Document:

First Amendment to Amended and Restated Credit Agreement

 Exhibit 10.2 
 FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND CONSENT 
 THIS FIRST AMENDMENT TO AMENDED AND
RESTATED CREDIT AGREEMENT AND CONSENT (this “Amendment”) is entered into as of January 8, 2008, by and among the Borrowers party hereto, the Loan Guarantors party hereto (and together with the Borrowers, the “Loan
Parties”), the Required Lenders party hereto, and THE CIT GROUP/BUSINESS CREDIT, INC., as Administrative Agent and Collateral Agent for the Lenders under the Credit Agreement described below (the “Agent”). 
 WHEREAS, each of ETOYS DIRECT, INC., a Delaware corporation (“eToys Direct”), MY TWINN, INC., a Delaware corporation (“My
Twinn”), BABYUNIVERSE, INC., a Florida corporation (“BabyUniverse (Florida)”), POSHTOTS, INC., a Virginia corporation (“PoshTots”), and DREAMTIME BABY, INC., a Florida corporation (“Dreamtime
(Florida)”, and collectively with eToys Direct, My Twinn, BabyUniverse (Florida) and PoshTots, the “Existing Borrowers”) and the Loan Guarantors are parties to that certain Amended and Restated Credit Agreement dated as of
October 12, 2007 with the Lenders and the Agent (as the same may be amended or supplemented from time to time, the “Credit Agreement”), pursuant to which the Lenders agreed, subject to the terms and conditions set forth
therein, to make certain loans to the Existing Borrowers; 
 WHEREAS, the Loan Parties have informed the Agent that BabyUniverse (Florida)
intends to change its state of incorporation from Florida to Colorado by a merger of BabyUniverse (Florida) into The Parent Company, a newly formed, wholly-owned subsidiary of BabyUniverse (Florida) organized under the laws of the State of Colorado
(“Parent”) pursuant to an Agreement and Plan of Merger, dated as of October 30, 2007 (the “Parent Merger Agreement”), whereupon BabyUniverse (Florida) shall be merged with and into Parent and the separate
existence of BabyUniverse (Florida) shall cease and Parent shall be the surviving corporation (the “Parent Reincorporation Merger”); 
 WHEREAS, the Loan Parties have informed the Agent that in connection with the Parent Reincorporation Merger, Dreamtime (Florida) intends to change its state of incorporation from Florida to Colorado by a merger of
Dreamtime (Florida) into Dreamtime Baby, Inc., a newly formed, wholly-owned subsidiary of Dreamtime (Florida) organized under the laws of the State of Colorado (“New Dreamtime”) pursuant to an Agreement and Plan of Merger, dated as
of January 8, 2008 (the “Dreamtime Merger Agreement”), whereupon Dreamtime (Florida) shall be merged with and into New Dreamtime and the separate existence of Dreamtime (Florida) shall cease and New Dreamtime shall be the
surviving corporation (the “Dreamtime Reincorporation Merger”); 
 WHEREAS, the Loan Parties have informed the Agent that,
in connection with the Parent Reincorporation Merger, Parent intends to form BabyUniverse, Inc., a new, wholly-owned subsidiary of Parent organized under the laws of the State of Colorado (“New BabyUniverse”), which entity shall
become a “Borrower” under the Credit Agreement and a “Loan Party” for all purposes under the Credit Agreement; 
 WHEREAS, the Loan Parties have informed the Agent that, in connection with the Parent Reincorporation Merger, the Loan Parties intend to (i) change the state of incorporation of eToys Direct from Delaware to Colorado pursuant to a Plan
of Conversion, (ii) change the state of incorporation of PoshTots from Virginia to Colorado pursuant to a Plan of Domestication, and (iii) change the state of incorporation of My Twinn from Delaware to Colorado pursuant to a Plan of
Conversion (collectively, the “Other Borrower Reincorporations”); 
 WHEREAS, the Loan Parties have requested that the Agent
and the Lenders agree to amend the Credit Agreement to, among other things, (a) cause each of Parent, New BabyUniverse and New Dreamtime to be deemed to be a “Borrower” under the Credit Agreement and a “Loan Party” for all
purposes under the Credit Agreement, and (b) acknowledge the Other Borrower Reincorporations; 

 WHEREAS, the Loan Parties, the Lenders and the Agent have agreed to make the foregoing amendments to the
Credit Agreement as more particularly set forth herein, subject to the terms and conditions sets forth herein; 
 NOW, THEREFORE, in
consideration of the promises and the mutual agreements contained in this Amendment, the Loan Parties, the Lenders party hereto and the Agent hereby agree as follows: 
 1. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement. 
 2. Joinder of Parent and New BabyUniverse. 
 (a) Each of Parent and New BabyUniverse hereby
acknowledges, agrees and confirms that, by its execution of this Amendment, it will be deemed to be a “Borrower” under the Credit Agreement and a “Loan Party” for all purposes under the Credit Agreement and shall have all of the
obligations of a Borrower and a Loan Party thereunder as if it had executed the Credit Agreement. Each of Parent and New BabyUniverse hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions
contained in the Credit Agreement, including without limitation (a) all of the representations and warranties of the Loan Parties set forth in Article III of the Credit Agreement, and (b) all of the covenants set forth in Articles V and VI
of the Credit Agreement. 
 (b) Each of Parent and New BabyUniverse is, simultaneously with the execution of this Amendment, executing and
delivering such Collateral Documents (and such other documents and instruments) as reasonably requested by the Agent in accordance with the Credit Agreement, including without limitation, a joinder agreement to the Pledge and Security Agreement.

 3. Consent to Merger of Dreamtime (Florida) and Joinder of New Dreamtime. 
 (a) Pursuant to Section 6.03(a) of the Credit Agreement, Dreamtime (Florida) is not permitted to merge into or consolidate with any other Person,
other than another Borrower (other than BabyUniverse (Florida)). Subject to the satisfaction of the conditions precedent set forth in Section 10 hereof and in reliance on the representations and warranties set forth in Section 8 hereof, in
accordance with the provisions of the Credit Agreement, the Administrative Agent and the Lenders hereby consent to the merger of Dreamtime (Florida) with and into New Dreamtime in accordance with the Dreamtime Merger Agreement whereupon Dreamtime
(Florida) shall be merged with and into New Dreamtime and the separate existence of Dreamtime (Florida) shall cease and New Dreamtime shall be the surviving corporation. 
 (b) New Dreamtime hereby acknowledges, agrees and confirms that, by its execution of this Amendment, New Dreamtime will be deemed to be a “Borrower” under the Credit Agreement and a “Loan Party”
for all purposes under the Credit Agreement and shall have all of the obligations of a Borrower and a Loan Party thereunder as if it had executed the Credit Agreement. New Dreamtime hereby ratifies, as of the date hereof, and agrees to be bound by,
all of the terms, provisions and conditions contained in the Credit Agreement, including without limitation (a) all of the representations and warranties of the Loan Parties set forth in Article III of the Credit Agreement, and (b) all of
the covenants set forth in Articles V and VI of the Credit Agreement. 
  

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 (c) New Dreamtime is, simultaneously with the execution of this Amendment, executing and delivering such
Collateral Documents (and such other documents and instruments) as reasonably requested by the Agent in accordance with the Credit Agreement, including without limitation, a joinder agreement to the Pledge and Security Agreement. 
 4. Acknowledgement of Reincorporations; Waiver of Notice. Subject to the satisfaction of the conditions precedent set forth in Section 10
hereof and in reliance on the representations and warranties set forth in Section 8 hereof, in accordance with the provisions of the Credit Agreement, the Collateral Agent hereby (a) acknowledges (i) the change of the state of
incorporation of eToys Direct from Delaware to Colorado, (ii) the change of the state of incorporation of PoshTots from Virginia to Colorado, (iii) the change of the state of incorporation of My Twinn from Delaware to Colorado, and
(iv) the change of the state of incorporation of BabyUniverse (Florida) from Florida to Colorado and the change of the name of BabyUniverse (Florida) to “The Parent Company,” and (b) waives any prior written notice requirements
pursuant to Section 6.15 of the Credit Agreement, Section 4.15 of the Pledge and Security Agreement or otherwise in connection with the Parent Reincorporation Merger, the Dreamtime Reincorporation Merger and the Other Borrower
Reincorporations. 
 5. Amendments to Loan Documents. Subject to the satisfaction of the conditions precedent set forth in
Section 10 hereof and in reliance on the representations and warranties set forth in Section 8 hereof, the Loan Parties, Agent, and the Required Lenders agree that the Loan Documents are hereby amended as follows: 
 (a) All references in the Loan Documents to the party “BabyUniverse” shall be deemed to refer to The Parent Company, a Colorado corporation.

 (b) All references in the Loan Documents to the party “Dreamtime” shall be deemed to refer to Dreamtime, Inc., a Colorado
corporation. 
 (c) All references in the Loan Documents to the party “eToys Direct” shall be deemed to refer to eToys Direct,
Inc., a Colorado corporation. 
 (d) All references in the Loan Documents to the party “My Twinn” shall be deemed to refer to My
Twinn, Inc., a Colorado corporation. 
 (e) All references in the Loan Documents to the party “PoshTots” shall be deemed to refer
to PoshTots, Inc., a Colorado corporation. 
 6. Amendments to Credit Agreement. Subject to the satisfaction of the conditions
precedent set forth in Section 10 hereof and in reliance on the representations and warranties set forth in Section 8 hereof, the Credit Agreement is hereby amended as follows: 
 (a) Amendment to Section 1.01 of the Credit Agreement. 
 (i) Section 1.01 of the Credit Agreement is hereby amended by deleting the definitions of “BabyUniverse Loan Parties” and “Borrowers” in their entirety and substituting the following therefor:

 “Borrowers” means, collectively, Parent, eToys Direct, New BabyUniverse, PoshTots, Dreamtime and My Twinn.

  

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 “Parent Loan Parties” means, collectively, Parent, New BabyUniverse,
Dreamtime and PoshTots, and “Parent Loan Party” means any of such Parent Loan Parties. 
 (ii) Section 1.01 of the Credit
Agreement is hereby further amended by inserting the following new definitions therein in appropriate alphabetical order: 
 “BabyUniverse (Florida)” means BabyUniverse, Inc., a Florida corporation. 
 “BabyUniverse
(Florida) Loan Parties” means, collectively, BabyUniverse (Florida), Dreamtime (Florida) and PoshTots (Florida), and “BabyUniverse (Florida) Loan Party” means any of such BabyUniverse (Florida) Loan Parties. 
 “Dreamtime (Florida)” means Dreamtime Baby, Inc., a Florida corporation. 
 “Dreamtime Merger Agreement” means the Agreement and Plan of Merger, dated as of January 8, 2008, by and among
Dreamtime (Florida) and Dreamtime pursuant to which Dreamtime (Florida) shall be merged with and into Dreamtime and the separate existence of Dreamtime (Florida) shall cease and Dreamtime shall be the surviving corporation. 
 “Dreamtime Merger Documents” means the Dreamtime Merger Agreement, all schedules and exhibits thereto and all other
documentation executed and delivered pursuant to the Dreamtime Merger Agreement, all as in effect on January 8, 2008. 
 “Dreamtime Reincorporation Merger” means the merger of Dreamtime (Florida) with and into Dreamtime pursuant to the Dreamtime Merger Documents, resulting in Dreamtime being a direct wholly-owned subsidiary of BabyUniverse.

 “First Amendment” means the First Amendment to Amended and Restated Credit Agreement dated as of
January 8, 2008, among the Borrowers, the Loan Guarantors party thereto, the Lenders party thereto, and the Administrative Agent. 
 “First Amendment Date” means January 8, 2008. 
 “New
BabyUniverse” means BabyUniverse, Inc., a Colorado corporation. 
 “Other Borrower Reincorporations”
means, collectively, (a) the change of the state of incorporation of eToys Direct from Delaware to Colorado pursuant to a Plan of Conversion, (b) the change of the state of incorporation of PoshTots from Virginia to Colorado pursuant to a
Plan of Domestication, and (c) the change of the state of incorporation of My Twinn from Delaware to Colorado pursuant to a Plan of Conversion, all as in effect on the First Amendment Date. 
 “Parent” means The Parent Company, a Colorado corporation, and direct parent company of each of New BabyUniverse, eToys
Direct, PoshTots and Dreamtime. 
 “Parent Merger Agreement” means the Agreement and Plan of Merger, dated as
of October 30, 2007, by and among BabyUniverse (Florida) and Parent pursuant to which BabyUniverse (Florida) shall be merged with and into Parent and the separate existence of BabyUniverse (Florida) shall cease and Parent shall be the surviving
corporation. 
  

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 “Parent Merger Documents” means the Parent Merger Agreement, all
schedules and exhibits thereto and all other documentation executed and delivered pursuant to the Parent Merger Agreement, all as in effect on January 8, 2008. 
 “Parent Reincorporation Merger” means the merger of BabyUniverse (Florida) with and into Parent pursuant to the Parent
Merger Documents. 
 “PoshTots (Florida)” means PoshTots, Inc., a Virginia corporation. 
 (b) Amendment to Section 6.09 of the Credit Agreement. Section 6.09 of the Credit Agreement is hereby amended by deleting such
Section 6.09 in its entirety and substituting the following therefor: 
 “SECTION 6.09. Amendment of Material
Documents. The Loan Parties will not, and will not permit any Subsidiary of any Loan Party to, agree to any amendment, modification or waiver of any term or provision of (a) the Merger Documents in any material respect, (b) its Charter
Documents (except as otherwise expressly provided in Section 6.03(a)) or any Material Agreement, in each case, to the extent that such amendment, modification or waiver could, in the reasonable opinion of the Administrative Agent, have a
Material Adverse Effect, (c) the Parent Merger Documents in any material respect, (d) the Dreamtime Merger Documents in any material respect, or (e) any agreement or instrument evidencing or governing any Subordinated Indebtedness.
The Loan Parties will not, and will not permit any Subsidiary to, agree to any amendment, modification or waiver of any term or provision of any web partner agreement with any Applicable Partner without the prior written consent of the
Administrative Agent, such consent not to be unreasonably withheld or delayed.” 
 (c) Additional Amendments to the Credit Agreement.
Notwithstanding the foregoing amendments to the Loan Documents and the Credit Agreement, the Credit Agreement is hereby further amended as follows: 
 (i) All references to “BabyUniverse” in the defined terms “BabyUniverse Private Placement”, “BabyUniverse Private Placement Documents”, “Merger”, and “Merger
Agreement” shall be deemed to refer to BabyUniverse (Florida); 
 (ii) All references to “BabyUniverse” in Sections 3.04(c),
3.21, 4.01(n), (o), (p), and (v), and 6.03(a)(iii) shall be deemed to refer to BabyUniverse (Florida); 
 (iii) All references to
“BabyUniverse Loan Parties” in Sections 4.01(p), (y), and 6.15 shall be deemed to refer to BabyUniverse (Florida) Loan Parties. 
 (d) Amendment to Schedules to Credit Agreement. Schedule 3.05(a), Schedule 3.05(b), Schedule 3.15, Schedule 3.17 and Schedule 3.26 to the Credit Agreement are hereby amended by deleting such
Schedule 3.05(a), Schedule 3.05(b), Schedule 3.15, Schedule 3.17 and Schedule 3.26 in their entirety and substituting therefor the revised Schedule 3.05(a), Schedule 3.05(b), Schedule 3.15,
Schedule 3.17 and Schedule 3.26 attached hereto, which revised Schedules shall be deemed to be incorporated into the Credit Agreement as of the date hereof and each reference in the Credit Agreement to any such Schedules shall be
deemed to refer to such Schedule attached hereto on and after the date hereof. 
  

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 7. Amendment to Pledge and Security Agreement. The Pledge and Security Agreement is hereby amended
by deleting the Exhibits A, B, C-1, C-2, D, E, F, G, and H thereto in their entirety and substituting therefor the revised Exhibits A, B, C-1, C-2, D,
E, F, G, and H attached hereto, which revised Exhibits shall be deemed to be incorporated into the Pledge and Security Agreement as of the date hereof and each reference in the Pledge and Security Agreement to any such
Exhibit shall be deemed to refer to such Exhibit attached hereto on and after the date hereof. 
 8. No Default; Representations and
Warranties, Etc. The Loan Parties hereby represent, warrant, confirm and covenant that, after giving effect to the amendments and consents effected hereby: (a) the representations and warranties of the Loan Parties contained in Article III
of the Credit Agreement, as amended hereby, are true and correct in all material respects on and as of the date hereof except (i) to the extent that any such representation or warranty specifically refers to an earlier date, in which case they
shall be true and correct in all material respects as of such earlier date, (ii) that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all
respects, subject to the materiality qualification contained therein, (iii) that, for purposes of this Section 8, the representations and warranties contained in Section 3.04(b) of the Credit Agreement shall be deemed to
refer to the most recent financial statements delivered pursuant to Sections 5.01(a), (b) and (c) of the Credit Agreement; (iv) that, for purposes of this Section 8, all references in Article III of the
Credit Agreement to Schedule 3.05(a), Schedule 3.05(b), Schedule 3.15, Schedule 3.17 and Schedule 3.26, respectively, shall be deemed to refer to the updated Schedule 3.05(a), Schedule 3.05(b),
Schedule 3.15, Schedule 3.17 and Schedule 3.26, respectively, delivered herewith; and (v) that, for purposes of this Section 8, all references in Sections 3.05, 3.15, 3.25 and 3.26 of the Credit Agreement to the
“Effective Date” shall be deemed to refer to the date hereof, and all references in Sections 3.02, 3.03, 3.05, 3.06, 3.13 and 3.15 of the Credit Agreement to the “Transactions” shall be deemed to include the consummation of each
of the Parent Reincorporation Merger, the Dreamtime Reincorporation Merger and the Other Borrower Reincorporations; (b) after giving effect to this Amendment, the Loan Parties are in compliance with all of the terms and provisions set forth in
the Credit Agreement and the other Loan Documents to be observed or performed thereunder and no Default or Event of Default has occurred and is continuing; (c) the execution, delivery and performance by the Credit Parties of this Amendment, and
all other documents, instruments and agreements executed and delivered in connection herewith or therewith, and the consummation of the transactions contemplated hereby (i) have been duly authorized by all necessary corporate or other
applicable organizational action on the part of the Loan Parties, (ii) have not violated, conflicted with or resulted in a default under any applicable law or regulation, any term or provision of the organizational documents of any Loan Party
or any term or provision of any material indenture, agreement or other instrument binding on any Loan Party or any of its assets, (iii) do not require any consent, waiver or approval of or by any Person which has not been obtained, and
(iv) have not violated or conflicted with any pre-emptive rights of any Person. 
 9. Ratification and Confirmation. The Loan
Parties hereby ratify and confirm all of the terms and provisions of the Credit Agreement and the other Loan Documents and agree that, except as expressly amended hereby, all of such terms and provisions remain in full force and effect. Without
limiting the generality of the foregoing, (a) the Loan Guarantors hereby further acknowledge and confirm that all obligations, liabilities and Indebtedness of the Borrowers under the Credit Agreement, as amended hereby, constitute
“Obligations” guarantied by and entitled to the benefits of the guaranties of the Loan Guarantors set forth in Article X of the Credit Agreement and the Loan Guarantors hereby ratify and confirm all of the terms and provisions of such
guaranties and (b) the Loan Parties hereby further acknowledge and confirm that all obligations, liabilities and Indebtedness of the Borrowers under the Credit Agreement, as amended hereby, constitute “Obligations” secured by and
entitled to the benefits of the security interests in the Collateral (as defined in the Pledge and Security Agreement) granted by the Loan Parties under the Pledge and Security Agreement, and the Loan Parties hereby ratify and confirm all security
interests and liens granted to the Collateral Agent and the Lenders under the Pledge and Security Agreement and the other Loan Documents. 
  

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 10. Conditions to this Amendment. The effectiveness of this Amendment shall be subject to the
satisfaction of the following conditions precedent: 
 (a) Counterparts of Amendment. The Agent shall have received from each party
hereto either (a) a counterpart of this Amendment signed on behalf of such party or (b) written evidence satisfactory to the Agent (which may include telecopy transmission of a signed signature page of this Amendment) that such party has
signed a counterpart of this Amendment. 
 (b) Schedules. The Agent shall have received new Schedule 3.05(a), Schedule
3.05(b), Schedule 3.15, Schedule 3.17 and Schedule 3.26 to the Credit Agreement which Schedules shall be attached hereto. Such Schedules shall be deemed to be incorporated into the Credit Agreement as of the date hereof and
each reference in the Credit Agreement to any such Schedule shall be deemed to refer to such Schedule attached hereto on and after the date hereof. 
 (c) Organizational Matters. The Agent shall have received such documents, resolutions and certificates as the Agent may reasonably request relating to the authorization of this Amendment, the Credit Agreement, as amended by this
Amendment, the Parent Reincorporation Merger, the Dreamtime Reincorporation Merger, the Other Borrower Reincorporations, and any and all other documents, instruments and agreements contemplated hereby or thereby or executed and delivered in
connection herewith or therewith, and this Amendment, the Credit Agreement, as amended by this Amendment, the Parent Reincorporation Merger, the Dreamtime Reincorporation Merger, the Other Borrower Reincorporations, all in form and substance
reasonably satisfactory to the Agent. Additionally, as reasonably requested by the Agent, the Loan Parties agree to deliver to the Agent certified copies of the certificate of incorporation or comparable organizational documents of each Borrower,
with all amendments, if any, certified by the appropriate Governmental Authority, after giving effect to the transactions contemplated by this Amendment, including without limitation the consummation of each of the Parent Reincorporation Merger, the
Dreamtime Reincorporation Merger and the Other Borrower Reincorporations, and certified copies of such other documents and certificates filed in connection with each of the Parent Reincorporation Merger, the Dreamtime Reincorporation Merger and the
Other Borrower Reincorporations. 
 (d) Joinder to Pledge and Security Agreement. The Agent shall have received from each of Parent,
New BabyUniverse, and New Dreamtime executed counterparts to the joinder agreement to the Pledge and Security Agreement. 
 (e) Exhibits
to Pledge and Security Agreement. The Agent shall have received new Exhibits A, B, C-1, C-2, D, E, F, G, and H to the Pledge and Security Agreement which Exhibits shall be attached
hereto. Such Exhibits A, B, C-1, C-2, D, E, F, G, and H shall be deemed to be incorporated into the Pledge and Security Agreement as of the date hereof and each reference in the Pledge
and Security Agreement to any such Exhibit shall be deemed to refer to such Exhibit attached hereto on and after the date hereof. 
 (f)
Perfection Certificates. The Collateral Agent shall have received a Perfection Certificate with respect to each Borrower, including Parent, New BabyUniverse and New Dreamtime, dated the First Amendment Date and duly executed by an Authorized
Officer of each such Borrower. 
  

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 (g) Trademark Security Agreement. The Agent shall have received from each Loan Party executed
counterparts to the Trademark Security Agreement, dated the First Amendment Date, together with all schedules thereto. 
 (h) Patent
Security Agreement. The Agent shall have received from each Loan Party executed counterparts to the Patent Security Agreement, dated the First Amendment Date, together with all schedules thereto. 
 (i) Insurance Certificates. The Agent shall have received, in form, scope and substance reasonably satisfactory to the Agent, insurance
certificates or policies with respect to all insurance required to be maintained pursuant to the Loan Documents identifying the Collateral Agent as loss payee and/or additional insured, as applicable. Additionally, if required, within 30 Business
Days after the date hereof, the Administrative Borrower agrees to deliver or cause to be delivered to the Agent endorsements to such insurance policies evidencing the Collateral Agent as lenders loss payee and (as appropriate) an additional insured,
each in form and substance satisfactory to the Agent. 
 (j) Opinion of Counsel to Loan Parties. The Agent shall have received an
opinion (addressed to the Agent and dated the date hereof) of Bartlit Beck Herman Palenchar & Scott LLP, counsel to the Loan Parties, in form and substance acceptable to the Agent and covering such matters relating to the Borrowers, this
Amendment, and the Credit Agreement, as amended by this Amendment, as the Agent shall reasonably request. 
 (k) Other Documents. The
Agent shall have received such other documents as the Agent or its special counsel shall have reasonably requested. 
 11. Fees and
Expenses. The Borrowers agree to pay all fees and other amounts due and payable to the Agent and Edwards Angell Palmer & Dodge LLP, special counsel to the Agent, incurred in connection with any of the Loan Documents, including this
Amendment, and the transactions contemplated thereby including without limitation, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder. 
 12. Miscellaneous. 
 (a) Except as
otherwise expressly set forth herein, nothing herein shall be deemed to constitute an amendment, modification or waiver of any of the provisions of the Credit Agreement or the other Loan Documents, all of which remain in full force and effect as of
the date hereof and are hereby ratified and confirmed. The Loan Parties acknowledge and agree that nothing contained herein shall be deemed to entitle the Loan Parties to a consent to, or a waiver, amendment or modification of, any of the terms,
conditions, obligations, covenants or agreements contained in the Loan Documents in similar or different circumstances. This Amendment shall be deemed to be a Loan Document. 
 (b) This Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original, but all counterparts
shall together constitute one instrument. 
 (c) Whenever the terms or sections amended hereby shall be referred to in the Credit Agreement,
Loan Documents or such other documents (whether directly or by incorporation into other defined terms), such defined terms shall be deemed to refer to those terms or sections as amended by this Amendment. 
  

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 (d) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE
LAW OF CONFLICTS) OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS, AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF THE PARTIES HERETO AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS. 
 [Signature pages to follow] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above written. 
  

			
	 BORROWERS:
  

	 THE PARENT COMPANY
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President and Chief Financial Officer
	  
 BABYUNIVERSE, INC.
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President
	  
 eTOYS DIRECT, INC.
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President
	  
 POSHTOTS, INC.
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President
	  
 DREAMTIME BABY, INC.
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President

 [Signature page to First Amendment to Amended and Restated Credit Agreement] 

			
	 MY TWINN, INC.
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President

 [Signature page to First Amendment to Amended and Restated Credit Agreement] 

			
	 LOAN GUARANTORS:
  

	 eTOYS DIRECT 1, LLC
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President
	  
 eTOYS DIRECT 2, LLC
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President
	  
 eTOYS DIRECT 3, LLC
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President
	  
 GIFT ACQUISITION, L.L.C.
  

	By:	 	 /s/ BARRY HOLLINGSWORTH

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President

 [Signature page to First Amendment to Amended and Restated Credit Agreement] 

			
	 AGENT AND REQUIRED LENDER:
  

	 THE CIT GROUP/BUSINESS CREDIT, INC., individually, as Administrative Agent, Collateral Agent and Lender
  

	By:	 	 /s/ ADRIAN AVALOS

	Name:	 	Adrian Avalos
	Title:	 	Vice President

 [Signature page to First Amendment to Amended and Restated Credit Agreement]Form of Option Agreement

 Exhibit 10.8 
 THE PARENT COMPANY 
 GRANTEE
STOCK OPTION AGREEMENT 
 This Stock Option Agreement set forth below (this
“Agreement”) is dated as of the Date of Grant set forth below and is between The Parent Company, a Colorado corporation (the “Company”), and the individual named as Grantee below (the
“Grantee”). 
 The Company has established its 2007 Long-Term Incentive Plan (the “Plan”) to
advance the interests of the Company and its shareholders by providing incentives to certain eligible persons who contribute significantly to the strategic and long-term performance objectives and growth of the Company and any parent, subsidiary or
affiliate of the Company. 
 This Agreement evidences an option grant as follows: 
  

			
	 Granted to:
	 	
		
	 Number of Shares:
	 	
		
	 Date of Grant:
	 	
		
	 Expiration Date:
	 	
		
	 Exercise Price Per Share:
	 	
		
	 Vesting Start Date:
	 	
		
	 Vesting Dates:
	 	

 Pursuant to the provisions of the Plan, the Board of Directors of the Company (the
“Board”) or a Committee designated by the Board (the “Committee”) has full power and authority to direct the execution and delivery of this Agreement in the name and on behalf of the Company. The Board
or the Committee authorized the execution and delivery of this Agreement. All capitalized terms not otherwise defined in this Agreement have the same meaning given such capitalized terms in the Plan. 
 Agreement 
 The parties agree as
follows: 
 Section 1. Grant of Stock Option; Term. Subject and pursuant to all terms and conditions
stated in this Agreement and in the Plan, the Company hereby grants to Grantee an option (the “Option”) to purchase the number of shares of the Company’s common stock, par value $0.001 per share (the “Common
Shares”), set forth above (the “Option Shares” or the “Option to Purchase”), at the grant price per share set forth above. Except as otherwise provided in this Agreement or the Plan,
unless otherwise determined by the Committee the Option may not be exercised after the earlier of (i) the close of business on the grant expiration date set forth above and (ii) consummation of a Change of Control. If a Change of Control
is consummated, in connection with the termination of the Option the Committee, in its sole discretion, may provide for the (i) payment of an amount (in cash or, in the discretion of the Committee, in the form of consideration paid to the
Company shareholders in connection with the Change of Control) equal to the excess, if any, of the Fair Market Value of the vested but unexercised Option Shares over the aggregate grant price of such Option Shares, and/or (ii) issuance of
substitute Awards for the vested but unexercised portion of the Option. 
 For purposes of this Agreement, a “Change of
Control” shall include any of the following: (i) any merger, consolidation or business combination in which the shareholders of the Company immediately prior to the merger, 

 
consolidation or business combination do not own at least a majority of the outstanding equity interests of the surviving parent entity; (ii) the sale
of all or substantially all of the Company’s assets; (iii) the acquisition of beneficial ownership or control of (including, without limitation, power to vote) a majority of the outstanding common stock of the Company by any person or
entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange Act); (iv) the dissolution or liquidation of the Company; (v) a contested election of directors, as a result of which or in connection with
which the persons who were directors of the Company before such election or their nominees cease to constitute a majority of the Board; or (vi) any other event specified by the Board. Notwithstanding the forgoing, no transaction shall be
considered to have effected a Change of Control if (i) twenty percent (20%) of the equity interests of the surviving parent entity is owned directly or indirectly by D. E. Shaw Laminar Acquisition Holdings 3, L.L.C. or any of its
affiliates or (ii) entities controlled by D. E. Shaw Laminar Acquisition Holdings 3, L.L.C. or any its affiliates have the right to appoint a majority of the board of directors of the surviving parent entity. 
 Grantee hereby accepts the Option on such terms and conditions, including, without limitation, the confidentiality provisions set forth in Section 8
of this Agreement. The Option is an [Incentive][Nonqualified] Stock Option (as such term is defined in the Plan). Grantee shall, subject to the limitations of this Agreement and the Plan, have the right to exercise the Option by purchasing all or
any part of the vested Option Shares then available for purchase under the vesting schedule set forth above (less any Option Shares previously purchased upon exercise of this Option). 
 Section 2. Procedures for Exercise. In order to exercise all or any part of the Option, Grantee shall deliver to the
Company: (i) written notice of the number of vested Option Shares to be purchased, (ii) payment of the grant price of such Option Shares in the form of cash or, if permitted by the Committee: (A) qualified Common Shares, (B) the
surrender of another outstanding Award under the Plan (C) if there is a public market for the Common Shares at such time, subject to such rules as may be established by the Committee, through delivery of irrevocable instructions to a broker to
sell the Common Shares otherwise deliverable upon the exercise of the Option and deliver promptly to the Company an amount equal to the aggregate grant price payable for the Option Shares or (D) any combination thereof, and (iii) payment
of any required withholding pursuant to Section 5. The Option shall be deemed to have been exercised as of (i) the close of business on the date the required documents and required consideration are received by the Company or, (ii) if
the exercise of the Option occurs in connection with a Change of Control, then immediately prior to the consummation of the Change of Control, provided the required documents and required consideration are received by the Company at or prior to the
consummation of the Change of Control. For purposes of this Section 2, Common Shares shall be deemed to be “qualified” Common Shares if they have been held by Grantee for six months or such other period as set from time to time by the
Board or the Committee. If Grantee disposes of Common Shares acquired upon the exercise of an Incentive Stock Option either (i) within two years after the date of grant of such Incentive Stock Option or (ii) within one year after the
transfer of such Common Shares to the Grantee, then Grantee shall notify the Company of such disposition and of the amount realized upon such disposition. 
 Section 3. Termination of Employment, Retirement, Disability or Death. 
 (a) Vesting shall cease on the date Grantee ceases to be employed by the Company and shall be tolled during any period in which Grantee is on an approved leave of absence from employment with the Company. Following
Grantee’s last day of employment by the Company, this Option shall only be exercisable for the number of Option Shares that are vested as of Grantee’s last day of employment by the Company (less any Option Shares previously acquired upon
exercise of this Option). 
 (b) Except as provided in Section 3(c) or 3(d), following Grantee’s last day of
employment by the Company, this Option may be exercised at any time and from time to time within the lesser of (i) the thirty (30) day period commencing on the first day after Grantee’s last day of employment by the Company or
(ii) the remaining term of the Option. 
  

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 (c) If termination of employment occurs due to death or disability while Grantee is an
employee of the Company, then this Option may be exercised at any time and from time to time within the lesser of (i) the one (1) year period commencing on the first day after Grantee’s last day of employment by the Company or
(ii) the remaining term of the Option. 
 (d) If termination of employment occurs due to retirement at or after normal
retirement age, as prescribed from time to time by the Company’s retirement policy, or retirement under circumstances approved by the Committee (either before or after retirement), then this Option may be exercised at any time within the lesser
of (i) the three (3) month period commencing on the first day after Grantee’s last day of employment by the Company, or, if Grantee dies during the three (3) month period commencing on the first day after Grantee’s last day
of employment by the Company, then the one (1) year period commencing on the first day after Grantee’s last day of employment by the Company, or (ii) the remaining term of the Option. 
 Section 4. Issuance and Delivery of Option Shares; Rights as a Stockholder. The stock certificate(s) representing
Option Shares shall be issued to Grantee subject to satisfaction of the applicable tax withholding requirements set forth in Section 5. The Company shall not issue stock certificate(s) representing Option Shares if the administrator of the Plan
or its authorized agent determines, in its sole discretion, that the issuance of such certificate(s) would violate the terms of the Plan, this Agreement or applicable law. Except as otherwise provided in the Plan, no person shall be, or have any of
the rights or privileges of, a shareholder of the Company with respect to any of the Option Shares unless and until certificates representing such shares shall have been issued and delivered to such person. 
 Section 5. Income Taxes. Grantee acknowledges that any income for federal, state or local income tax purposes that
Grantee is required to recognize on account of the grant, vesting and/or exercise of the Option shall be subject to withholding of tax by the Company. Grantee agrees that the Company may either withhold an appropriate amount from any compensation or
any other payment of any kind then payable or that may become payable to Grantee, or require Grantee to make a cash payment to the Company equal to the amount of withholding required in the opinion of the Company. In the event Grantee does not make
such payment when requested, the Company may refuse to issue or cause to be delivered any shares under this Agreement or any other incentive plan agreement entered into by Grantee and the Company until such payment has been made or arrangements for
such payment satisfactory to the Company have been made. Grantee agrees further to notify the Company promptly if Grantee files an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to any Option
Shares. 
 Section 6. Rights as a Grantee. Neither the Plan nor this Agreement shall be deemed to give
Grantee any right to continue to be employed by the Company, nor shall the Plan or the Agreement be deemed to limit in any way the Company’s right to terminate the employment of the Grantee at any time. 
 Section 7. Further Assistance. Grantee will provide assistance reasonably requested by the Company in connection
with actions taken by Grantee while employed by the Company, including but not limited to assistance in connection with any lawsuits or other claims against the Company arising from events during the period in which Grantee was employed. 

Section 8. Confidentiality. Grantee acknowledges that the businesses of the Company is highly competitive and that
the Company’s strategies, methods, books, records, and documents, technical information concerning their products, equipment, services, and processes, procurement procedures and pricing techniques, the names of and other information (such as
credit and financial data) concerning former, present or prospective customers and business affiliates, all comprise confidential business information and trade secrets which are valuable, special, and unique assets which the Company uses in its
business to obtain a competitive advantage over competitors. Grantee further acknowledges that protection of such confidential business information and trade 

  

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secrets against unauthorized disclosure and use is of critical importance to the Company in maintaining its competitive position. Grantee acknowledges that
by reason of Grantee’s duties to and association with the Company, Grantee has had and will have access to and has and will become informed of confidential business information which is a competitive asset of the Company. Grantee hereby agrees
that Grantee will not, at any time during or after employment, make any unauthorized disclosure of any confidential business information or trade secrets of the Company, or make any use thereof, except in the carrying out of employment
responsibilities. Grantee shall take all necessary and appropriate steps to safeguard confidential business information and protect it against disclosure, misappropriation, misuse, loss and theft. Confidential business information shall not include
information in the public domain (but only if the same becomes part of the public domain through a means other than a disclosure prohibited hereunder). The above notwithstanding, a disclosure shall not be unauthorized if (i) it is required by
law or by a court of competent jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which Grantee’s legal rights and obligations as an employee or under this Agreement are
at issue; provided, however, that Grantee shall, to the extent practicable and lawful in any such events, give prior notice to the Company of Grantee’s intent to disclose any such confidential business information in such context so as to allow
the Company an opportunity (which Grantee will not oppose) to obtain such protective orders or similar relief with respect thereto as may be deemed appropriate. Any information not specifically related to the Company would not be considered
confidential to the Company. 
 Section 9. Securities Laws. Grantee acknowledges that applicable
securities laws may restrict the right and govern the manner in which Grantee may dispose of the Option Shares obtained upon exercise of the Option and Grantee agrees not to offer, sell or otherwise dispose of any such shares in a manner that would
violate the Securities Act of 1933, as amended, or any other federal or state law. 
 Section 10. Prohibition on
Transfer or Assignment. Except as provided in the Plan, neither this Agreement nor the Option may be transferred or assigned, other than an assignment by will or by laws of descent and distribution, and this Option shall be exercisable
during the Grantee’s lifetime only by Grantee or by such permitted assignee. 
 Section 11. Binding Effect; No
Third Party Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the Company and Grantee and their respective heirs, representatives, successors and permitted assigns. This Agreement shall not confer any
rights or remedies upon any person other than the Company and the Grantee and their respective heirs, representatives, successors and permitted assigns. The parties agree that this Agreement shall survive the exercise or termination of the Option.

 Section 12. Agreement to Abide by Plan; Conflict between Plan and Agreement. The Plan is hereby
incorporated by reference into this Agreement and made a part hereof as though fully set forth in this Agreement. Grantee, by execution of this Agreement, (i) represents that Grantee is familiar with the terms and provisions of the Plan and
(ii) agrees to abide by all of the terms and conditions of this Agreement and the Plan. Grantee accepts as binding, conclusive and final all decisions or interpretations of the administrator of the Plan upon any question arising under the Plan
and this Agreement (including, without limitation, the cause of any termination of Grantee’s employment with the Company). In the event of any conflict between the Plan and this Agreement, the Plan shall control and this Agreement shall be
deemed to be modified accordingly. 
 Section 13. Entire Agreement. This Agreement constitutes the entire
agreement between the parties and supersedes any prior understandings, agreements, or representations by or between the parties, written or oral, to the extent they related in any way to the subject matter of this Agreement. 
 Section 14. Choice of Law. To the extent not superseded by federal law, the laws of the state of Colorado (without
regard to the conflicts laws of Colorado) shall control in all matters relating to this Agreement and any action relating to this Agreement must be brought in State and Federal Courts located in the state of Colorado. 
  

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 Section 15. Notice. All notices, requests, demands, claims, and other
communications under this Agreement shall be in writing. Any notice, request, demand, claim, or other communication under this Agreement shall be deemed duly given if (and then two business days after) it is sent by registered or certified mail,
return receipt requested, postage prepaid, and addressed to the intended recipient at the address set forth below the recipient’s signature to this Agreement. Either party to this Agreement may send any notice, request, demand, claim, or other
communication under this Agreement to the intended recipient at such address using any other means (including personal delivery, expedited courier, messenger service, telecopy, ordinary mail, or electronic mail), but no such notice, request, demand,
claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Either party to this Agreement may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other party notice in the manner set forth in this section. 
 Section 16. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

  

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 EXECUTED as of the date of grant set forth above. 
  

							
	THE PARENT COMPANY	    	GRANTEE
			
	By	 	  
	    	  

		 	{Name and Title}	    	{Employee’s name}

  

											
						
	Address:	  	  
	  		  	Address:	  	  
	  	
		  	  
	  		  		  	  
	  	
		  	  
	  		  		  		  	
		  	Attn.: Stock Option Administration	  		  	Social Security No.
                                        
            

  

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