connection
therewith, desires to induce Pelikan

<PAGE>   2

Holding to grant to PHE a license to use the Licensed Marks and to rescind
Licensors' termination of the above Notices of Termination of the Trademark
License;

         WHEREAS, Licensors are willing, in connection with Nu-kote's sale of a
portion of the Hardcopy Business to PHE, to grant to Produktions a license to
use the Licensed Mark upon terms that are mutually agreeable to Licensors and
PHE, subject to the condition that the Trademark License is amended as provided
herein and that the Non-Competition Agreement is amended to limit the geographic
scope of the Non-Competition Agreement to the United States of America
(including the District of Columbia, the Commonwealths of Puerto Rico, the
Northern Mariana Islands, and the Virgin Islands of the United States, and the
unincorporated United States territories of American Samoa and Guam), Mexico and
Canada;

         NOW, THEREFORE, in consideration of the covenants contained herein and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

            1. Amendment of Section 1a. Section l(a) of the Trademark license
shall be amended to read as follows:

      "1. Licensed Grant. (a) From and after the Effective Date, Licensors
      hereby grant an exclusive, royalty-free, fully paid-up, license, during
      the Term (as defined in Section 11), to Licensee: (i) to use the Licensed
      Mark, but only within United States of America (including the District of
      Columbia, the Commonwealths of Puerto Rico, the Northern Mariana Islands,
      and the Virgin Islands of the United States, and the unincorporated United
      States territories of American Samoa and Guam), Mexico and Canada within
      the field of use of the Hardcopy Venture (including but not limited to the
      development, manufacture, procurement, distribution and sale of goods
      relating thereto); and (ii) to permit any existing or future Subsidiary of
      Licensee to use, but only within the United States of America (including
      the District of Columbia, the Commonwealths of Puerto Rico, the Northern
      Mariana Islands, and the Virgin Islands of the United States, and the
      unincorporated United States territories of American Samoa and Guam),
      Mexico and Canada, the name and mark "PELIKAN" as part of the trade name
      "PELIKAN IMAGING SUPPLIES" and "PELIKAN HARDCOPY" (and appropriate
      translations thereof) (or such other trade name as Licensor may consent,
      such consent not to be unreasonably withheld or derivations thereof).

            2. Adjustment to Maintenance Expense Share. Section 5(a) of the
Trademark License shall be amended to substitute "25%" for "50%."

                                       2

<PAGE>   3

            3. Effectiveness of Trademark License. It shall be a condition
precedent to the effectiveness of this Amendment that:

               (i) PHE shall pay to Pelikan Holding the sum of Three Million
      Five Hundred Thousand U.S. Dollars (US$3,500,000) by wire transfer to an
      account in Zurich, Switzerland, designated by Pelikan Holding; and

               (ii) the United States Bankruptcy Court for the Middle District
      of Tennessee shall have entered an order in Case No. 398-10600
      (Consolidated) after due notice approving this amendment and the
      amendments referred to in clause (iii) hereof, and the other transactions
      contemplated in connection herewith, said order shall have become a Final
      Order (the date of the last of the foregoing to occur being hereinafter
      referred to as the "Effective Date").

               (iii) Nu-kote and Pelikan Holding shall have executed and
      delivered an amendment to the Non-Competition Agreement among Nu-kote,
      Pelikan Holding and certain other parties thereto dated as of February 24,
      1995 to change the word "world" at the end of paragraph 1(a) thereof to
      "United States of America, (including the District of Columbia, the
      Commonwealths of Puerto Rico, the Northern Mariana Islands, and the Virgin
      Islands of the United States, and the unincorporated United States
      territories of American Samoa and Guam), Mexico and Canada;"

               (iv) The existing sublicense from Nu-kote to Produktions under
      the Nu-kote License referred to in the second recital to this First
      Amendment to Trademark License Agreement shall have been terminated by
      written agreement of the parties thereto, and a copy of such termination
      shall have been delivered to Pelikan Holding;

               (v) PHE (or a Subsidiary of PHE acceptable to PVG) and PVG shall
      have executed a distribution agreement providing for PHE and its
      Subsidiaries to sell to PVG, and PVG to purchase from PHE and its
      Subsidiaries and to distribute to certain customers in Germany, certain
      Pelikan brand Hardcopy Products.

For purposes of this Agreement, the term "Final Order" shall mean an order or
judgment that has not been modified, vacated or stayed, and as to which (a) the
time to appeal or seek review, rehearing, reargument or certiorari has expired
and as to which no appeal or petition for review, rehearing, reargument or
certiorari proceeding is pending, or (b) an order or judgment which has been
appealed, has been affirmed on appeal or certiorari and as to which appeal or
certiorari the time for further appeal or certiorari has expired, provided, such
an order shall be a "Final Order" whenever (i) a period of ten days after the
entry thereof on the Clerk's docket shall have expired (ii) no stay of the order
shall be in effect, and (iii) Pelikan shall so elect by written notice to
Nu-kote.

         4. Release of Certain Claims. If this Amendment becomes effective, then
Licensors hereby expressly waive and release any claims against Nu-kote or any
of

                                       3

<PAGE>   4

Nu-kote's Subsidiaries or sublicensess that Licensors may have by reason of the
Notices of Termination referred to above or the matters referred to in said
Notices of Termination, and the Trademark License shall continue in full force
and effect, notwithstanding any and all Notices of Termination or Notices of
Breach that Licensors may have given to Licensee at any time prior to the date
hereof.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers on the day and year first above
written.

Licensors:                                   Licensee:
PELIKAN HOLDING AG                           NU-KOTE HOLDING, INC.

By:                                          By:
       ------------------------------               ----------------------------
Name:  Benno Zehnder                         Name:
Title: Director                                     ----------------------------
                                             Title:
                                                    ----------------------------

PELIKAN VERTRIEBSGESELLSCHAFT
MBH & CO. KG

By:
       ------------------------------
Name:
       ------------------------------
Title:
       ------------------------------

PELIKAN GMBH (HANNOVER)

By:
       ------------------------------
Name:
       ------------------------------
Title:
       ------------------------------

                                       4

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