Exhibit 10.43

May 4, 2012

Kid Brands, Inc.

One Meadowlands Plaza, 8th Floor

East Rutherford, NJ 07073

 

  Re: Second Amended and Restated Credit Agreement, dated as of August 8, 2011
(the “Credit Agreement”) among Kid Brands, Inc., a New Jersey corporation (the
“Parent”), Kids Line, LLC, a Delaware limited liability company (“Kids Line”),
Sassy, Inc., an Illinois corporation (“Sassy”), I & J Holdco, Inc., a Delaware
corporation (“I & J”), LaJobi, Inc., a Delaware corporation (“LaJobi”) and
CoCaLo, Inc., a California corporation (“CoCaLo” and collectively with the
Parent, Kids Line, Sassy, I & J, LaJobi, CoCaLo and such other designated
subsidiary borrowers from time to time, the “Borrowers” and each a “Borrower”),
the Guarantors from time to time party thereto, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent

Gentlemen:

Reference is made to the Credit Agreement described above, the defined terms of
which are incorporated herein by reference.

Notwithstanding anything to the contrary contained in the Credit Agreement, the
Required Lenders and the Loan Parties hereby agree that (i) severance expense
not to exceed $1,000,000 in the aggregate during the term of the Credit
Agreement may be treated as “non-recurring . . . losses” for purposes of
determining Consolidated Net Income and (ii) severance expense in excess of
$1,000,000 in the aggregate during the term of the Credit Agreement may not be
treated as “non-recurring . . . losses” for purposes of determining Consolidated
Net Income. To the extent that severance expense exceeds the above-described
$1,000,000 limitation (“Excess Severance”), the Required Lenders and the Loan
Parties agree that (i) to the extent deducted from Consolidated Net Income, the
accrual of such Excess Severance expense may be added back to Consolidated Net
Income for purposes of calculating Consolidated EBITDA during the period when
accrued and (ii) the amount of any Excess Severance payments (regardless of when
accrued) will be deducted from Consolidated EBITDA during the period when paid.
All such severance adjustments will be reflected in detail in the applicable
Compliance Certificates.

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The Borrower agrees that it shall retain a financial consultant (the “Borrower
Consultant”) that is satisfactory to the Administrative Agent and Required
Lenders, pursuant to an engagement letter in form and substance reasonably
satisfactory to the Agent, within forty-five days following the date of this
letter. The scope of the services to be provided by the Borrower Consultant
shall be reasonably acceptable to the Administrative Agent and the Required
Lenders and will include: (a) a review of economic and legal ramifications of
the issues surrounding the Import duty and Lawrence Bivona earn-out
consideration, (b) a review of, and delivery of an opinion regarding, the
Borrower’s financial forecasts, and (c) such other matters as may be mutually
agreed by the Borrower and the Administrative Agent or the Required Lenders. The
Borrower shall cause the Borrower Consultant to provide the Administrative Agent
and the Lenders (x) from time to time, periodic reports with respect to its
review to date and (y) on or before July 31, 2012, a written report with respect
to its review. Any fees and expenses incurred by the Borrower and paid or
related to the Borrower Consultant may be treated as “non-recurring . . .
losses” for purposes of determining Consolidated Net Income.

Notwithstanding anything to the contrary contained in the Credit Agreement, the
Required Lenders and the Loan Parties hereby agree that prior to January 1,
2013, the Loan Parties agree that they shall not request any Credit Extension,
and the Lenders and L/C Issuer shall have no obligation to honor any Request for
Credit Extension, if such Credit Extensions would cause the Total Revolving
Outstandings to exceed $70 million without the prior written consent of the
Required Lenders. For avoidance of doubt, the foregoing limitation shall not
constitute a reduction of any Revolving Commitment.

This letter is a Loan Document and it shall be enforceable as such. Except as
modified hereby, all of the terms and provisions of the other Loan Documents
shall remain in full force and effect.

This letter shall be governed by and construed in accordance with the laws of
the State of New York.

 

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This letter may be executed in any number of counterparts (including facsimile
or .pdf counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute but one contract.

 

   

Sincerely,

 

BANK OF AMERICA, N.A., as Administrative Agent

    By   /s/ Phillip Raby     Title:   Senior Vice President

 

 

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ACCEPTED AND AGREED AS OF THE DATE FIRST ABOVE WRITTEN:

 

BORROWER:    

KID BRANDS, INC.,

 

a New Jersey corporation

    By:   /s/ Marc S. Goldfarb     Name:   Marc S. Goldfarb     Title:   SVP and
General Counsel

 

   

KIDS LINE, LLC,

 

a Delaware limited liability company

    By:   /s/ Marc S. Goldfarb     Name:   Marc S. Goldfarb     Title:   SVP and
General Counsel

 

   

SASSY, INC.,

 

an Illinois corporation

    By:   /s/ Marc S. Goldfarb     Name:   Marc S. Goldfarb     Title:   SVP and
General Counsel

 

   

I & J HOLDCO, INC.,

 

a Delaware corporation

    By:   /s/ Marc S. Goldfarb     Name:   Marc S. Goldfarb     Title:   SVP and
General Counsel

 

 

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LAJOBI, INC.,

 

a Delaware corporation

    By:   /s/ Marc S. Goldfarb     Name:   Marc S. Goldfarb     Title:   SVP and
General Counsel

 

   

COCALO, INC.,

 

a California corporation

    By:   /s/ Marc S. Goldfarb     Name:   Marc S. Goldfarb     Title:   SVP and
General Counsel

Acknowledged and agreed:

 

LENDERS:    

BANK OF AMERICA, N.A.,

 

as a Lender, Swing Line Lender and L/C Issuer

    By:   /s/ Phillip Raby     Name:   Phillip M. Raby     Title:   Senior Vice
President

 

   

JPMORGAN CHASE BANK, N.A.,

 

as a Lender

    By:   /s/ Susan M Graham     Name:   Susan M. Graham     Title:   Senior
Vice President

 

 

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WELLS FARGO BANK, N.A.,

 

as a Lender

    By:   /s/ Janette A. Griffin     Name:   Janette A. Griffin     Title:  
Senior Vice President

 

   

CITIZENS BANK OF PENNSYLVANIA,

 

as a Lender

    By:         Name:       Title:  

 

   

HSBC BANK USA, N.A.,

 

as a Lender

    By:         Name:       Title:  

 

   

SOVEREIGN BANK,

 

as a Lender

    By:         Name:       Title: