Document:

EXHIBIT 10.42

                              AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

     This Amended and Restated  Registration Rights Agreement (this "Agreement")
is  dated as of  April  10,  2003,  by and  among  BRIAZZ,  Inc.,  a  Washington
corporation  with  its  principal  offices  at 3901 - 7th  Avenue  South,  #200,
Seattle,  Washington 98108 (the "Company"),  and Spinnaker  Investment Partners,
L.P., a Delaware limited partnership  ("Spinnaker"),  Briazz Venture, L.L.C., an
Illinois limited liability company ("Briazz  Venture",  together with Spinnaker,
"Purchasers").   This  Agreement   amends  and  restates  in  its  entirety  the
Registration Rights Agreement dated March 6, 2003 between the Company and Briazz
Venture.

                                    RECITALS

     Pursuant to the Amended and Restated  Purchase  Agreement dated as of March
5, 2003 (the "BV  Purchase  Agreement"),  the Company  sold and issued to Briazz
Venture a warrant to  purchase  shares of the  Company's  common  stock (the "BV
Warrant") equal to 19.99% of the outstanding  Common Stock as of the date of the
BV  Purchase  Agreement,  at a purchase  price per Share of $0.50  pursuant to a
Warrant to Purchase Shares of Common Stock of even date herewith and one hundred
shares of Series D preferred stock ("Series D Preferred  Stock"),  the terms and
conditions  of which are set forth the Articles of  Amendment  to the  Company's
Articles of Incorporation.  Pursuant to the Purchase Agreement dated as of April
10, 2003 (the "Spinnaker  Purchase  Agreement"),  the Company sold and issued to
Spinnaker  a warrant  to  purchase  shares of the  Company's  common  stock (the
"Spinnaker  Warrant") equal to  approximately  19.9% of the  outstanding  Common
Stock as of the date of the Spinnaker  Purchase  Agreement,  at a purchase price
per Share of $0.50  pursuant to a Warrant to Purchase  Shares of Common Stock of
even date herewith and twenty-five shares of Series E preferred stock ("Series E
Preferred Stock"),  the terms and conditions of which are set forth the Articles
of  Amendment  dated  April 9, 2003.  The BV Warrant and  Spinnaker  Warrant are
exercisable  and the Series D and Series E Preferred  Stock is  convertible,  in
certain  circumstances,  into  shares  of  common  stock  of  the  Company  (the
"Shares").  The BV Purchase  Agreement,  the BV Warrant,  the Series D Preferred
Stock  and the note and  security  agreement  issued in  connection  with the BV
Purchase  Agreement are referred to herein as the "BV Purchase  Documents."  The
Spinnaker  Purchase  Agreement,  the Spinnaker  Warrant,  the Series E Preferred
Stock  and the  note  and  security  agreement  issued  in  connection  with the
Spinnaker Purchase  Agreement are referred to herein as the "Spinnaker  Purchase
Documents."

                                    AGREEMENT

     NOW, THEREFORE,  for good and valuable consideration,  the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

1.   Definitions.

     For purposes of this Agreement:

     (a)  The term "Act" shall mean the Securities Act of 1933, as amended.

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     (b)  The  term  "register,"  "registered,"  and  "registration"  refer to a
          registration effected by preparing and filing a registration statement
          or similar  document in compliance with the Securities Act of 1933, as
          amended (the "Act"),  and the declaration or ordering of effectiveness
          of such registration statement or document;

     (c)  The term  "Registrable  Securities"  means (i) the Shares  issuable or
          issued upon exercise of the BV Warrant and the  Spinnaker  Warrant and
          conversion of the Series D and Series E Preferred  Stock, and (ii) any
          common stock of the Company  ("Common  Stock")  issued as (or issuable
          upon  the  conversion  or  exercise  of any  warrant,  right  or other
          security  which is issued as) a dividend  or other  distribution  with
          respect to, or in exchange for or in replacement of, such  securities,
          excluding in all cases, however, any Registrable  Securities sold by a
          person in a transaction  in which its rights under this  Agreement are
          not assigned or assignable;

     (d)  The  number of shares of  "Registrable  Securities  then  outstanding"
          shall  be   determined  by  the  number  of  shares  of  Common  Stock
          outstanding  which  are,  and the  number of  shares  of Common  Stock
          issuable pursuant to then exercisable or convertible  securities which
          are, Registrable Securities;

     (e)  The  term   "Registration   Statement"  shall  mean  any  registration
          statement under the Act that includes Registrable Securities.

     (f)  The term "Holder"  means any  Purchaser and any permitted  transferees
          under the terms of this Agreement;

     (g)  The term "affiliate" shall mean with respect to any person,  any other
          person which directly or indirectly,  by itself or through one or more
          intermediaries,  controls,  or is controlled by, or is under direct or
          indirect common control with, such person;

     (h)  The term "control"  means the possession,  direct or indirect,  of the
          power to direct or cause the direction of the  management and policies
          of a person,  whether through the ownership of voting  securities,  by
          contract or otherwise; and

     (i)  The term  "Form S-3" means such form under the Act as in effect on the
          date  hereof  or any  registration  form  under  the Act  subsequently
          adopted by the  Securities and Exchange  Commission  (the "SEC") which
          similarly   permits   inclusion  or   incorporation   of   substantial
          information by reference to other  documents filed by the Company with
          the SEC.

2.   Initial Registration.

     The Company  shall,  subject to the  limitations of Section 5, use its best
efforts  to effect  within  ninety  (90) days of  satisfying  one or both of the
Laurus  Conditions  (defined  below)  the  registration  under  the  Act  of all
Registrable Securities then outstanding.  Notwithstanding the foregoing,  (i) if
the  Company  shall  furnish  to Holders  requesting  a  registration  statement
pursuant to this Section 2, a certificate  signed by the Chief Executive Officer
of the Company stating that in the good faith judgment of the Board of Directors
of the Company, including a

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majority of the directors  designated or nominated by Flying Food Group, LLC, or
its  affiliates  (collectively,  "FFG")  and  Spinnaker,  if any,  it  would  be
seriously  detrimental to the Company and its shareholders for such registration
statement (or any amendment  thereto) to be filed and it is therefore  essential
to defer the filing of such registration  statement (or any amendment  thereto),
the  Company  shall have the right to defer such filing for a period of not more
than sixty (60)  additional  days;  and (ii) the Company will not be required to
cause the registration statement to be declared effective,  and Holders will not
be  permitted  to transfer or sell the  Registrable  Securities  pursuant to the
registration statement unless and until: (x) Laurus Master Fund, Ltd. ("Laurus")
consents  to  the  effectiveness  of  the  registration  statement  or  (y)  the
Promissory Note in the original  principal amount of $1,250,000,  dated June 18,
2002,  between  Laurus  and the  Company,  is repaid in full  (collectively  the
"Laurus Conditions".)

3.   Company Registration

     If (but without any  obligation to do so) the Company  proposes to register
(including  for  this  purpose  a  registration  effected  by  the  Company  for
shareholders  other than the  Holders)  any of its Common Stock under the Act in
connection with the public  offering of such  securities  solely for cash (other
than a registration relating solely to the sale of securities to participants in
a Company  stock-based  incentive  plan),  the Company shall, at each such time,
promptly give each Holder written notice of such registration. The Company shall
include in such registration,  subject to the provisions of Sections 5, 8 and 9,
all the  Registrable  Securities  then  outstanding  and  specified in a written
request  or  requests  made by  Holders  within  (15) days after the date of the
written notice by the Company of such  registration.  A Holder's written request
may specify that all or a portion of such  Holder's  Registrable  Securities  be
registered in the registration.

4.   Obligations of the Company.

     Whenever  required under this Agreement to effect the  registration  of any
Registrable  Securities,  the Company  shall,  as  expeditiously  as  reasonably
possible:

     (a)  file with the SEC a Registration  Statement under the Act on Form S-1,
          Form S-3 or such other form, as required by the  applicable  provision
          of this  Agreement,  as is  appropriate  to  register  the  resale  of
          Registrable Securities by the selling Holders;

     (b)  use its best efforts, subject to receipt of necessary information from
          the selling Holders,  to cause such  Registration  Statement to become
          effective (i) in the case of a Section 2 registration,  within 90 days
          after the issuance of the Notes  pursuant to the  Purchase  Agreement,
          and (ii) in the case of a Section 3 or 11  registration,  as  promptly
          after filing as practicable;

     (c)  prepare and file with the SEC such  amendments and supplements to such
          Registration Statement and the prospectus used in connection therewith
          as may be  necessary  to keep such  Registration  Statement  effective
          until (i) in the case of a  Section 2  registration,  the  earlier  to
          occur  of (A)  such  time  as no  Holder  named  in  the  Registration
          Statement  holds or has the right to  receive  any of the  Registrable
          Securities  registered  therein or (B) such time as such  Holders  may
          sell their

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          Registrable  Securities pursuant to Rule 144(k) of the Act or pursuant
          to  any  similar  rules  that  may  be   promulgated   without  volume
          limitations,  and (ii) in the case of a Section 3 or 11  registration,
          such time as no Holder named in the  Registration  Statement  holds or
          has the right to receive any of the Registrable  Securities registered
          therein;

     (d)  furnish  to the  selling  Holders  with  respect  to  the  Registrable
          Securities  registered  on the  Registration  Statement  (and  to each
          underwriter,  if any, of such  Registrable  Securities) such number of
          copies of the Registration Statement and supplements to the prospectus
          contained  therein and such other  documents as the selling Holders or
          underwriter  may reasonably  request in order to facilitate the public
          sale or other disposition of all or any of the Registrable  Securities
          by the selling Holders;

     (e)  use  its  best  efforts  to  register  and  qualify  the   Registrable
          Securities  covered by such  Registration  Statement  under such other
          securities  or  "Blue  Sky"  laws of such  jurisdictions  as  shall be
          reasonably  requested by the Holders,  provided that the Company shall
          not be required in connection  therewith or as a condition  thereto to
          qualify  to do  business  or to file a general  consent  to service of
          process in any such states or jurisdictions;

     (f)  promptly notify the selling Holders of the time when such Registration
          Statement  has become  effective  or a  supplement  to any  prospectus
          forming a part of such Registration Statement has been filed;

     (g)  promptly  notify the  selling  Holders of any request by the SEC after
          the  Registration  Statement has become  effective for the amending or
          supplementing  of the  Registration  Statement  or  prospectus  or for
          additional information;

     (h)  prepare  and file  with  the SEC,  promptly  upon the  request  of any
          selling  Holder,  any amendments or  supplements to such  Registration
          Statement or prospectus  which,  in the reasonable  opinion of counsel
          for such selling  Holder are  required  under the Act or the rules and
          regulations   thereunder  in  connection  with  the   distribution  of
          Registrable Securities by such selling Holder;

     (i)  prepare and promptly file with the SEC and promptly notify the selling
          Holders  of  the  filing  of  such  amendment  or  supplement  to  the
          Registration  Statement or  prospectus  as may be necessary to correct
          any statements or omissions if, at the time when a prospectus relating
          to such  securities  is required to be  delivered  under the Act,  any
          event shall have  occurred as the result of which any such  prospectus
          or any other  prospectus  as then in effect  would  include  an untrue
          statement  of a  material  fact  or  omit to  state  a  material  fact
          necessary   to  make  the   statements   therein,   in  light  of  the
          circumstances in which they were made, not misleading;

     (j)  advise the selling  Holders  promptly after it shall receive notice or
          obtain knowledge thereof, of the issuance of any stop order by the SEC
          suspending  the

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          effectiveness  of the  Registration  Statement  or the  initiation  or
          threatening  of any  proceeding  for that purpose and promptly use its
          best  efforts to prevent  the  issuance of any stop order or to obtain
          its withdrawal if such stop order should be issued;

     (k)  if such registration  includes an underwritten public offering or upon
          written  request by any  selling  Holder or group of  selling  Holders
          whose  Registrable  Securities shall be included in such  Registration
          Statement  with an aggregate  market value at the date of such request
          exceeding $500,000,  furnish on the effective date of the Registration
          Statement and, if such  registration  includes an underwritten  public
          offering,  at the closing provided for in the underwriting  agreement:
          (i) opinions,  dated such respective date, of the counsel representing
          the Company for the  purposes of such  registration,  addressed to the
          underwriters, if any, and to the selling Holder or Holders making such
          request, covering such matters as such underwriters and selling Holder
          or  Holders  may  reasonably  request  and (ii)  letters,  dated  such
          respective dates, from the independent certified public accountants of
          the  Company,  addressed  to the  underwriters  and selling  Holder or
          Holders, covering such matters as such underwriters and selling Holder
          or Holders may reasonably  request,  in which letters such accountants
          shall state (without  limiting the  generality of the foregoing)  that
          they are independent  certified public  accountants within the meaning
          of the Act and that in the opinion of such  accountants  the financial
          statements  and other  financial  data of the Company  included in the
          Registration  Statement or any amendment or supplement  thereto comply
          in all material respects with the applicable  accounting  requirements
          of the Act;

     (l)  otherwise comply with all applicable rules and regulations of the SEC;

     (m)  cause all the  Registrable  Securities  covered  by such  Registration
          Statement to be included for quotation on the Nasdaq SmallCap Market;

     (n)  provide a transfer agent and registrar for all Registrable  Securities
          covered by such Registration Statement and a CUSIP number for all such
          Registrable  Securities  to the extent not already  provided,  in each
          case not later than the effective date of such registration;

     (o)  provide  the  selling  Holders  and any  underwriters  of  Registrable
          Securities  a  reasonable   opportunity   to  perform  due   diligence
          concerning  the  Company,   including  a  reasonable   opportunity  to
          interview  officers  and  employees  of  the  Company  and  to  review
          documents relating to the Company; and

     (p)  make  available  its  officers and  employees  and  otherwise  provide
          reasonable  assistance (taking into account the needs of the Company's
          business)  to any  underwriters  of  Registrable  Securities  in their
          marketing of Registrable Securities.

     (q)  cooperate with each selling Holder and each  underwriter in connection
          with the filing required to be made with NASD.

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5.   Limitations; Agreements of Holders.

     (a)  it shall be a condition precedent to the obligations of the Company to
          take any action pursuant to this Agreement with respect to any selling
          Holder that such  selling  Holder  shall  furnish to the Company  such
          information  regarding itself,  the Registrable  Securities held by it
          and the intended  method of disposition of such securities as shall be
          reasonably  requested by the Company in effecting the  registration of
          its Registrable Securities and to execute such documents in connection
          with such registration as the Company may reasonably request.

     (b)  the Company may at any time that it is eligible to do so,  prepare and
          file an  amendment  or  supplement  to the  Registration  Statement or
          prospectus with the SEC and promptly notify the selling Holders of the
          filing of such amendment or supplement to the  Registration  Statement
          or  prospectus  as the  Company  may  desire  in order to  effect  the
          conversion of the Registration Statement from Form S-1 to Form S-3, or
          vice versa;

     (c)  each Holder agrees that,  if so requested by the Company,  it will not
          effect  any  offer  or sale of  shares  pursuant  to the  Registration
          Statement, or otherwise, or engage in any hedging or other transaction
          intended to reduce or transfer  the risk of  ownership  for any period
          deemed  necessary  (i) by the  Company  in  connection  with a  notice
          provided pursuant to Section 4(g) or 4(j) or a proposed  supplement or
          amendment  pursuant to Section 4(h) or 4(i), or (ii) by the Company at
          any other time that the Company  determines,  in its sole  discretion,
          that the  existence of material  nonpublic  information  regarding the
          Company or other circumstances make such activities inappropriate. Any
          period within the period provided for in Section 4(c) during which the
          Company fails to keep the Registration  Statement effective and usable
          for resales of the  Registrable  Securities,  or requires  pursuant to
          this  subsection  that the Holders not effect sales of shares pursuant
          to  the  Registration   Statement,  is  hereafter  referred  to  as  a
          "Suspension  Period." A Suspension  Period shall  commence on the date
          set forth in a written  notice by the Company to the Holders  that the
          Registration  Statement is no longer  usable for resales of shares or,
          in the  case of a  suspension  pursuant  to this  subsection  the date
          specified  in the notice  delivered  by the  Company  pursuant to this
          subsection,  and  shall  end on the date  when  each  holder of shares
          covered by the  Registration  Statement  either receives the copies of
          the  supplemented or amended  prospectus  contemplated by herein or is
          advised in writing by the Company that use of the  prospectus or sales
          may be resumed.  If the event that any Suspension  Period occurs,  the
          effective  period under Section 4(c) shall be extended by an amount of
          time equal to the Suspension Period.

     (d)  each Holder agrees that, if so requested by the Company, it shall keep
          the fact of any  notification  pursuant to Section 4(g),  4(j) or 5(c)
          and the contents of any such notification confidential.

6.   Liquidated Damages

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     (a)  The  Company  acknowledges  and agrees  that  Purchaser  shall  suffer
          damages and that it would not be feasible to  ascertain  the extent of
          such damages with precision if the Company fails to fulfill certain of
          its obligations hereunder.  Accordingly, in the event of such failure,
          the Company agrees to pay to Purchaser, as liquidated damages, and not
          as a  penalty,  under the  circumstances  and to the  extent set forth
          below:

               (i) if, pursuant to Section 2 hereof, the registration  statement
          covering all of the Registrable  Securities  then  outstanding has not
          been filed with the SEC on or prior to 90 days after the  issuance  of
          the Warrant and the Series D Preferred Stock;

               (ii) if such registration  statement is not declared effective by
          the SEC on or  prior to 150  days  after  the  issuance  of the  Notes
          pursuant to the Purchase Agreement;

               (iii) if the  registration of the  Registrable  Securities is not
          consummated on or before the 30th Business Day after the date on which
          the such registration statement is declared effective by the SEC; or

               (iv)  if  such  registration  statement  is  filed  and  declared
          effective  by the SEC,  but  thereafter  ceases to be effective at any
          time prior to the time that the Registrable Securities are sold by the
          Holders thereof subject to the Registration Statement.

(each of the  foregoing an "Event," and the date on which the Event occurs being
referred to herein as an "Event Date").

     (b)  Upon the occurrence of any Event, the Company shall pay, as liquidated
          damages,  and not as a penalty,  to Purchaser  for each weekly  period
          beginning on the Event Date an amount equal to the Liquidated Damages;
          provided,  that such Liquidated  Damages, in each case, shall cease to
          accrue  (subject to the  occurrence  of another  Event) on the date on
          which all Events have been cured. The Company shall not be required to
          pay  Liquidated  Damages for more than one Event at any given time. An
          Event  under  clause  (i)  above  shall be cured on the date  that the
          registration  statement  is filed  with the  SEC;  and an Event  under
          clause  (ii)  above  shall be cured on the date that the  registration
          statement is declared  effective by the SEC; and an Event under clause
          (iii)  above  shall be cured  on the  date on which  the  registration
          statement   is  no  longer   subject  to  an  order   suspending   the
          effectiveness  thereof or proceedings relating thereto. The Liquidated
          Damages will be determined by multiplying  the  applicable  Liquidated
          Damages rate by the  principal  amount of the Notes,  multiplied  by a
          fraction, the numerator of which is the number of days such Liquidated
          Damages  rate was  applicable  during such period  (determined  on the
          basis of a 360-day  year  comprised of twelve  30-day  months) and the
          denominator of which is 360.

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     (c)  The Company  shall  notify  Purchaser  of the  occurrence  of an Event
          within five Business Days after each Event Date. The Company shall pay
          the  liquidated  damages due by  transferring  to Purchaser,  by 12:00
          noon, Chicago time,  immediately available funds in sums sufficient to
          pay the Liquidated  Damages then due. The Liquidated Damages due shall
          be payable in the same  manner as  interest  payments  on the Notes on
          each interest payment date to Purchaser to be made on such date as set
          forth in the Notes.

     (d)  For  purposes of this  Section 6,  "Liquidated  Damages"  means,  with
          respect  to any  Event,  an amount  equal to the  interest  that shall
          accrue on the Notes  over and above the stated  interest  at a rate of
          0.25% per annum for the first 90 days immediately  following the Event
          Date,  increasing by an additional 0.25% per annum at the beginning of
          each  subsequent  90-day  period;  provided,  that the increase in the
          stated interest shall not exceed 1.00% per annum in the aggregate.

7.   Expenses of Initial and Company Registration.

     All expenses (other than  underwriting  discounts and  commissions) and the
fees and disbursements of one special counsel to the selling Holders incurred in
connection  with  registrations  in which any  Holders  participate  pursuant to
Sections 2, 3 or 11 hereof,  including,  without  limitation,  all registration,
filing and  qualification  fees,  printing and accounting fees, and the fees and
disbursements of counsel for the Company shall be borne by the Company.

8.   Underwriting Requirements.

     The Company shall not be required  under Sections 3 or 11 to include any of
the Holders' securities in an underwritten  offering of the Company's securities
unless such Holders accept the terms of the  underwriting as agreed upon between
the Company and the  underwriters  selected by the Company,  assuming  usual and
customary  underwriting  terms.  Notwithstanding  any other  provisions  of this
Agreement,  in  the  case  of an  underwritten  offering  in  which  Registrable
Securities are to be included pursuant to Section 3, if the managing underwriter
shall  advise  the  Company  in  writing  that the total  number of  securities,
including  Registrable  Securities,  requested by shareholders to be included in
such offering exceeds the amount of securities, other than securities to be sold
by the Company, that marketing factors allow, then the Company shall be required
to  include  in the  offering  only that  number of such  securities,  including
Registrable  Securities,  which  the  managing  underwriter  believes  marketing
factors  allow the  securities  so included  to be reduced as  follows:  (i) all
securities which are not Registrable  Securities,  securities held by Laurus, or
its affiliates, or securities covered by the Registration Rights Agreement dated
August  15,  1997 (the  "Registration  Agreement")  shall be  excluded  from the
offering  to the  extent  limitation  on the  number of shares  included  in the
underwriting is required, and (ii) if further limitation on the number of shares
to be included in the  underwriting is required,  then the number of shares that
may be included in the  underwriting  held by Holders of Registrable  Securities
shall be reduced pro rata based on the total number of  securities  held by such
persons;  provided that, in no event shall the number of securities requested to
be registered by Holders of  Registrable  Securities be reduced below 20% of the
aggregate shares to be offered in the  registration  unless such Holders request
that securities constituting less than 20% of the

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aggregate  shares  to be  offered  in the  registration  be  registered  on such
Registration Statement, in which event, all such securities shall be included.

9.   Indemnification.

     In the event any  Registrable  Securities  are  included in a  Registration
Statement under this Agreement:

     (a)  To the extent  permitted by law, the Company will  indemnify  and hold
          harmless each Holder, the partners,  officers,  agents,  employees and
          directors of each Holder,  any underwriter (as defined in the Act) for
          such  Holder and each  person,  if any,  who  controls  such Holder or
          underwriter  within the meaning of the Act or the Securities  Exchange
          Act of 1934, as amended (the "1934 Act"), against any losses,  claims,
          damages or  liabilities  (joint or  several)  to which they may become
          subject  under the Act,  the 1934 Act or other  federal  or state law,
          insofar as such losses,  claims, damages or liabilities (or actions in
          respect  thereof)  arise out of or are based upon any of the following
          statements, omissions or violations (collectively, a "Violation"): (i)
          any untrue  statement or alleged  untrue  statement of a material fact
          contained in such  Registration  Statement,  including any preliminary
          prospectus or final prospectus  contained therein or any amendments or
          supplements  thereto,  (ii) the omission or alleged  omission to state
          therein a material fact required to be stated therein, or necessary to
          make the statements therein not misleading,  or (iii) any violation or
          alleged  violation  by the Company of the Act, the 1934 Act, any state
          securities  law or any rule or regulation  promulgated  under the Act,
          the  1934  Act or any  state  securities  law;  and the  Company  will
          reimburse  each such  Holder,  partner,  officer,  agent,  employee or
          director,  underwriter  or  controlling  person for any legal or other
          expenses  reasonably incurred by them in connection with investigating
          or  defending  any such  loss,  claim,  damage,  liability  or action;
          provided,  however,  that the  indemnity  agreement  contained in this
          Section 9(a) shall not apply to amounts paid in settlement of any such
          loss,  claim,  damage,  liability  or  action  if such  settlement  is
          effected  without the consent of the Company,  which consent shall not
          be unreasonably  withheld, nor shall the Company be liable in any such
          case for any such  loss,  claim,  damage,  liability  or action to the
          extent that it arises out of or is based upon a Violation which occurs
          in reliance upon and in conformity with written information  furnished
          expressly  for use in  connection  with  such  registration  by, or on
          behalf of, any such Holder, underwriter or controlling person.

     (b)  To the extent  permitted by law, each selling Holder severally and not
          jointly will  indemnify  and hold  harmless  the Company,  each of its
          officers,  directors,  agents or employees,  each person,  if any, who
          controls the Company  within the meaning of the Act,  any  underwriter
          and any other Holder selling securities in such Registration Statement
          or any of its partners,  agents,  employees,  directors or officers or
          any person who  controls  such  Holder,  against any  losses,  claims,
          damages or liabilities  (joint or several) to which the Company or any
          such

                                        9
<PAGE>

          director,  partner, agent, employee,  officer,  controlling person, or
          underwriter,  or other  such  Holder or  director,  officer,  partner,
          agent,  employee or controlling  person may become subject,  under the
          Act,  the 1934 Act or other  federal  or state  law,  insofar  as such
          losses, claims, damages or liabilities (or actions in respect thereof)
          arise  out of or are  based  upon any  violation,  in each case to the
          extent (and only to the extent) that such Violation occurs in reliance
          upon and in conformity  with written  information  furnished by, or on
          behalf of,  such  Holder  expressly  for use in  connection  with such
          registration;  and each such Holder will  reimburse any legal or other
          expenses  reasonably  incurred  by the  Company  or any such  partner,
          agent, employee, director, officer, controlling person, underwriter or
          other Holder,  in connection with  investigating or defending any such
          loss, claim, damage, liability or action; provided,  however, that the
          indemnity  agreement contained in this Section 9(b) shall not apply to
          amounts paid in settlement of any such loss, claim, damage,  liability
          or action if such  settlement  is effected  without the consent of the
          Holder,  which  consent  shall  not  be  unreasonably   withheld;  and
          provided,  further,  that each selling  Holder shall be liable,  under
          this Section 9(b) for only that amount of losses,  claims, damages and
          liabilities as does not exceed the net proceeds to such selling Holder
          as a result of such registration.

     (c)  Promptly after receipt by an indemnified party under this Section 9 of
          notice of the  commencement of any action  (including any governmental
          action), such indemnified party will, if a claim in respect thereof is
          to be made  against  any  indemnifying  party  under  this  Section 9,
          deliver to the indemnifying party a written notice of the commencement
          thereof and the indemnifying party shall have the right to participate
          in, and, to the extent the indemnifying party so desires, jointly with
          any other indemnifying party similarly notified, to assume the defense
          thereof with counsel mutually  satisfactory to the parties;  provided,
          however,  that an indemnified party shall have the right to retain its
          own counsel, with the fees and expenses to be paid by the indemnifying
          party,  if, in the  opinion of  counsel  for the  indemnifying  party,
          representation  of such  indemnified  party by the counsel retained by
          the  indemnifying  party  would  be  inappropriate  due to  actual  or
          potential  differing  interests between such indemnified party and any
          other  party  represented  by such  counsel  in such  proceeding.  The
          failure to deliver written notice to the  indemnifying  party within a
          reasonable period of time of the commencement of any such action shall
          relieve such  indemnifying  party of any liability to the  indemnified
          party under this Section 9 to the extent materially prejudicial to its
          ability to defend such action,  but the omission so to deliver written
          notice to the indemnifying  party will not relieve it of any liability
          that it may have to any  indemnified  party  otherwise than under this
          Section 9.

     (d)  If the  indemnification  provided  for in this  Section 9 is held by a
          court of competent  jurisdiction  to be  unavailable to an indemnified
          party with respect to any loss,  liability,  claim, damage, or expense
          referred  to  therein,   then  the  indemnifying  party,  in  lieu  of
          indemnifying such indemnified party hereunder, shall contribute to the
          amount paid or payable by such  indemnified  party as a result of such
          loss,  liability,  claim,  damage, or expense in such proportion as is

                                       10
<PAGE>

          appropriate to reflect the relative fault of the indemnifying party on
          the one hand and of the  indemnified  party on the other in connection
          with  the   statements  or  omissions  that  resulted  in  such  loss,
          liability,  claim,  damage,  or expense as well as any other  relevant
          equitable considerations. The relative fault of the indemnifying party
          and of the  indemnified  party shall be  determined  by reference  to,
          among other things,  whether the untrue or alleged untrue statement of
          a material  fact or the  omission to state a material  fact relates to
          information  supplied by the indemnifying  party or by the indemnified
          party  and  the  parties'  relative  intent,   knowledge,   access  to
          information,  and  opportunity to correct or prevent such statement or
          omissions.

     (e)  Notwithstanding  the  foregoing,  to the extent that the provisions on
          indemnification   and  contribution   contained  in  the  underwriting
          agreement  entered into in  connection  with the  underwritten  public
          offering are in conflict with the foregoing provisions, the provisions
          in the underwriting agreement shall control.

10.  Reports Under the Act.

     With a view to making available to the Holders the benefits of SEC Rule 144
promulgated  under the Act and any other rule or  regulation of the SEC that may
at any time  permit a Holder to sell  securities  of the  Company  to the public
without  registration  or pursuant to a  registration  on Form S-3,  the Company
agrees to:

     (a)  make  and keep  public  information  available,  as  those  terms  are
          understood and defined in SEC Rule 144, at all times;

     (b)  take such action as is necessary to enable the Holders to utilize Form
          S-3 for the sale of their Registrable Securities;

     (c)  file with the SEC in a timely  manner all reports and other  documents
          required of the Company under the Act and the 1934 Act; and

     (d)  furnish  to any  Holder,  so long as the Holder  owns any  Registrable
          Securities,  forthwith upon written request (i) a written statement by
          the Company as to its compliance  with the reporting  requirements  of
          SEC Rule 144, the Act and the 1934 Act, or as to its  qualification as
          a registrant  whose  securities may be resold pursuant to Form S-3 (at
          any time after it so qualifies), (ii) a copy of the most recent annual
          or  quarterly  report  of the  Company  and  such  other  reports  and
          documents so filed by the Company, and (iii) such other information as
          may be  reasonably  requested  in  availing  any Holder of any rule or
          regulation of the SEC which permits the selling of any such securities
          without registration or pursuant to such form.

11.  Form S-3 Registration.

     In case the  Company  shall  receive  from the  Holders of at least  twenty
percent (20%) in interest of the  Registrable  Securities,  a written request or
requests  that the  Company  effect a

                                       11
<PAGE>

registration  on Form  S-3 and any  related  qualification  or  compliance  with
respect to Registrable Securities, the Company will:

     (a)  promptly  give written  notice of the proposed  registration,  and any
          related qualification or compliance, to all other Holders; and

     (b)  as  soon  as  practicable,  effect  such  registration  and  all  such
          reasonable  qualifications  and compliances as may be so requested and
          as would permit or facilitate the sale and distribution of all or such
          portion of such  Holder's or Holders'  Registrable  Securities  as are
          specified in such  request,  together  with all or such portion of the
          Registrable  Securities of any other Holder or Holders joining in such
          request as are specified in a written request given within twenty (20)
          days after  receipt  of written  notice  from the  Company;  provided,
          however,  that the Company  shall not be  obligated to effect any such
          registration, qualification or compliance pursuant to this Section 11:
          (i) if Form S-3 is not  available  for such  offering by the  Holders;
          (ii) if the Holders, together with the Holders of any other securities
          of the Company entitled to inclusion in such registration,  propose to
          sell  Registrable  Securities and such other securities (if any) at an
          aggregate  price to the  public  of less than  $500,000;  (iii) if the
          Company  shall  furnish  to the  Holders a  certificate  signed by the
          President of the Company  stating  that in the good faith  judgment of
          the Board of  Directors  of the  Company,  including a majority of the
          directors  designated by FFG and Spinnaker,  if any, such registration
          would be  materially  detrimental  to the  Company,  and the  Board of
          Directors  of the  Company,  including  a  majority  of the  Directors
          designated  by the FFG and  Spinnaker,  if any,  concludes as a result
          that it is  essential  to  defer  the  filling  of  such  registration
          statement at such time, then the Company shall have the right to defer
          such  filing of the  registration  statement  for a period of not more
          than  sixty (60) days  after  receipt of the  request of the Holder or
          Holders  under this Section 11;  provided,  however,  that the Company
          shall not utilize this right more than once in any 12-month period; or
          (iv) in any  particular  jurisdiction  in which the  Company  would be
          required to qualify to do business or to execute a general  consent to
          service of process in effecting such  registration,  qualification  or
          compliance.

12.  Assignment of Registration Rights.

     Spinnaker  may assign its rights  pursuant to this  Agreement but only to a
permitted  transferee  pursuant to the terms and  conditions  of the BV Purchase
Documents and the Spinnaker Purchaser Documents.

13.  Notices.

     All  notices  and  other  communications  called  for or  required  by this
Agreement  shall be in writing  to the  parties  at their  respective  addresses
stated  on the  first  page  hereof  or on the  signature  page to the  Purchase
Agreement,  or to such other  address as a party may  subsequently  specify  and
shall be deemed to have been received (i) upon delivery in person, (ii) upon the

                                       12
<PAGE>

passage of seventy-two  (72) hours  following post by first class  registered or
certified mail, return receipt requested,  with postage prepaid,  (iii) upon the
passage of twenty-four (24) hours following post by overnight  receipted courier
service,  or (iv) upon transmittal by confirmed telex or facsimile provided that
if sent  by  facsimile  a copy of such  notice  shall  be  concurrently  sent by
certified mail, return receipt requested and postage prepaid, with an indication
that the original was sent by facsimile and the date of its transmittal.

14.  Amendments and Waivers.

     Any term of this  Agreement  may be amended and the  observance of any term
may  be  waived  (either  generally  or  in a  particular  instance  and  either
retroactively or prospectively) with the written consent of the Company,  Briazz
Venture and Spinnaker.

15.  Termination of Registration Rights.

     The registration rights hereunder shall terminate on the earlier of (i) the
fifth  anniversary  of the  initial  issuance  of the BV  Warrant  and  Series D
Preferred Stock or (ii) such time as no Holder holds or has the right to receive
upon conversion or exercise any Registrable Securities;  provided, however, that
the  Company's   obligations  to  maintain  the  effectiveness  of  Registration
Statements  filed prior to the  termination of this Agreement  shall survive the
termination of this Agreement and such  obligations  shall instead  terminate as
set forth in Section  4(c).  The  registration  rights  hereunder  shall  sooner
terminate  with  respect  to  any  Holder  upon  the  occurrence  of  any of the
following:  (i) such  Holder no longer  holds or has the right to  receive  upon
conversion  any  Registrable  Securities,  or (ii) such Holder may resell all of
such Holder's Registrable Securities pursuant to Rule 144(k) under the Act.

16.  Severability.

     If one or more  provisions of this  Agreement are held to be  unenforceable
under applicable law, such  provision(s)  shall be excluded from this Agreement,
and the balance of this Agreement shall be interpreted as if such provision were
so excluded and shall be enforceable in accordance with its terms.

17.  Governing Law.

     This  Agreement,  including  all  matters  of  construction,  validity  and
performance,  shall be governed by and construed and enforced in accordance with
the laws of the State of Washington,  as applied to contracts made, executed and
to be fully performed in such state by citizens of such state, without regard to
its choice of law and conflict of laws rules.  The parties hereto agree that the
exclusive  jurisdiction  and venue for any action  brought  between  the parties
under  this  Agreement  shall be the state and  federal  courts  sitting in King
County,  Washington, and each of the parties hereby agrees and submits itself to
the exclusive jurisdiction and venue of such courts for such purpose.

18.  Counterparts.

                                       13
<PAGE>

     This Agreement may be executed in two or more  counterparts,  each of which
shall be deemed an original,  but all of which together shall constitute one and
the same instrument.

19.  Entire Agreement.

     This Agreement  constitutes the full and entire understanding and agreement
between the parties with respect to the subject matter hereof and supersedes all
prior agreements with respect to the subject matter hereof.

                                       14
<PAGE>

                             SEPARATE SIGNATURE PAGE

                          REGISTRATION RIGHTS AGREEMENT

     IN WITNESS WHEREOF,  the parties have executed this Agreement as of the day
first hereinabove written.

BRIAZZ, INC.,
a Washington corporation

By:      /s/ Victor D. Alhadeff
         ------------------------------

Name:    Victor D. Alhadeff
         ------------------------------

Title:   CEO
         ------------------------------

                                       15

<PAGE>

                             SEPARATE SIGNATURE PAGE

                          REGISTRATION RIGHTS AGREEMENT

     IN WITNESS WHEREOF,  the parties have executed this Agreement as of the day
first hereinabove written.

PURCHASER:

Briazz Venture, L.L.C.,
an Illinois limited liability company

By:      /s/ David L. Cotton
         ------------------------------

Name:    David L. Cotton
         ------------------------------

Title:   Chief Financial Officer
         ------------------------------

                                       16
<PAGE>

                             SEPARATE SIGNATURE PAGE

                          REGISTRATION RIGHTS AGREEMENT

     IN WITNESS WHEREOF,  the parties have executed this Agreement as of the day
first hereinabove written.

PURCHASER:

Spinnaker Investment Partners, L.P,
a Delaware limited partnership
By:  Spinnaker Capital Partners, LLC
       its General Partner

By:      /s/ Charles C. Matteson, Jr.
         ------------------------------

Name:    Charles C. Matteson, Jr.
         ------------------------------

Title:   Manager
         ------------------------------

                                       17Amended Promissory Note

EXHIBIT 10.2 
 
AMENDED, RESTATED AND SUBSTITUTED PROMISSORY NOTE 
 

	 $25,000,000
	 	 April 2, 2003

 
FOR
VALUE RECEIVED, HOOKER FURNITURE CORPORATION, a Virginia corporation (the “Borrower”), promises to pay to the order of 
 
BANK OF AMERICA, N.A., a national banking association (the “Lender”), at its offices in Roanoke, Virginia (or at such
other place or places as the Lender may designate) the principal sum of up to 
 
TWENTY FIVE MILLION DOLLARS ($25,000,000) (the “Loan”) under the terms and conditions of this promissory note (as amended, modified, supplemented, restated and/or replaced from time to
time, the “Note”). 
 
This Note
amends and restates, and is being executed and delivered in substitution and replacement of that certain promissory note in the face amount of $25,000,000 given by the Borrower to the Lender, dated January 2, 2003 (the “Replaced Note”).
This Note represents the same indebtedness represented by the Replaced Note. It is the intention of the parties hereto that this Note not be deemed to constitute a novation of the indebtedness evidenced by the Replaced Note. 
 
Section 1. Definitions. For purposes of
this Note, the following terms shall have the meanings specified below: 
 
(a) “Alternate Base Rate” shall mean, for any day, an interest rate per annum (computed on the basis of the actual number of days elapsed over a year of 360 days and rounded upwards, if necessary, to the
next highest 1/100 of 1%) equal to the greatest of (a) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (b) the Prime Rate in effect on such day. If the Lender shall have determined (which determination shall be conclusive
absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate on such date for any reason, including the inability or failure of the Lender to obtain sufficient quotations in accordance with the terms hereof, the Alternate
Base Rate shall be determined without regard to clause (a) of the first sentence of this definition, as appropriate, until the circumstances giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective on the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively, without notice to the Borrower. Promptly after a request by the Borrower, the
Lender will inform the Borrower of any change in the Prime Rate or the Federal Funds Effective Rate. 
 
(b) “Business Day” shall mean any day, other than a Saturday, Sunday or legal holiday in the Commonwealth of Virginia or
State of New York, on which banks are open for substantially all their banking business in Roanoke, Virginia and New York City. 
 
(c) “Capitalization” means the sum of Funded Debt plus shareholder’s equity plus common stock held by
the Borrower’s employee stock ownership plan. 

 
(d)
“Change of Control” shall mean, with respect to any Person, an event or series of events by which: 
 
(i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable immediately or only after the passage of time) of 25% or more of the equity securities of such person entitled to vote for members of the board of directors or
equivalent governing body of such person on a partially-diluted basis (i.e., taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or 
 
(ii) during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent governing body of such person cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii)
whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing
body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that
board or equivalent governing body. 
 
(e)
“Closing Date” shall mean January 2, 2003, which was the closing date for the Replaced Note. 
 
(f) “Default” shall mean any act, event or condition which upon notice, lapse of time or both would constitute an Event
of Default. 
 
(g) “EBITDA” means
net income, less income or plus loss from discontinued operations and extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, amortization and other non-cash charges. 
 
(h) “Federal Funds Effective Rate” shall
mean, 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 next succeeding Business Day by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for the day of such transactions received by the Lender from three Federal funds brokers of recognized standing selected by it. Each
change in the Federal Funds Effective Rate shall be effective on the date thereof, without notice to the Borrower. 
 
(i) “Funded Debt” means all outstanding liabilities for borrowed money and other interest-bearing liabilities, including
current and long-term debt, less the balance of cash held in excess of $1,500,000. 
 
(j) “GAAP” shall mean accounting principals generally accepted in the United States. 
 
(k) “Interest Payment Date” shall mean (a) if the Loan is presently bearing interest at the 

Alternate Base Rate, the last day of each calendar month and (b) if the Loan is presently
bearing interest at the LIBOR Rate, the last day of the Interest Period applicable thereto. 
 
(l) “Interest Period” shall mean a period of one month’s duration, commencing on the date of borrowing; provided, however, the Borrower and the Lender may agree to an Interest
Period of less than 1 month’s duration; and provided, further, however, if any Interest Period would end on a day which is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day (except that where the
next succeeding Business Day falls in the next succeeding calendar month, then on the next preceding Business Day). 
 
(m) “LIBOR Rate” shall mean the fluctuating rate of interest equal to the One Month London Interbank Offered Rate as
published in the “Money Rates” section of The Wall Street Journal on the second preceding Business Day, as adjusted from time to time in the Lender’s sole discretion for then-applicable reserve requirements, deposits insurance
assessment rates and other regulatory costs (the “LIBOR Reserve Requirement”). If for any reason such rate is not available, the term “LIBOR Rate” shall mean the fluctuating rate of interest equal to the one month rate of
interest (rounded upwards if necessary to the nearest 1/100th of 1%) appearing on Telerate Page 3750 (or any
successor page) as the one month London interbank offered rate for deposits in Dollars at approximately 11:00 a.m. (London time) on the second preceding Business Day, as adjusted from time to time in the Lender’s sole discretion for the LIBOR
Reserve Requirement. 
 
(n) “Lien”
shall mean any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing). 
 
(o) “Maturity Date” shall have the meaning assigned to such term in Section 3 hereof.

 
(p) “Material Adverse Change”
shall mean (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Borrower or the Borrower and its
Subsidiaries taken as a whole; (b) a material impairment of the ability of the Borrower to perform its obligations under this Note; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Borrower
of this Note. 
 
(q) “Person”
shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity. 
 
(r) “Prime Rate” shall mean the rate of interest per annum publicly announced from time to
time by the Lender in effect at its principal office in Charlotte, North Carolina as its prime rate. Any change in the Prime Rate shall be effective on the effective date of such change in such prime rate. Such prime rate is a reference rate used by
the Lender in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged on any extension of credit by the Lender to any debtor. 
 
(s) “Responsible Officer” shall mean, with respect to any person, any executive officer, or
the chief financial officer or controller of such person (or, in the case of a partnership, of its general partner). 

 
Section
2. Interest. Subject to the provisions of Section 5(b), the Loan shall bear interest at a per annum rate equal to the sum of the LIBOR Rate plus 0.625%. Interest shall be computed on the basis of a 360-day year on the
actual number of days the principal is outstanding. 
 
Interest on
the Loan shall be payable in arrears on each applicable Interest Payment Date and on the Maturity Date. 
 
Section 3. Maturity Date. The principal balance outstanding hereunder plus all accrued but unpaid interest shall be
due and payable on April 30, 2003 (the “Maturity Date”), unless accelerated sooner pursuant to Section 9. 
 
Section 4. Interest on Overdue Amounts: Alternate Rate of Interest. 
 
(a) If the Borrower shall default in the payment of the
principal of or interest on the principal balance outstanding hereunder or any other amount becoming due hereunder, by acceleration or otherwise, the Borrower shall on demand from time to time pay interest, to the extent permitted by law, on such
defaulted amount up to the date of actual payment (after as well as before judgment) at a rate equal to the then applicable interest rate plus 2.00%. Such interest shall be computed based on the actual number of days elapsed in a year of 360 days.
The Borrower shall pay all such accrued but unpaid interest from time to time upon demand. 
 
(b) In the event that, on the day two Business Days prior to the commencement of any Interest Period, the Lender shall have determined in good faith and in a commercially reasonable manner that
deposits in the relevant amount and for the relevant Interest Period are not generally available in the London interbank market, or that the rate at which such deposits are being offered will not adequately and fairly reflect the cost to the Lender
of making or maintaining the loan, or that reasonable means do not exist for ascertaining the LIBOR Rate, the Lender shall as soon as practicable thereafter give written or telex notice of such determination to the Borrower, and until the
circumstances giving rise to such notice no longer exist, the outstanding principal balance hereunder shall bear interest at the Alternate Base Rate. Each determination of the Lender made hereunder shall be conclusive and binding absent manifest
error. 
 
Section 5. Voluntary
Prepayment. Subject to the terms and conditions of Section 10, the Borrower shall have the right to prepay the principal balance outstanding hereunder at any time in whole or in part. Amounts repaid on the outstanding principal balance
hereunder may not be reborrowed. 
 
Section
6. Automatic Payment. The Borrower has elected to authorize the Lender to effect payment of sums due under this Note by means of debiting Borrower’s account number 000010067279. This authorization shall not affect the
obligation of the Borrower to pay such sums when due, without notice, if there are insufficient funds in such account to make such payment in full on the due date thereof, or if the Lender fails to debit the account; provided, however, that if there
are sufficient funds in such account to make such payment in full on the due date thereof and the Lender fails to debit the account, the Borrower shall not be deemed to be in Default with respect to such payment unless the Borrower fails to make
such payment within three (3) Business Days after the Borrower receives written notice from the Lender of such failure. 
 
Section 7. Affirmative Covenants. So long as the Loan or other obligation hereunder shall remain unpaid or
unsatisfied, the Borrower shall: 
 
(a)
Financial Statements. Deliver to the Lender, in form and detail satisfactory to the Lender: 

 
(i) as soon
as available, but in any event within 120 days after the end of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its subsidiaries as at the end of such fiscal year, and the related consolidated statements of income
or operations, shareholders’ equity and cash flows for such fiscal year, all in reasonable detail, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably
acceptable to the Lender, which report and opinion shall be prepared in accordance with GAAP and shall not be subject to any qualifications or exceptions as to the scope of the audit nor to any qualifications and exceptions not reasonably acceptable
to the Lender; and 
 
(ii) as soon as available,
but in any event within 45 days after the end of each of each fiscal quarter of the Borrower, a consolidated balance sheet of the Borrower and its subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income
or operations, shareholders’ equity and cash flows for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, all in reasonable detail and certified by a Responsible Officer of the Borrower as fairly presenting
the financial condition, results of operations and cash flows of the Borrower and its subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes. 
 
(b) Other Information. Deliver to the Lender, in form
and detail reasonably satisfactory to the Lender such additional information regarding the business, financial or corporate affairs of the Borrower as the Lender, may from time to time reasonably request. 
 
(c) Notices. Promptly notify the Lender of the
occurrence of any Default or Event of Default or of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect. 
 
(d) Use of Proceeds. Use the proceeds of the Loan for the acquisition of Bradington-Young, LLC. 
 
Section 8. Negative Covenants. So long as
any Loan or other obligation hereunder shall remain unpaid or unsatisfied, the Borrower shall not, directly or indirectly: 
 
(a) Liens. Create, incur, assume or suffer to exist, any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, other than the following: 
 
(i) any Lien existing as of the Closing Date and set forth on Schedule 8 hereto; 
 
(ii) any Lien with respect to the assets of Bradington-Young, LLC acquired by B-Y Acquisition LLC, a Virginia limited
liability company and wholly owned subsidiary of the Borrower (“Buyer”), that existed as of the closing date for that transaction as set forth on Schedule 8 hereto; 
 
(iii) any Lien arising under the factoring arrangement entered between Buyer and The CIT
Group/Commercial Services, Inc., with respect to the trade accounts receivable of Buyer; 
 
(iv) any purchase money security interest on any capital asset of the Borrower if such purchase money security interest
attaches to such capital asset concurrently with the acquisition thereof and if the debt secured by such purchase money security interest does not exceed the 

lesser of the cost or fair market value as of the time of acquisition of the asset covered thereby to the Borrower; 
 
(v) Liens securing taxes, assessments or
governmental charges or levies or the claims or demands of materialmen, mechanics, carriers, warehousemen, landlords or other like persons; 
 
(vi) Liens not securing debt which are incurred in the ordinary course of business in connection with workmen’s
compensation, unemployment insurance, social security and other like laws; 
 
(vii) Liens arising pursuant to any order of attachment, distraint or similar legal process arising in connection with court proceedings so long as the execution or other enforcement thereof is
effectively stayed and the claims secured thereby are being diligently contested in good faith by appropriate proceedings; and 
 
(viii) zoning restrictions, easements, licenses, reservations, covenants, conditions, waivers, restrictions on the use of
property or other minor encumbrances or irregularities of title which do not materially impair the use of any property in the operation or business of the Borrower or the value of such property for the purpose of such business. 
 
(b) Funded Debt to EBITDA Ratio. Permit the ratio of
Funded Debt to EBITDA as of the end of any fiscal quarter of the Borrower to be greater than 1.75:1.00. 
 
(c) Funded Debt to Capitalization Ratio. Permit the ratio of Funded Debt to Capitalization as of the end of any fiscal quarter of
the Borrower to be greater than 0.40:1.00. 
 
Section 9. Events of Default. In case of the happening of any of the following events (“Events of Default”): 
 
(a) default shall be made in the payment of any principal when and as the same shall become due and payable,
whether at the due date thereof or by acceleration thereof or otherwise; 
 
(b) default shall be made in the payment of any interest on the principal balance outstanding hereunder or any other amount payable hereunder when and as the same shall become due and payable (other than those specified in
(a) above) and such default continue for five (5) days; 
 
(c) default shall be made in the due observance or performance of any covenant, condition or agreement to be observed or performed on the part of the Borrower pursuant to the terms of this Note (other than those specified in (a) and
(b) above) and such default shall continue unremedied for a period of 30 days after written notice thereof by Lender; 
 
(d) any representation, warranty or statement made or deemed to be made by the Borrower herein or in any statement or certificate
delivered or required to be delivered pursuant hereto or thereto shall prove untrue in any material respect on the date as of which it was deemed to have been made; 
 
(e) with respect to any indebtedness in excess of $1,000,000 (other than indebtedness outstanding under this
Note) of the Borrower, (1) the Borrower shall (A) default in any payment (beyond 

the applicable notice requirement or grace period with respect thereto, if any) with respect to any such indebtedness, or (B) the occurrence
and continuance of a default in the observance or performance relating to such indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event or condition shall occur or condition exist, the
effect of which default or other event or condition is to cause, or permit, the holder or holders of such indebtedness (or trustee or agent on behalf of such holders) to cause (after giving effect to any applicable notice requirement or grace
period), any such indebtedness to become due prior to its stated maturity; or (2) any such indebtedness shall be declared due and payable, or required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated
maturity thereof; 
 
(f) any voluntary or
involuntary bankruptcy, reorganization, insolvency, arrangement, receivership, or similar proceeding is commenced by or against the Borrower under any federal or state law, or the Borrower makes an assignment for the benefit of creditors;

 
(g) one or more judgments or decrees shall be
entered against the Borrower involving a liability of $1,000,000 or more in the aggregate (to the extent not paid or fully covered by insurance provided by a carrier who has acknowledged coverage and has the ability to perform) and any such
judgments or decrees shall not have been vacated, discharged or stayed or bonded pending appeal within 21 days from the entry thereof; 
 
(h) this Note ceases to be in full force and effect; or the Borrower or any governmental authority contests in any manner the validity or
enforceability of this Note; or the Borrower denies that it has any or further liability or obligation under this Note, or purports to revoke, terminate or rescind this Note; 
 
(i) there shall occur a Change of Control; or 
 
(j) there occurs any event or circumstance that has a Material Adverse Change. 
 
then, and in any such event (other than an event described in Section 9(f)
above), and at any time thereafter during the continuance of such event, the Lender may, by written or telecopy notice to the Borrower, take any or all of the following actions at the same or different times: (i) declare the principal balance
outstanding hereunder to be forthwith due and payable, whereupon the principal balance outstanding hereunder, together with accrued interest and other liabilities of the Borrower accrued hereunder, shall become forthwith due and payable both as to
principal and interest, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived by the Borrower, anything contained herein to the contrary notwithstanding; or (ii) enforce any and all rights and
interests created and existing hereunder and all rights of set-off; provided, that with respect to a default described in Section 9(f) above, the principal balance outstanding hereunder, any unpaid accrued fees and any other liabilities of
the Borrower accrued hereunder shall automatically become due and payable, both as to principal and interest, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower, anything
contained herein to the contrary notwithstanding. 
 
Section 10. Indemnity. The Borrower shall indemnify the Lender against any loss or expense which the Lender may sustain or incur as a consequence of any failure of the Borrower to borrow hereunder after making a
request for a borrowing at the LIBOR Rate, any payment or prepayment of the principal balance outstanding hereunder on a date other than the last day of the relevant Interest Period (if the Loan is presently bearing interest at the LIBOR Rate) and
any default in the payment or 

prepayment of the principal balance outstanding hereunder or interest accrued thereon, as and when due and payable. Such loss or expense
shall include an amount equal to the excess, if any, of (a) the amount of such interest that would have accrued on the principal amount so paid, prepaid or not borrowed for the period from the date of such payment, prepayment or failure to borrow to
the last day of the Interest Period (or, in the case of a failure to borrow at the LIBOR Rate, the Interest Period that would have commenced on the date of such failure to borrow at the LIBOR Rate) at the applicable rate of interest for the Loan
provided for herein over (b) the amount of interest (as determined by the Lender) that would be realized by the Lender in reemploying the funds so paid, prepaid or not borrowed in United States Treasury obligations with comparable maturities for
comparable periods. The Lender shall provide to the Borrower a statement, signed by an officer of the Lender, explaining any loss or expense and setting forth, if applicable, the computation pursuant to the preceding sentence, and such statement
shall be conclusive and binding absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such statement within ten days after the receipt of the same. 
 
Section 11. Expenses. The Borrower agrees to pay all reasonable out-of-pocket expenses
of the Lender in connection with the preparation, due diligence, execution and delivery of this Note or with any amendments, modifications or waivers hereof (whether or not the transactions hereby contemplated shall be consummated) and further
agrees to pay all expenses of the Lender in connection with the enforcement or protection of its rights in connection with this Note or in connection with any pending or threatened action, proceeding or investigation relating to the foregoing,
including but not limited to the reasonable fees and disbursements of Moore & Van Allen, PLLC. 
 
Section 12. Assignment. The Lender may assign this Note, in whole or in part, to any other person, firm, or legal
entity approved by the Borrower, which approval shall not be unreasonably withheld, and in the event of such assignment, the Lender shall thereafter be relieved of all liabilities hereunder; provided, however, the Borrower may not assign or transfer
any of its rights or obligations hereunder without the written consent of the Lender (and any purported assignment or transfer without such consent shall be void) which consent shall not be unreasonably withheld. 
 
Section 13. Severability. In the event
any one or more of the provisions contained in this Note should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall not in any way be
affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions. 
 
Section 14. Counterparts. This Note may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.

 
Section 15. Governing Law.
This Note shall be construed in accordance with and governed by the laws of the Commonwealth of Virginia (other than the conflicts of law principles thereof). Except as prohibited by law, each party hereto hereby waives any right it may have to a
trial by jury in respect of any litigation directly or indirectly arising out of, under or in connection with this Note. 
 
IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed as of the day and year first above written. 
 
HOOKER FURNITURE CORPORATION, 
a Virginia corporation 

 

	
	 By:
	 	     /s/    PAUL B.
TOMS, JR.

	 Name:

 Title:
	 	 Paul B. Toms, Jr.

 Chairman and Chief Executive Officer

 

	
	 By:
	 	     /s/    E. LARRY
RYDER

	 Name:

 Title:
	 	 E. Larry Ryder
Executive Vice President—Finance
and
Administration 

 
ACKNOWLEDGED AND
AGREED: 
 

	 BANK OF AMERICA, N.A.

	
	 By:
	 	     /s/    GREG L.
RICHARDS

	 Name:

 Title:
	 	 Greg L. Richards
Vice President

Schedule 8 
 
Existing Liens 
 

	A.	 	Existing Liens with respect to assets of Borrower: 

 

	 	1.	 	None. 

 

	B.	 	Existing Liens with respect to assets of Bradington-Young LLC acquired by B-Y Acquisition LLC. 

 
Bradington-Young North Carolina State Filings

 

	 	1.	 	North Carolina Financing Statement No. 19990106712, dated November 4, 1999, Secured Party: Branch Banking & Trust Company, Debtor: Bradington-Young, LLC.

 

	 	2.	 	North Carolina Financing Statement No. 19990048315, dated May 18, 1999, Secured Party: Branch Banking & Trust Company, Debtor: Bradington-Young, LLC.

 

	 	3.	 	North Carolina Financing Statement No. 001448582, dated April 9, 1997, amended 7/22/97, continued 3/5/02, Secured Party: The CIT Group Commercial Services, Inc,
Debtor: Bradington-Young, LLC. 

 

	 	4.	 	North Carolina Financing Statement No. 001448583, dated April 9, 1997, amended 7/22/97, continued 3/5/02, Secured Party: The CIT Group Commercial Services, Inc,
Debtor: Bradington-Young, LLC. 

 
Christopher Coleson LLC North Carolina State Filings 
 

	 	1.	 	North Carolina Financing Statement No. 20020016549L, dated February 6, 2002, Secured Party: The CIT Group Commercial Services, Inc, Debtor: Christopher Coleson, LLC.

 
Bradington-Young Catawba County
Filings 
 

	 	1.	 	Catawba County Financing Statement No. 99-2814, dated 10/18/99, Secured Party: Branch Banking and Trust Company. 

 

	 	2.	 	Catawba County Financing Statement No. 97-1019, dated 4/14/97, amended 7/22/97, Secured Party: The CIT Group Commercial Services, Inc. (Expired 4/14/02).

 
Bradington-Young Gaston County
Filings 
 

	 	1.	 	Gaston County Financing Statement No. 97-983, dated 4/25/97, amended 7/22/97, continued 3/12/02 Secured Party: The CIT Group Commercial Services, Inc.

 

	 	2.	 	Gaston County Financing Statement No. 99-814, dated 5/14/99, Secured Party: Branch Banking and Trust Company. 

 

	 	3.	 	Gaston County Financing Statement No. 99-1789, dated 11/10/99, Secured Party: Branch Banking and Trust Company. 

 
Bradington-Young Guilford County Filings 
 

	 	1.	 	Guilford County Financing Statement No. 461935 Book 4531 Page 0052, dated 4/25/97, amended 7/22/97, continued 3/8/02, Secured Party: The CIT Group Commercial
Services, Inc. 

 
Real Property
Deeds of Trust 
 

	 	1.	 	Property in Guilford County owned by JDI Investment Group, LLC, a North Carolina limited liability company and wholly owned subsidiary of Bradington-Young, LLC: Deed
of Trust to Trustees for Branch Banking and Trust Company recorded in Book 5430 at page 1723 and Assignment of Leases and Rents recorded in Book 5430 at page 1729 

 

	 	2.	 	Property in Guilford County owned by Bradington-Young, LLC: Deed of Trust to Trustees for CIT Group recorded in Book 4531 at page 27; UCC financing statement
recorded in Book 4531 at page 52 and amended in Book 4564 at page 1910 

 

	 	3.	 	Property off of Tot Dellinger Road in Cherryville, Gaston County: Deed of Trust to Trustees for Branch Banking & Trust Company recorded in Book 2938 at page 87
and amended in Book 2938 at page 92; UCC financing statement No. 99-814 

 

	 	4.	 	Property off of East First Street in Cherryville, Gaston County:Deed of Trust to Trustees for CIT Group/Commercial Services recorded in Book 2653 at page 808; UCC
financing statements Nos. 97-871 and 97-983 

 

	 	5.	 	Property in Catawba County: Deed of Trust to Trustees for Branch Banking and Trust Company recorded in Book 2174 at page 1905 and amended in Book 2174 at page 1909;
UCC Financing Statement No. 99-2814

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