Document:

Form of Promissory Note

 

Exhibit 10.1

PROMISSORY NOTE

(City) Miami (State) FL

Date: 12/29/2004

     FOR VALUE RECEIVED, the undersigned, CONTINUCARE 110197, (“Maker”), promises and agrees to pay
to the order of Humana Medical Plan Inc., a Corporation (“Holder”), the principal sum of One
Million Forty Thousand Dollars ($1,040,000) with no interest thereon payable in twelve (12) equal
installments of Eighty Six Thousand Six Hundred Sixty-Six Dollars And
Sixty Six Cents ($86,666.66),
12/1/2005 being the final maturity day of this note.

     All payments on this Note shall be made to the Holder in legal tender of the United States of
America at its offices located at 500 West Main Street, Louisville, Kentucky 40202, or to such
other person or such other place as may be designated in writing by the Holder.

     If the Maker defaults in any payment of the sum above and such default should continue for
fifteen (15) days, then the entire principal sum shall, at the option of the Holder, become due and
collectible without notice, time being of the essence, and the principal sum shall bear interest
from the time of default until paid at the rate of eighteen percent (18%) per annum.

     Each of the following events shall constitute a default under this Note:

     (a) If the Maker shall fail to pay the principal on this Note when due or within five (5) days
after the due date thereof.

     (b) If the Maker shall (i) discontinue business, (ii) make a general assignment for the
benefit of its or his creditors, (iii) apply for or consent to the appointment of a custodian,
receiver, trustee or liquidator of all or a substantial part of its or his assets, (iv) be
adjudicated a bankrupt or insolvent, (v) file a voluntary petition in bankruptcy or file a petition
or an answer seeking a composition, reorganization or an arrangement with creditors or seeking to
take advantage of any other law (whether federal or state) relating to relief for debtors, or admit
(by answer, default or otherwise) the material allegations of any petition filed against it or him
in any bankruptcy, reorganization, composition, insolvency or other proceeding (whether federal or
state) relating to relief for debtors, (vi) suffer or permit to continue unstayed and in effect any
judgment, decree or order entered by a court or governmental agency of competent jurisdiction,
which assumes control of the Maker or approves a petition seeking reorganization, composition or
arrangement of the Maker or any other judicial modification of the rights of any of its creditors,
or appoints a custodian, receiver, trustee or liquidator for the Maker, or for all or a substantial
part of any of its or his business or assets, (vii) not be paying its or his debts generally as
they become due, or (viii) be enjoined or restrained from conducting all or a material part of any
of its or his businesses as now conducted and the same is not dismissed and dissolved.

 

 

     If there is a default in the payment of any installment of principal on this Note when due,
the Holder may, at its sole option, during the continuation of such payment default, declare the
entire unpaid principal balance on this Note to be, whereupon the same shall be, immediately due
and payable in full to the Holder, unless the default is of the type referred to in (b) above, in
which the event the entire unpaid principal balance on this Note shall automatically be due and
payable in full to the Holder.

     The failure of the Holder to exercise any of its rights, powers and/or remedies shall not
constitute a waiver of the right to exercise the same at that or any other time. All rights and
remedies of the Holder for default hereunder shall be cumulative to the greater extent permitted by
law. Time shall be of the essence in the payment of all installments on this Note.

     The Maker hereby waives demand, protest and notice of maturity, non-payment or protest and all
requirements necessary to hold him liable as maker or endorser.

     If there is any default under this Note which is not cured, and this Note is placed in the
hands of any attorneys for collection, or is collected through any court, including any bankruptcy
court, the Maker promises and agrees to pay to the Holder its reasonable attorneys’ fees, court
costs and other expenses incurred in collecting or attempting to collect or securing or attempting
to secure this Note.

     This Note may be prepaid at any time, in whole or in part, and without premium or penalty.

     This Note had been delivered in, and shall be governed by and construed in accordance with the
laws of the State of Florida.

“Maker”

CONTINUCARE CORPORATION

BY: _____________________________

ITS: _____________________________Waiver and Amendment No. 3 to Loan Security Agreem

 

Exhibit 4.1

WAIVER AND AMENDMENT NO. 3

TO

LOAN AND SECURITY AGREEMENT

     WAIVER AND AMENDMENT NO. 3 (this “Amendment”), dated as of December 30, 2004, by and
among BROWN JORDAN INTERNATIONAL, INC., a Florida corporation (“BJI”), the other entities
designated as a “Borrower” on the signature pages hereto (together with BJI, each a
“Borrower,” and collectively, the “Borrowers”), each entity designated as a
“Guarantor” on the signature pages hereto (collectively, the “Guarantors”), WLFI Holdings,
Inc., a Florida corporation (“BJI Parent”), the financial institutions set forth on the
signature pages hereto (each a “Lender” and collectively, the “Lenders”) and GMAC
COMMERCIAL FINANCE LLC, as agent for Lenders (in such capacity, the “Agent”).

BACKGROUND

     Borrowers, Guarantors, BJI Parent, Agent and Lenders are parties to a Loan and Security
Agreement dated as of March 31, 2004 (as amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrowers
with certain financial accommodations.

     Borrowers have requested (i) a $5,000,000 supplemental advance within the overall credit
facility, and (ii) that Agent and Lenders (x) waive an Event of Default with respect to certain
reporting requirements, and (y) make other amendments to the Loan Agreement as set forth herein,
and Agent and Lenders are willing to do so on the terms and conditions hereafter set forth.

     NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or
hereafter made to or for the account of Borrowers by Agent and Lenders, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

     1. Definitions. All capitalized terms not otherwise defined herein shall have the
meanings given to them in the Loan Agreement.

     2. Amendment to Loan Agreement. Subject to satisfaction of the conditions precedent
set forth in Section 4 below, the Loan Agreement is hereby amended as follows:

     (a) Section 1.2 of the Loan Agreement is amended as follows:

     (i) The definition of “Applicable Margin” is amended by (x) inserting, after
each of the two instances of the phrase “each type of Loan Advance”, the phrase
“(other than the Supplemental Advance)”; and (y) inserting a new paragraph at the
end thereof to read as follows:

 

 

     “Notwithstanding anything in this definition to the contrary, until
such time as both (i) the Loan Parties have consummated a restructuring of
their equity and Indebtedness as shall be acceptable in all respects to
Agent and Required Lenders and (ii) Undrawn Availability has been maintained
at or above $9,000,000 for a period of not less than thirty (30) consecutive
days, which period shall commence subsequent to the date on which the
condition in clause (i) of this paragraph was satisfied, the Applicable
Margin for Domestic Rate Loans shall be 0.75% and the Applicable Margin for
Eurodollar Rate Loans shall be 2.75%.”

     (ii) The following definitions are amended and restated in their entirety to
read as follows:

     “Advances” shall mean and include the Revolving Advances, the
Swingline Loans, the Supplemental Advance and the Letters of Credit.

     “Loan Advances” shall mean and include the Revolving Advances,
the Swingline Loans and the Supplemental Advance.

     “Maximum Revolving Advance Amount” shall mean $90,000,000
(inclusive of outstanding Swingline Loans and the Supplemental Advance).

     “Note” or “Notes” shall mean, individually or
collectively, the Revolving Credit Note, the Swingline Note and the
Supplemental Advance Note.

     “Required Lenders” shall mean Lenders holding at least fifty
one percent (51%) of the Advances (other than the Supplemental Advance) and,
if no Advances (other than the Supplemental Advance) are outstanding, shall
mean Lenders holding at least fifty one percent (51%) of the Commitment
Percentages; provided, however, that at all times when there
shall be two or fewer Lenders hereunder, “Required Lenders” shall mean
Lenders holding one hundred percent (100%) of the Advances (other than the
Supplemental Advance) and, if no Advances (other than the Supplemental
Advance) are outstanding, shall mean Lenders holding one hundred percent
(100%) of the Commitment Percentages.

     “Revolving Advances” shall mean Advances made other than
Swingline Loans, the Supplemental Advance and Letters of Credit.

     “Undrawn Availability” at a particular date shall mean an
amount equal to (a) the lesser of (i) the sum of the Formula Amount and the
Supplemental Amount or (ii) the Maximum Revolving Advance Amount,
minus (b) the sum of (i) the outstanding amount of Advances
plus (ii) all amounts due and owing to Borrowers’ trade creditors
which are outstanding beyond normal trade terms for more than ninety (90)
days

2

 

beyond their due date and not the subject of a good faith dispute
(without duplication of any Reserves then in effect with respect thereto),
plus (iii) accrued interest under this Agreement and fees and
expenses for which Borrowers are liable under this Agreement but which have
not been paid or charged to Borrowers’ Account.

     (iii) The following new definitions are inserted in their appropriate
alphabetical positions:

     “Amendment No. 3” shall mean Amendment No. 3 to this Agreement,
dated as of December 30, 2004, by and among the Loan Parties, the Lenders
and the Agent.

     “Amendment No. 3 Effective Date” shall mean December 30, 2004.

     “Applicable Supplemental Advance Margin” shall mean (x) 2.50%
for Domestic Rate Loans comprising the Supplemental Advance, and (y) 4.50%
for Eurodollar Rate Loans comprising the Supplemental Advance.

     “Supplemental Advance” shall mean the Advance made pursuant to
Section 2.1(d).

     “Supplemental Advance Commitment Percentage” of any Lender
shall mean the percentage set forth below such Lender’s name on the
signature page of Amendment No. 3, as same may be adjusted upon any
assignment by a Lender pursuant to Section 17.3.

     “Supplemental Advance Interest Rate” shall mean an interest
rate per annum equal to (a) the sum of the Base Rate plus the
Applicable Supplemental Advance Margin per annum with respect to that
portion of the Supplemental Advance consisting of Domestic Rate Loans or, as
applicable (b) the sum of the Eurodollar Rate plus the Applicable
Supplemental Advance Margin per annum with respect to that portion of the
Supplemental Advance consisting of Eurodollar Rate Loans.

     “Supplemental Advance Note” shall mean the promissory note
referred to in Section 2.1(d).

     “Supplemental Amount” shall mean the principal amount of
$5,000,000, or such lesser amount as may be advanced under the Supplemental
Advance on the Amendment No. 3 Effective Date, less any principal repayments
of the Supplemental Advance.

     (b) Section 2.1(a) of the Loan Agreement is amended by amending and restating the first
paragraph thereof (which does not include (I) subclauses (i)-(iv) of clause (y) thereof and
(II) the final two sentences of Section 2.1(a)) as follows:

3

 

     “(a) Revolving Advances. Subject to the terms and conditions set forth
in this Agreement (including, without limitation, Sections 2.1(b) and 2.1(c)), each
Lender, severally and not jointly, will make Revolving Advances to Borrowers in
aggregate amounts outstanding at any time equal to such Lender’s Commitment
Percentage of the lesser of (x) an amount equal to (i) the Maximum Revolving Advance
Amount minus (ii) the aggregate amount of outstanding Letter of Credit
Obligations minus (iii) the outstanding principal amount of the Swingline
Loans minus (iv) the outstanding principal amount of the Supplemental
Advance, and (y) an amount equal to the sum of:”

     (c) Section 2.1 of the Loan Agreement is amended by inserting a new subsection (d) at
the end thereof as follows:

     “(d) Supplemental Advance. On the Amendment No. 3 Effective Date, the
Borrowers may request, in accordance with the provisions of Sections 2.2(a) and (b),
that the Lenders make an Advance (the “Supplemental Advance”) in an amount
not in excess of the Supplemental Amount. Provided that the conditions of Sections
2.4, 8.2(a) and 8.2(b) are and would be satisfied both immediately before and
immediately after giving effect to such request, each Lender that has a Supplemental
Advance Commitment Percentage in excess of 0%, severally and not jointly, will make
the Supplemental Advance to Borrowers, in one disbursement only, in an amount equal
to such Lender’s Supplemental Advance Commitment Percentage of the Supplemental
Amount. The Supplemental Advance may consist of Domestic Rate Loans and/or
Eurodollar Rate Loans, subject to the applicable provisions of this Agreement, and
shall be disbursed in accordance with Section 2.3. The Supplemental Advance shall
be evidenced by one or more secured promissory notes (each, a “Supplemental
Advance Note”) substantially in the form attached hereto as Exhibit 2.1(d).”

     (d) Section 2.2(a) of the Loan Agreement is amended by inserting, in the first sentence
thereof following the words “a Revolving Advance”, the words “or the Supplemental Advance”.

     (e) Section 2.4 of the Loan Agreement is amended and restated in its entirety as
follows:

     “2.4. Maximum Advances.

     The aggregate balance of Revolving Advances outstanding plus the
aggregate amount of Letter of Credit Obligations plus the aggregate
Swingline Loans outstanding plus the Supplemental Advance outstanding at any
time shall not exceed the lesser of (a) Maximum Revolving Advance Amount and (b) the
sum of (x) the Formula Amount plus (y) the Supplemental Amount. Without
limiting the foregoing, the aggregate balance of Revolving Advances outstanding
plus the aggregate amount of Letter of Credit Obligations plus the
aggregate Swingline Loans outstanding plus the Supplemental Advance
outstanding at any time shall not exceed the lesser of (A) (x) the amount of
“Permitted Indebtedness”

4

 

calculated under paragraph (1) of Section 4.09(b) of the Subordinated
Indenture, minus (y) the outstanding amount of indebtedness, obligations and
liabilities owed under the Senior Secured Documentation and (B) the amount of
“Permitted Indebtedness” calculated under paragraph (1) of Section 6.10(b) of the
Purchase and Security Agreement, and each request for a Revolving Advance, the
Supplemental Advance or Letter of Credit shall constitute a representation and
warranty by Loan Parties of its compliance with the foregoing. The foregoing
sentence shall constitute a limit and restriction enforceable against the Loan
Parties, but in no event shall the foregoing be enforced against Agent and/or any
Lender by any Person in a manner that is adverse to Agent and/or the Lenders.”

     (f) Section 2.5(a) of the Loan Agreement is amended and restated in its entirety as
follows:

     “(a) The Revolving Advances shall be due and payable in full on the Termination
Date subject to earlier prepayment as herein provided. The Supplemental Advance
shall be due and payable in full on the Termination Date and (except pursuant to the
express terms of Section 2.13 hereof) may not be prepaid prior to such date without
the consent of all Lenders.”

     (g) Section 2.8 of the Loan Agreement is amended and restated in its entirety as
follows:

     “2.8. Letters of Credit.

     Subject to the terms and conditions hereof, Agent shall issue or cause the
issuance of Documentary Letters of Credit and Standby Letters of Credit
(collectively, “Letters of Credit”) by the Issuer on behalf of any Borrower;
provided, however, that Agent will not be required to issue or cause
to be issued any Letters of Credit to the extent that the face amount of such
Letters of Credit would then cause the sum of (i) the outstanding Revolving
Advances, Swingline Loans and Supplemental Advance plus (ii) outstanding
Letters of Credit to exceed the lesser of (x) the Maximum Revolving Advance Amount
or (y) the sum of (A) the Formula Amount plus (B) the Supplemental Amount;
provided, further, however, that Agent will not be required
to issue or cause to be issued any Letters of Credit to with respect to any Business
Segment to the extent that the face amount of such Letters of Credit issued for such
Business Segment would then cause the sum of (i) the outstanding Revolving Advances
and Swingline Loans to such Business Segment plus (ii) the outstanding
Letters of Credit issued or caused to be issued on behalf of such Business Segment
to exceed such Business Segment’s Individual Formula Amount (for the purposes of the
foregoing, without giving effect to the deductions in clause (c) of the definition
of Individual Formula Amount). The maximum amount of outstanding Letters of Credit
shall not exceed $15,000,000 in the aggregate at any time. All disbursements or
payments related to Letters of Credit shall be deemed to be Revolving Advances and
shall bear interest at the Revolving Interest Rate for Domestic Rate Loans; Letters
of Credit that have not been drawn upon shall not bear interest.”

5

 

     (h) Section 2.12(c)(ii) of the Loan Agreement is amended and restated in its entirety
as follows:

     “(ii) Each Lender shall be entitled to earn interest at the applicable
Revolving Interest Rate or Supplemental Advance Interest Rate on outstanding Loan
Advances which it has funded.”

     (i) Section 2.13 of the Loan Agreement is amended by (x) amending and restating the
last sentence of subsection (a) thereof to read as follows:

“Such repayments shall be applied (x) first, to the Revolving Advances in
such order as Agent may determine, subject to Borrowers’ ability to reborrow
Revolving Advances in accordance with the terms hereof, (y) second, as cash
collateral in an amount of one hundred percent (100%) of outstanding Letters
of Credit Obligations pursuant to arrangements satisfactory to Agent, and
(z) third, to the Supplemental Advance.”;

     and (y) amending and restating subsection (b) thereof to read as follows:

     “(b) Subject to the provisions of Section 4.11, the Agent shall apply the
proceeds of any insurance settlements from casualty losses which are received by the
Agent to the outstanding Advances in such order as Agent may determine, subject to
Borrower’s ability to reborrow Revolving Advances in accordance with the terms
hereof, provided that the Supplemental Advance shall not be reduced until
all other Advances have been paid in full or cash collateralized, as applicable.”

     (j) Section 2.14 of the Loan Agreement is amended and restated in its entirety as
follows:

     “2.14. Use of Proceeds.

     Borrowers shall apply the proceeds of (i) Revolving Advances made on the
Closing Date (x) to repay existing indebtedness owed under the Existing Loan
Documentation; (y) to pay all existing Indebtedness owed to Trivest (including
accrued interest thereon), swap breakage fees, financial advisor fees and accrued
and unpaid management fees owing to Trivest and (z) to pay fees and expenses
relating to this transaction and (ii) Revolving Advances made on and after the
Closing Date, and the Supplemental Advance, to provide for its working capital
needs.”

     (k) Section 3.1 of the Loan Agreement is amended and restated in its entirety as
follows:

     “3.1. Interest.

     Interest on Loan Advances shall be payable to Agent for the benefit of Lenders
in arrears on the first day of each month with respect to

6

 

Domestic Rate Loans and, with respect to Eurodollar Rate Loans, at the end of
each Interest Period or, for Eurodollar Rate Loans with an Interest Period in excess
of three months, at the earlier of (a) each three months on the anniversary date of
the commencement of such Eurodollar Rate Loan or (b) the end of the Interest Period.
Interest charges shall be computed on the actual principal amount of Loan Advances
outstanding during the month (the “Monthly Advances”) at a rate per annum
equal to (x) with respect to Revolving Advances, the applicable Revolving Interest
Rate, and (y) with respect to the Supplemental Advance, the applicable Supplemental
Advance Interest Rate. Whenever, subsequent to the date of this Agreement, the Base
Rate is increased or decreased, the Revolving Interest Rate and Supplemental Advance
Interest Rate for Domestic Rate Loans shall be similarly changed without notice or
demand of any kind by an amount equal to the amount of such change in the Base Rate
during the time such change or changes remain in effect. Upon and after the
occurrence of an Event of Default, and during the continuation thereof, at the
option of Agent, (i) the Obligations other than Eurodollar Rate Loans shall bear
interest at the Revolving Interest Rate or the Supplemental Advance Interest Rate,
as applicable, for Domestic Loans plus two percent (2.0%) per annum or (ii)
Eurodollar Rate Loans shall bear interest at the Revolving Interest Rate or the
Supplemental Advance Interest Rate, as applicable, for Eurodollar Rate Loans
plus two percent (2.0%) per annum (as applicable, the “Default
Rate”).”

     (l) Section 6.8 of the Loan Agreement is amended and restated in its entirety to read
as follows:

     “6.8. Intentionally Omitted.”

     (m) Section 6.9 of the Loan Agreement is amended and restated in its entirety to read
as follows:

     “6.9. Minimum Undrawn Availability.

     Maintain at all times Undrawn Availability of not less than (x) on or prior to
January 31, 2005, $5,000,000, (y) from February 1, 2005 to and including February
10, 2005, $7,500,000, and (z) thereafter, $9,000,000.”

     (n) Section 9.12 of the Loan Agreement is amended and restated in its entirety as
follows:

     “9.12. Projected Operating Budget.

     Furnish Agent, no later than (x) January 14, 2005 with respect to the Loan
Parties’ fiscal year commencing on January 1, 2005, and (y) thirty (30) days prior
to the beginning of each fiscal year thereafter, a month-by-month projected
operating budget and cash flow of Loan Parties on a consolidated basis for such
fiscal year (including an income statement, balance sheet and cash flow statement
for each month), such projections to be accompanied by a certificate signed by the
President or Chief Financial Officer of each Loan Party to the effect

7

 

that such projections have been prepared on the basis of sound financial
planning practice consistent with past budgets and financial statements and that
such officer has no reason to question the reasonableness of any material
assumptions on which such projections were prepared.”

     (o) Section 11.2 of the Loan Agreement is amended by amending and restating the first
sentence thereof to read as follows:

“Subject to the terms of the Intercreditor Agreements, the proceeds realized
from the sale of any Collateral shall be applied as follows: first,
to the reasonable costs, expenses and attorneys’ fees and expenses incurred
by Agent for collection and for acquisition, completion, protection,
removal, storage, sale and delivery of the Collateral; second, to
interest due (including interest that would have accrued but for any
bankruptcy proceeding of any Loan Party) upon any of the Obligations
(excluding the Supplemental Advance and Obligations arising under Hedge
Agreements and/or the BofA Cash Management Documents); third, to
fees payable in connection with this Agreement; fourth, to furnish
to Agent cash collateral in an amount not less than 105% of the aggregate
undrawn amount of all Letters of Credit, such cash collateral arrangements
to be in form and substance satisfactory to Agent; fifth, to the
principal of the Obligations (excluding the Supplemental Advance and
Obligations arising under Hedge Agreements and/or the BofA Cash Management
Documents); sixth, to all remaining unpaid Obligations (excluding
the Supplemental Advance and Obligations arising under Hedge Agreements
and/or the BofA Cash Management Documents); seventh, to Obligations
arising under the BofA Cash Management Documents (provided,
however, that no more than $500,000 of proceeds of Collateral may be
applied to Obligations under the BofA Cash Management Documents),
eighth, to all Obligations in respect of the Supplemental Advance,
ninth, to Obligations arising under Hedge Agreements, and
tenth, to the appropriate Loan Party (subject to the equal or prior
claims of other Persons under applicable law).”

     (p) Section 17.3(c) of the Loan Agreement is amended by inserting, (x) after the amount
“$5,000,000”, the words “($1,000,000 with respect to Supplemental Advances)”, (y) after the
words “Commitment Percentage”, the phrase “and/or Supplemental Advance Commitment
Percentage, as applicable,” and (z) after each of the two instances of the words “Commitment
Percentages”, the phrase “and/or Supplemental Advance Commitment Percentages, as
applicable,”.

     (q) A new Exhibit 2.1(d) is added to the Loan Agreement in the form attached hereto.

     3. Waiver. Subject to satisfaction of the conditions precedent set forth in Section 4
below, Agent and Lenders hereby waive the Event of Default which has occurred solely as a result of
the Loan Parties’ violation of Section 9.13 of the Loan Agreement (delivery of

8

 

management analysis and commentary pertaining to material variances from budgets) for the
months ended on September 30, 2004 and October 31, 2004.

     4. Conditions of Effectiveness. This Amendment shall become effective upon Agent’s
receipt of each of the following:

     (i) six (6) copies of this Amendment executed by each Loan Party, the Required Lenders
and any other Lender having a Supplemental Advance Commitment Percentage;

     (ii) the Supplemental Advance Note(s) executed by each Borrower;

     (iii) opinions of counsel to the Loan Parties, in form and substance satisfactory to
the Agent and the Required Lenders;

     (iv) an amendment fee in the amount of $85,000, which shall be (x) charged to the
Borrowers’ Account as a Revolving Advance, (y) fully earned and non-refundable on the date
of this Amendment, and (z) shared equally by the Lenders that have executed this Amendment
by the Amendment No. 3 Effective Date;

     (v) a Supplemental Advance fee in the amount of $75,000, which shall be (x) charged to
the Borrowers’ Account as a Revolving Advance, (y) fully earned and non-refundable on the
date of this Amendment, and (z) shared pro rata by the Lenders that have a Supplemental
Advance Commitment Percentage in excess of 0%; and

     (vi) all such other certificates, instruments, documents and agreements as may be
required by Agent or its counsel, each of which shall be in form and substance satisfactory
to Agent and its counsel.

     5. Additional Agreements.

     (a) The Loan Parties shall, in conjunction with the delivery of the projected operating budget
by no later than January 14, 2005 pursuant to Section 9.12 of the Loan Agreement, provide the Agent
with a monthly forecast, in form and substance reasonably acceptable to Agent, of Indebtedness and
Undrawn Availability through December 31, 2005.

     (b) Notwithstanding anything in Section 9.9 of the Loan Agreement to the contrary, Agent,
Lenders and Loan Parties agree that Loan Parties shall deliver the monthly financial statements
required pursuant to such Section for the month ended on November 30, 2004 by no later than January
4, 2005, and the related management analysis and commentary required pursuant to Section 9.13 of
the Loan Agreement by no later than January 14, 2005.

     Any failure of the Loan Parties to comply with the provisions of this Section 5 shall be an
Event of Default.

9

 

     6. Representations and Warranties. Each Loan Party hereby represents and warrants as
follows:

     (a) This Amendment and the Loan Agreement, as amended hereby, constitute legal, valid
and binding obligations of the Loan Parties and are enforceable against the Loan Parties in
accordance with their respective terms.

     (b) Upon the effectiveness of this Amendment, each Loan Party hereby reaffirms all
covenants, representations and warranties made in the Loan Agreement and the Other Documents
to the extent the same are not amended hereby and agree that all such covenants,
representations and warranties shall be deemed to have been remade as of the effective date
of this Amendment.

     (c) Except as specifically waived herein, no Event of Default or Default has occurred
and is continuing or would exist after giving effect to this Amendment.

     (d) No Loan Party has any defense, counterclaim or offset with respect to the Loan
Agreement.

     7. Effect on the Loan Agreement.

     (a) Upon the effectiveness of Section 2 hereof, each reference in the Loan Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference
to the Loan Agreement as amended hereby.

     (b) Except as specifically amended herein, the Loan Agreement, and all other documents,
instruments and agreements executed and/or delivered in connection therewith, shall remain in full
force and effect, and are hereby ratified and confirmed.

     (c) Except as set forth in Section 3 hereof, the execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of Agent or Lenders, nor
constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments or
agreements executed and/or delivered under or in connection therewith.

     8. Release. Each Loan Party hereby releases, remises, acquits and forever discharges
Agent and Lenders and their employees, agents, representatives, consultants, attorneys,
fiduciaries, officers, directors, partners, predecessors, successors and assigns, subsidiary
corporations, affiliates, parent corporations, and related corporate divisions (all of the
foregoing hereinafter called the “Released Parties”), from any and all actions and causes
of action, judgments, executions, suits, debts, claims, demands, liabilities, obligations, damages
and expenses of any and every character, known or unknown, direct and/or indirect, at law or in
equity, of whatsoever kind or nature, for or because of any matter or things done, omitted or
suffered to be done by any of the Released Parties prior to and including the date of execution
hereof, and in any way directly or indirectly arising out of or in any way connected to this
Amendment, the Loan Agreement or any of the Other Documents (all of the foregoing hereinafter
called the “Released Matters”). Each Loan Party acknowledges that the agreements

10

 

in this Section are intended to be in full satisfaction of all or any alleged injuries or
damages arising in connection with the Released Matters.

     9. Governing Law. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns and shall be governed by and
construed in accordance with the laws of the State of New York.

     10. Headings. Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

     11. Counterparts; Facsimile. This Amendment may be executed by the parties hereto in
one or more counterparts, each of which shall be deemed an original and all of which when taken
together shall constitute one and the same agreement. Any signature delivered by a party by
facsimile transmission shall be deemed to be an original signature hereto.

[THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK.]

11

 

     IN WITNESS WHEREOF, this Waiver and Amendment No. 3 has been duly executed as of the date
first written above.

	 	 	 	 	 
	 	BROWN JORDAN INTERNATIONAL, INC.,

as Borrowing Agent and as a Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	
 	 
	 

	 	 	 	 	 
	 	BJ MEXICO IV, INC.

BJ MEXICO V, INC.

BROWN JORDAN COMPANY

CASUAL LIVING WORLDWIDE, INC.

CHARTER FURNITURE CORPORATION

LODGING BY LIBERTY, INC.

LOEWENSTEIN, INC.

POMPEII FURNITURE CO., INC.

SOUTHERN WOOD PRODUCTS, INC.

TEXACRAFT, INC.

TROPIC CRAFT, INC.

WABASH VALLEY MANUFACTURING, INC.

WINSTON FURNITURE COMPANY OF

ALABAMA, INC.

THE WOODSMITHS COMPANY,

as Borrowers

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

12

 

	 	 	 	 	 

	 	 	 	 	 
	 	BJCLW HOLDINGS, INC.

BJI EMPLOYEES SERVICES, INC.

BJIP, INC.

WINSTON PROPERTIES, INC.,

as Guarantors

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	WLFI HOLDINGS, INC.,

as a Loan Party

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

13

 

	 	 	 	 	 

	 	 	 	 	 
	 	GMAC COMMERCIAL FINANCE LLC,

as a Lender, as Swingline Lender and as Agent

 	 
	 	By:  	 	 
	 	 	Robert J. Brandow, 	 
	 	 	Director 	 
	 

	 	 	 	 	 
	 	 Commitment Percentage: 38.89%

Supplemental Advance

Commitment Percentage: 100.0%

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL, a division of Merrill Lynch

Business Financial Services, Inc.,

as a Lender

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	Title:  	Name: 	 
	 

	 	 	 	 	 
	 	 Commitment Percentage: 27.78%

Supplemental Advance

Commitment Percentage: 0.0%

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	
 	 
	 

	 	 	 	 	 
	 	Commitment Percentage: 33.33%

Supplemental Advance

Commitment Percentage: 0.0%

 	 
	 	 	 
	 	 	 
	 	 	 

14

 

	 	 	 	 	 

EXHIBIT 2.1(d)

Form of Supplemental Advance Note

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]