Document:

Exhibit 10.29

 

June 1, 2005

 

McNamara Family Irrevocable
Trust Under

Agreement Dated December 17,
2004

c/o Dorsey & Whitney LLP

250 Park Avenue

New York, New York 10177

Attention: Wesley Fredericks, Esq. as trustee

 

McNamara Family Trust

c/o Lucy McNamara

10202 Sycamore Cir.

Villa Park, Ca. 92861

Attention: Lucy McNamara as trustee

 

OMP, Inc.

310 Golden Shore

Long Beach, California 90802

 

Obagi Medical Products, Inc.

310 Golden Shore

Long Beach, California 90802

 

Re:           Subordination

 

Ladies and Gentlemen:

 

Reference
hereby is made to (i) that certain Credit Agreement dated as of January 28,
2005 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) among OMP, Inc., a Delaware corporation (“Borrower”),
Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services
Inc., in its capacity as administrative agent (in such capacity, the “Administrative
Agent”) for the Lenders (as such term is defined in the Credit Agreement), and
the Lenders; and (ii) that certain Investor’s Rights Agreement dated as of
April 1, 2002 (as amended, restated, supplemented or otherwise modified from
time to time, the “Inventor’s Rights Agreement”) among Obagi Medical Products,
Inc., a Delaware corporation (“Holdings”), Austin T. McNamara (“McNamara”), the
McNamara Family Irrevocable Trust Under Agreement Dated December 17, 2004 (“Trust”)
and the McNamara Family Trust (the “Family Trust”, and together with the Trust,
the “McNamara Trusts”). Capitalized terms used herein but not otherwise defined
herein shall have the respective meanings ascribed to such terms in the Credit
Agreement.

 

Holdings
and each of the McNamara Trusts hereby covenants and agrees that no repurchase
(“Repurchase”) of any shares of Common Stock (as such term is defined in the
Investor’s Rights Agreement) pursuant to Section 5.1 of the Investor’s Rights
Agreement shall be made, or permitted or required to be made, either in cash,
by way of

 

 

set-off
or otherwise if the making of such Repurchase, or any distribution by Borrower
to Holdings to fund any such Repurchase, is prohibited (or otherwise not
expressly permitted) under the terms of the Credit Agreement; provided, that
Section 5.4 of the Credit Agreement may not be amended, restated, supplemented
or otherwise modified in any way materially adverse to either of the McNamara
Trusts without the prior written consent of each McNamara Trust so affected.

 

If
either McNamara Trust receives the proceeds of any Repurchase in violation of
this letter agreement, such proceeds shall not be commingled with any asset of
such McNamara Trust, shall be held in trust by such McNamara Trust for the
benefit of the Administrative Agent and shall be promptly paid over to the
Administrative Agent, or its designated representative, for application (in
accordance with the Credit Agreement) to the payment of the Obligations.

 

In the event of any insolvency or bankruptcy
proceedings relative to the Borrower, Holdings, or any of their respective
Affiliates or any of their respective property or assets, or any receivership,
liquidation, reorganization or other similar proceedings in connection
therewith, or, in the event of any proceedings for voluntary liquidation,
dissolution or other winding up of the Borrower, Holdings or any of their
respective Affiliates or any distribution or marshaling of their respective
assets or any composition with creditors of the Borrower, Holdings or any of their respective Affiliates, whether or
not involving insolvency or bankruptcy, or if the Borrower, Holdings or any of
their respective Affiliates shall cease its operations, call a meeting of its
creditors or no longer does business as a going concern, except in each
instance, as may otherwise be permitted pursuant to the Credit Agreement (each
individually or collectively, an “Event of Insolvency”), then, in any such
case, all Obligations shall be paid in full and satisfied in cash before any
Repurchase (whether in cash, securities or other property) may or shall be
consummated pursuant to the terms of the Investor’s Rights Agreement.

 

Each
McNamara Trust hereby agrees not to amend, modify or supplement the Investor’s
Rights Agreement as in effect on the date hereof, or enter into any other
agreement, document or instrument, in each case the effect of which is to amend
or otherwise modify any term or provision with respect to Repurchases under the
Investor’s Rights Agreement.

 

No
McNamara Trust shall initiate any judicial proceeding or other action against
Holdings or the Borrower to require a Repurchase pursuant to the Investor’s
Rights Agreement or otherwise take any action to enforce its respective rights
under the Investor’s Rights Agreement or applicable law with respect to the
Investor’s Rights Agreement until all Obligations have been paid in full and
the Revolving Loan Commitment has been terminated.

 

Each
McNamara Trust hereby agrees that the failure or inability of Holdings to
consummate a Repurchase, or the failure of Borrower to make any distribution to
Holdings to fund any such Repurchase, in accordance with the terms of the
Investor’s

 

 

Rights
Agreement due to the application of this letter agreement shall not constitute
an event of default or breach by Holdings under the Investor’s Rights Agreement.

 

The
terms of this letter agreement, the subordination effected hereby, and the
rights and the obligations of Holdings, the Borrower, the Administrative Agent
and each McNamara Trust arising hereunder, shall not be affected, modified or
impaired in any manner or to any extent by any amendment or modification of or
supplement to the Credit Agreement, any of the other Financing Documents or the
Investor’s Rights Agreement. The provisions of this letter agreement shall
continue to govern the relative rights and priorities of the Administrative
Agent and the McNamara Trusts even if all or part of the Obligations are
subordinated, set aside, avoided or disallowed in connection with any Event of
Insolvency as a result of the fraudulent conveyance or fraudulent transfer
provisions under the Bankruptcy Code or under any state fraudulent conveyance
or fraudulent transfer statute or if any interest accruing on the Obligations
is otherwise disallowed and this letter agreement shall be reinstated if at any
time any payment of any of the Obligations is rescinded or
must otherwise be returned by Administrative Agent, any Lender or any
representative thereof.

 

Borrower,
Holdings and each McNamara Trust agree that no shares of Common Stock shall be
sold or otherwise transferred by any McNamara Trust to any Person unless such
Person enters into an agreement with the Administrative Agent substantially
similar to this letter agreement.

 

[Remainder of page
intentionally left blank; signature page follows]

 

 

IN WITNESS WHEREOF,
each of the undersigned has duly authorized and executed this letter agreement
as of the date first above written.

 

	
   

  	
  MERRILL LYNCH CAPITAL, a
  division

  
	
   

  	
  of Merrill Lynch Business Financial

  
	
   

  	
  Services Inc., as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Luis Viera

  	
   

  
	
   

  	
  Name :

  	
    Luis Viera

  	
   

  
	
   

  	
  Title:

  	
    Vice President

  	
   

  
	
   

  
	
   

  
	
  ACKNOWLEDGED AND AGREED

  
	
  as of the date first above written by:

  
	
   

  
	
   

  
	
  MCNAMARA FAMILY IRREVOCABLE

  
	
  TRUST UNDER AGREEMENT

  
	
  DATED DECEMBER 17, 2004

  
	
   

  
	
  By:

  	
  /s/ Wesley Fredericks, Esq.

  	
   

  
	
  Name:

  	
  Wesley Fredericks, Esq.

  
	
  Title:

  	
  Trustee

  
	
   

  
	
   

  
	
  MCNAMARA FAMILY TRUST

  
	
   

  
	
  By:

  	
  /s/ Lucy McNamara

  	
   

  
	
  Name: 

  	
    Lucy McNamara

  	
   

  
	
  Title: 

  	
    Trustee

  	
   

  
	
   

  
	
   

  
	
  OMP, INC.

  
	
   

  
	
  By:

  	
  /s/ Curtis Cluff

  	
   

  
	
  Name:

  	
  Curtis Cluff

  
	
  Title:

  	
  Chief Financial Officer

  
	
   

  
	
   

  
	
  OBAGI MEDICAL PRODUCTS, INC.

  
	
   

  
	
  By:

  	
  /s/ Curtis Cluff

  	
   

  
	
  Name:

  	
  Curtis Cluff

  
	
  Title:

  	
  SecretaryExhibit 4.12.4

 

AMENDMENT NO. 4

 

This AMENDMENT No. 4 dated as of December 1,
2006 (“Amendment No.4”), is entered into by and among DAYTON SUPERIOR
CORPORATION, an Ohio corporation (“Borrower”), the persons designated as
“Lenders” on the signature pages hereto, and GENERAL ELECTRIC CAPITAL
CORPORATION, a Delaware corporation, as Agent.

 

WHEREAS, Borrower, the other Credit Parties, the Lenders (as
defined therein) and Agent are party to the Credit Agreement
dated as of January 30, 2004, as amended by Amendment No. 1, dated June 30,
2004, Amendment No. 2, dated February 23, 2005, and Amendment No. 3, dated
September 29, 2006  (“Original Credit
Agreement”; all capitalized
terms defined in the Original Credit Agreement and not otherwise defined herein
to have the meanings assigned thereto in the Original Credit Agreement or in Annex
A thereto); and

 

WHEREAS, Borrower has requested that the Original Credit
Agreement be amended in the manner set forth below.

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, Borrower, Credit Parties, the Lenders and Agent agree as
follows:

 

SECTION 1.

AMENDMENTS

 

Subject to the satisfaction of the
conditions to effectiveness referred to in Section 2 below, the Original
Credit Agreement is hereby amended as follows:

 

(a)           Section 1.3(a) of the Original
Credit Agreement is amended by replacing the date “June 30, 2004” appearing
therein with the date “December 1, 2006”.

 

(b)           Annex A of the Original
Credit Agreement is amended as follows:

 

(i)            The definition of “Borrowing Base”
is amended by replacing the dollar figure “$10,000,000” appearing in clause (f)
thereof, with the dollar figure “$15,000,000”.

 

(ii)           The definition of “Change of
Control” is amended and restated in its entirety as follows:

 

“Change
of Control” means and includes:

 

(a)
prior to the consummation of an IPO, any of the following (i) Odyssey
Investment Partners and its Related Parties cease to collectively beneficially
own either (x) more than 50% of the voting
power of the issued and outstanding shares of Stock of Borrower having the
right to vote for the election of directors of Borrower under ordinary
circumstances or (y) more than 50% of the voting power of the issued and
outstanding shares of Stock of a corporation of which Borrower is a wholly
owned Subsidiary having the right to vote for the election of directors of such
corporation under ordinary circumstances; or (ii) the occurrence of a “Change
of Control” (as

 

 

defined in the Senior
Notes Indenture) or a “Change of Control” (as defined in the Senior
Subordinated Notes Indenture), and

 

(b) from and after the
consummation of an IPO, any of the following (i) (x) any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), other than
Odyssey Investment Partners, one or more of its Related Parties or a Permitted
Group, shall become, or obtain rights (whether by means or warrants, options or
otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and
13(d)-5 under the Exchange Act, except that such person or group shall be
deemed to have beneficial ownership of all shares that any such person or group
has the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 35% of the
voting power of the issued and outstanding shares of Stock of Borrower having
the right to vote for the election of directors of Borrower under ordinary circumstances,
and (y) Odyssey Investment Partners and its Related Parties and any Permitted
Group collectively “beneficially own” (as defined above), directly or
indirectly, in the aggregate a lesser percentage of the voting power of the
issued and outstanding shares of Stock of Borrower having the right to vote for
the election of directors of Borrower under ordinary circumstances and do not
have the right or ability to designate for election a majority of the Board of
Directors of Borrower; or (ii) the occurrence of a “Change of Control” (as
defined in the Senior Notes Indenture) or a “Change of Control” (as defined in
the Senior Subordinated Notes Indenture).

 

(c)           For the purposes of clause (b) of
this definition, a person or group shall be deemed to beneficially own Stock in
a person held by a parent entity if such person or group beneficially owns (as
defined above) more than 50% of the issued and outstanding shares of Stock of
such parent entity having the right to vote for the election of directors of
such parent entity under ordinary circumstances.

 

(iii)          The definition of “Commitments”
is amended by replacing the phrase “ninety five million dollars ($95,000,000)”
appearing therein with the phrase “one hundred thirty million dollars ($130,000,000)”.

 

(iv)          The definition of “Revolving Loan
Commitment” is amended by replacing the phrase “ninety five million dollars
($95,000,000)” appearing therein with the phrase “one hundred thirty million
dollars ($130,000,000)”.

 

(v)           The definition of “Termination Date”
is amended by replacing the date “May 31, 2008” appearing therein with the date
“July 31, 2008”.

 

(vi)          The following definitions are added to
Annex A in the appropriate alphabetical places:

 

“Amendment No. 3” means Amendment No. 3, dated
as of September 29, 2006, to this Agreement.

 

2

 

“Amendment No. 4” means Amendment No. 4, dated
as of December 1, 2006, to this Agreement.

 

“Exchange Act” has the meaning ascribed to it
in the definition of “Change of Control.”

 

“IPO” means an initial public offering of
common Stock by Borrower pursuant to an effective registration statement under
the Securities Act of 1933, as amended, as a result of which at least 15% of Borrower’s
total issued and outstanding common Stock has been distributed.

 

“Permitted Group” means any group
of investors that is deemed to be a “person” (as that term is used in Section
13(d)(3) of the Exchange Act) by virtue of a Voting Agreement or any similar
agreement, as the same may be amended, modified or supplemented from time to
time; provided, however, that no single Person (other than Odyssey
Investment Partners and its Related Parties) beneficially owns (together with
its Affiliates) more of the voting power of the issued and outstanding
shares of Stock of Borrower,  having the
right to vote for the election of directors of Borrower under ordinary
circumstances, that is beneficially owned by such group of investors than is then
collectively beneficially owned by Odyssey Investment Partners and its Related
Parties in the aggregate.

 

“Related Party” means:

 

(1)           any controlling stockholder, 50% (or
more) owned Subsidiary, or immediate family member (in the case of an
individual) of Odyssey Investment Partners; or

 

(2)           any trust, corporation, partnership,
limited liability company or other entity, the beneficiaries, stockholders,
partners, members, owners or Persons beneficially holding a 50% or more
controlling interest of which consist of Odyssey Investment Partners and/or
such other Persons referred to in the immediately preceding clause (1).

 

“Voting Agreement”  means any voting trust or similar agreement
among current and/or former members of the management of Borrower and Odyssey
Investment Partners and/or one or more of its Related Parties pursuant to which
such current and/or former members of management grant Odyssey Investment
Partners and/or its Related Parties the right to vote shares of Borrower’s
Stock.

 

(vii)         Annex B to the Original Credit
Agreement is amended and restated as set forth on Schedule A
hereto.

 

SECTION
2.

CONDITIONS TO EFFECTIVENESS

 

This Amendment No. 4
shall become effective on the date (the “Effective Date”) that the
following conditions shall have been satisfied, so long as such date is on or
prior to December 31, 2006:

 

3

 

(a)           Agent shall have received one or more counterparts of this Amendment No.
4 executed and delivered by Borrower, the other Credit Parties, Agent and the Lenders.

 

(b)           Agent shall have received, in form and substance
satisfactory to Agent, such consents under and amendments or supplements to the
Senior Notes Indenture and Senior Subordinated Notes Indenture as may be
necessary to permit the execution, delivery and performance of this Amendment
No. 4, and the incurrence by Borrower of the maximum amount of Indebtedness
contemplated by the Revolving Loan Commitments (giving effect to this Amendment
No. 4).

 

(c)           Agent shall have received such lien search reports as it
may have requested to reflect the continued perfection and priority of the
security interests of Agent in the Collateral.

 

(d)           Agent shall have received evidence, satisfactory to Agent,
and as of a date acceptable to Agent, of the good standing of Borrower and its
qualification in those jurisdictions in which the failure to qualify would have
a Material Adverse.

 

(e)           Agent shall have received a certificate of the secretary
or an assistant secretary of Borrower certifying the incumbency of the officer
executing this Amendment No. 4 and the corporate resolutions authorizing the
execution, delivery and performance of this Amendment No. 4, each in form and substance
satisfactory to Agent.

 

(f)            Agent shall have received a legal opinion, in form and substance
satisfactory to Agent, from Latham & Watkins LLP, as to such matters
relative to the authorization, execution and delivery o this Amendment No. 4,
including, without limitation, that the incurrence by Borrower of Revolving
Loans to the extent of the Revolving Loan Commitments, as increased by this Amendment
No. 4, is permitted under each of the Senior Notes Indenture and Senior
Subordinated Notes Indenture, as Agent shall have requested.

 

(g)           Agent shall have received that certain fee letter, dated as of December
1, 2006 between Borrower and Agent, in the form attached hereto as Exhibit A,
executed and delivered by Borrower and Agent and the payment in immediately
available funds of the fees payable on the Effective Date pursuant to such fee
letter.

 

(h)           On such date, there shall be no continuing Default or
Event of Default and the representations and warranties of Borrower
contained in this Amendment No. 4 shall be true and correct in all material
respects.

 

SECTION
3.

LIMITATION ON SCOPE

 

Except as expressly amended hereby, all of the
representations, warranties, terms, covenants and conditions of the Loan
Documents shall remain in full force and effect in accordance with their
respective terms. The amendments set forth herein shall be limited precisely as
provided for herein and shall not be deemed to be waivers of, amendments of,
consents to or modifications of any term or provision of the Loan Documents or
any other document or instrument referred to therein or of any transaction or
further or future action on the part of Borrower or any other Credit Party
requiring the consent of Agent or Lenders except to the extent specifically
provided for herein. Agent and Lenders have not and shall not be deemed to have
waived any of their respective rights and remedies against Borrower or any
other Credit Party for any existing or future Defaults or Event of Default.

 

4

 

SECTION
4.

MISCELLANEOUS

 

(a)           Borrower hereby represents and
warrants as follows:

 

(i)            this
Amendment No. 4 has been duly authorized and executed by Borrower, and the
Original Credit Agreement, as amended by this Amendment No. 4, is the legal,
valid and binding obligation of Borrower, enforceable in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy, moratorium
and similar laws affecting the rights of creditors in general; and

 

(ii)           Borrower repeats
and restates the representations and warranties of Borrower contained in the
Original Credit Agreement as of the date of this Amendment No. 4 and as of the Effective
Date, except to the extent such representations and warranties relate to a
specific date.

 

(b)           This Amendment No. 4 is being
delivered in the State of New York.

 

(c)           Borrower
hereby ratifies and confirms the Original Credit Agreement as amended hereby,
and agrees that, as amended hereby, the Original Credit Agreement remains in
full force and effect.

 

(d)           Borrower agrees that all Loan
Documents remains in full force and effect notwithstanding the execution and
delivery of this Amendment No. 4.

 

(e)           This
Amendment No. 4 may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but
all of which counterparts together shall constitute but one and the same
instrument.

 

(f)            All
references in the Loan Documents to the “Credit Agreement” and in the Original
Credit Agreement as amended hereby to “this Agreement,” “hereof,” “herein” or
the like shall mean and refer to the Original Credit Agreement as amended by
this Amendment No. 4 (as well as by all subsequent amendments, restatements,
modifications and supplements thereto).

 

(g)           Each
of the following provisions of the Original Credit Agreement is hereby
incorporated herein by this reference with the same effect as though set
forth in its entirety herein, mutatis mutandis, and as if “this
Agreement” in any such provision read “this Amendment No. 4”: Section 9.3
(Notices), Section 9.6, (Severability), Section 9.8 (Headings), Section 9.9
(Applicable Law), Section 9.12 (Construction), Section 9.15 (Waiver of Jury
Trial) and Section 9.17 (Entire Agreement).

 

[signature
pages follow]

 

5

 

WITNESS
the due execution
hereof by the respective duly authorized officers of the undersigned as of the
date first written above.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
  DAYTON SUPERIOR CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ EDWARD J.
  PUISIS

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edward J. Puisis

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President
  and Chief Financial

  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [signatures continue on the
  next page]

  
						

 

 

	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL
  CORPORATION,

  
	
   

  	
  as Agent, an L/C Issuer
  and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANIEL MCCREADY

  	
   

  
	
   

  	
   

  	
  Name: Daniel McCready

  
	
   

  	
   

  	
  Title: Its Duly Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [signatures continue on the
  next page]

  
					

 

7

 

	
   

  	
  GMAC COMMERCIAL FINANCE LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT J. BRANDOW

  	
   

  
	
   

  	
   

  	
  Name: Robert J. Brandow

  
	
   

  	
   

  	
  Title: Director

  

 

8

 

Schedule A

 

ANNEX B (from Annex A -
Commitments definition)

to

CREDIT AGREEMENT

 

PRO RATA SHARES AND COMMITMENT
AMOUNTS

 

	
   

  	
   

  	
  Lender(s)

  
	
  Revolving Loan Commitment

  	
   

  	
   

  
	
  $65,000,000

  	
   

  	
   

  
	
  (including a Swing Line Commitment

  	
   

  	
   

  
	
  of $8,000,000)

  	
   

  	
  General Electric Capital Corporation

  
	
   

  	
   

  	
   

  
	
  Revolving Loan Commitment

  	
   

  	
   

  
	
  $65,000,000

  	
   

  	
  GMAC Commercial Finance LLC

  

 

 

Exhibit
A

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