Document:

ex10-22todec312007form10k.htm

    Exhibit
      10.22

     

    Eighth
      Amendment to Amended and Restated Credit Agreement

     

    This
      Eighth Amendment to Amended and Restated Credit Agreement (herein, the “Amendment”) is entered into
      as of February 14, 2008, but with an effective date as of
      December 31, 2007, by and among Learning Curve Brands, Inc. (formerly
      known as RC2 Brands, Inc.) (“LCB”), Learning Curve
      International, Inc. (“LCI”), The First Years
      Inc.
      (“TFY”), Racing
      Champions Worldwide Limited (“RCWL”; LCB, LCI, TFY, and
      RCWL being referred to herein collectively as the “Borrowers”), Harris N.A., as
      Administrative Agent, and the Lenders party hereto.

     

    Preliminary
      Statements

     

                   
      A.    The Borrowers, the Lenders and the Administrative Agent
      entered into an Amended and Restated Credit Agreement dated as of
      September 15, 2004, as heretofore amended (the “Credit
      Agreement”).  All capitalized terms used herein without
      definition shall have the same meanings herein as such terms have in the Credit
      Agreement.

     

                   
      B.    The Borrowers have requested that the Required Lenders
      amend the Adjusted EBITDA definition and to make certain other amendments to
      the
      Credit Agreement, and the Required Lenders are willing to do so under the terms
      and conditions set forth herein.

     

                    
      Now, Therefore, for good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, the parties hereto agree as
      follows:

     

    
      Section 1.    
        Amendment. 

    

     

    Subject
      to the satisfaction of the conditions precedent set forth in Section 2
      below, the Credit Agreement shall be and hereby is amended as
      follows:

     

                   
      1.1.  The definition of “Adjusted EBITDA” appearing
      in Section 5.1 of the Credit Agreement shall be amended and restated in its
      entirety to read as follows:

     

    “Adjusted
      EBITDA” means, with
      reference to any period, the sum of (a) the EBITDA of the Company and its
      Subsidiaries for such period, plus (b) EBITDA of any
      Person and its subsidiaries acquired pursuant to Section 8.9(i) hereof for
      such period plus
(c) adjustments associated
      with any Permitted Acquisition to the
      extent reasonably acceptable to the Administrative Agent, plus (d) non-recurring
      costs
      and extraordinary expenses incurred in connection with the recall of specific
      components from the Thomas and Friends product line in an aggregate amount
      not
      to exceed $28,300,000.

     

    1.2.  Exhibit
      E to the Credit Agreement shall be amended and restated as set forth on Exhibit
      E attached hereto.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Section 2.     Conditions
        Precedent. 

    

     

    The
      effectiveness of this Amendment is subject to the satisfaction of all of the
      following conditions precedent:

     

    2.1. 
      The Borrowers and the Required Lenders shall have executed and delivered this
      Amendment.

     

    2.2. 
      Legal matters incident to the execution and delivery of this Amendment shall
      be
      satisfactory to the Administrative Agent and its counsel.

     

    
      Section 3.     Representations.
        

    

     

    In
      order
      to induce the Lenders to execute and deliver this Amendment, the Borrowers
      hereby represent to the Lenders that, as of the date hereof, the representations
      and warranties set forth in Section 6 of the Credit Agreement are and shall
      be and remain true and correct (except that the representations contained in
      Section 6.5 shall be deemed to refer to the most recent financial
      statements of the Company delivered to the Lenders) and the Borrowers are in
      compliance with the terms and conditions of the Credit Agreement and no Default
      or Event of Default has occurred and is continuing under the Credit Agreement
      or
      shall result after giving effect to this Amendment.

     

    
      Section 4.     Miscellaneous.
        

    

     

                   4.1. 
      Except as specifically amended herein, the Credit Agreement shall continue
      in
      full force and effect in accordance with its original terms. Reference to this
      specific Amendment need not be made in the Credit Agreement, the Notes, or
      any
      other instrument or document executed in connection therewith, or in any
      certificate, letter or communication issued or made pursuant to or with respect
      to the Credit Agreement, any reference in any of such items to the Credit
      Agreement being sufficient to refer to the Credit Agreement as amended
      hereby.

     

                   4.2.  
      This Amendment may be executed in any number of counterparts, and by the
      different parties on different counterpart signature pages, all of which taken
      together shall constitute one and the same agreement. Any of the parties hereto
      may execute this Amendment by signing any such counterpart and each of such
      counterparts shall for all purposes be deemed to be an original. This Amendment
      shall be governed by the internal laws of the State of Illinois.

     

    [Signature
      Pages Follow.]

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    This
      Eighth Amendment to Amended and Restated Credit Agreement is entered into as
      of
      the date and year first above written.

     

    
      
        

        LEARNING
          CURVE BRANDS, INC. (f/k/a RC2 

             
          Brands, Inc.) 

        LEARNING
          CURVE INTERNATIONAL, INC. 

        THE
          FIRST
          YEARS INC., a Massachusetts 

             
          corporation

        RACING
          CHAMPIONS WORLDWIDE LIMITED

         

        By
/s/  Curtis
          W.
          Stoelting                                              

             
          Name:  Curtis W. Stoelting

             
          Title:    Chief Executive Officer of LCB 

                          
          and LCI, President of TFY and Director

                         
           of RCWL

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

                       
          Accepted and agreed to as of the date and year first above written.

        

        HARRIS
          N.A., in its individual capacity and as 

             
          Administrative Agent

         

        By /s/  Karen
          L.
          Knudsen                                       
        

             
          Name  Karen L.
          Knudsen                                  
         

             
          Title  Managing
          Director                                 

         

        NATIONAL
          CITY BANK

         

        By /s/
          Rachel M.
          Williamson                                          

             
          Its Vice
          President                                                        

         

        U.S.
          BANK
          NATIONAL ASSOCIATION

         

        By                                                                                        
          

             
          Its                                                                                  

         

        LASALLE
          BANK NATIONAL ASSOCIATION

         

        By /s/
          Michael F.
          Perry                                                    

             
          Its First Vice
          President                                               

         

        FIFTH
          THIRD BANK (CHICAGO), a Michigan 

             
          Banking Corporation

         

        By /s/
          Kim
          Puszczwicz                                                      

             
          Its Vice
          President                                                        

         

        THE
          NORTHERN TRUST COMPANY

         

        By /s/
          Kanika
          Agarwal                                                     

             
          Its Commercial Banking
          Officer                        

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        ASSOCIATED
          BANK, N.A.

         

        By                                                                                    
             
          

             
          Its                                                                           
       

         

        RBS
          CITIZENS, N.A.

         

        By /s/
          M. James Barry,
          III                                                

             
          Its Vice
          President                                                        

         

         

         

        5Energy East Exhibit 10-20 2007 10-K

Exhibit 10-20

[Energy East letterhead]

February 20, 2007

 

F. Michael McClain, Jr.

[address]

 

Dear Michael:

 

       As you are aware, in 2004 a new Section 409A was added to the Internal Revenue Code by the American Jobs Creation Act of 2004 (the "Act"). The Act has made significant changes in the tax law as it is applied to executive compensation. In late September of 2005 the Internal Revenue Service published proposed regulations relating to compliance with the Act. As a "key employee" under the Act, if (a) severance payments and (b) continuation of group health and welfare benefits (medical, dental, vision and life insurance) after termination of employment are provided to you under the terms of your current Amended and Restated Employment Agreement with Energy East Corporation and Central Maine Power Company (collectively, the "Company") dated March 18, 1999 (the "Agreement") such payments and benefits must be provided in compliance with the Act or an excise tax equal to 20% plus interest penalties (payable by you) will be imposed on all such payments and benefits.  

       Your Agreement provides that you will be entitled to certain severance payments (including a Gross-Up payment for taxes if it is determined that Section 4999 of the Internal Revenue Code is applicable) if your employment is terminated prior to the expiration of the Term of the Agreement by the Company for reasons other than Cause (other than your death or disability) or if you resign for Good Reason, as those terms are defined in your Agreement. Pursuant to the Agreement, severance payments would begin at the time of your separation from employment and continue for the term set forth in your Agreement. 

       If the severance payments provided for in your Agreement were made as described therein, these payments could be subject to the excise tax and penalties set forth in the Act and described above.

       Under the Act, one of the ways to avoid application of the excise tax and interest penalties to severance due a "key employee" under the terms of an employment agreement such as yours is to defer commencement of payment for six (6) months after separation from employment.  We have agreed that if you become entitled to severance payments under Section 7.2 of your Agreement, the Company will make a lump sum payment to you equal to the entire amount due over the Term of the Agreement, in lieu of continuation of salary and benefits for the remainder of the Term as provided in Section 7.2 of your Agreement.1 This lump sum payment will be made six (6) months after your employment ends, and your Agreement is amended to so provide.

       In addition, under the terms of your Agreement, if your employment is terminated prior to the expiration of the Term of the Agreement by the Company for reasons other than Cause (other than your death or disability) or you resign for Good Reason, as those terms are defined in your Agreement, you would continue to be a participant in the Company's group health and welfare plans for active employees for a three (3) year period. Under the Act, continuation of self-insured health and welfare benefits to key employees must be limited to the remainder of the calendar year following termination and two (2) calendar years thereafter. While you do not currently participate in the Company's self-insured group health benefits, you maintain the right to elect coverage in the future in accordance with the terms of the plan. Because you are a "highly compensated" employee, continuation of self-insured group health in accordance with your Agreement, could subject you (and all other "highly compensated" employees) to additional taxes pursuant to the regulations governing self-insured group health plans. In addition, Energy East Management Corporation's current group insurance contracts do not permit participation by non-employees. 

       In order to avoid non-compliance with the Act, additional taxes under the regulations governing self-insured group health and welfare plans, and the exclusions contained in Energy East Management Corporation's group insurance contracts, your Agreement is amended to provide as follows:

	
I. 
	
If at the time of termination from employment you are (a) not eligible for post retirement medical benefits and (b) are eligible for continuing group health and welfare benefits under your Agreement, the Company will pay you, in a lump sum, the value of its projected contributions for active employee group health and welfare benefits for the three (3) year period in lieu of your continued participation in the Company's group health plan for active employees. The lump sum payment will be paid to you six (6) months after your termination date. You will be eligible for COBRA continuation of and/or conversion privileges for applicable benefits as provided by law immediately following termination. 

	
II.
	
If at the time of termination from employment you are (a) eligible for post retirement medical benefits and (b) are eligible for continuing group health and welfare benefits under your Agreement, you will not be permitted to participate in the Company's group health and welfare plans for active employees and the Company will pay you, in a lump sum, the value of its projected contributions for all group health (except medical benefits) and welfare plans for active employees for the three year period in lieu of your continued participation in those plans. The lump sum payment will be paid

1  We have also agreed that the outplacement services benefit described in Section 7.2 will now be a fixed amount of $10,000. The outplacement benefit will be included in the lump sum payment, payable six (6) months after your employment ends.

 

	 	
to you six (6) months after your termination date. You will be eligible for COBRA continuation of and/or conversion privileges for applicable benefits as provided by law immediately following termination. You may participate in the Company's post retirement medical plan, in accordance with its terms.

 

       In all other respects, your Agreement remains in full force and effect.

       Please sign the acknowledgement and agreement set forth below and return one original to me. The other original is for your file.

	
	
Very truly yours,

/s/ Richard R. Benson

 

Acknowledged and Agreed:

/s/ .F. Michael McClain             

Date: 2/26/07

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]