Document:

Exhibit 10.2

 

AMENDED
AND RESTATED REVOLVING LINE OF CREDIT NOTE

 

	
  September 22, 2005

  	
   

  	
  Dallas, Texas

  	
   

  	
  $100,000,000.00

  

 

FOR VALUE RECEIVED, the
undersigned (hereinafter called “Maker”) does hereby unconditionally
promise to pay to the order of Wells Fargo Bank,
National Association, a national banking association (“Payee”),
at its office at 1445 Ross Avenue, 3rd Floor, MAC T5303-031, Dallas, Texas  75202, the principal sum of ONE HUNDRED MILLION AND
NO/100 DOLLARS ($100,000,000.00), or such lesser amount as has been
loaned or advanced by Payee to Maker hereunder, in lawful money of the United
States of America, together with interest from the date hereof until maturity
at the rates per annum provided below.

 

1.                                       Definitions.  For purposes of this Revolving
Line of Credit Note (this “Note”), unless the context otherwise
requires, the following terms shall have the definitions assigned to such terms
as follows:

 

“Business Day”
shall mean:

 

(i)                                     for
all purposes (other than as covered by clause (ii) below) any day except
Saturday, Sunday or a day which in the United States is a legal holiday or a
day on which banking institutions are authorized or required by law or other
government action to close;

 

(ii)                                  with
respect to all notices and determinations in connection with, and payments of
principal and interest on, a LIBOR Balance, any day which is a Business Day
described in clause (i) above and which is also a day for trading by and
between banks in the interbank eurodollar market.

 

“Consequential Loss”
shall mean, with respect to Maker’s payment, or conversion to a different
Interest Option, of all or any portion of the then-outstanding principal amount
of any LIBOR Balance on a day other than the last day of the LIBOR Interest
Period related thereto, any loss, cost or expense incurred by Payee in
redepositing such principal amount, including the sum of (i) the interest
which, but for such payment, Payee would have earned in respect of such
principal amount so paid for the remainder of LIBOR Interest Period applicable
to such principal amount, reduced, if Payee is able to redeposit such principal
amount so paid for the balance of such LIBOR Interest Period, by the interest
earned by Payee as a result of so redepositing such principal amount, plus
(ii) any expense or penalty incurred by Payee on redepositing such
principal amount.

 

“Contract Rate”
shall mean a rate of interest based upon the LIBOR Base Rate or WFB Base Rate
in effect at any time pursuant to an Interest Notice.

 

“Dollars” and the
sign “$” shall mean lawful currency of the United States of America.

 

1

 

“Eurocurrency Reserve
Percentage” shall mean, with respect to each LIBOR Interest Period the
maximum reserve percentage (expressed as a decimal) in effect on the first day
of any LIBOR Interest Period, as prescribed by the Board of Governors of the
Federal Reserve System (or any successor), for determining reserve requirements
applicable to “eurocurrency liabilities” pursuant to Regulation D or any other
then applicable regulation of the Board of Governors (or any successor) which
prescribes reserve requirements applicable to “eurocurrency liabilities,” as
presently defined in Regulation D, or any eurocurrency funding.

 

“Event of Default”
shall mean an Event of Default as such term is defined in the Loan Agreement.

 

“Excess Interest
Amount” shall mean, on any date, the amount by which (i) the amount of
all interest which would have accrued prior to such date on the principal of
this Note (had the applicable Contract Rate at all times been in effect without
limitation by the Maximum Rate) exceeds (ii) the aggregate amount
of interest actually received by Payee on this Note on or prior to such date.

 

“Federal Funds
Effective Rate” means, for any day, the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the immediately following
Business Day by the Federal Reserve Bank of New York or, if such rate is not published
for any Business Day, the average of the quotations for the day of the
requested advance received by Payee from three Federal funds brokers of
recognized standing selected by Payee.

 

“Interest Notice”
shall mean the written notice given by Maker to Payee of the Interest Options
selected hereunder.  Each Interest Notice
shall specify the Interest Option selected, the amount of the unpaid principal
balance of this Note to bear interest at the rate selected and, if the LIBOR
Base Rate is specified, the length of the applicable LIBOR Interest Period.

 

“Interest Option”
shall have the meaning assigned to such term in paragraph 7 hereof.

 

“Interest Payment Date”
shall mean (i) in the case of any WFB Base Rate Balance, the fifteenth
(15th) day of the last month of each calendar quarter during the term hereof,
commencing December 15, 2005, and at the maturity of this Note, and (ii) in
the case of any LIBOR Balance, the last day of the corresponding LIBOR Interest
Period with respect to such LIBOR Balance and at the maturity of this Note.

 

“LIBOR Balance”
shall mean any principal balance of this Note which, pursuant to an Interest
Notice, bears interest at a rate based upon the LIBOR Base Rate for the LIBOR
Interest Period specified in such Interest Notice.

 

“LIBOR Base Rate”
shall mean, with respect to each LIBOR Interest Period, on any day thereof the
quotient of (i) the LIBOR Rate with respect to such LIBOR Interest Period,
divided by (ii) the remainder of 1.0 minus the Eurocurrency
Reserve Percentage in effect on such day.

 

“LIBOR Interest Period”
shall mean, with respect to any LIBOR Balance, a period commencing: (i) on
any date upon which, pursuant to an Interest Notice, the principal amount of
such LIBOR Balance begins to accrue interest at the LIBOR Base Rate, or (ii) on
the last day of

 

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the immediately
preceding LIBOR Interest Period in the case of a rollover to a successive LIBOR
Interest Period, and ending one month, two months or three months thereafter as
Maker shall elect in accordance with the provisions hereof; provided, that: (A) any
LIBOR Interest Period which would otherwise end on a day which is not a
Business Day shall be extended to the next succeeding Business Day unless such
Business Day falls in another calendar month, in which case such LIBOR Interest
Period shall end on the next preceding Business Day; and (B) any LIBOR
Interest Period which begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar
month at the end of such LIBOR Interest Period) shall, subject to clauses (C) below
and (A) above, end on the last Business Day of a calendar month; and (C) any
LIBOR Interest Period which would otherwise end after September 21, 2006
shall end on September 21, 2006.

 

“LIBOR Rate” shall
mean, with respect to each LIBOR Interest Period, the rate of interest
determined by Payee to be the arithmetic average (rounded upward, if necessary
to the nearest 1/16th of 1%) of the per annum rates of interest at which Dollar
deposits with a maturity equal to the proposed LIBOR Interest Period (and in an
amount approximating the LIBOR Balance) would be offered to Payee by major
banks in the interbank eurodollar market at approximately 8:00 a.m.
(Dallas, Texas time) on the Business Day immediately preceding the first day of
such LIBOR Interest Period.

 

“Loan Agreement”
shall mean that certain Loan Agreement, dated as of September 23, 2004, by
and among Maker, Payee and the subsidiaries and/or affiliates of Maker from
time to time a party thereto, as guarantors, as amended, restated, supplemented
and/or modified from time to time.

 

“Maximum Rate,” as
used herein, shall mean, with respect to the holder hereof, the maximum non-usurious
interest rate, if any, that at any time, or from time to time, may be
contracted for, taken, reserved, charged, or received on the indebtedness
evidenced by this Note under the laws which are presently in effect of the
United States and the State of Texas applicable to such holder and such
indebtedness or, to the extent permitted by law, under such applicable laws of
the United States and the State of Texas which may hereafter be in effect and
which allow a higher maximum non-usurious interest rate than applicable laws
now allow.  To the extent that any of the
optional interest rate ceilings provided in Chapter 303 of the Texas
Finance Code, as amended from time to time (as amended, the “Texas Finance
Code”), may be available for application to any loan(s) or extension(s) of
credit under this Note for the purpose of determining the Maximum Rate
hereunder pursuant to the Texas Finance Code, the applicable “monthly ceiling”
(as such term is defined in Chapter 303 of the Texas Finance Code) from
time to time in effect shall be used to the extent that it is so available, and
if such “monthly ceiling” at any time is not so available then the applicable “weekly
ceiling” (as such term is defined in Chapter 303 of the Texas Finance Code)
from time to time in effect shall be used to the extent that it is so
available.

 

“Regulation D”
shall mean Regulation D of the Board of Governors of the Federal Reserve System
from time to time in effect and shall include any successor or other regulation
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

 

“Total Commitment”
shall mean $100,000,000.00.

 

3

 

“WFB” shall mean
Wells Fargo Bank, National Association, a national banking association, and its
successors and assigns.

 

“WFB Base Rate”
shall mean, on any date of determination, a variable rate of interest per annum
equal to the higher of either (a) the WFB Prime Rate, or (b) the
Federal Funds Effective Rate plus
one-half of one percent (0.50%).

 

“WFB Base Rate Balance”
shall mean that portion of the principal balance of this Note bearing interest
at a rate based upon the WFB Base Rate.

 

“WFB Prime Rate”
shall mean the rate of interest most recently announced within Payee at its
principal office in San Francisco as its prime rate and is a base rate for
calculating interest on certain loans. 
The rate announced by Payee as its prime rate may or may not be the most
favorable rate charged by Payee to its customers.  Each change in the WFB Prime Rate shall become
effective without prior notice to Maker automatically as of the opening of
business on the date such change is announced within Payee.

 

2.                                       Manner of Borrowing; Advance Requests.  A request
for an advance under this Note shall be made, or shall be deemed to be made, if
Maker gives Payee notice of its intention to borrow, in which notice Maker
shall specify (i) the aggregate principal amount of such advance and (ii) the
requested date of such advance, which shall be a Business Day.  Any such request for an advance shall be
accompanied by an Interest Notice and shall be made (i) no later than
11:00 a.m. Dallas, Texas time at least three (3) Business Days prior
to the requested advance date if the principal balance of such advance,
pursuant to such Interest Notice, is to bear interest at a rate based upon the
LIBOR Base Rate and (ii) no later than 11:00 a.m. Dallas, Texas time
or the requested advance date if the principal balance of such advance,
pursuant to such Interest Notice, is to bear interest at a rate based upon the
WFB Base Rate.  Notwithstanding anything
herein to the contrary, Payee shall have the right to refuse to accept a
request for an advance under this Note if at the date any such request is made
or any such advance is to be made there exists a default or an Event of Default
under this Note or the Loan Agreement. 
As an accommodation to Maker, Payee may permit telephonic requests for
loans and electronic transmittal of instructions, authorizations, agreements or
reports to Payee by Maker.  Unless Maker
specifically directs Payee in writing not to accept or act upon telephonic or
electronic communications from Maker, Payee shall have no liability to Maker
for any loss or damage suffered by Maker as a result of Payee’s honoring of any
requests, execution of any instructions, authorizations or agreements or
reliance on any reports communicated to Payee telephonically or electronically
and purporting to have been sent to Payee by any individual from time to time
designated by Maker as an authorized officer and Payee shall have no duty to
verify the origin or authenticity of any such communication.

 

3.                                       Payments of Interest and Principal.  Interest
on the unpaid principal balance of this Note shall be due and payable on each
Interest Payment Date as it accrues.  The
unpaid principal balance of this Note shall be due and payable in full on September 21,
2006.

 

4.                                       Rates of Interest.  The
unpaid principal of the WFB Base Rate Balance shall bear interest at a rate per
annum which shall from day to day be equal to the lesser of (i) the higher
of either (a) the WFB Base Rate in effect from day to day, minus  one percent (1.00%) or (b) three

 

4

 

percent (3.0%), or (ii) the Maximum Rate. The unpaid
principal of each LIBOR Balance shall bear interest at a rate per annum which
shall from day to day be equal to the lesser of (i) the LIBOR Base Rate
for the LIBOR Interest Period in effect with respect to such LIBOR Balance plus
one-half of one percent (0.50%), or (ii) the
Maximum Rate.  Each determination by
Payee of the LIBOR Base Rate shall, in the absence of manifest error, be
conclusive and binding.  Interest on this
Note with respect to each WFB Base Rate Balance and each LIBOR Balance shall be
calculated on the basis of the actual days elapsed in a year consisting of 360
days.

 

5.                                       Interest Recapture.  If on
each Interest Payment Date or any other date on which interest payments are
required hereunder, Payee does not receive interest on this Note computed at
the Contract Rate because such Contract Rate exceeds or has exceeded the
Maximum Rate, then Maker shall, upon the written demand of Payee, pay to Payee
in addition to the interest otherwise required to be paid hereunder, on each
Interest Payment Date thereafter, the Excess Interest Amount (calculated as of
such later Interest Payment Date); provided that in no event shall Maker be
required to pay interest at a rate exceeding the Maximum Rate effective during
such period.

 

6.                                       Default Rate of Interest.  From and
after the occurrence and during the continuance of an Event of Default, this
Note shall bear interest at any rate equal to or less than the Maximum Rate, as
chosen by Payee, at its discretion.  All
past due principal and, to the extent permitted by applicable law, interest
upon this Note shall bear interest at any rate equal to or less than the
Maximum Rate, as chosen by Payee, at its discretion.

 

7.                                       Interest Option.  Subject to the provisions hereof,
Maker shall have the option (an “Interest Option”) to designate portions
of the unpaid principal balance hereof to bear interest at a rate based upon
the LIBOR Base Rate or WFB Base Rate as provided in paragraph 4 hereof; provided,
however, that (i) in the case of selection of the WFB Base Rate,
such advance shall not be less than $100,000
(or, if greater than $100,000 in
integral multiples of $100,000) or
(ii) in the case of the selection of the LIBOR Base Rate, the LIBOR
Balance for a particular LIBOR Interest Period shall not be less than $500,000 (or, if greater than $500,000,
in integral multiples of $100,000); provided
further,  however, that no more than five (5) LIBOR Balances
shall be outstanding at any one time under this Note; provided  further,
however, that the sum of the aggregate amount of all LIBOR Balances and
WFB Base Rate Balances outstanding under this Note shall at no time exceed the
Total Commitment.  The option of Maker to
designate portions of the principal of this Note to bear interest at a rate
based upon the LIBOR Base Rate or WFB Base Rate shall be exercised in the
manner provided below:

 

(i)                                     At
Time of Borrowing.  Maker shall
request advances under this Note in accordance with, and in the manner
prescribed by, paragraph 2 hereof. 
In connection with any such advance request, Maker shall give Payee an
Interest Notice indicating the Interest Option selected with respect to the
principal amount of the proposed borrowing.

 

(ii)                                  At
Expiration of LIBOR Interest.  At
least three (3) Business Days prior to the termination of any LIBOR
Interest Period, Maker shall give Payee an Interest Notice indicating the
Interest Option to be applicable to the corresponding LIBOR Balance, as
appropriate, upon the expiration of such LIBOR Interest Period.  If the required Interest Notice shall not
have been timely received by Payee prior to the expiration of the then

 

5

 

relevant LIBOR Interest Period, Maker shall be deemed (a) to have
selected a rate based upon the WFB Base Rate to be applicable to such LIBOR
Balance, and such LIBOR Balance shall thereafter be a WFB Base Rate Balance
upon the expiration of such LIBOR Interest Period and (b) to have given
Payee notice of such selections.

 

(iii)                               Conversion From WFB
Base Rate.  During any period in
which any portion of the principal hereof bears interest at a rate based upon
the WFB Base Rate, Maker shall have the right, on any Business Day (the “Conversion
Date”), to convert all or a portion of such principal amount from the WFB
Base Rate Balance to a LIBOR Balance by giving Payee an Interest Notice of such
selection at least three (3) Business Days prior to such Conversion Date
for any LIBOR Balance.

 

8.                                       Special Provisions For LIBOR Pricing

 

(a)                                  Inadequacy
of LIBOR Pricing.  If Payee
reasonably determines that, by reason of circumstances affecting the interbank
market generally, deposits in Dollars (in the applicable amounts) are not being
offered to Payee in the interbank market for any LIBOR Interest Period, or that
the rate at which such Dollar deposits are being offered will not adequately
and fairly reflect the cost to Payee of making or maintaining a LIBOR Balance
for such LIBOR Interest Period, Payee shall forthwith give notice thereof to
Maker, whereupon until Payee notifies Maker that the circumstances giving rise
to such suspension no longer exist, (i) the right of Maker to select an
Interest Option based upon the LIBOR Base Rate shall be suspended, and (ii) Maker
shall convert each LIBOR Balance into the WFB Base Rate Balance in accordance
with the provisions hereof on the last day of the then-current LIBOR Interest
Period applicable to such LIBOR Balance.

 

(b)                                 Illegality.  If the adoption of any applicable law, rule or
regulation, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by Payee with any request or directive (whether or not having the
force of law) of any such authority, central bank or comparable agency shall
make it unlawful or impossible for Payee to make or maintain a LIBOR Balance,
Payee shall so notify Maker.  Upon
receipt of such notice, Maker shall convert such LIBOR Balance into the WFB
Base Rate Balance, on either (i) the last day of the then-current LIBOR
Interest Period applicable to such LIBOR Balance if Payee may lawfully continue
to maintain and fund such LIBOR Balance to such day, or (ii) immediately,
if Payee may not lawfully continue to maintain such LIBOR Balance to such day.

 

(c)                                  Increased
Costs for LIBOR Balances.

 

(i)                                     If
the adoption of any applicable law, rule or regulation, or any change
therein, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by Payee with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency shall subject Payee to any tax
(including without limitation any United States interest equalization or
similar tax, however named), duty or other charge with respect to the

 

6

 

LIBOR Balances, this Note or Payee’s obligation to compute interest on
the principal balance of this Note at a rate based upon the LIBOR Base Rate, or
shall change the basis of taxation of payments to Payee of the principal of or
interest on the LIBOR Balances or any other amounts due under this Note in
respect of the LIBOR Balances or Payee’s obligation to compute the interest on
the balance of this Note at a rate based upon the LIBOR Base Rate (except for
changes in the rate on the tax on the overall net income of Payee imposed by
the jurisdiction in which Payee’s principal executive office is located); or

 

(ii)                                  if
any governmental authority, central bank or other comparable authority shall at
any time impose, modify or deem applicable any reserve (including, without
limitation, any imposed by the Board of Governors of the Federal Reserve System
but excluding any reserve requirement included in the Eurocurrency Reserve
Percentage of Payee), special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by, Payee, or shall
impose on Payee (or its eurocurrency lending office) or the interbank market
any other condition affecting a LIBOR Balance, this Note or Payee’s obligation
to compute the interest on the balance of this Note at a rate based upon the
LIBOR Base Rate; and the result of any of the foregoing is to increase the cost
to Payee of maintaining a LIBOR Balance, or to reduce the amount of any sum
received or receivable by Payee under this Note by an amount deemed by Payee to
be material, then upon demand by Payee, Maker shall pay to Payee such
additional amount or amounts as will compensate Payee for such increased cost
or reduction, the amount of which, when aggregated with interest to be paid
under the LIBOR Balance, does not exceed the interest which would have been payable
had the balance been calculated using the WFB Base Rate.  Payee will promptly notify Maker of any event
of which it has knowledge, occurring after the date hereof, which will entitle
Payee to compensation pursuant to this paragraph.  A certificate of Payee claiming compensation
under this paragraph and setting forth the additional amount or amounts to be
paid to Payee hereunder shall be conclusive in the absence of manifest error.

 

(d)                                 Effect
on Balances.  If notice has been
given requiring a LIBOR Balance to be repaid or converted to the WFB Base Rate
Balance, then unless and until Payee notifies Maker that the circumstances
giving rise to such repayment no longer apply, the Interest Option shall be a
rate based upon the WFB Base Rate.  If
Payee notifies Maker that the circumstances giving rise to such repayment or
conversion no longer apply, Maker may thereafter select a rate based upon the
LIBOR Base Rate in accordance with the terms of this Note.

 

9.                                       Extension, Place and Application of Payments.  Subject
to the terms of the definitions of LIBOR Interest Period, should the principal
of, or any interest on, this Note become due and payable on any day other than
a Business Day, the maturity thereof shall be extended to the next succeeding
Business Day, and interest shall be payable with respect to such
extension.  All payments of principal of,
and interest on, this Note shall be made by Maker to Payee at Payee’s principal
banking office in Dallas, Texas in federal or other immediately available
funds.  Payments made to Payee by Maker
hereunder shall be applied first to accrued interest and then to principal.

 

7

 

10.                                 Repayments of WFB Base Rate Balances; Prepayments
of LIBOR Balances; Consequential Loss.  Maker may repay any WFB Base Rate
Balance at any time without premium or penalty and without prior notice.  Maker may prepay any LIBOR Balance prior to
the expiration of the applicable LIBOR Interest Period upon three (3) Business
Days prior written notice subject to Maker’s payment of the Consequential Loss
incurred by Payee as a result of the timing of such prepayment; provided,
however, that Maker shall not have the option to designate any portion
of the unpaid principal balance hereof to bear interest at a rate based upon
the LIBOR Base Rate for a period of ninety (90) days following any such
prepayment of any LIBOR Balance.  Any
repayment or permitted prepayment of principal made hereunder shall not be less
than $100,000 (or, if greater than $100,000, in integral multiples of $100,000,
or such lesser amount as is then outstanding under this Note).  Any repayment or permitted prepayment of
principal made hereunder shall be made together with interest accrued through
the date of such repayment or prepayment, as applicable.

 

11.                                 Advance Notice.  Payee will use its best efforts
to supply the Maker advance notice of the interest and/or principal amounts
that the Payee has calculated are due at the scheduled payment dates at least
one day in advance, assuming the unpaid principal balance and interest rate
remain the same until such scheduled payment date.  Notwithstanding the foregoing, no failure by
the Payee to give such notice will reduce the obligation of the Maker to pay such
amounts on the date they become due.

 

12.                                 Notices.  All notices required or permitted
hereunder shall be in writing and shall be deemed to have been given or made as
follows:  (a) if sent by hand
delivery, upon delivery; (b) if sent by registered or certified mail,
return receipt requested, upon receipt (as indicated on the return receipt);
and (c) if sent by facsimile, upon receipt (which shall be confirmed by a
confirmation report from the sender’s facsimile machine), addressed to Maker or
Payee at the following respective addresses or such other address as such party
may from time to time designate by written notice to the other:

 

	
  Payee:

  	
   

  	
  Wells Fargo Bank, National Association

  
	
   

  	
   

  	
  1445 Ross Avenue, 3rd Floor

  
	
   

  	
   

  	
  MAC T5303-031

  
	
   

  	
   

  	
  Dallas, Texas 75202

  
	
   

  	
   

  	
  Attention: Susan K. Nugent, Assistant Vice President

  
	
   

  	
   

  	
  Fax: (214) 969-0370

  
	
   

  	
   

  	
   

  
	
  Maker:

  	
   

  	
  Fossil Partners, L.P.

  
	
   

  	
   

  	
  2280 N. Greenville Avenue

  
	
   

  	
   

  	
  Richardson, Texas 75082-4412

  
	
   

  	
   

  	
  Attention: Mike L. Kovar

  
	
   

  	
   

  	
  Fax: (972) 498-9448

  

 

13.                                 Legal Fees.  If this Note is placed in the
hands of any attorney for collection, or if it is collected through any legal
proceeding at law or in equity or in bankruptcy, receivership or other court
proceedings, Maker agrees to pay all costs of collection including, but not
limited to, court costs and reasonable attorneys’ fees.

 

8

 

14.                                 Waivers.  Maker and each surety, endorser,
guarantor and other party ever liable for payment of any sums of money payable
on this Note, jointly and severally waive presentment and demand for payment,
protest, notice of protest, intention to accelerate, acceleration and
non-payment, or other notice of default, and agree that their liability under
this Note shall not be affected by any renewal or extension in the time of
payment hereof, or in any indulgences, or by any release or change in any
security for the payment of this Note, and hereby consent to any and all
renewals, extensions, indulgences, releases or changes, regardless of the
number of such renewals, extensions, indulgences, releases or changes.

 

No waiver by Payee of any
of its rights or remedies hereunder or under any other document evidencing or
securing this Note or otherwise shall be considered a waiver of any other
subsequent right or remedy of Payee; no delay or omission in the exercise or
enforcement by Payee of any rights or remedies shall ever be construed as a
waiver of any right or remedy of Payee; and no exercise or enforcement of any
such rights or remedies shall ever be held to exhaust any right or remedy of
Payee.

 

15.                                 Acceleration.  If Maker fails or refuses to pay
any part of the principal of or interest upon this Note as the same become due,
or upon the occurrence of any Event of Default or other default hereunder or
under any other agreement or instrument securing or assuring the payment of
this Note or executed in connection herewith, then in any such event the holder
hereof may, at its option, declare the entire unpaid balance of principal and
accrued interest on this Note to be immediately due and payable, and foreclose
all liens and security interests securing payment hereof or any part hereof.

 

16.                                 Interest Laws; Spreading.  Any
provision herein, or in any document securing this Note, or any other document
executed or delivered in connection herewith, or in any other agreement or
commitment, whether written or oral, expressed or implied, to the contrary
notwithstanding, neither Payee nor any holder hereof shall in any event be
entitled to receive or collect, nor shall or may amounts received hereunder be
credited, so that Payee or any holder hereof shall be paid, as interest, a sum
greater than the maximum amount permitted by applicable law to be charged to
the person, partnership, firm or corporation primarily obligated to pay this
Note at the time in question.  If any construction
of this Note or any document securing this Note, or any and all other papers,
agreements or commitments, indicate a different right given to Payee or any
holder hereof to ask for, demand or receive any larger sum as interest, such is
a mistake in calculation or wording which this clause shall override and
control, it being the intention of the parties that this Note, and all other
instruments securing the payment of this Note or executed or delivered in
connection herewith shall in all things comply with applicable law and proper
adjustments shall automatically be made accordingly.  In the event that Payee or any holder hereof
ever receives, collects or applies as interest, any sum in excess of the
Maximum Rate, if any, such excess amount shall be applied to the reduction of
the unpaid principal balance of this Note, and if this Note is paid in full,
any remaining excess shall be paid to Maker. 
In determining whether or not the interest paid or payable, under any
specific contingency, exceeds the Maximum Rate, if any, Maker and Payee or any
holder hereof shall, to the maximum extent permitted under applicable law: (a) characterize
any non-principal payment as an expense or fee rather than as interest, (b) exclude
voluntary prepayments and the effects thereof, (c) ”spread” the total
amount of interest throughout the entire term of this Note; provided that if
this Note is paid and performed in full prior to the end of the full
contemplated term hereof, and if the

 

9

 

interest received for the actual
period of existence thereof exceeds the Maximum Rate, if any, Payee or any
holder hereof shall refund to Maker the amount of such excess, or credit the
amount of such excess against the aggregate unpaid principal balance of all
advances made by the Payee or any holder hereof under this Note at the time in
question.

 

17.                                 Choice of Law.  This Note is being executed and
delivered, and is intended to be performed in the State of Texas.  Except to the extent that the laws of the
United States may apply to the terms hereof, the substantive laws of the State
of Texas shall govern the validity, construction, enforcement and
interpretation of this Note. In the event of a dispute involving this Note or
any other instruments executed in connection herewith, the undersigned
irrevocably agrees that venue for such dispute shall lie in any court of
competent jurisdiction in Dallas County, Texas to the extent such dispute is
not resolved by binding arbitration pursuant to the Payee’s current Arbitration
Program described in Section 19 below.

 

18.                                 Loan Agreement.  This Note is executed in
connection with the Loan Agreement and the holder hereof is entitled to all the
benefits provided therein and in the other agreements, documents, instruments
and certificates entered into in connection with the Loan Agreement.

 

19.                                 AGREEMENT FOR BINDING ARBITRATION.  The
parties agree to be bound by the terms and provisions of the Payee’s current
Arbitration Program which is incorporated by reference herein and is
acknowledged as received by the parties pursuant to which any and all disputes
shall be resolved by mandatory binding arbitration upon the request of any
party.

 

20.                                 Amendment and Restatement.  This Note
increases, amends, modifies and restates, but does not extinguish the
indebtedness evidenced by, that certain Revolving Line of Credit Note dated September 23,
2004, in the stated principal amount of $50,000,000, executed by Maker and
payable to the order of Payee.

 

[THE REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

10

 

IN WITNESS WHEREOF, Maker
has caused this Note to be duly executed and delivered in Dallas, Texas, as of
the date first above written.

 

 

	
   

  	
  FOSSIL PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Fossil, Inc., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Randy S. Kercho

  
	
   

  	
   

  	
  Randy S. Kercho,

  
	
   

  	
   

  	
  Executive Vice PresidentExhibit
10.1

 

CONTRACT
WORK AUTHORIZATION (Form 1) RELEASE NO. 11

 

for

ENGINEERING
AND

CONSTRUCTION
MANAGEMENT SERVICES

 

Between

 

ACUSPHERE,
INC. (“ACUSPHERE/OWNER”)

 

and

 

PARSONS
COMMERCIAL TECHNOLOGY GROUP INC. (“PARSONS”)

 

All work authorized by Acusphere
and performed by Parsons in accordance with this Contract Work Authorization
shall be governed by the “Terms and Conditions for Engineering, Procurement and
Construction Management Services between Acusphere, Inc. and Parsons Commercial
Technology Group Inc.” (the EPCM), effective date July 6, 2004.

 

9/29/05 – RELEASE 11

 

CONTRACT WORK
AUTHORIZATION RELEASE 11

(Form 1)

FOR

ENGINEERING AND
CONSTRUCTION MANAGEMENT SERVICES

 

THIS Contract Work
Authorization for the continuing performance of engineering, construction
management, procurement services and placement of subcontracts (where
applicable) is executed September 29, 2005 and between ACUSPHERE, INC., with
principal offices at 500 Arsenal Street, Watertown, Massachusetts 02472 (“Acusphere/Owner”)
and PARSONS COMMERCIAL TECHNOLOGY GROUP INC. (“PARSONS”), with principal
offices for this project located at 150 Federal Street, Boston, Massachusetts
02110.

 

1

 

This Contract Work
Authorization, the scope of which is defined below, is intended to cover
engineering, construction management, procurement services and placement of
subcontracts (where applicable) (authorized to date by Acusphere) to be
provided by Parsons for Acusphere from July 6, 2004 through December 31, 2005.
This Contract Work Authorization (Form 1) Release 11 extends Parsons
performance period from September 30, 2005, as previously authorized per
Contract Work Authorization (Form 1) Release 10, to December 31, 2005.

 

IN CONSIDERATION of the
covenants hereinafter set forth, the parties hereto mutually agree as follows:

 

ARTICLE I                                     SCOPE OF SERVICES

 

1.1                                 Description
of Services

 

Parsons shall continue to
perform engineering construction management and other services as required
(hereinafter referred to as the “Services”) in connection with Owner’s aseptic
pharmaceutical manufacturing facility located at 890 East Street, Tewksbury,
Massachusetts (the “Facilities”), as previously set forth and described in
Exhibit 1, which is attached to Contract Work Authorization (Form 1) Release
Number 1, which was executed by the parties November 11, 2004.

 

ARTICLE II                                 ESTIMATED COST

 

	
  Previous
  total estimated cost up through and including Contract Work Authorization (Form
  1) Release Number 10

  	
   

  	
  $

  	
  25,060,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Estimated
  increase based on Contract Work Authorization (Form 1) Release Number 11

  	
   

  	
  $

  	
  769,700.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Revised
  total estimated cost up through this Contract Work Authorization (Form 1) Release
  Number 11

  	
   

  	
  $

  	
  25,829,700.00

  	
   

  

 

It is anticipated that
the revised estimated costs added herein will be incurred prior to December 31,
2005 and that, in accordance with the terms of the EPCM and Contract Work
Authorization (Form 1) Release Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 if
Acusphere were to terminate this contract during this term, Acusphere will be
liable for all costs incurred.

 

ARTICLE III                             TERMS AND CONDITIONS

 

THE PARTIES
ACKNOWLEDGE AND AGREE THE TERMS AND CONDITIONS OF THIS AGREEMENT HAVE BEEN
FREELY, FAIRLY AND THOROUGHLY NEGOTIATED. FURTHER, THE PARTIES ACKNOWLEDGE AND
AGREE SUCH TERMS AND CONDITIONS, INCLUDING BUT NOT LIMITED TO THOSE

 

2

 

RELATING TO
WAIVERS, ALLOCATIONS OF, RELEASES FROM, INDEMNITES AGAINST AND LIMITATIONS OF
LIABILITY, WHICH MAY REQUIRE CONSPICUOUS IDENTIFICATION, HAVE NOT BEEN SO
IDENTIFIED BY MUTUAL AGREEMENT AND THE PARTIES HAVE ACTUAL KNOWLEDGE OF THE
INTENT AND EFFECT OF SUCH TERMS AND CONDITIONS. EACH PARTY ACKNOWLEDGES THAT IN
EXECUTING THIS AGREEMENT IT RELIED SOLELY ON ITS OWN JUDGEMENT, BELIEF, AND
KNOWLEDGE, AND SUCH ADVICE AS IT MAY HAVE RECEIVED FROM ITS OWN COUNSEL, AND IT
HAS NOT BEEN INFLUENCED BY ANY REPRESENTATION OR STATEMENTS MADE BY ANY OTHER
PARTY OR SUCH OTHER PARTY’S COUNSEL. NO PROVISION IN THIS AGREEMENT IS TO BE
INTERPRETED FOR OR AGAINST ANY PARTY BECAUSE THAT PARTY OR ITS COUNSEL DRAFTED
SUCH PROVISION.

 

ARTICLE IV                             SCHEDULE

 

It is estimated
that the work covered by the Contract Work Authorization shall commence and be
completed as noted below:

 

Work commenced on
July 6, 2004 and shall be suspended at the end of the day December 31, 2005
unless a subsequent authorization to continue is received by Parsons from
Acusphere on or prior to December 31, 2005. 
Effort will be made to complete work hereunder prior to December 31,
2005.

 

All
other terms and conditions for the Contract for Engineering, Procurement and
Construction Management Services, as previously amended by Contract Work
Authorization Numbers 1 through 10 remain unchanged.

 

3

 

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

 

	
  ACUSPHERE,
  INC. (“ACUSPHERE”)

  	
  PARSONS
  COMMERCIAL TECHNOLOGY

  GROUP INC. (“PARSONS”)

  
	
   

  	
   

  
	
  By:      /s/
  John Thero

  	
   

  	
  By:      /s/
  Daniel Mariani

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title
  Sr. Vice President and CFO

  	
  Title
  Sr. Vice President

  

 

4

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