Document:

Amendment to Employment Agreement

 Exhibit 10.2 
  
 AMENDMENT TO EMPLOYMENT AGREEMENT 
  
 This Amendment to Employment Agreement (the “Amendment”), by and between George Deehan (“Executive”) and
Sunset Financial Resources, Inc. (“the Company”), is effective as of October 3, 2005 (the “Effective Date”), and amends that certain Employment Agreement (the “Employment Agreement”) by and between the Executive and the
Company dated as of August 8, 2005. 
  
 WHEREAS, the Company and
the Executive desire to amend the Employment Agreement; 
  
 WHEREAS, this Amendment is permitted pursuant to Section 18 of the Employment Agreement; 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Employment Agreement is hereby
amended as follows: 
  
 1. Amendment to Section 2(a).
Section 2(a) of the Employment Agreement is hereby amended to read: 
  
 “Employment. Pursuant to the terms and subject to the conditions of this Agreement, the Company agrees to employ the Executive during the Employment Term (as defined below) as President and Chief Executive Officer of the
Company, and the Executive accepts such employment.” 
  
 2.
Amendment to Section 5(b). The following language shall be added to the bottom of Section 5.2(b): 
  
 “Executive shall be entitled to receive an additional bonus in the amount of $100,000.00, payable upon the earlier of the date (i) the Company’s
stock has traded at or above book value for a period of twenty (20) consecutive days or (ii) an individual or entity purchases all or substantially all of the Company’s stock or assets for a price that is equal to or greater than book value. In
the event that neither event referenced in (i) or (ii) above occurs during the Employment Term, Executive shall not be entitled to any bonus under this provision.” 
  
 The remainder of the provisions set forth under Section 5(b) of the Employment Agreement shall remain unchanged and in full
force and effect. 
  
 3. Amendment to Section 5(e). The
second sentence of Section 5(e) of the Employment Agreement is hereby amended to read: 
  
 “Additionally, upon the occurrence of the earlier of (i) the date the Company’s stock has traded at or above book value for a period of twenty 
  

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 (20) consecutive days or (ii) the date an individual or entity purchases all or substantially all of the
Company’s stock or assets for a price that is equal to or greater than book value, Executive shall receive an award of 20,000 shares of restricted stock under the Plan, which shares shall be fully vested upon granting. In the event that neither
event referenced in (i) or (ii) above occurs during the Employment Term, Executive shall not be entitled to any additional award of restricted stock under this provision. 
  
 The remainder of the provisions set forth under Section 5(e) of the Employment Agreement shall remain unchanged and in full
force and effect. 
  
 4. All other provisions of the Employment
Agreement shall remain unchanged and in full force and effect. 
  
 If you agree to the terms of this Amendment, please sign in the space indicated below. We encourage you to consult with any advisors you choose prior to signing. 
  

			
	SUNSET FINANCIAL RESOURCES, INC.
		
	By:	 	 /s/ Stacy Riffe

	Name:	 	 Stacy Riffe

	Title:	 	 October 3, 2005

  
 AGREED AND ACCEPTED: 

 

	
	 /s/ George Deehan

	George Deehan
	
	 George Deehan

	
	Dated: October 3, 2005

  
  

 2Exhibit 10.1

 Exhibit 10.1 
  
 September 9, 2005 
  
 The Rowe Companies and 
 the other “Borrowers” party hereto

 1650 Tysons Boulevard, Suite 710 
 McLean, Virginia 22102

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Loan and Security Agreement dated
May 15, 2002 (as at any time amended, the “Loan Agreement”), among The Rowe Companies, a Nevada corporation, Rowe Diversified, Inc., a Delaware corporation, Rowe Furniture Wood Products, Inc., a California corporation, Rowe
Properties, Inc., a California corporation, Storehouse, Inc., a Georgia corporation, and Rowe Furniture, Inc., a Virginia corporation (hereinafter referred to collectively as “Borrowers” and individually as a “Borrower”), the
various financial institutions (collectively, “Lenders”) named in the Loan Agreement, and Bank of America, N.A. (as successor-in-interest to Fleet Capital Corporation), in its capacity as collateral and administrative agent for the Lenders
(together with its successors in such capacity, “Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms in the Loan Agreement. 
  
 The parties hereto agree that the Loan Agreement is hereby amended by
deleting the definition of “Inventory Formula Amount” in Appendix A to the Loan Agreement and by substituting in lieu thereof the following: 
  
 Inventory Formula Amount - on any date of determination thereof, an amount equal to the lesser of (i) the lesser of (a)
$24,000,000 during the period commencing on September 9, 2005 and ending on October 31, 2005, and $22,000,000 at all times thereafter or (b) 90% (or such lesser percentage as Agent may in its reasonable credit judgment determine from
time to time) of the net liquidation value of Eligible Inventory (as determined from time to time based upon appraisals conducted by Ozer Valuation Services or such other independent appraisers acceptable to Agent) or (ii) the sum of
(a) 16% (or such lesser percentage as Agent may in its reasonable credit judgment determine from time to time) of the Value of Eligible Inventory on such date consisting of raw materials plus (b) the lesser of (1) $2,000,000 or
(2) 45% (or such lesser percentage as Agent may in its reasonable credit judgment determine from time to time) of the Value of Eligible Inventory on such date consisting of work-in-process plus (c) 71% (or such lesser percentage as
Agent may in its reasonable credit judgment determine from time to time) of the Value of Eligible Inventory on such date consisting of retail and manufactured finished goods. 

 In consideration of Agent’s and Lenders’ willingness to enter into this letter amendment,
Borrowers agree to pay to Agent, for the Pro Rata benefit of Lenders, an amendment fee in the amount of $21,875 in immediately available funds on the date hereof. 
  
 Each Borrower hereby: (i) ratifies and reaffirms the Obligations, each of the Loan Documents and all of such
Borrower’s covenants, duties, indebtedness and liabilities under the Loan Documents; (ii) acknowledges and stipulates that (a) the Loan Agreement and the other Loan Documents executed by such Borrower are legal, valid and binding
obligations of such Borrower that are enforceable against such Borrower in accordance with the terms thereof, (b) all of the Obligations are owing and payable without defense, offset or counterclaim (and to the extent there exists any such
defense, offset or counterclaim on the date hereof, the same is hereby waived by such Borrower) and (c) the security interests and Liens granted by such Borrower in favor of Agent are duly perfected, first priority security interests and Liens
(except as otherwise specifically provided in the Loan Documents); (iii) represents and warrants to Agent and Lenders, to induce Agent and Lenders to enter into this letter agreement, that (a) no Default or Event of Default exists on
the date hereof, (b) the execution, delivery and performance of this letter agreement have been duly authorized by all requisite corporate action on the part of such Borrower, (c) this letter agreement has been duly executed and delivered
by such Borrower and (d) all of the representations and warranties made by such Borrower in the Loan Agreement are true and correct on and as of the date hereof; (iv) agrees that, upon the effectiveness of this letter agreement, each
reference in the Loan Agreement to “this Agreement,” “hereunder,” or words of like import shall mean and be a reference to the Loan Agreement, as amended by this letter agreement; (v) agrees that this letter agreement shall
be part of the Loan Agreement and a breach of any representation, warranty or covenant herein shall constitute an Event of Default; (vi) agrees that this letter agreement shall be governed by and construed in accordance with the internal laws
of the State of Georgia; (vii) agrees that this letter agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; (viii) agrees that, except as otherwise expressly provided in
this letter agreement, nothing herein shall be deemed to amend or modify any provision of the Loan Agreement or any of the other Loan Documents, each of which shall remain in full force and effect; (ix) agrees that this letter agreement is not
intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the Loan Agreement
as herein modified shall continue in full force and effect; (x) agrees that this letter agreement may be executed in any number of counterparts and by different parties to this letter agreement on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement; (xi)
agrees that any signature delivered by a party by facsimile transmission shall be deemed to be an original signature hereto; (xii) agrees to take such further actions as Agent and Lenders shall reasonably request from time to time in connection
herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated hereby; and (xiii) agrees that section titles and references used in this letter agreement shall be without substantive meaning or content
of any kind whatsoever and are not a part of the agreements among the parties hereto. To the fullest extent permitted by Applicable Law, the parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim or
proceeding arising out of or related to this letter agreement. 
  
 [Signatures on following page] 
  

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 The parties hereto have caused this letter agreement to be duly executed under seal and delivered by
their respective duly authorized officers on the date first written above. 
  

			
	AGENT:
	
	BANK OF AMERICA, N.A. (as successor-in-interest to FLEET CAPITAL CORPORATION)
		
	 By:
	 	/s/    DOUGLAS COWAN        
	 Title:
	 	Vice President

  

			
	LENDERS:
	
	BANK OF AMERICA, N.A. (as successor-in-interest to FLEET CAPITAL CORPORATION)
		
	 By:
	 	/s/    DOUGLAS COWAN        
	 Title:
	 	Vice President

  

			
	
	THE CIT GROUP/COMMERCIAL SERVICES, INC.
		
	 By:
	 	/s/    Illegible        
	 Title:
	 	Vice Pres.

  
 [Signatures
continued on following page] 
  

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	 	 	 	 	BORROWERS:
			
	 	 	 	 	THE ROWE COMPANIES
	 ATTEST:
	 	 	 	 
				
	/s/    GARRY W.
ANGLE        	 	 	 	By:	 	/s/    GERALD M.
BIRNBACH        
	Garry W. Angle, Assistant Secretary	 	 	 	 	 	Gerald M. Birnbach,
	 [CORPORATE SEAL]
	 	 	 	 	 	Chairman of the Board and President
			
	 	 	 	 	ROWE DIVERSIFIED, INC.
	 ATTEST:
	 	 	 	 
				
	/s/    DEBBIE
JACKS        	 	 	 	By:	 	/s/    GERALD M.
BIRNBACH        
	Debbie Jacks, Secretary	 	 	 	 	 	Gerald M. Birnbach,
	 [CORPORATE SEAL]
	 	 	 	 	 	Chairman of the Board and President
			
	 	 	 	 	ROWE FURNITURE WOOD PRODUCTS, INC.
	 ATTEST:
	 	 	 	 
				
	/s/    GARRY W.
ANGLE        	 	 	 	By:	 	/s/    GERALD M.
BIRNBACH        
	Garry W. Angle, Assistant Secretary	 	 	 	 	 	Gerald M. Birnbach,
	 [CORPORATE SEAL]
	 	 	 	 	 	Chairman of the Board and President

  
 [Signatures continued
on following page] 
  

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	 	 	 	 	ROWE PROPERTIES, INC.
	 ATTEST:
	 	 	 	 
				
	/s/    GARRY W.
ANGLE        	 	 	 	By:	 	/s/    GERALD M.
BIRNBACH        
	Garry W. Angle, Assistant Secretary	 	 	 	 	 	Gerald M. Birnbach,
	 [CORPORATE SEAL]
	 	 	 	 	 	Chairman of the Board and President

  

									
	 	 	 	 	STOREHOUSE, INC.
	 ATTEST:
	 	 	 	 
				
	/s/    GARRY W.
ANGLE        	 	 	 	By:	 	/s/    GERALD M.
BIRNBACH        
	Garry W. Angle, Assistant Secretary	 	 	 	 	 	Gerald M. Birnbach,
	 [CORPORATE SEAL]
	 	 	 	 	 	Chairman of the Board

  

									
	 	 	 	 	ROWE FURNITURE, INC.
	 ATTEST:
	 	 	 	 
				
	/s/    GARRY W.
ANGLE        	 	 	 	By:	 	/s/    GERALD M.
BIRNBACH        
	Garry W. Angle, Assistant Secretary	 	 	 	 	 	Gerald M. Birnbach,
	 [CORPORATE SEAL]
	 	 	 	 	 	Chairman of the Board

  

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