Document:

rimage102994_ex10-1.htm - Generated by SEC Publisher for SEC Filing

 

Exhibit 10.1

 

Transition and release AGREEMENT

 

This TRANSITION AND RELEASE AGREEMENT (“Agreement”) is between Robert M. Wolf (“Executive” or “you”) and Rimage Corporation, for and on behalf of itself and its subsidiaries, affiliates, successors and assigns (collectively, the “Company”).

 

WHEREAS, Executive is employed by the Company as its Chief Financial Officer and Secretary; and

 

WHEREAS, the Executive is subject to that certain Nondisclosure and Noncompetition Agreement entered into November 5, 2004 (the “Noncompetition Agreement”); and

 

WHEREAS, Executive is also subject to that certain Amended and Restated Severance/Change in Control Letter Agreement dated as of December 22, 2008 with the Company (the “Prior Agreement”), which is superseded by the terms of this Agreement; and

 

WHEREAS, you desire to leave the employ of the Company but have agreed to remain employed on a full-time basis through October 31, 2010  (the “Transition Period”) while a search is completed to fill the Chief Financial Officer position with the Company, subject to the obligations set forth in this Transition Agreement;

 

THEREFORE, the Company and you, for good and valuable consideration as set forth in this Agreement, do hereby agree as follows:

 

	1.             	Transition Period.  During the Transition Period, you agree to perform such employment duties for the Company as shall arise in connection with your position as Chief Financial Officer of the Company or as otherwise directed by the Company’s Board of Directors (the “Board”).  If a successor Chief Financial Officer is appointed during the Transition Period, you shall serve in a transitional role to facilitate an orderly transition of Chief Financial Officer responsibilities to your successor and provide such other services as may be reasonably requested by the Board or the successor during the Transition Period.
	
 

	
 

	2.	Termination of Transition Period.  Notwithstanding anything herein to the contrary, the Company upon fourteen (14) days’ written notice to you, may terminate the Transition Period, with or without cause.  The effective date of termination of the Transition Period shall be the effective date of your termination of employment (the “Date of Termination”).
	
 

	
(a)

	
You shall resign or shall be deemed to resign on the earlier of (i) the Date of Termination or (ii) the date a successor Chief Financial Officer is appointed,  without further action on your or the Company’s part (i) from any board to which you have been appointed or nominated by or on behalf of Company, and (ii) from any officer position with the Company or any affiliate.

	
 

	
 

	
 

	
 

	
(b)

	
You shall resign or shall be deemed to resign on the Date of Termination, without further action on your or the Company’s part, as an employee of the Company.

 

 

1

 

 

	 3.             
	 Accrued Obligations.  After your Date of Termination, the Company will:

	
 

	
 

	
 

	
 

	
(a)

	
pay to you any Base Salary earned, but not yet paid, prior to the Date of Termination, payable in accordance with Company’s standard payroll practices;

	
 

	
 

	
 

	
 

	
(b)

	 pay to you in a lump sum any earned but unused vacation and/or personal time as of the Date of Termination, payable concurrently with the payment of the amounts set forth in Section 3(a); 

	
 

	
 

	
 

	
 

	
(c)

	
reimburse you for any business expenses incurred by you through the Date of Termination in accordance with the Company’s reimbursement policies; and

	
 

	
 

	
 

	
 

	
(d)

	
pay and/or provide any amounts or benefits that are vested amounts or vested benefits or that you are otherwise entitled to receive under any plan, program, policy or practice (with the exception of those, if any, relating to severance) on the Date of Termination, in accordance with such plan, program, policy, or practice.

	
 

	
 

	
 

	
 

	
You shall be entitled to any and all benefits provided under any stock option, restricted stock or other stock incentive award in accordance with their respective terms and conditions.  Nothing under this Agreement shall modify, accelerate or otherwise extend any term or condition in such awards or pursuant to the respective plans governing such stock incentive awards.

	
 

	
 

	
4.            

	
Consideration for Release.  Contingent upon your execution and delivery on or after the Date of Termination (but within 21 days following the Date of Termination), of a Release in a form attached hereto as Exhibit A (the “Release”), which is not thereafter revoked by you, the Company will pay and provide to you the following:

	
 

	
 

	
 

	
(a)

	
A lump sum severance payment equal to $324,450, less applicable taxes and withholdings, within 5 days after the provisions of this Section 4 become effective as provided in the Release.

	
 

	
 

	
 

	
 

	
(b)

	
If you elect medical, dental and life insurance continuation coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”), or under Minnesota law for yourself, your spouse and any other qualified beneficiaries, the Company will continue to be responsible to pay the same portion of the monthly premium that it pays for active employees (the “Employer Premium”) towards your group health, dental and life insurance for a period of twelve (12) months from the Date of Termination provided you (and, as applicable, your qualified beneficiaries) remain eligible for such continuation coverage  during such twelve (12) month period (“COBRA continuation period”).  You shall be responsible to pay promptly the remainder of any premiums.  In the event the Company’s payment of the Employer Premium is required to be delayed under Treas. Reg. §1.409A-3(i)(2), you shall be responsible to pay the full amount of the premiums due during such delay, and the Company shall reimburse to you, in a lump sum, on the earliest date permitted under Treas. Reg. §1.409A-3(i)(2) the cumulative Employer Premiums that you paid prior to that date, and thereafter the Company shall pay the Employer Premium at such time as such premiums are due.  

 

 

2

 

 

	
 

	
Notwithstanding the foregoing, the Company shall have no obligation to provide the payments set forth in this Section 4 in the event that you breach the provisions of the Noncompetition Agreement.

	
 

	
 

	
5.             

	
Termination of Prior Agreement; Survival of Noncompetition Agreement.   The Prior Agreement and other written or verbal agreements between the Company and you, if any, relating to the terms and conditions of your employment are hereby terminated and are of no further force or effect; provided, however, that the provisions of your Noncompetition Agreement shall survive the termination of the Prior Agreement and your termination of employment.

	
 

	
 

	
6.

	409A Compliance.  Notwithstanding anything set forth in the Agreement to the contrary, if necessary to comply with the restriction in Section 409A(a)(2)(B) of the Internal Revenue Code of 1986, as amended (the “Code”), any payment of deferred compensation that would otherwise be due hereunder within six (6) months after such your “separation from service” (as defined under Treas. Reg. §1.409A-1(h)) shall nonetheless be delayed until the first business day of the seventh month following your Date of Termination and the first such payment shall include the cumulative amount of any payments that would have been paid prior to such date if not for such restriction, together with interest as determined below.  Any payment delayed as a result of the application of this Section shall bear interest from the date payment would otherwise be due until paid equal to the prime rate (as published in the Wall Street Journal) in effect as of the date the payment should otherwise have been made. For purposes of Code §409A, each payment shall be considered a separate payment.
	
 

	 
	
7.

	 Notices Required.  Any notices required or permitted under this Agreement must be in writing and shall be effective when delivered in person or one (1) day after being sent by overnight courier, or three (3) days after deposit in the United States mail, first class postage prepaid.  All notices must be delivered to the address of the party receiving such notice specified below, or to such other address as either party may designate:

  
 If to the Company:

 

Rimage Corporation

7725 Washington Avenue South

Minneapolis, MN  55439

Attention: Sonja Grunlan, Director, Human Resources

 

If to Executive:

 

Robert M. Wolf

[address]

[address]

 

 

 

 

3

 

 

	
8.             

	 Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company, whether by way of merger, consolidation, operation of law, assignment, purchase or other acquisition.  This Agreement shall not be assignable by you.  If you should die before all the payments required to be made to, and/or benefits required to be conferred on, you under this Agreement have been made or conferred, then all remaining payments and benefits specified in such paragraphs shall be made or conferred, as applicable, by the Company to your estate except as otherwise provided under the terms of any benefit plan and any beneficiary designation made by you pursuant to such plan in effect on the date of your death.

	
 

	 
	
9.

	Governing Law.  This Agreement shall be governed and construed in accordance with the laws of the State of Minnesota, without giving effect to the conflicts of law principles thereof.
	
 

	 
	
10.

	Entire Agreement.  No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by both you and the Company.  This Agreement constitutes the entire understanding among you, the Company, and supersedes all prior discussions, representations, and negotiations with respect to the matters herein relating to your termination, including the Prior Agreement.
	
  

	 
	
11.

	Counterparts and Electronic Signatures .  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same Agreement.  The counterparts of this Agreement may be executed and delivered by facsimile or other electronic means by any of the parties to any other party and the receiving party may rely on the receipt of such document so executed and delivered by facsimile or other electronic means as if the original had been received.
	
  

	 
	
12.

	Read and Understood.  The parties have read this Agreement carefully and understand each of its terms and conditions.  Each party has sought independent legal counsel of choice to the extent the party deemed such advice necessary in connection with the review and execution of this Agreement.

  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the 14th day of June, 2010.

 

RIMAGE CORPORATION

 

	
By:

	
 /s/  Sherman L. Black

	
 

	
/s/  Robert M. Wolf

	
Its: 

	
Chief Executive Officer

	
 

	
Robert M. Wolf

 

 

 

 

4

 

 

EXHIBIT A

 

RELEASE

 

 

In consideration of the benefits to be afforded to the undersigned under that certain Transition and Release Agreement dated June 14, 2010 (the “Transition Agreement”) between Rimage Corporation, a Minnesota corporation (the “Company”) and the undersigned, Robert M. Wolf covenants and agrees as follows:

 

I, Robert M. Wolf, do hereby fully and completely release and waive any and all claims, complaints, causes of action or demands of whatever kind which I have or may have against the Company, and their predecessors, successors, subsidiaries and affiliates and all past and present members their Board of Directors, officers, employees, shareholders and indemnitors (“Releasees”) arising out of any actions, conduct, decisions, behavior or events occurring up to and including the date of my execution of this Release.  I understand and accept that this Release specifically covers but is not limited to any and all claims, complaints, causes of action or demands which I have or may have against the Releasees relating in any way to the terms, conditions and circumstances of my employment up to and including the date of my execution of this Release, that certain Amended and Restated Severance/Change in Control Letter Agreement dated as of December 22, 2008, any form of employment discrimination prohibited under any federal or state human rights act, Title VII of the Federal Civil Rights Act of 1964 and the Federal Age Discrimination in Employment Act.  I further understand that this Release extends to but is not limited to all claims which I may have based on statutory or common law claims for negligence or other breach of duty, wrongful discharge, breach of contract, breach of any express or implied promise, misrepresentation, fraud, retaliation, breach of public policy, infliction of emotional distress, defamation, promissory estoppel, failure to pay wages or any other theory, whether legal or equitable. 

 

This release does not extinguish any claims that I may have: (i) that arise against the Releasees after I sign this Release; (ii) that arise under the Transition Agreement or  Consulting Agreement; (iii) to any benefits to which I am otherwise entitled under ERISA with respect to any Company employee benefit plan as of the date of this Release; (iv) to benefits related to workers’ compensation; (v) that arise under unemployment compensation law; or (vi) to indemnification under the Company’s Articles of Incorporation, bylaws, insurance or Minnesota law.

 

I certify that I:  (a) have not filed any claims, complaints or other actions against any Releasee; and (b) am hereby waiving any right to recover from any Releasee under any lawsuit or charge filed by the undersigned or any federal, state or local agency on my behalf based upon any event occurring up to and including the date on which I sign this Release.  I acknowledge that I have been advised by the Company to review my rights and responsibilities under this Release with my own lawyer.

 

I agree not to make, or cause or attempt to cause any other person to make, any statements, either written or oral, or convey any information about the Releasees which is disparaging or which in any way reflects negatively upon the Releasees. 

 

 

 

A-1

 

 

I understand that I may rescind this Release if I do so in writing, delivered by certified mail, return receipt requested, to Rimage Corporation, Attention Sonja Grunlan, Director, Human Resources, at 7725 Washington Avenue South, Minneapolis, MN 55439, within fifteen (15) calendar days of the date I signed this Release.

 

If sent by mail, the rescission must be:

 

•             Postmarked within the 15 calendar-day period;

•             Properly addressed as provided above; and

•             Sent by certified mail, return receipt requested.

 

By my signature below, I acknowledge that I fully understand and accept the terms of this Release, and I represent and agree that my signature is freely, voluntarily and knowingly given.  I have had 21 calendar days in which to consider this Release.  By my signature below, I further acknowledge that I have been provided a full opportunity to review and reflect on the terms of this Release and to seek the advice of legal counsel of my choice, which advice I have been encouraged to obtain.

 

 

 

 

If I do not execute this Release within twenty-one (21) days after _________, 2010,  the date this Release was provided to the undersigned, the benefits set forth in Section 4 of the Transition Agreement shall be null and void.  If I execute this Release within twenty-one (21) calendar days of the date indicated in the immediately preceding sentence, and if I have not rescinded this Release within fifteen (15) days after signing it, then the provisions of Section 4 of the Transition Agreement become effective.

 

	
 

	
 

	
 

	
Date:

	
 

	
Robert M. Wolf

 

 

 

 

 

 

 

 

A-2ex10-1.htm

     

     

    
 

    EIGHTEENTH AMENDMENT TO
FORBEARANCE AGREEMENT

    

    This
Eighteenth Amendment to Forbearance Agreement (the “Amendment”) is
entered into as of this 11th day
of June, 2010 by and among RCLC, Inc. (formerly known as Ronson Corporation), a
New Jersey corporation (“Parent”), RCPC
Liquidating Corp. (formerly known as Ronson Consumer Products Corporation), a
New Jersey corporation (“RCPC”), Ronson
Aviation, Inc., a New Jersey corporation (“RAI”) and RCC Inc.
(formerly known as Ronson Corporation of Canada Ltd.), an Ontario corporation
(“Ronson
Canada”) (RCPC and RAI are collectively and individually referred to as
the “Domestic
Borrower” or “Domestic Borrowers”;
the Domestic Borrower and Ronson Canada are collectively and individually
referred to as the “Borrower” or “Borrowers”, and the
Borrowers, together with Parent are collectively and individually referred to as
the “Obligors”)
and Wells Fargo Bank, National Association (“Lender”), acting
through its Wells Fargo Business Credit operating division.

     

    RECITALS:

     

    Borrowers
and Lender are parties to a certain Credit and Security Agreement dated as of
May 30, 2008 (as amended, modified, supplemented or restated from time to time,
the “Credit
Agreement”), relating to financing by Lender to
Borrowers.  Capitalized terms used but not specifically defined herein
shall have the meanings provided for such terms in the Credit
Agreement.

     

    Certain
Events of Default occurred under the Credit Agreement and, as a result thereof,
Lender and Borrowers entered into that certain Forbearance Agreement dated as of
March 29, 2009 (as amended modified, supplemented or restated from time to time,
the “Forbearance
Agreement”), whereby Lender agreed to forbear from exercising certain of
its rights and remedies available under the Loan Documents as a result of the
Existing Events of Default.

     

    The
Forbearance Agreement expires pursuant to its terms not later than June 11,
2010.

     

    On
February 2, 2010, Parent, RCPC and Ronson Canada consummated a transaction (the
“Zippo Sale”)
pursuant to which RCPC and Ronson Canada sold substantially all of their assets
to Zippo Manufacturing Company and Nosnor, Inc., pursuant to an Asset Purchase
Agreement dated as of October 5, 2010.  The net proceeds of the Zippo
Sale were delivered to Lender in accordance with the terms of that certain
letter agreement by and among Lender and Obligors dated as of February 2, 2010
and applied by Lender in accordance with and subject to the Thirteenth Amendment
to Forbearance Agreement dated as of April 1, 2010.

     

    The
Seventeenth Amendment to Forbearance Agreement dated as of May 7, 2010 (the
“Seventeenth
Amendment”) required the Obligors to, among other things, provide Lender,
(i) not later than June 5, 2010, with evidence that Obligors have executed an
asset purchase agreement for an Alternate Transaction (as defined below), which
Lender determines in its reasonable discretion provides sufficient proceeds to
repay and satisfy in full all Indebtedness due and owing to Lender by Obligors
and (ii) not later than June 10, 2010, with evidence that the Freeholders of
Mercer County, New Jersey have given their consent to assignment of that certain
lease by and between Ronson Helicopters, Inc. (now known as RAI), as lessee, and
County of Mercer, as lessor, dated May 14, 1975, as amended, to the proposed
purchaser in such Alternate Transaction (collectively, the “17th Amendment
Conditions”).  Obligors failed to satisfy the 17th
Amendment Conditions.

     

    Obligors
have requested that Lender waive their failure to satisfy the 17th
Amendment Conditions and amend the definition of Termination Event to, among
other things, extend the stated expiration date in the Forbearance Agreement
from June 11, 2010 to July 16, 2010 in order to (i) provide Borrowers with
additional time to (a) consummate the sale of RAI’s assets to Hawthorne TTN
Holdings, LLC (“Hawthorne”) pursuant
to that certain Asset Purchase Agreement dated as of May 15, 2009, as
amended  from time to time, and (b) explore a sale of RAI and/or its
assets to a third-party other than Hawthorne (an “Alternate
Transaction”) and (ii) amend certain terms and conditions of the Credit
Agreement.

     

     Lender
has considered Borrowers’ requests and, in an effort to continue working with
Borrowers, hereby agrees to (i) waive Obligors’ failure to satisfy the 17th
Amendment Conditions and (ii) agrees to amend the Forbearance Agreement and the
Credit Agreement on the terms and conditions set forth below.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NOW,
THEREFORE, for and in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     

    1.            Amendment to Forbearance
Agreement.  As of the date hereof, Section 2(b) of the
Forbearance Agreement shall be amended and restated in its entirety to read as
follows:

     

    (b)           For
purposes of this Agreement, a “Termination Event”
shall mean the earliest to occur of (i) July 16, 2010 and (ii) any one or more
of the following:

     

    (A)           the
failure of the Obligors to comply with the terms, covenants, agreements and
conditions of this Agreement;

     

    (B)           any
representation or warranty made herein shall be incorrect in any material
respect;

     

    (C)           the
occurrence of any Event of Default under the Credit Agreement, other than (i)
the Existing Events of Default or (ii) breach by Obligors of their obligation
pursuant to (a) Section 6.1(a) of the Credit Agreement to deliver audited year
end annual financial statements for the fiscal year ending December 31, 2008
within 90 days of the end of such fiscal year or (b) Section 6.1(c) of the
Credit Agreement to deliver monthly financial statements to Lender for the
months ending October 31, 2009, November 30, 2009, December 31,
2009,  January 31, 2010, February 28, 2010, March 31, 2010, April 30,
2010 and May 31, 2010 within 30 days of the end of such months;

     

    (D)           Obligors
shall fail to employ a CRO (as defined below) throughout the term of this
Agreement;

     

    (E)           subject
to Paragraph 6(b) below, Obligors shall fail to employ an investment banking
firm reasonably acceptable to Lender to market and sell RAI or its assets
throughout the term of this Agreement and/or such investment banking firm shall
fail to diligently pursue such sale consistent with the terms of its
retention;

     

    (F)           in
the Lender’s discretion, it determines that Parent is no longer actively
pursuing a Liquidity Transaction;

     

    (G)           any
Person, other than Lender, shall exercise its rights and remedies against the
Obligors as a result of defaults or events of defaults arising under any
agreement between Obligors and such Person due to cross-defaults arising from
the Existing Events of Default;

     

    (H)           Obligors
shall have executed an asset purchase agreement in connection with an Alternate
Transaction for the sale of RAI and/or its assets to a party other than
Hawthorne and the Freeholders of Mercer County, New Jersey shall have formally
approved the assignment of that certain lease by and between Ronson Helicopters,
Inc. (now known as RAI), as lessee, and County of Mercer, as lessor, dated May
14, 1975 (as amended, the “Lease”) to the
purchaser identified in such asset purchase agreement; and

     

    (I)           Obligors
shall fail to provide to Lender by June 18, 2010 evidence, satisfactory to
Lender in its sole discretion, that Obligors have a fully
executed  letter of intent, acceptable to Lender in form and
substance, with respect to an Alternate Transaction, acceptable to Lender in
form and substance and which  Lender determines, in its sole
discretion, provides proceeds sufficient to repay and satisfy the Indebtedness
in full and in cash.

     

    2.         Funding of RAI Pending
Closing of the RAI Sale.  Obligors acknowledge and agree that
as a result of the consummation of the Zippo Sale, RCPC and Ronson Canada shall
no longer be permitted to request Advances under the Credit Agreement and any
remaining assets of RCPC and/or Ronson Canada shall no longer be considered in
any borrowing base calculation.  Notwithstanding the foregoing, Lender
and Obligors agree that RAI shall be authorized, until the occurrence of a
Termination Event, to request Advances subject to the terms of the Credit
Agreement as modified by this Amendment.  Obligors and Lender further
agree that Lender shall have no obligation to make Advances to
RAI  after the occurrence of a Termination Event.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     
 

     

    3.            Limited
Waiver.  Lender hereby waives Obligors’ failure to satisfy the
17th
Amendment Conditions.  This waiver shall be effective upon Obligor’s
execution and delivery of this Amendment to Lender.  This waiver is
being given as a one time accommodation only and shall not obligate Lender, or
be construed to require Lender, to waive any other or future Defaults or Events
of Default under the Credit Agreement, the Forbearance Agreement or any other or
future defaults or events of default under any other Loan
Document.  This waiver shall not release Obligors in any way from any
of their duties, obligations, covenants or agreements under the Loan Documents
or the Forbearance Agreement or from the consequences of any other or future
Defaults or Events of Default under the Credit Agreement, the Forbearance
Agreement or from any other or future defaults or events of default under the
other Loan Documents.

     

    4.            Amendments to Credit and
Security Agreement.  The following definitions set forth in
section 1.1 of the Credit Agreement shall be amended and restated in their
entirety to read as follows:

     

    “Accommodation
Overadvance Limit” means an amount up to  $1,325,000 from the date of
that certain Seventeenth Amendment to Forbearance Agreement through the
occurrence of a Termination Event (as such term is defined in the Forbearance
Agreement); provided however, if Lender
receives evidence, satisfactory to Lender in its sole discretion, on or before
June 25, 2010, that Obligors have executed a letter of intent for an Alternate
Transaction, acceptable to Lender in form and substance and which Lender
determines in its reasonable discretion provides proceeds sufficient to repay
and satisfy the Indebtedness in full and in cash, the Accommodation Overadvance
Limit shall automatically be increased to $1,500,000 effective as of June 26,
2010; and provided further, if Lender
receives evidence, satisfactory to Lender in its sole discretion, on or before
July 9, 2010, that Obligors have (i) executed an asset purchase agreement for an
Alternate Transaction, acceptable to Lender in form and substance and which
Lender determines in its reasonable discretion provides proceeds sufficient to
repay and satisfy the Indebtedness in full and in cash and (ii) received a
deposit on the purchase price from the prospective purchaser under such asset
purchase agreement in an amount not less than $250,000, the Accommodation
Overadvance Limit shall automatically be increased to $1,675,000 effective as of
the day after the conditions in (i) and (ii) hereinabove have been
satisfied.

     

    5.            Interest Rate on
Accommodation Overadvance.  Obligors acknowledge and agree that
interest on the Accommodation Overadvance shall accrue at a rate equal to the
Prime Rate plus eight percent (8.00%) per annum.

     

    6.            Conditions.  Lender’s
agreement to further forbear from exercising its rights and remedies pursuant to
this Agreement is conditioned upon:

     

    (a)           execution
and delivery by the Obligors and Lender of this Agreement; and

     

    

    (e)           such
other matters as Lender may reasonably require.

     

    7.            Sums Secured;
Estoppel.  The Obligors acknowledge and reaffirm that their
obligations to Lender as set forth in and evidenced by the Loan Documents are
due and owing without any defenses, set-offs, recoupments, claims or
counterclaims of any kind as of the date hereof.  To the extent that
any defenses, set-offs, recoupments, claims or counterclaims may exist as of the
date hereof, the Obligors waive and release Lender from the same.

     

    8.            No Other Changes.
Except as explicitly amended by this Amendment, all of the terms and conditions
of the Forbearance Agreement shall remain in full force and effect.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.            References.  All
references in the Forbearance Agreement to “this Agreement” shall be deemed to
refer to the Forbearance Agreement as amended hereby.

     

    10.            No Waiver. Except as
specifically set forth in Paragraph 3 above, the execution of this Amendment
shall not be deemed to be a waiver of any Default or Event of Default under the
Credit Agreement, a waiver of any Termination Event under the Forbearance
Agreement or breach, default or event of default under any Loan Documents or
other document held by Lender, whether or not known to Lender and whether or not
existing on the date of this Amendment.

     

    11.            Waiver and Release of Claims
and Defenses.  The Obligors hereby waive and release all claims
and demands of any nature whatsoever that they now have or may have against
Lender, whether arising under the Loan Documents or by any acts or omissions of
Lender, or any of its directors, officers, employees, affiliates, attorneys or
agents, or otherwise, and whether known or unknown, existing as of the date of
the execution of this Amendment, and further waive and release any and all
defenses of any nature whatsoever to the payment of the Obligations or the
performance of their obligations under Loan Documents.

     

    12.            Reaffirmation of Loan
Documents.  The Obligors hereby agree with, reaffirm and
acknowledge their representations and warranties contained in the Loan
Documents.  Furthermore, the Obligors represent that their
representations and warranties contained in the Loan Documents continue to be
true and in full force and effect.  This agreement, reaffirmation and
acknowledgment is given to Lender by the Obligors without defenses, claims or
counterclaims of any kind.  To the extent that any such defenses,
claims or counterclaims against Lender may exist, the Obligors waive and release
Lender from same.

     

    13.            Ratification and
Reaffirmation of Loan Documents.  The Obligors ratify and
reaffirm all terms, covenants, conditions and agreements contained in the Loan
Documents.

     

    14.            No Preferential
Treatment.  No Obligor has entered into this Amendment to
provide any preferential treatment to Lender or any other
creditor.  No Obligor intends to file for protection or seek relief
under the United States Bankruptcy Code or any similar federal or state law
providing for the relief of debtors.

     

    15.            Legal
Representation.  Each of the parties hereto acknowledge that
they have been represented by independent legal counsel in connection with the
execution of this Amendment, that they are fully aware of the terms and
conditions contained herein, and that they have entered into and executed the
within Amendment as a voluntary action and without coercion or duress of any
kind.

     

    16.            Partial Invalidity; No
Repudiation. If any of the provisions of this Amendment shall contravene
or be held invalid under the laws of any jurisdiction, this Amendment shall be
construed as if not containing such provisions and the rights, remedies,
warranties, representations, covenants, and provisions hereof shall be construed
and enforced accordingly in such jurisdiction and shall not in any manner affect
such provision in any other jurisdiction, or any other provisions of this
Amendment in any jurisdiction.

     

    17.            Binding
Effect.  This Amendment is binding upon the parties hereto and
their respective heirs, administrators, executors, officers, directors,
representatives and agents.

     

    18.            Governing
Law.  This Amendment shall be governed by the laws of the State
of New York.

     

    19.            WAIVER OF JURY
TRIAL.  EACH OF THE PARTIES HERETO WAIVE THE RIGHT TO A TRIAL
BY JURY, AS TO ANY ACTION WHICH MAY ARISE AS A RESULT OF THE LOAN DOCUMENTS, THE
FORBEARANCE AGREEMENT, THIS AMENDMENT OR ANY DOCUMENT EXECUTED IN CONNECTION
HEREWITH.

     

    20.            Counterparts.  This
Amendment and/or any documentation contemplated or required in connection
herewith may be executed in any number of counterparts, each of which shall be
deemed an original and all of which shall be considered one and the same
document.  Delivery of an executed counterpart of a signature page of
this document by facsimile shall be effective as delivery of a manually executed
counterpart of this document.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [Signature
pages follow]

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, do
hereby execute this Amendment the date and year first above
written.

     

    
      	
              RCLC,
      INC. (f/k/a RONSON CORPORATION)

               

               

              By:   /s/ Joel Getzler

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

            
	
              RCPC
      LIQUIDATING CORP. (f/k/a/ RONSON CONSUMER PRODUCTS
      CORPORATION)

               

               

              By:   /s/ Joel Getzler

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

            
	
              RONSON
      AVIATION, INC.

               

               

              By:   /s/ Joel Getzler

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

            
	
              RCC
      INC. (f/k/a RONSON CORPORATION OF CANADA LTD.)

               

               

              By:   /s/ Joel Getzler

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring
Officer

            

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              WELLS
      FARGO BANK, NATIONAL ASSOCIATION

               

              By:          /s/ Peter
      Gannon                                                    
      

              Peter Gannon, Vice
      President

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