Document:

EX-10.60

 Exhibit 10.60 

 
 

 
 August 13, 2013 
 Kid Brands, Inc. 
 One Meadowlands Plaza, 8th Floor 
 East Rutherford, NJ 07073 
 Attention: Kerry Carr 

 

	Re:	Kid Brands, Inc. 

 Dear Madam: 

This letter agreement refers to that certain Credit Agreement dated as of December 21, 2012 (as amended, restated, supplemented or otherwise
modified, renewed or replaced from time to time, the “Credit Agreement”) among Kid Brands, Inc., a New Jersey corporation (the “Lead Borrower”), the Persons named on Schedule 1.01 thereto (collectively, together
with the Lead Borrower, the “Borrowers”), the Persons named on Schedule 1.02 thereto (collectively, the “Guarantors”), each lender party thereto from time to time (collectively, the “Lenders” and
individually, a “Lender”), and Salus Capital Partners, LLC, as Administrative Agent and Collateral Agent (in such capacities, the “Agent”). Capitalized terms not otherwise defined herein shall have the respective meanings
given such terms in the Credit Agreement. 
 The Lead Borrower has informed the Agent that the Loan Parties were slightly short in maintaining
average daily Availability of not less than $9,000,000, measured on July 1, 2013, for the trailing two months ending immediately prior to such date. As a result, an Availability Trigger Event has occurred and the financial covenant set forth in
Section 7.15(a) of the Credit Agreement is required to be tested on a monthly basis for each month ending after such Availability Trigger Event, commencing with the trailing twelve-month period ended July 31, 2013 (the “July TTM
Period”). The Lead Borrower has further informed the Agent that the Loan Parties believe that they are unlikely to be in compliance with the financial covenant set forth in Section 7.15(a) of the Credit Agreement for the July TTM
Period. 
 By this letter agreement, the Agent hereby advises the Borrowers that the Agent will not require the Loan Parties to comply with the
covenant set forth in Section 7.15(a) of the Credit Agreement solely for the July TTM Period, or in the alternative, to the extent the Loan Parties are in fact in default of the covenant set forth in Section 7.15(a) of the Credit Agreement
for the July TTM Period (the “Identified Default”), the Agent is hereby waiving the Identified Default, in either case effective upon (a) receipt of a copy of this letter agreement, duly executed by each Borrower,
(b) receipt of a copy of an amended and restated Fee Letter, in the form attached as Exhibit A hereto, duly executed by the 

 
Lead Borrower, and (c) payment by the Lead Borrower to the Agent of an amendment fee in the amount of $25,000, which fee shall be fully earned as of the date hereof and shall not be refunded
or returned to the Lead Borrower or any other Loan Party under any circumstances. Each Borrower acknowledges and agrees that the foregoing waiver (to the extent applicable) relates solely to the Identified Default specified herein and shall in no
way be deemed or construed as a waiver by the Agent or the Lenders of any other Default or Event of Default under the Credit Agreement or any of the other Loan Documents now existing or occurring subsequent to the date of this letter agreement. The
Agent and the Lenders expressly reserve the full extent of their rights under the Credit Agreement, the other Loan Documents and applicable law in respect of any Default or Event of Default, whether existing on the date hereof or occurring after the
date hereof, not specified herein as the Identified Default. 
 By this letter, the Agent further advises the Borrowers that the Agent will not
require the Loan Parties to comply with the covenant set forth in Section 7.15(a) of the Credit Agreement solely for the trailing twelve-month period ended August 31, 2013. 
 In addition, so long as (a) other than the Identified Default, no Default or Event of Default has occurred and is continuing and (b) on or before the date that is thirty (30) days following
the date of this letter agreement, the Lead Borrower has delivered to the Agent a revised Business Plan that is reasonably satisfactory to the Agent (the “Revised Business Plan”) of the Lead Borrower and its Subsidiaries on a
monthly basis for the period July 1, 2013 through December 31, 2013 (the date of the delivery of the Revised Business Plan to the Agent, the “Delivery Date”), the Agent will endeavor to, on or about the Delivery Date,
prepare and present to the Lenders for execution an amendment to the Credit Agreement on terms acceptable to the Agent and the Required Lenders which shall, among other things: (x) increase the Applicable Margin with respect to Tranche A Loans
by 50 basis points, and (y) reset the minimum Consolidated EBITDA covenant levels based on the Consolidated EBITDA values in the Revised Business Plan for the periods ending September 30, 2013 through December 31, 2013, using a
comparable methodology as was used to establish such levels for the Fiscal Year ending December 31, 2013, which includes a set-back no more than the set-back used to establish such levels. 

The letter agreement is limited solely to the specific matters listed herein and shall not be deemed to be a waiver of any Default or Event of Default
(other than the Identified Default) which may exist or an amendment or, except as set forth above, waiver of any provision of the Credit Agreement or the other Loan Documents. Except for the waiver of the Identified Default set forth above, the
Credit Agreement and the other Loan Documents shall be and remain in full force and effect in accordance with their terms and hereby are ratified and confirmed by each Borrower in all respects. The execution, delivery, and performance of this letter
agreement shall not operate as a waiver of any right, power, or remedy of the Agent or the Lenders under the Credit Agreement or the other Loan Documents. Each Borrower hereby ratifies and confirms in all respects all of its obligations and any
prior grant of a security interest under the Credit Agreement and the other Loan Documents (except solely with respect to the Trademark Collateral, as defined in, and released by the Agent pursuant to, the Release of Trademark Security Interest
dated July 24, 2013). The Borrowers agree to pay on demand all costs and expenses of the Agent and the Lenders in connection with the preparation, execution, delivery and enforcement of this letter agreement, including the reasonable fees and
out-of-pocket expenses of counsel to the Agent. 

 This letter agreement shall be deemed to be a Loan Document for all purposes under the Credit Agreement.

 Except as explicitly set forth herein, this letter agreement is not a novation or discharge of the terms and provisions of the obligations of
any Borrower or any other Loan Party under the Credit Agreement and the other Loan Documents. There are no other understandings, express or implied, among the Borrowers, any other Loan Party, the Agent and the Lenders regarding the subject matter
hereof or thereof. 
 The validity of this letter agreement, its construction, interpretation and enforcement, and the rights of the parties
hereunder, shall be determined under, governed by, and construed in accordance with, the laws of the State of New York. 
 This letter agreement
may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered shall be deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this letter agreement by facsimile or other electronic means shall be as effective as delivery of a manually executed counterpart of this letter agreement. Any party delivering
an executed counterpart of this letter agreement by facsimile or other electronic means also shall deliver a manually executed counterpart of this letter agreement but the failure to deliver a manually executed counterpart shall not affect the
validity, enforceability, and binding effect of this letter agreement. 
  

			
	Very truly yours,
	
	 SALUS CAPITAL PARTNERS,
 as Agent and a Lender

		
	By:	 	/s/ Kyle Schonak
		 	Name: Kyle Schonak
		 	Title: Senior Vice President

			
	Acknowledged and Agreed:
	
	KID BRANDS, INC., as the Lead Borrower
		
	By:	 	/s/ Kerry Carr
		 	Name: Kerry Carr
		 	Title: EVP, Chief Operating Officer and CFO

  

			
	 KIDS LINE, LLC

SASSY, INC.
 I & J HOLDCO, INC.

LAJOBI, INC.
 COCALO, INC.

RB TRADEMARK HOLDCO, LLC, each as a Borrower

		
	By:	 	/s/ Kerry Carr
		 	Name: Kerry Carr
		 	Title: EVP, Chief Operating Officer and CFOEX-10.61

 Exhibit 10.61 
 March 26, 2013 
 Ms. Jodie Simon Friedman 

Dear Jodie: 
 I am very pleased to extend an
offer of employment with Kid Brands, Inc. (the “Company” – NYSE: KID). You will be joining us in an important senior position, working closely with Raphael and me to affect the quality of our legal affairs, as well as, other business
areas. 
 The key elements of our offer are as follows: 
  

			
	Position:	  	VP General Counsel
		
	Reports to:	  	COO with a strong subject matter line to CEO
		
	Start Date:	  	June 3, 2013
		
	Base Salary:	  	$325,000 per year
		
	IC Bonus:	  	40% target (0-80% range); based on attainment of EBITDA corporate target or other factors determined by Compensation Committee of the Board; to be eligible for bonus, you must be
actively employed in good standing at the time of payment (typically March for prior fiscal year).
		
	Bonus Guarantee:	  	For 2013 only, the bonus referenced in IC bonus above will be guaranteed at a minimum bonus of $35,000 (paid March 2014)
		
	Equity Awards:	  	Subject to applicable law, as soon as practicable and no later than 30 days from start date, you will be awarded 150,000 stock options at fair market value on the date of grant,
with a five-year vest and a ten-year life. This award is an inducement to you to join our employ and is intended to be an inducement award under NYSE rules. It will be issued outside the Company’s Equity Incentive Plan. You will also be
considered for future grants of equity at a level commensurate with your position, in the discretion of the Compensation Committee
		
	Vacation:	  	Four weeks paid vacation annually in accordance with Company policies; pro-rated for the remainder of 2013. You will also be entitled to the paid holidays and other paid leave set
forth in the Company policies.

 Jodie Simon Friedman 
 March 26, 2013 
 Page Two 

 

			
		
	Severance:	  	In the event that your employment with the Company is terminated by the Company without cause, you shall be entitled to receive severance for a period of three months, less any
applicable withholdings, at your then base salary. Such severance shall be paid out over the severance period in accordance with the Company’s normal pay schedule (not in a lump sum) commencing on or about the next payroll period following the
termination date and receipt from you of an executed general release in the Company’s form. “Cause” shall have the same meaning as set forth in the Company’s 2008 Equity Incentive Plan. The severance shall cease if you secure
gainful employment during the severance period.
		
	Other Benefits:	  	You will be eligible to participate in the Company’s 401(k), life insurance, hospitalization, major medical and other employee benefit plans and their successor and/or
replacement plans (to the extent that they continue to be offered to eligible associates), as well as, any Executive Benefits as and if they become available.
		
	Change of Control:	  	In the event of a Change of Control, if any unexercised options are not assumed or converted into comparable awards with the stock of the acquiring or successor company (or parent),
then, immediately prior to such Change of Control, any unexercised options will be converted into the right to receive cash, or at your election, consideration in a form that is pari passu with the form of consideration payable to the Company’s
shareholders in exchange for their shares, in an amount equal to the product of: (1) the per share market value of the Company’s stock less the per share exercise price of the options, multiplied by (ii) the number of shares covered
thereby. Any option not assumed or converted may be cancelled at the time of the Change of Control for no consideration if the exercise price is less than the fair market value of a share.
		
		  	If the options are assumed or converted as aforesaid in a Change of Control, and your employment is terminated by the Company without cause or by you for Good Reason within nine
months following a Change of Control, the assumed or converted stock options shall immediately vest and be exercisable for the remainder of their term.
		
		  	“Change of Control” shall mean the acquisition of all the Company’s shares or assets by an unrelated party or a merger or consolidation of the Company with any other
entity other than a merger or consolidation resulting in the voting securities of the Company outstanding immediately prior thereto representing more than 60% of the voting securities of the surviving entity immediately
thereafter.

  
 2 

 Jodie Simon Friedman 
 March 26, 2013 
 Page Two 

 

			
		
		  	“Good Reason” shall mean a material reduction in your authorities or responsibilities.
		
	Term:	  	Employment is “at will”

 Jodie, I wish to welcome you to Kid Brands and look forward to working together to build this business. You should know
that Raphael shares my excitement of your arrival and looks forward to your professional expertise and leadership. 
  

	
	Very truly yours,
	
	 Kerry Carr
 Chief Operating
Officer
 Kid Brands, Inc.

	
	 I have read and accept this employment offer:

	
	/s/ Jodie Simon Friedman
	Jodie Simon Friedman
	
	Date: April 20, 2013

  
 3 

 August 14, 2013 
 Ms. Jodie Simon Friedman 
 Dear Jodie: 

Reference is made to our letter dated March 26, 2013 (and executed by you on April 20, 2013) pursuant to which Kid Brands, Inc. extended an offer of
employment to you as Vice President and General Counsel with a start date of June 3, 2013. This is to acknowledge our mutual agreement that you commenced your role in that position effective as of August 14, 2013. You also acknowledge that
you commenced employment with the Company on June 3, 2013 at the same annualized base salary rate. 
 Please acknowledge that you agree to
the foregoing by signing in the space below. 
  

	
	Very truly yours,
	
	/S/ KERRY CARR
	
	 Kerry Carr
 EVP, Chief
Operating Officer and CFO
 Kid Brands, Inc.

	
	 I have read and accept the above.

	
	/s/ JODIE SIMON FRIEDMAN
	Jodie Simon Friedman
	
	Date: August 14, 2013

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