Document:

May 7, 2008

       

      Young Innovations, Inc.

      500 N. Michigan Avenue

      Suite 2204

      Chicago, Illinois 60611

      Attention: Arthur L. Herbst, Jr.

       

      

      	
                  RE:
 	
                  Amended and Restated Credit Facilities Agreement, effective as of November 28, 2006, by and among Young Innovations, Inc. (Borrower), Bank of America, N.A. (Bank of America), as Administrative Agent (in such capacity, Administrative Agent) and Bank of America and the other lenders party thereto (Lenders), as amended (the Loan Agreement) - Consent and Amendment to Exhibit S to Loan Agreement
 

      

       

      Ladies and Gentlemen:

       

      Reference is hereby made to the Loan Agreement.  All capitalized terms used but not defined herein shall have the meanings given to them in the Loan Agreement.

       

      Notwithstanding any provisions contained in the Loan Agreement or Loan Documents which may be to the contrary, including, without limitation, Section 14.2 of the Loan Agreement, Administrative Agent and Lenders hereby evidence their consent to the incurrence of Indebtedness by Young Acquisitions Company in connection with the January Portfolio Sale, such consent to be deemed effective on January 16, 2008, and their consent to the incurrence of Indebtedness by Panoramic Rental Corp (a wholly-owned subsidiary of Young Acquisitions Company) in connection with the May Portfolio Sale, such consent to be deemed effective on May 5, 2008.  The January Portfolio Sale is the sale by Young Acquisitions Company of a portion of its Panoramic equipment loan portfolio to Direct Capital Corporation
      pursuant to the terms of the Portfolio Purchase Agreement dated and effective January 16, 2008, between them and the documents related thereto for a purchase price of $4,139,688, with holdback amounts aggregating $620,953.  The May Portfolio Sale is the sale by Panoramic Rental Corp. of a portion of its Panoramic equipment loan portfolio to Direct Capital Corporation pursuant to the terms of the Portfolio Purchase Agreement dated and effective May 5, 2008, between them and the documents related thereto for a purchase price of $277,832, with holdback amounts aggregating $41,675.  Administrative Agent and Lenders further consent to the incurrence of future Indebtedness by Young Acquisitions Company and/or Panoramic Rental Corp. in connection with future Panoramic equipment loan portfolio sales by either of them provided that the terms and accounting treatment of such future sales are substantially similar to the terms and accounting
      treatment of the January Portfolio Sale and the May Portfolio Sale.

       

      Administrative Agent, Lenders and Borrower hereby agree that Exhibits S and 13.10 to the Loan Agreement are hereby deleted and replaced with Exhibits S and 13.10 attached to this letter agreement and made a part hereof.

       

      Borrower hereby represents and warrants to Administrative Agent and Lenders that after giving effect to the consent contained herein, (i) except as set forth in the Disclosure Schedule attached to the Loan Agreement, or set forth in the supplemental disclosure schedule attached to this letter agreement as Exhibit A (provided that such Exhibit has been approved by Administrative Agent), the representations and warranties in the Loan Agreement with respect to all Persons that are Covered Persons on the date hereof are true and correct as of the date hereof, and (ii) there exists no Default or Event of Default under the Loan Agreement as of the date hereof and no Default or Event of Default has or will occur as a result of the Portfolio Sale immediately or with the giving of notice or passage of time or either.

       

      By signing this letter agreement, each of Administrative Agent, Lenders and Borrower agree to the terms of this letter agreement.

       

      
      

      

      

      The following notice is given pursuant to Section 432.047 of the Missouri Revised Statutes; nothing contained in such notice shall be deemed to limit or modify the terms of the Loan Documents or this letter agreement:

       

      ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT (LOAN AGREEMENT). TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

       

      By signing this letter agreement, Borrower acknowledges that there are no other agreements between Administrative Agent, Lenders, and Borrower, oral or written, concerning the subject matter hereof, and that all prior agreements concerning the same subject matter are merged into this letter agreement and thereby extinguished.

       

      This letter agreement may be executed in multiple counterparts, each of which shall be an original, but all of which shall constitute one and the same agreement.  A counterpart of this letter agreement or a signature page of this letter agreement transmitted by facsimile machine or telecopier and showing a signature shall have the same binding effect as an original bearing an original signature.  No party may raise the use of a facsimile machine or telecopier or the fact that any signature was transmitted through the use of a facsimile or telecopier machine as a defense to the enforcement of this letter agreement.

       

      

      	
                   
 	
                  Sincerely,
 

      

       

      

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

      by its Vice President

       

       

      /s/ Michael Brashler

      Name:    Michael Brashler
 	
                  BANK OF AMERICA, N.A., as a Lender

      by its Vice President

       

       

      /s/ Jonathan M. Phillips

      Name: Jonathan M. Phillips

       
 
	
                  THE NORTHERN TRUST COMPANY, as a Lender

      by its Commercial Banking Officer

       

       

      /s/ David E. Graham

       

      Name: David E. Graham

       
 	
                  JPMORGAN CHASE BANK, N.A., as a Lender

      by its Vice President

       

       

      /s/ Dana C. Rasmussan

       

      Name: Dana C. Rasmussan

       
 

      

       

      Agreed to and accepted as of May 7, 2008:

       

      YOUNG INNOVATIONS, INC.

      by its President and Chief Financial Officer

       

      /s/ Arthur L. Herbst, Jr.

       

      Name: Arthur L. Herbst, Jr. 

       

      
      

      

      

      EXHIBIT A

      SUPPLEMENT TO DISCLOSURE SCHEDULE

       

      The following are additional disclosures supplementing Exhibit 11 to the Loan Agreement and made with respect to the indicated Sections of the Loan Agreement:

       

      Section 11.26.1

       

      Additional Principal Place of Business of each Covered Person:

       

      2720 Corporate Parkway, LLC  (inactive)

      2260 Wendt Street

      Algonquin, IL  60102

       

      Sav-a-Life, LLC  (inactive)

      2260 Wendt Street

      Algonquin, IL  60102

       

      Section 11.27

       

      Subsidiaries and Affiliates:

       

      2720 Corporate Parkway, LLC  (inactive)

      2260 Wendt Street

      Algonquin, IL  60102

       

      Sav-a-Life, LLC  (inactive)

      2260 Wendt Street

      Algonquin, IL  60102

       

       

      
      

      

      

      EXHIBIT 13.10

       

      BORROWING REPRESENTATIVES

       

      Alfred E. Brennan - CEO and Vice Chairman

      Arthur L. Herbst, Jr. - President and CFO

      Julia Heap - Controller and Vice President of Finance

      Erin Manning - Manager of Business Development

      Ellen Kennedy - Manager of External Reporting

       

       

      
      

      

      

      EXHIBIT S

      NOTICE ADDRESSES, ETC.

       

      

      	
                  Notice Address for Borrower:

       

      Young Innovations, Inc.

      500 N. Michigan Avenue

      Suite 2204

      Chicago, Illinois 60611

      Attention: Arthur L. Herbst, Jr.

      FAX #: 312-644-6397

      Confirming Telephone #: 312-644-4137

       

      with a courtesy copy to:

       

      McDermott Will & Emery

      227 W. Monroe St.

      Chicago, IL  60606

      Attention: John Tamisiea

      FAX #: 312-984-3669

      Confirming Telephone #: 312-984-6957

       

       

      Notice Address for the following entities under any

      Loan Document:                

       

      Young Acquisitions Company

      Young PS Acquisitions, LLC

      Young Dental Manufacturing I, LLC

      Panoramic Rental Corp

      Athena Technology, LLC

      Young Colorado, LLC

      YI Ventures, LLC

      Mid-West Dental Laboratory, Inc.

      Young OS LLC

      Young Microbrush, LLC

      Young Microbrush
      International, LLC

      2720 Corporate Parkway LLC

      SAV-A-LIFE, LLC

      Each other Guarantor under the Loan Agreement

      c/o Young Innovations, Inc.

      500 N. Michigan Avenue

      Suite 2204

      Chicago, Illinois
      60611

      Attention: Arthur L. Herbst, Jr.

      FAX #: 312-644-6397

      Confirming Telephone #: 312-644-4137

       

      with a courtesy copy to:

       

      McDermott Will & Emery

      227 W. Monroe St.

      Chicago, IL  60606

      Attention: John Tamisiea

      FAX #: 312-984-3669

      Confirming Telephone #: 312-984-6957
 	
                  Applicable Lending Office for Administrative Agent and Notice Address for Administrative Agent for Advances, Conversions, Continuations, Payments, and Prepayments:

       

      Bank of America, N.A.

      901 Main Street

      Mail Code TX1-492-14-14

      Dallas, TX 75202-3417

      Attention:  Susan Maass-Thomas

      FAX #: 214-290-9765

      Confirming Telephone #:  214-209-1349

       

      Notice Address for Administrative Agent for all other purposes:

       

      Bank of America, N.A., Administrative Agent

      231 S. LaSalle Street

      Mail Code IL1-231-10-41

      Chicago, IL  60697

      Attention:  Denise Jones

      FAX #: 877-206-8413

      Confirming Telephone #:
      312-828-1846

       

      with a copy to:

       

       

      Lewis, Rice & Fingersh, L.C.

      500 North Broadway, Suite 2000

      St. Louis, MO  63102

      Attention:  Rosemarie M. Karcher, Esq.

      FAX #:  314-612-7673

      Confirming Telephone #:  314-444-7673

       

      Applicable Lending Office and Notice Address for Bank of America, N.A., a Lender:

       

      Bank of America, N.A.

      231 S. LaSalle St.

      Mail Code IL1-231-06-46

      Chicago, IL  60697

      Attention:  Jonathan M. Phillips

      FAX #: 312-974-0761

      Confirming Telephone #:
      312-828-8997

       

      Applicable Lending Office and Notice Address for The Northern Trust Company, a Lender:

       

      The Northern Trust Company

      50 S. LaSalle St. B-2

      Chicago, IL 60675

      Attention: David E. Graham

      FAX #: 312-444-7028

      Confirming Telephone #: 312-444-3311

       

      Applicable Lending Office and Notice Address for JPMorgan Chase Bank, N.A., a Lender:

       

      JPMorgan Chase Bank, N.A.

      111 East Busse Avenue

      Mt. Prospect, IL 60056-3250

      Andrew P. Salski

      FAX #: 847-590-3745

      Confirming Telephone #: 847-590-3702kl08010_ex10-1.htm

    
      

    

     

    Exhibit 10.01

     

     

    

     

     

    
      Ascendia
Brands, Inc. 

      100
American Metro Boulevard 

      Suite 108

      Hamilton,
NJ 08619 

      T: (609)
219-0930 

      F: (609)
890-8458 

    

    
 

            August 3,
2008

    

    

    Steven R.
Scheyer

    President
and Chief Executive Officer

    Ascendia
Brands, Inc.

    100
American Metro Boulevard

    Suite
108

    Hamilton,
New Jersey 08619

    

    
      	
               
      

            	
              Re:

            	
              Resignation
      and Separation Agreement

            

    

     

    Dear
Steven,

     

    This
letter is to memorialize the agreement between you and Ascendia Brands, Inc.
(the “Company”)
regarding your resignation and separation from employment with the Company (the
“Letter
Agreement”).

     

    We
recognize and agree that your employment is pursuant to the Employment Agreement
entered into between you and the Company on or about February 9, 2007, as
amended by the Amendment No. 1 to Employment Agreement dated on or about May 16,
2008 (the “Employment
Agreement”).

     

    You have
informed the Company of your intent to resign as Director, Chief Executive
Officer and President, and employee of the Company and its subsidiaries,
provided that both you and the Company comply with the terms of this Letter
Agreement.  The Company, for itself and its subsidiaries, accepts your
resignation and agrees to waive the twenty-day notice requirement of Section
5(e) of the Employment Agreement, provided that both you and the Company comply
with the terms of this Letter Agreement.

     

    1.   Effective Date and
Resignation Date

     

    This
Letter Agreement shall be effective as of the date that the United States
Bankruptcy Court enters an order (the “Assumption Order”)
allowing the Company to assume this Letter Agreement pursuant to 11 U.S.C. § 365
(the “Effective
Date”).  If the Court does not enter an Assumption Order, this
Letter Agreement shall be null and void and the Employment Agreement shall
remain in effect except in the event the Employment Agreement is rejected by the
Company.  You have agreed that upon entry of the Assumption Order, you
will waive all objections to the Company’s rejection of the Employment Agreement
pursuant to 11 U.S.C. § 365.  On the Effective Date, the date of your
resignation shall be retroactive to the date the Company files (or has filed) a
petition for relief with any United States Bankruptcy Court (the “Resignation
Date”).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Steven R. Scheyer

    August 3, 2008

    Page 2

     

     

     

    2.  The Company’s
Obligations

     

    We have
agreed to:

     

    
      	
              i.  

            	
              enable
      you to participate in comparable health insurance coverage for you and
      your family to your pre-resignation coverage through and to the extent
      required by the Continued Health Coverage for Family (“COBRA”) program
      until the earlier of (a) the date that the Company ceases to provide
      health insurance for employees or (b) the date the COBRA coverage expires
      pursuant to its terms and the law;

            

    

     

    
      	
              ii.  

            	
              reimburse
      you for all company-related expenses you have incurred up to the
      Resignation Date;

            

    

     

    
      	
              iii.  

            	
              allow
      you to keep the IBM ThinkPad laptop computer in your possession which was
      previously provided to you by the Company, provided that you shall deliver
      such computer to the Company so  that all proprietary files and
      licensed software may be removed;

            

    

     

    
      	
              iv.  

            	
              allow
      you to keep the Blackberry in your possession which was previously
      provided to you by the Company, although usage of same will be at your
      expense following the Resignation Date; and provided further that the
      Company shall be entitled to remove all content from the
      Blackberry;

            

    

     

    
      	
              v.  

            	
              comply
      with and be bound by the Mutual Non-Disparagement Agreement, as defined
      below; and

            

    

     

    
      	
              vi.  

            	
              continue
      to provide Directors and Officers liability insurance coverage for you
      at  not less than the coverage levels provided to the other
      Directors and Officers of the Company, with such coverage continuing until
      July 28, 2014.

            

    

     

    3.  Your
Obligations

     

    Upon the
Effective Date, you shall waive all rights you have under the Employment
Agreement, except those rights explicitly retained pursuant to this Letter
Agreement, and you and the Company shall comply with and be bound by the Mutual
Non-Disparagement Agreement, as defined below.  In additions, the
provisions of Sections 6(a) and 6(b) of the Employment Agreement shall survive
and remain in full force and effect.

     

    4.  Mutual Non-Disparagement
Agreement

     

    The
Company, its officers and directors will not make, and the Company shall use
reasonable efforts to cause its agents, advisors, including Carl Marks Advisory
Group LLC (“CMAG”), and attorneys to refrain from making, any disparaging
statements about you, your employment with the Company, your resignation, the
termination of your employment, or any other dealings of any kind between you
and the Company, to any third party, specifically

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Steven R. Scheyer

      August 3, 2008

      Page 3

    

     

     

     

    including,
without limitation, any past, present or prospective employee of the Company,
any customer or prospective customer of the Company, any prospective employer of
you, or any representative of any media.  You agree that you will not
make any disparaging statements about the Company, its agents, officers,
directors, advisors, including CMAG, and attorneys to any third party,
specifically including, without limitation, any past, present or prospective
employee of the Company, any customer or prospective customer of the Company,
any supplier or vendor or prospective supplier or vendor of the Company, any
prospective purchaser of the Company or any of its assets, or any representative
of any media.  This paragraph shall not apply to truthful
communications between you and your spouse, immediate family and attorneys and
advisors on the one hand and between the Company and its attorneys and advisors
on the other hand, any truthful disclosure or statement relating to any
proceeding to enforce the terms of this Letter Agreement, or as expressly
authorized by law or lawful process or proceeding.  The terms of this
paragraph shall be referred to as the “Mutual Non-Disparagement
Agreement.”

     

    5.  Mutual Approval of Press
Release

     

    If the
Company issues a press release which mentions your resignation, this Letter
Agreement, your separation from the Company, or any other issue related to your
employment by the Company or the termination thereof, the Company shall provide
you with a draft of such language and you shall have the right to review and
provide comments on the language in any such press release.   To
the extent such comments are timely, reasonable, accurate and consistent with
any disclosure obligations the Company may have, the Company agrees to
incorporate such comments.

     

    Please
confirm your agreement to the foregoing by signing a copy of this letter and
returning the same to me.

     

                Sincerely,

     

                Ascendia Brands,
Inc.

     

                By: /s/ Andrew W.
Sheldrick              

                 Andrew W.
Sheldrick

                 Vice President &
General Counsel

    

    

    

    

    Confirmed
and agreed to as of the 4th day of August, 2008

     

    /s/
Steven R. Scheyer         

    Steven R.
Scheyer

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