Exhibit 10.41

April 26, 2012

Guy Paglinco

Vice President and Chief Financial Officer

c/o Kid Brands, Inc.

One Meadowlands Plaza, 8^th Floor

East Rutherford, New Jersey 07073

Dear Guy:

The Compensation Committee of the Board of Directors (the “Board”) of Kid Brands, Inc. (the “Company”) has deemed it appropriate and reasonable to provide you with the assurances set forth in this letter in order to help ensure a smooth transition should a Change in Control (as defined below) occur as described herein, and to help eliminate from any decision-making process potential distractions caused by concerns over your personal financial and employment security, although no decision to effect such a transaction has been made and there can be no assurance that any such transaction will occur or the timing thereof.

Change in Control. For purposes of this letter, a “Change in Control” shall mean the occurrence of any of the following:

(i) any “person” (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or “group” (as described in Rule 13d-5 under the Exchange Act), other than any beneficial owner of in excess of 5% of the Company’s voting securities on the date of this letter, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing more than 30% of the total combined voting power of the Company’s then outstanding securities, excluding, however, the following: (a) any acquisition of securities directly from the Company other than in connection with a Transaction described in clause (iii) or (v) below), (b) any acquisition of the Company’s securities by the Company; (c) any acquisition of securities by an employee benefit plan (or related trust) sponsored or maintained by the Company or entirely controlled by the Company, or (d) any Transaction (as defined below) or sale of all or substantially all of the Company’s assets that does not constitute a Change in Control under clauses (iii), (iv), or (v) below;

(ii) as a result of any proxy solicitation made otherwise than on behalf of the Board, Continuing Directors cease to be a majority of the Board (a “Continuing Director” is any member of the Board who (a) was a member of the Board on January 1, 2012 or (b) first became a member of the Board as a result of or following his election or nomination for election by the Board at a time that Continuing Directors form a majority of the Board and with the approval of a majority of such Continuing Directors);

(iii) the merger, consolidation, or other business combination of or by the Company (a “Transaction”), other than a Transaction immediately following which the stockholders of the Company immediately prior to the Transaction continue to be the beneficial owners of securities of the Company or other resulting entity representing at least 70% of the voting power in the Company or other resulting entity in substantially the same proportions as their ownership of Company securities immediately prior to the Transaction;

(iv) the sale of all or substantially all of the Company’s assets, other than a sale immediately following which the stockholders of the Company immediately prior to the sale are the beneficial owners of securities of the purchasing entity representing at least 70% of the voting power in the purchasing entity, in substantially the same proportions as their ownership of Company securities immediately prior to the sale; or

(v) consummation of a recapitalization or similar transaction of the Company in which any “person” (as defined in Section 3(a)(9) of the Exchange Act) or “group” (as described in Rule 13d-5 under the Exchange Act), other than any beneficial owner of in excess of 5% of the Company’s voting securities on the date of this letter, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing more than 30% of the total combined voting power of the Company’s then outstanding securities.

Good Reason. For purposes of this letter, “Good Reason” shall mean the occurrence of any of the following events after a Change in Control without your express written consent: (A) material diminution in the importance of your position, status or authority; (B) a material reduction in your aggregate compensation or benefits; (C) a failure of any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) of the Company to assume in writing (or by operation of law in a merger) the obligations of the Company hereunder as required by Section V below; or (D) the Company’s requiring you to relocate outside of New York City or New Jersey. A termination for Good Reason shall mean a termination effected by written notice given by you to the Company within 30 days after the occurrence of the Good Reason event, unless the Company shall, within 15 days after receiving such notice, take such action as is necessary to fully remedy such Good Reason event and give you written notice thereof, in which case the Good Reason event shall be deemed to have not occurred.

If the Company consummates a Change in Control, and your employment with the Company is terminated by the Company without Cause, as defined in the Company’s Equity Incentive Plan, or by you for Good Reason, as defined above (each of the foregoing, a “Termination”), in either case within the 365-day period following the consummation of a Change in Control, you will be entitled to the benefits set forth below, notwithstanding anything to the contrary in any other benefit or compensatory plan maintained by the Company, including, without limitation: any other severance arrangements between you and the Company or in which you participate, any incentive compensation program maintained by the Company then in effect (the “IC Program”), any award agreement governing the relevant equity, or the plan pursuant to which such equity was issued, in each case unless specified otherwise herein.

2

3

4

5

6