Document:

Letter Waiver

 

 

 Exhibit 10.03 

EXECUTION VERSION 

LEAPFROG ENTERPRISES, INC. 

6401 HOLLIS STREET 

EMERYVILLE, CALIFORNIA 94608-1089 

LETTER WAIVER 

Dated as of June 2, 2010 

To the banks (collectively, the “Lenders”) 

party to the Credit Agreement 

referred to below and to Bank of 

America, N.A., as agent for the Lenders 

Ladies and Gentlemen: 
 We
refer to the Amended and Restated Loan and Security Agreement dated as of August 13, 2009 (as amended, the “Credit Agreement”) among LeapFrog Enterprises, Inc., as borrower (the “Borrower”), Bank of America,
N.A. as agent (the “Agent”) and the Lenders party thereto from time to time. Capitalized terms not otherwise defined in this Letter Waiver have the same meanings as specified in the Credit Agreement. 

We hereby notify you that we do not want to have any of our Inventory considered to be Eligible Inventory. Accordingly, we hereby request
that you waive, effective as of the date hereof, (i) our compliance with the requirements of clause (c) of the definition of “Borrowing Base Certificate” in Section 1.1 of the Credit Agreement, (ii) our compliance with
the reporting requirements of Section 8.3.1 and clauses (b) and (c) of Section 8.3.2 of the Credit Agreement, (iii) while no Trigger Period exists, the right of the Agent to establish rent reserves pursuant to clause
(b) of the definition of “Rent and Charges Reserve” and (iv) the right of the Agent to conduct appraisals of our Inventory and Equipment pursuant to Section 10.1.1(b) of the Credit Agreement, in each case until we notify you
in writing of our request to have our Inventory considered for inclusion within the definition of Eligible Inventory as provided in the next succeeding paragraph. We acknowledge and agree that at Agent’s sole discretion, any or all of the
foregoing waivers shall be ineffective during such periods as a Default or Event of Default exists, provided, however, to the extent a waiver of the provisions identified in clauses (i) or (ii) of the second sentence of this
paragraph becomes ineffective as provided herein, compliance therewith shall apply from the date such waiver becomes ineffective. In consideration for such waivers, we agree for so long as such waivers are in effect we will not request that any of
our Inventory be considered for inclusion within the definition of Eligible Inventory except as provided in the next succeeding paragraph. 

 

 

 We hereby agree that, in the event we notify you in writing of our request to have our Inventory considered
for inclusion within the definition of Eligible Inventory, and as a condition thereof, (i) the Agent shall have conducted such inspections, examinations and appraisals of our Inventory as provided under Section 10.1.1 of the Credit
Agreement as Required Lenders deem necessary and (ii) we will have submitted to the Agent the information required pursuant to clause (c) of the definition of Borrowing Base Certificate as well as the inventory report and the report of
physical inventory and cycle counts required pursuant to Section 8.3.1 of the Credit Agreement. 
 This Letter Waiver shall
become effective as of the date first above written when, and only when, the Agent shall have received counterparts of this Letter Waiver executed by us and the Required Lenders or, as to any of the Lenders, advice satisfactory to the Agent that
such Lender has executed this Letter Waiver. 
 The Credit Agreement and each of the other Loan Documents, except to the extent
of the waiver specifically provided above, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of this Letter Waiver shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or the Agent under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement. 

If you agree to the terms and provisions of this Letter Waiver, please evidence such agreement by executing and returning at least two
counterparts of this Letter Waiver to C. Nathan Wood, Shearman & Sterling LLP, 525 Market Street, Suite 1500, San Francisco, California 94105, fax: (415) 616-1325, email: nwood@shearman.com, by not later than 5:00 p.m. PST on
June 2, 2010. 
 This Letter Waiver may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Letter Waiver by
facsimile or other electronic means shall be effective as delivery of a manually executed counterpart of this Letter Waiver. 

This Letter Waiver shall be governed by, and construed in accordance with, the laws of the State of California. 

[Signatures Follow] 

			
	 Very truly yours,

	
	 LEAPFROG ENTERPRISES, INC.,

as Borrower

		
	By	 	 /s/ Mark Etnyre

		 	Name: Mark Etnyre
		 	Title: CFO

  

			
	Agreed as of the date first above written:
	
	 BANK OF AMERICA, N.A.

as Agent and as a Lender

		
	 By
	 	 /s/ Steven W. Sharp

		 	Name: Steven W. Sharp
		 	Title: President

  

			
	 WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN)

as a Lender

		
	By	 	 /s/ Matt Harbour

		 	Name: Matt Harbour
		 	Title: Vice PresidentLetter Agreement

 Exhibit 10.1 

July 28, 2010 
 Peter Beaudrault

 c/o Sbarro, Inc. 
 401 Broad Hollow
Road 
 Melville, NY 11747 
  

	 	Re:	Transition Agreement 

 Dear Peter:

 This letter agreement (this “Agreement”) will confirm our understanding with regard to your performance of transition
services and your termination of employment with MidOcean SBR Holdings, LLC (“Parent”) and Sbarro, Inc. (the “Company” and, together with Parent, “Sbarro”). This Agreement shall serve as an
amendment to the Employment Agreement between you and Sbarro, dated January 31, 2007 (the “Employment Agreement”) and shall constitute notice of termination in accordance with Section 5.2 of the Employment Agreement.
Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Employment Agreement. 
 Effective as of the date
hereof, you shall resign as (a) the President and Chief Executive Officer of Sbarro, (b) the Chairman of the Board, and (c) a Director of Sbarro; however, such resignation shall not in any way affect the fact that the termination of
employment hereunder is pursuant to Section 5.2 of the Employment Agreement. You shall execute such additional documents as reasonably requested by Sbarro to evidence the foregoing resignations. Your last day of work with Sbarro and your
employment termination date will be the earliest of (i) December 31, 2010, (ii) the thirtieth (30th) day following the commencement of employment of Sbarro’s new full-time (rather than any acting or interim) Chief Executive
Officer in such capacity, and (iii) such other date as may be mutually agreed upon in writing between you and Sbarro (as applicable, the “Separation Date”). Subject to your execution and delivery of a release of claims (which
shall no longer be subject to revocation) in accordance with Section 5.4(d) of the Employment Agreement within thirty (30) days following the Separation Date and your continued compliance with Section 6 of the Employment Agreement,
you shall be entitled to the post-termination benefits described in Section 5.4(b) of the Employment Agreement. For the avoidance of doubt, in accordance with Section 5.4, you shall be entitled to (1) accrued benefits (including
compensation for accrued vacation and sick and personal days) in accordance with Sbarro’s benefit plans and policies, (2) your full Target Bonus for 2010 payable without regard to the

 Page Two 
  

 
satisfaction of any other requirements on its normal payment date but no later than April 30, 2011, (3) reimbursement for business expenses properly incurred prior to the Separation
Date; and (4) continuation of Base Salary, which shall be paid pursuant to the customary payroll schedule, and medical benefits for twelve (12) months following the Separation Date. 

For purposes of the Employment Agreement and this Agreement, the words “termination” and “termination of employment” shall mean
“separation from service” as defined in Treasury Regulation Section 1.409A-1(h). 
 Notwithstanding the foregoing, between the
date hereof and the Separation Date (the “Transition Period”), you will remain an active at-will full-time employee of Sbarro, subject to the terms contained herein; provided, however, that Sbarro may allocate some or
all of your job responsibilities to other employees and may appoint other persons to your position. Until the Separation Date, you shall provide such services as are requested by Sbarro. During the Transition Period, Sbarro will continue to pay your
regular Base Salary, and you shall continue to be eligible for all benefits and perquisites that you currently enjoy. 
 Other than the change
of your title, position, duties and reporting responsibilities and your resignation as the President and Chief Executive Officer, Chairman of the Board and a Director described herein, respectively, the terms of your Employment Agreement shall
remain in full force and effect, including, without limitation, (a) your right to receive certain benefits following a termination of your employment by the Company without Cause, pursuant to Section 5.2 and as set forth in this Agreement,
or a termination of your employment by you for Good Reason and (b) the restrictive covenants set forth in Section 6 of the Employment Agreement. For the avoidance of doubt, your agreed upon change in title, position, duties and reporting
responsibilities and your resignation as the President and Chief Executive Officer, Chairman of the Board, and a Director described herein will not give rise to a Good Reason termination under the Employment Agreement and you will not be entitled to
any post-termination benefits under the Employment Agreement in the event you terminate your employment as a result of the changes in your role with Sbarro as contemplated herein prior to the Separation Date. 

 Page Three 
  

 Please indicate your acceptance and agreement by signing this letter and faxing it directly to me at
631-715-4186 and returning executed original letters to Robert Sharp, Nicky McGrane, and me, respectively, at the addresses specified in Section 7.4 of the Employment Agreement. If you have any questions, please do not hesitate to call me
directly. 
 Sincerely, 
  

	
	 /s/ Stuart M. Steinberg

	Stuart M. Steinberg- Secretary

 Accepted and Agreed
by: 
  

							
	SBARRO, INC.	 		 	
				
	By:	 	 /s/ Stuart M. Steinberg
	 		 	Date: July 28, 2010
	Name:	 	Stuart M. Steinberg	 		 	
	Title:	 	Secretary	 		 	
			
	MIDOCEAN SBR HOLDINGS, LLC	 		 	
				
	By:	 	 /s/ Nicky McGrane
	 		 	Date: July 28, 2010
	Name:	 	Nicky McGrane	 		 	
	Title:	 	Director	 		 	
			
	PETER BEAUDRAULT	 		 	
			
	 /s/ Peter Beaudrault
	 		 	Date: July 28, 2010
	Peter Beaudrault

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