Eighteenth Amendment to Financing Agreement, dated February 10, 2025, by and among Crown Crafts, Inc., Sassy Baby, Inc., NoJo Baby & Kids, Inc. and The CIT Group/Commercial Services, Inc

Exhibit 10.4

February 10, 2025

Crown Crafts, Inc.

Sassy Baby, Inc.

916 South Burnside Avenue

Gonzales, Louisiana 70737

Nojo Baby & Kids, Inc.

711 West Walnut Street

Compton, California 90220

Re: Financing Agreement 18^th Amendment– Fixed Charge Coverage and Availability

Ladies and Gentlemen:

We refer you to the Financing Agreement dated July 11, 2006 (as supplemented, amended and/or restated from time to time, the “Financing Agreement”). Capitalized terms used and not otherwise defined herein shall have the same meanings given them in the Financing Agreement.

(a)    Fixed Charge Coverage. Until termination of this Financing Agreement and the full and final payment and satisfaction of all Obligations, the Companies agree to maintain a Fixed Charge Coverage Ratio, calculated in accordance with GAAP, on a consolidating basis for the trailing twelve fiscal month period and tested at the end of each fiscal quarter, of not less than (i) 1.15:1.0 at the end of each of each fiscal quarter until the Term Loan is paid in full; and (ii) thereafter, 1.0:1.0 tested as of the most recent fiscal quarter end, but only if at any month-end Excess Availability is less than $4,000,000. To the extent necessary, any requirement to maintain a specified Fixed Charge Coverage Ratio for the fiscal years ending 3/30/25 throughout the upcoming fiscal year ending 3/29/26 is hereby waived.

And;

(a)    Availability Covenant. Until the Term Loan is paid in full, the Companies shall maintain: (i) at all times Excess Availability of not less $7,500,000 until further written or electronic notice to the Companies by CIT and (ii) at all times after the foregoing notice, Excess Availability of not less than 50% of the outstanding balance of the Term Loan.

This amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original and, all of which, when taken together, shall constitute but one and the same agreement. Delivery of an executed counterpart of this amendment by electronic transmission in “PDF” or other imaging format shall be equally as effective as delivery of an original executed counterpart of this amendment. This amendment may be executed and authenticated by each party by electronic or digital means, and each of us expressly consents to the use of an electronic version of this amendment to embody the entire agreement and understanding between us.  An authorized, electronically-affixed or digitally-affixed signature, when received shall be binding for all purposes as if an original signature.

Except to the extent set forth herein, no other waiver of, or change in any of the terms, provisions or conditions of the Financing Agreement is intended or implied. If you are in agreement with the foregoing, please so indicate by signing and returning to us this letter.

Read and Agreed to:

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