EXHIBIT

|   | (b) | Intentionally omitted. |
|--------|-----|------------------------|

|   |  (c)   Except as otherwise provided in this Agreement or agreed in writing by Licensee, Licensor shall not allow any third party to operate a photo studio in  any  Stores; provided, however, that no provision of this Agreement shall limit Licensor’s right to sell any wares (e.g., picture frames, photo albums, etc.) or to offer any photo finishing services (e.g., photo development kiosks), in Stores in which Licensee operates a photo studio.  Notwithstanding anything herein to the contrary, if Licensee defaults on its commitment to open and operate new Departments in accordance with the Minimum Build Out Requirement and does not cure such default by [***], then as the exclusive remedy for Licensee’s breach of the Minimum Build Out Requirement, commencing on [***] and continuing for each year of the Term thereafter (as further set forth in Item 5 of the Appendix), Licensee shall pay Licensor an annual payment equal to the amount obtained by multiplying [***] times the difference between [***] minus the number of new Departments actually opened by Licensee in accordance with the Minimum Build Out Requirement (the “Build Out Shortfall Amount”); provided, however, that (i) from [***], Licensee shall have the right to cure any default in its commitment to open and operate new Departments in accordance with the Minimum Build Out Requirement and (ii) the Build Out Shortfall Amount payable commencing on [***] shall be reduced by an amount equal to the sum of the number of new Departments (if any) opened by Licensee during the period from [***] through [***] multiplied by [***].  Licensee shall not be deemed to be in default under Section 3(a) for (1) any noncompliance that is due to Licensor’s material interference or breach of its obligations under this Agreement or (2) an event of Force Majeure.” |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Notwithstanding anything to the contrary under this Agreement, during the Term and in perpetuity thereafter, Licensee shall not operate any Standalone Studio branded with or operated under the Kiddie Kandids name or any derivative name or substantially similar name to Kiddie Kandids in third party hosted locations, including without limitation in any store branded as or under common control with stores branded as Sears, Walmart, K-Mart, Target, Buy Buy Baby, Baby Depot or Burlington Coat Factory. For the avoidance of doubt, nothing herein shall restrict Licensee’s ability to operate Standalone Studios under the Kiddie Kandids name in non-hosted venues including, without limitation, malls, shopping centers or freestanding locations; provided, however, that Licensee shall not open any new standalone Kiddie Kandids studio on or after the Closing Date that is located less than or equal to [***] miles from any Department.  This paragraph shall survive expiration or earlier termination of this Agreement.” |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| “Item 1 |   TERM:  The Term of this Agreement shall commence as of the Effective Date and shall continue until January 31, 2016.” |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | All days:  9:30 a.m. to 9:30 p.m. from November 1 through December 24 |
|--------------------|----------------------------------------------------------------------------|

| ·   | Notwithstanding the above, Licensee may, in its discretion, close the Department at 8:30 p.m. during Seasonal Hours of Operation. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monday - Friday: 10 a.m. to 2 p.m. and 3 p.m. to 7 p.m.** |
|--------------------|-----------------------------------------------------------|

| ·   | Saturday - Sunday:  Same opening time as the Store; close at 7 p.m.  |
|--------------------|-------------------------------------------------------------------------------------|

| Store           |   | Property           |
|-----------------|--------|--------------------|
| BRU Standalones |   |               |
| 5669            |   | Tustin, CA         |
| 5693            |   | Ontario, CA        |
| 6546            |   | Lake Forest        |
| 5672            |   | Brea, CA           |
| 5678            |   | Cerritos, CA       |
| 5680            |   | Torrance, CA       |
| 6463            |   | Westminister, CA   |
| 9568            |   | Midvale            |
| 9579            |   | Highland Ranch, CO |
| 6521            |   | Aurora             |
| 5674            |   | Las Vegas, NV      |
| 9570            |   | Tukwila            |
| 9571            |   | Clackamas          |
| 9572            |   | Clackamas          |
| 9574            |   | Tigard             |
| 6493            |   | Tacoma             |
| 5668            |   | W. Covina, CA      |
| 5675            |   | Oxnard, CA         |
| 5676            |   | Calabas, CA        |
| 5677            |   | Van Nuys, CA       |
| 6431            |   | Union City, CA     |
| 9566            |   | Pleasanton, CA     |
| 9569            |   | San Jose           |
| 5692            |   | Fresno, CA         |
| 6447            |   | Folsom, CA         |
| 9573            |   | Modesto CA         |
| 9580            |   | Roseville, CA      |
| 5670            |   | Tempe, AZ          |
| 5671            |   | La Mesa, CA        |
| 6534            |   | Chula Vista,CA     |

| 6557 |   | Mira Mesa CA     |
|------|--------|------------------|
| 9581 |   | Vista, CA        |
| 6465 |   | Scottsdale, AZ   |
| 9544 |   | Sugarland        |
| 9546 |   | Katy             |
| 9547 |   | H - Cypress      |
| 9555 |   | Houston          |
| 9588 |   | Baybrook         |
| 9586 |   | Chesterfield     |
| 9236 |   | Schaumburg       |
| 9238 |   | Naperville       |
| 9246 |   | Burbank          |
| 9248 |   | Orland Park      |
| 9258 |   | Lombard          |
| 9285 |   | Niles            |
| 9293 |   | Vernon Hills     |
| 9542 |   | Lewisville       |
| 9552 |   | Arlington        |
| 9554 |   | Plano            |
| 9557 |   | Austin           |
| 9562 |   | Mesquite, TX     |
| 9582 |   | Hulen, TX        |
| 7708 |   | Hurst            |
| 9549 |   | Ingram, TX       |
| 9558 |   | San Antonio TX   |
| 9247 |   | Sterling Heights |
| 9249 |   | Northville       |
| 9250 |   | Roseville, MI    |
| 6545 |   | Roseville, MN    |
| 6551 |   | Woodbury, MN     |
| 9560 |   | Richfield, MN    |
| 9576 |   | Maple Grove, MN  |
| 6547 |   | Brookfield, WI   |
| 6409 |   | Boca Raton, FL   |
| 8826 |   | Coral Way        |
| 8856 |   | Orlando          |
| 8857 |   | Kendall          |
| 8861 |   | Pembroke Pines   |
| 8865 |   | Lauderhill       |

| 8879 |   | West Palm Beach, FL |
|------|--------|---------------------|
| 6414 |   | Silver Springs, MD  |
| 6370 |   | Deptford, NJ        |
| 6373 |   | Mays Landing, NJ    |
| 6379 |   | Cherry Hill, NJ     |
| 6376 |   | Christiana, DE      |
| 6428 |   | Orange Park, FL     |
| 8854 |   | Kennesaw, GA        |
| 8864 |   | Alpharetta, GA      |
| 8891 |   | Gwinnett, GA        |
| 8892 |   | Dunwoody, GA        |
| 6380 |   | Baileys Crossroads  |
| 8882 |   | Chesapeake          |
| 8884 |   | Chantilly           |
| 8885 |   | Potomac Mills       |
| 8886 |   | Richmond            |
| 6383 |   | Braintree, MA       |
| 6384 |   | Peabody, MA         |
| 6385 |   | Warwick, RI         |
| 6388 |   | N. Attleboro, MA    |
| 6430 |   | Portland ME         |
| 6443 |   | Everett MA          |
| 6450 |   | Framingham MA       |
| 6459 |   | Salem NH            |
| 6468 |   | Millbury MA         |
| 6492 |   | Nashua NH           |
| 6555 |   | Holyoke MA          |
| 6357 |   | Westbury, NY        |
| 6374 |   | Sayville, NY        |
| 6378 |   | Commack, NY         |
| 6389 |   | College Point, NY   |
| 6410 |   | Nanuet, NY          |
| 6411 |   | Yonkers, NY         |
| 6424 |   | Massapequa, NY      |
| 6444 |   | Staten Island, NY   |
| 6455 |   | Brooklyn, NY        |
| 6538 |   | Union Square, NJ    |
| 6358 |   | Eatontown, NJ       |
| 6369 |   | N. Brunswick, NJ    |

| 6375            |   | Bridgewater, NJ     |
|-----------------|--------|---------------------|
| 6377            |   | Union, NJ           |
| 6386            |   | Paramus, NJ         |
| 6479            |   | Mt. Olive, NJ       |
| 6481            |   | Manalapan, NJ       |
| 6503            |   | East Hanover, NJ    |
| 6533            |   | West Windsor, NJ    |
| 6539            |   | Totowa, NJ          |
| 6371            |   | Bensalem, PA        |
| 6372            |   | Fairless Hills, PA  |
| 6462            |   | Montgomeryville, PA |
| 6387            |   | Whitehall           |
| 6454            |   | Exton               |
| 9239            |   | Reynoldsburg, OH    |
| 9241            |   | N. Canton, OH       |
| 9242            |   | Dublin, OH          |
| 9244            |   | Forest Park, OH     |
| 6478            |   | Cranberry           |
| 9284            |   | North Olmstead      |
| 9541            |   | St. Louis           |
| 6449            |   | Springfield         |
| 6392            |   | West Hartford       |
|            |   |                |
| TRU Superstores |
| 6583            |   | Redlands            |
| 8727            |   | New Tampa           |
| 5618            |   | Moreno Valley       |
| 8729            |   | Jacksonville        |

| 1.   | Definitions |
|----------------|-------------|

| a)   | "Department" means the gross floor area in each Store in which Licensee is licensed under this Agreement to sell Wares and Services. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| b)   | "Gross Sales" means all of the gross receipts paid at and through Licensor's point of sale registers pursuant to Section 10, whether for cash, check, credit, exchange or otherwise, from all business conducted in, from or in connection with the operation of a Department by Licensee, including, without limitation, mail and telephone orders, and delivery, shipping insurance, and travel charges received or filled in a Department, but excluding therefrom (1) sales taxes or purchase taxes levied directly on sales or purchases and collected from customers, provided that specific record is made at the time of each sale of the amount of such tax and the amount thereof is separately charged to the customer, and (2) the amount of any cash or credit actually refunded in respect of any sale of Wares or Services, provided that the sale price was included in Gross Sales. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | "Person" means any individual, corporation, limited liability company, partnership, trust, joint stock company, business trust, joint venture, unincorporated association or other entity. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | "Services" means the services set forth in the Appendix attached hereto and as amended in writing by mutual agreement from time to time and any other services which Licensor permits Licensee to offer for sale to customers. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | DELETED AND REPLACED BY AMENDMENT |
|----------------|-----------------------------------|

| f)   | "Store" means a Babies "R" Us branded store owned or leased by Licensor. |
|----------------|--------------------------------------------------------------------------|

| g)   | "Wares" means the products and accessories set forth in the Appendix attached hereto and as amended by mutual agreement in writing from time to time and any other goods which Licensor permits Licensee to offer for sale to customers. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Interpretation |
|----------------|----------------|

| 3.   | License |
|----------------|---------|

| a)   | DELETED AND REPLACED BY AMENDMENT |
|----------------|-----------------------------------|

| b)   | DELETED |
|----------------|---------|

| c)   | DELETED AND REPLACED BY AMENDMENT |
|----------------|-----------------------------------|

| 4.   | Name |
|----------------|------|

| 5.   | License Fee |
|----------------|-------------|

| 6.   | Term |
|----------------|------|

| 7.   | Operation of Department; Department Hours |
|----------------|-------------------------------------------|

| a)   | Licensee shall operate each Department in accordance with such policies of Licensor of which Licensor has advised the senior management of Licensee in reasonable detail prior to the date of this Agreement.   Except as set forth in the preceding sentence, Licensee shall operate each Department in accordance with its past custom and practice, as may be modified by Licensee with the approval of Licensor, which approval will not be unreasonably withheld. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | All Wares must be approved by Licensor in writing before being offered for sale in a Department by Licensee.  Licensee shall submit all requests for additional Wares to Licensor in writing.  Licensor will use its best efforts to approve or disapprove such requests in writing (including via email) within seven (7) days after Licensor's receipt of a written request from Licensee.  In the event that Licensor fails to respond to Licensee within such seven (7) day period, then Licensee may send a second written request to Licensor.  In the event that Licensor fails to respond to such second written request in writing within seven (7) days after Licensor's receipt of such second written request, then the request shall be deemed approved by Licensor. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Licensee shall use commercially reasonable efforts to promote, in the aggregate, the Wares and Services of each Department. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------|

| d)   | In the event of a dispute with or complaint from any customer of Licensee regarding a Ware or Service sold at a Department, which complaint is not resolved promptly by Licensee, Licensor's manager of that Store and Licensee's manager of that Department will attempt to resolve the matter on terms acceptable to Licensor, Licensee and the customer.  If they are unable to do so, the director of operations or similarly situated representative of Licensee and the Director or Vice President of Licensor will work in good faith to resolve the dispute on mutually agreeable terms expeditiously. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | DELETED AND REPLACD BY AMENDMENT |
|----------------|----------------------------------|

| f)   | With respect to each Store in which a Department is located, Licensee shall only sell its Wares and Services in such Department except as otherwise provided for in this Agreement or agreed to in writing by Licensor and Licensee. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Preparation of Store: Relocation of Department |
|----------------|------------------------------------------------|

|   | d)  Remodeling or Redecorating of Existing Departments |
|--------|------------------------------------------------------------------|

| 9.   | Employees of Licensee |
|----------------|-----------------------|

| a)   | Subject to all applicable law, Licensee is and shall continue to be an independent contractor and shall have exclusive control over the operation of its Departments and the conduct of its employees. Licensee shall recruit, employ, train and discipline its employees as it deems appropriate, provided that, to the extent permitted under applicable law, Licensee shall, at its own expense, (i) take commercially reasonable measures to confirm that all new employees assigned to the Departments do not possess felony criminal records; (ii) when commercially reasonable and in accordance with its past custom and practice, drug test employees assigned to the Departments whom Licensee reasonably believes to be abusing illegal drugs during work hours; and (iii) comply with all laws governing the employment practices of Licensee at the Stores. Licensee shall be responsible for the acts and omissions of persons employed by it at the Stores and shall cause such employees to observe such policies of Licensor as are applicable to Licensee and, through it, Licensee's employees, pursuant to Section 7 above. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Licensee shall have the right to appoint or hire independent contractors to provide Services or sell Wares in any Department, subject to the following: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.    Sales Processing. Sales Report and Settlement |
|--------|--------------------------------------------------------------------------|

| (a) | All payments originating at the Department (whether in cash, check, credit, exchange or otherwise), for sales and services transactions by Licensee resulting from the Department shall be paid at and through the Licensor's point of sales registers (such payments, the "Applicable Payments"). Settlement shall be made by Licensor with the Licensee on the basis of one-week accounting periods beginning each Sunday and ending each Saturday (each a "Payment Period"). Not later than four (4) business days after the end of each Payment Period (i.e. by the Thursday following the Payment Period), Licensor shall make a settlement with Licensee for the immediately preceding Payment Period by paying to Licensee an amount (the "Settlement Amount") equal to (i) the amount of Applicable Payments made during such Payment Period, less (ii) the License Fee owed by Licensee with respect to such Payment Period, and less (iii) all sales taxes arising from the Applicable Payments made during such Payment Period and actually collected from customers and turned over to the applicable taxing authorities by Licensor. Payment of the Settlement Amount shall be by automated clearing house (ACH) of immediately available funds to an account designated in advance by Licensee. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Licensor acknowledges that each Settlement Amount represents a significant portion of the revenues of Licensee and that Licensor's failure to pay a Settlement Amount when due will cause Licensee to suffer immediate and material harm. Licensor also acknowledges that, even while held by Licensor, Licensor will own no interest in any Settlement Amount.  Thus, in addition to all other remedies available to Licensee, if Licensor fails to pay (i) a Settlement Amount within ten (10) days of its due date, (ii) five (5) or more Settlement Amounts during a twelve (12) month period within three (3) days of their respective due date, or (iii) fifteen (15) or more Settlement Amounts during the Term within three (3) days of their respective due date, interest at the rate of LIBOR (as announced by the Wall Street Journal from time-to-time) plus [***] percent [***] will accrue on all Settlement Amounts not paid by their respective due dates; provided, however, that Licensee shall provide Licensor notice prior to assessing such interest on any Settlement Amounts not paid.  Notwithstanding the foregoing,  the parties acknowledge and agree that the provisions of this Section 10(b) shall not apply to (1) any Settlement Amounts that are the subject of a bona fide dispute between the parties or (2) any failure by Licensor to pay any portion of a Settlement Amount as a result of a cleric or processing error (i.e., an unintentional act or omission of Licensor) which may be discovered during an audit by either party. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Audit of Records |
|-----|------------------|

| 12. | Fixtures |
|-----|----------|

| (a) | Subject to Section 16 below, Licensee shall, at its own expense, (a) fully furnish and equip the Departments with furniture, fixtures, operating equipment and appliances, which items so furnished by the Licensee shall be owned by the Licensee, and (b) maintain the Department and all such furniture, fixtures, operating equipment and appliances in good condition and repair. For the avoidance of doubt, Licensee shall, at is own expense, be responsible for furnishing and equipping each Department with the following: (i) wood glass wall, (ii) truss system, (iii) subject to Section 16 below, MEO related expenses (i.e., phone and electric lines, lighting and paint), (iv) Kiddie Kandids overhead signage, and (v) all chairs, stools, tables and other furniture; provided that Licensor shall be responsible to order and obtain all such items listed above on behalf of Licensee. Licensee shall be responsible to pay all of the invoices with regard to such items directly and to reimburse Licensor for its reasonable, out-of-pocket costs and expenses actually incurred with regard to such items. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The layout of the Departments, and all furniture, fixtures, operating equipment and appliances and all contractors and labor used by Licensee to perform work with respect to the Departments, must at all times be reasonably acceptable to Licensor, and no liens, charges or encumbrances shall be created in connection with the performance of such work. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | Advertising and Customer Data |
|-----|-------------------------------|

| (a) | Licensor and Licensee agree to cooperate and collaborate with respect to the advertising and marketing of the Wares and Services, it being understood that such advertising and marketing will serve to increase foot traffic in the Stores, drive sales and otherwise benefit each of the parties hereto. Without limiting the generality of the foregoing. Licensor and Licensee hereby agree to undertake the mutual advertising and marketing activities set forth on Annex II attached hereto. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any marketing or advertising conducted by Licensee in markets where it operates Departments will include references to any such Departments and, at Licensor's request, the Stores in which such Departments are located.  In the event that Licensee offers any discounts, deals, coupons or other promotions in connection with or to customers of Standalone Studios located in the same market as a Store with a Department, then Licensee shall offer the same promotional terms and conditions in connection with or to customers of such Department to the extent the Wares and Services on which the promotion was offered are the same as Wares and Services sold in the Department. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Any marketing efforts implemented by Licensee that refer to the Stores or Departments will be at its cost and expense, and any marketing efforts implemented by Licensor that include the Departments will be at its cost and expense. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Licensee shall not state in any advertisement or promotional material that refers to a Store the fact that Licensee is going out of business or that Licensee's license under this Agreement has been terminated. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Licensee shall post the disclaimer attached hereto as Annex III (the "Disclaimer") in a visible place near the entrance of each Department, and shall include the Disclaimer on any order forms or other written materials provided at or in connection with the Department that in any way request, solicit or gather customer information or data. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Name and Display |
|-----|------------------|

| (a) | All display material and signs for use in connection with a Department shall be subject to the prior written approval of Licensor and shall be paid for by Licensee. Licensee shall submit all requests for materials and signs to Licensor in writing. Licensor will use its best efforts to approve or disapprove such requests in writing within seven (7) days after Licensor's receipt of a written request from Licensee. In the event that Licensor fails to respond to Licensee within such seven (7) day period, then Licensee may send a second written request to Licensor. In the event that Licensor fails to respond to such second written request in writing within seven (7) days after Licensor's receipt of such second written request, then the request shall be deemed approved by Licensor. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Licensee shall not, without Licensor's prior written consent, use in any marketing material, advertisements or for any other purpose, any of Licensor's or its Affiliate's trade names, trademarks or other styles and marks, or other intellectual property ("Licensor's Marks").  Each use by Licensee of Licensor's Marks on display material, signs, specialty supplies, Department cards, stationary, boxes and wrapping paper or other sales paraphernalia ("Sales Material") shall be subject to the prior written approval of Licensor in each instance. Under no circumstances shall Licensor's silence in connection with Licensee's request for use of Licensor's Marks be deemed approval.  Licensee shall, on demand by Licensor, immediately discontinue any use of Licensor's Marks and withdraw any of Licensor's Sales Material that has not received the prior written approval of Licensor. Licensee acknowledges that Licensee owns no right, title and interest in or to the Licensor's Marks, and agrees not to contest Licensor's or Geoffrey, Inc.'s rights therein throughout the world. Licensee further agrees not to cause to be done any act or thing to impair any part of such right, title and interest.  All uses of Licensor's Marks by Licensee shall inure to the benefit of Licensor or Geoffrey, Inc. Licensee shall at no time adopt or use any word or mark which is likely to be similar to or confused with Licensor's Marks. At Licensor's expense, Licensee shall cooperate fully and promptly with Licensor's or Geoffrey, Inc.'s requests for assistance in carrying out the terms of this section including, but not limited to, the signing of any documents that convey to or otherwise confirm Licensor's or Geoffrey, Inc.'s ownership of Licensor's Marks. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Licensor shall not, without Licensee's prior written consent, use in any marketing materials, advertisements or for any other purpose, any of Licensee's or its Affiliates' trade names, trademarks or other styles and marks, or other intellectual property ("Licensee's Marks").  Each use by Licensor of Licensee's Marks on Sales Material shall be subject to the prior written approval of Licensee in each instance. Under no circumstances shall Licensee's silence in connection with Licensor's request for use of Licensee's Marks be deemed approval. Licensor shall, on demand by Licensee, immediately discontinue any use of Licensee's Marks and withdraw any of Licensee's Sales Material that has not received the prior written approval of Licensee. Licensor acknowledges that Licensor owns no right, title and interest in or to the Licensee's Marks, and agrees not to contest Licensee's rights therein throughout the world. Licensor further agrees not to cause to be done any act or thing to impair any part of such right, title and interest. All uses of Licensee's Marks by Licensor shall inure to the benefit of Licensee. Licensor shall at no time adopt or use any word or mark which is likely to be similar to or confused with Licensee's Marks. At Licensee's expense, Licensor shall cooperate fully and promptly with Licensee's requests for assistance in carrying out the terms of this section including, but not limited to, the signing of any documents that convey to or otherwise confirm Licensee's ownership of Licensee's Marks. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Liens |
|-----|-------|

| 16. | Utilities, Services, and Telephones |
|-----|-------------------------------------|

| (a) | Licensor shall be responsible for the cost of water, light, power, heat, air conditioning and janitorial services for each Department as provided to other parts of the Store in which such Department is located.  Licensee shall be responsible for the cost of all additional services including all charges relating to the installation or use of telephones, the payroll of its employees, all bookkeeping and other accounting activities relating to the operation of the Departments for each Department.  Licensee, if it agrees in each instance, shall reimburse Licensor for all other services, facilities, materials and supplies, if any, that may be supplied to Licensee by Licensor. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17. | Delivery of Wares |
|-----|-------------------|

| 18. | Insurance |
|-----|-----------|

|   | During the term hereof, Licensee shall obtain and maintain at its expense during the term of this Agreement, a policy of Commercial General Liability Insurance, including Contractual Liability and Premises Operations coverages, covering Licensee's operations at each Department from an insurer or insurers reasonably acceptable to Licensor.  The policy of insurance shall insure Licensee and Licensor as an additional insured against all claims, actions or proceedings for sums of money, damages, costs, penalties and losses (hereafter, "Claims"') and all liability which may be imposed by law for loss of life, personal injury or damage to property arising from or in any way connected with the operations of Licensee and including but not limited to Claims: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 19.    Indemnity |
|--------|--------------------------------------|

| (a) | Licensee shall at all times (both during and after the term hereof) indemnify and hold harmless Licensor, its agents and employees, against and from any and all actions, suits, liabilities, settlements, losses, damages, costs, charges, reasonable counsel fees and all other expenses, relating to or arising from any and all claims (whether founded or unfounded) of every nature or character (including, but without limitation, claims for personal injury, death, libel, slander, false arrest, detention or accusation, malicious prosecution, abuse of process, assault and battery, damage to property or invasion or infringement of any patent, trademark, copyright, right of privacy or any other tangible or intangible personal or property right) (collectively, "Losses"), based upon or arising out of Licensee's operation of the Departments, or the Licensee's sale, use or installation of the Wares and Services, or any defect in the Wares and Services or in any ingredient, product or component used in the Wares and Services (or, in the event the Wares and Services shall be a service, used in the performance of such service), or due to any negligence or dishonesty of, or to any act of commission or omission by, Licensee or any of its employees or agents, all except to the extent such Loss is caused by Licensor's negligent actions or omissions or willful misconduct; and in case any action, suit or proceeding shall at any time (either during or after the term hereof) be brought against Licensor by reason of any such claim, the Licensee, if Licensor so requests, shall resist and defend such action, suit or proceeding, at the sole expense of Licensee, by reputable counsel. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Licensor shall at all times (both during and after the term hereof) indemnify and hold harmless Licensee, its agents and employees, against and from any and all Losses, based upon or arising out of Licensor's operations, or the Licensor's sale, use or installation of any products or services (other than the Wares or Services), or any defect in any product or service rendered by Licensor (other than the Wares or Services) or in any ingredient, product or component used in such products or services(other than the Wares or Services), or due to any negligence or dishonesty of, or to any act of commission or omission by, Licensor or any of its employees or agents, all except to the extent such Loss is caused by Licensee's negligent actions or omissions or willful misconduct; and in case any action, suit or proceeding shall at any time (either during or after the term hereof) be brought against Licensee by reason of any such claim, Licensor, if Licensee so requests, shall resist and defend such action, suit or proceeding, at the sole expense of the Licensor, by reputable counsel. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.  Risk of Loss or Damage |
|--------|---------------------------------------|

|   | 21.  Compliance with Laws: Taxes |
|--------|--------------------------------------------|

|   | 22.  Termination of Agreement or Department in Certain Events |
|--------|-------------------------------------------------------------------------|

|   | 23.    Effect of Termination |
|--------|--------------------------------------------------|

|   | 24.   Confidentiality |
|--------|--------------------------------------|

| 25. | Exclusivity; |
|-----|--------------|

|   | (b)    Following a Permitted Change in Control, Licensee or its successor in interest may Sells Wares and Services in stores owned or operated by the Competitors, so long as Licensee does not in any way use the name "Kiddie Kandids" (or any name that supplants "Kiddie Kandids" in accordance with Section 4 above) in connection with such operations, or otherwise use substantially the same "branding" in the operations in the Competitor's facilities as is used at "Kiddie Kandids." |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26. | Assignments: Successors and Assigns |
|-----|-------------------------------------|

| (a) | Except in connection with a Permitted Change in Control and as set forth in Section 26(d) below, the rights granted under this Agreement are personal to the Licensee and are not assignable, in whole or in part, and will not inure to the benefit of Licensee's successors or assigns. |
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| (b) | The consent of Licensor will not be required for a Permitted Change in Control. Without limiting the foregoing, in the event of a Permitted Change in Control, this Agreement will remain in full force and effect. |
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| (c) | As used in this Agreement, "Permitted Change in Control" means any (x) (i) consolidation with, or merger of Licensee with or into any person or entity other than a Competitor; (ii) a Transfer or issuance of a controlling equity interests in licensee to any person or entity other than a Competitor; (iii) a sale of substantially all of the assets of Licensee to any person or entity other than a Competitor or (iv) any other transaction or related series of transactions, and as a result of a transaction set forth in (i), (ii), (iii) and (iv) above, one or more entities other than Competitors acquire control, directly or indirectly, of Licensee, or (y) any Competitor Change in Control to which Licensor consents. |
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| (d) | Licensor may assign this Agreement to any of its affiliates, subsidiaries, parent companies or successors, so long as Licensor remains obligated by the terms and liable for any breaches of this Agreement by its assignee. |
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| 27. | General Provisions |
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| (a) | Severability - All clauses, terms and conditions hereof are severable and the invalidity, illegality or unenforceability of any clause, term or condition shall not affect the validity, enforceability or legality of the remaining clauses, terms and conditions. |
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| (b) | Waiver - No supplement, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. |
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| DELETED AND REPLACED BY AMENDMENT |
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| WARES TO BE SOLD: |
|-------------------|

| SERVICES TO BE PERFORMED: |
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| DELETED AND REPLACED BY AMENDMENT |
|-----------------------------------|

| 1.   | Licensee would like to be included in the Licensor's Baby Fest events with advertising, sponsorship and special portrait offers. |
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| 2.   | Licensee would like to be included in some of Licensor's advertising space, which would include an ad for Licensee with special offers, at Licensee's cost. |
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| 3.   | Licensee shall have a single point of contact at Licensor's for marketing, advertising, partnerships and signage discussions and approvals. |
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| 4.   | Licensee shall have a designated location in Licensor's studios for the 22x28 signage which has been already approved by Licensor. |
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| 5.   | Ensure that all Licensor's managers are aware of signage designation for Licensee in their studio. Have documentation given to all Managers and DM in both organizations. |
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| 6.   | All Licensor's studios, which have a vestibule area, allow our Licensee sign to be displayed at all times. |
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| 7.   | Have a semi-annual meeting with marketing and operations teams from Licensee and Licensor. |
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| 8.   | Work together to enhance cooperation and collaboration between Licensor and Licensee on the Baby Registry Program. |
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| 9.   | Work together to enhance cooperation and collaboration between Licensor and Licensee on local promotion programs. |
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| 10.   | Work together to enhance cooperation and collaboration between Licensor and Licensee local management teams within each Store. |
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| 11.   | Licensor will provide a merchandising fixture and a space to display the fixture in each Licensor store adjacent to Licensee's photography studio. |
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