Document:

Exhibit 10.2

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN
THIS EXHIBIT, MARKED BY [***], HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(b)(10) BECAUSE IT IS NOT MATERIAL AND WOULD
LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.

 

AMENDMENT NO. 1 TO 

LOAN AND SECURITY AGREEMENT

 

This AMENDMENT NO. 1 TO LOAN
AND SECURITY AGREEMENT (this “Amendment”) is dated as of March 16, 2022 by and among SUMMER INFANT, INC.
(the “Company”) and SUMMER INFANT (USA), INC. (together with the Company, “Borrowers”),
the guarantors from time to time party to the Loan Agreement referenced below (“Guarantors”, and together with Borrowers,
 “Obligors”), the financial institutions from time to time party thereto as lenders (“Lenders”) and
WYNNEFIELD CAPITAL, INC., in as agent and security trustee for the Lenders (“Agent”).

 

R E C I T A L S:

 

WHEREAS, Obligors, Lenders
and Agent have previously entered into that certain Loan and Security Agreement dated as of January 28, 2022 (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), pursuant to which
Agent and Lenders have made certain loans and financial accommodations available to Borrowers;

 

WHEREAS, pursuant to Section 10.1.2(a) of
the Loan Agreement, Obligors are required to deliver to Agent and Lenders, as soon as available, and in any event within 90 days after
the close of each Fiscal Year, Obligors’ consolidated and consolidating financial statements, which consolidated financial statements
are required to be audited and certified without qualification (except to the extent any qualification results solely from a current maturity
of any Indebtedness);

 

WHEREAS, Obligors have advised
Agent and Lenders that Obligors’ auditors may include a qualification in their audit and certification of Obligors’ financial
statements for the fiscal year ended January 1, 2022 (the “2021 Financial Statements”);

 

WHEREAS, Obligors have requested
that Agent and Lenders waive the requirement that the audit and certification with respect to the 2021 Financial Statement be unqualified;

 

WHEREAS, Obligors have also
requested that Agent and Lenders amend certain provisions of the Loan Agreement and provide certain other accommodations to Borrowers;

 

WHEREAS, notwithstanding that
Agent and Lenders are under no obligation to amend the Loan Agreement, Agent and Lenders are willing to make certain additional financial
accommodations as requested by Obligors, such that Obligors, Agent and Lenders have agreed to amend the Loan Agreement on the terms and
subject to satisfaction of the conditions set forth in this Amendment; and

 

WHEREAS, each Obligor is entering
into this Amendment with the understanding and agreement that, except as specifically provided herein, none of Agent’s or any Lender’s
rights or remedies as set forth in the Loan Agreement and the other Loan Documents are being waived or modified by the terms of this Amendment.

 

    

     

    

 

NOW, THEREFORE, for and in
consideration of the premises and mutual agreements and covenants herein contained and for the purposes of setting forth the terms and
conditions of this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties, intending to be bound, hereby agree as follows:

 

1.            Capitalized
Terms. Capitalized terms used herein which are defined in the Loan Agreement have the same meanings herein as therein, except
to the extent such terms are amended hereby.

 

2.            Acknowledgements
and Stipulations. To induce Agent and Lenders to enter into this Amendment, each Obligor acknowledges, stipulates and agrees that:

 

(a)            Recitals
True and Correct. Each of the Recitals contained at the beginning of this Amendment is true and correct;

 

(b)            Obligations
Outstanding. Obligors hereby acknowledge and agree that, in accordance with the terms and conditions of the Loan Documents, each Obligor
is liable to Agent and Lenders for all of the Obligations, including, without limitation, (a) for all principal and accrued interest
owed under the Loan Documents, whether now due or hereafter accruing; and (b) for all fees, and all Extraordinary Expenses (including
reasonable attorneys’ fees and expenses) heretofore or hereafter incurred by Agent and/or any Lender in connection with the protection,
preservation, and enforcement by Agent and Lenders of its/their rights and remedies under the Loan Documents and/or this Amendment, including,
without limitation, the negotiation and preparation of this Amendment, and any of the other documents, instruments or agreements executed
in connection therewith;

 

(c)            No
Defense or Counterclaim. All of the Loans and other Obligations are not subject to any defense, deduction, offset or counterclaim
by Obligors to Lenders (and, to the extent any Obligor had any such defense, deduction, offset or counterclaim on the date hereof, the
same is hereby waived by each such Obligor in accordance with Section 6 below);

 

(d)            Loan
Documents Binding and Enforceable. The Loan Documents executed by Obligors are legal, valid and binding obligations enforceable against
each Obligor in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally;

 

(e)            Liens
Valid. The Liens granted by Obligors to Agent, for the benefit of itself and the Lenders, in the Collateral are valid and duly perfected,
first-priority liens, subject to any Permitted Liens and the Liens of the First Lien Agent to the extent provided in the Intercreditor
Agreement;

 

(f)            Security
Interest Ratification. Each Obligor hereby ratifies, confirms and reaffirms that all security interests and Liens granted pursuant
to the Loan Documents secure and shall continue to secure the payment and performance of all of the Obligations and liabilities pursuant
to the Loan Documents, whether now existing or hereafter arising; and

 

(g)            Legal
Counsel. Prior to executing this Amendment, Obligors consulted with and had the benefit of advice of legal counsel of their own selection
and have relied upon the advice of such counsel, and in no part upon the representations of Agent or Lenders, or any counsel to Agent
or Lenders, concerning the legal effects of this Amendment or any provision hereof.

 

    2

     

    

 

3.            Waiver
with respect to 2021 Financial Statements. Subject to the satisfaction of the terms and conditions set forth in this Amendment,
Agent and Lenders waive the requirement under Section 10.1.2(a) of the Loan Agreement that the audit and certification
with respect to the 2021 Financial Statements be without qualification. Obligors hereby acknowledge and agree that (x) the foregoing
waiver is limited solely to Obligors’ requirement under Section 10.1.2(a) of the Loan Agreement that the audit
and certification with respect to the 2021 Financial Statements be without qualification, and (y) nothing herein shall be construed
as a waiver of any other provision of the Loan Agreement.

 

4.            Amendments
to the Loan Agreement. Subject to the satisfaction of the terms and conditions set forth in this Amendment, Obligors, Lenders
and Agent agree that the Loan Agreement be, and it is hereby is, amended as follows:

 

(a)            Amendment
to Definition of EBITDA. The definition of “EBITDA” in the Loan Agreement permits the Company and its Subsidiaries to
add back to EBITDA certain fees and expenses of advisors and independent consultants subject to certain dollar caps set forth in such
definition. Obligors have advised Agent and the Lenders that Obligors have incurred, and expect to continue to incur, fees and expenses
for services performed and to be performed by advisors (including legal counsel) and independent consultants in excess of the dollar caps
set forth in the definition of EBITDA. At the request of Obligors, notwithstanding anything to the contrary set forth in the Loan Agreement,
Agent and Lenders hereby consent to the Company and its Subsidiaries adding back to EBITDA, in addition to those amounts currently permitted
to be added back to EBITDA, additional costs and expenses of advisors (including legal counsel) and independent consultants incurred during
the period from January 1, 2022 through July 2, 2022 in an aggregate amount not to exceed $1,000,000.

 

(b)            Amendment
to Section 10.3.1. Section 10.3.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

 

10.3.1. Fixed Charge Coverage RatioObligors
and their Subsidiaries shall maintain a Fixed Charge Coverage Ratio as of ‎the last day of each Fiscal Month, commencing January 28,
2023, for each period ‎of twelve consecutive Fiscal Months then most recently ended, of at least 0.80 to ‎‎1.00.‎

 

(c)  Amendment
to Section 10.3.2. Section 10.3.2 of the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

 

10.3.2. Minimum AvailabilityObligors
and their Subsidiaries shall maintain Availability at all times of at least $2,800,000.‎

 

(d)            Amendment
to Section 10.3.3. Section 10.3.3 of the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

 

10.3.3            Minimum
EBITDA. Obligors and their Subsidiaries shall achieve EBITDA for each ‎Applicable Period set ‎forth below of not less than
the Minimum EBITDA ‎amount set forth below opposite ‎such Applicable Period:‎

 

	Applicable Period	 	Minimum
EBITDA
	Three Fiscal Months ending April 2, 2022	 	[***]
	Four Fiscal Months ending April 30, 2022	 	[***]
	Five Fiscal Months ending May 28, 2022	 	[***]
	Six Fiscal Months ending July 2, 2022	 	[***]
	Seven Fiscal Months ending July 30, 2022	 	[***]
	Eight Fiscal Months ending August 27, 2022	 	[***]
	Nine Fiscal Months ending October 1, 2022	 	[***]
	Ten Fiscal Months ending October 29, 2022	 	[***]
	Eleven Fiscal Months ending November 26, 2022    	 	[***]
	Twelve Fiscal Months ending December 31, 2022	 	[***]

 

    3

     

    

 

5.            [Reserved].

 

6.            No
Default; Representations and Warranties, Etc. Obligors hereby represent, warrant and confirm that: (a) after giving effect
to this Amendment, all representations and warranties of Obligors in the Loan Agreement and the other Loan Documents are true and correct
in all material respects (without duplication of any materiality qualifier contained therein) on and as of the date hereof as if made
on such date (except to the extent that such representations and warranties expressly relate to or are stated to have been made as of
an earlier date, in which case, such representations and warranties shall be true and correct in all material respects (without duplication
of any materiality qualifier contained therein) as of such earlier date); (b) after giving effect to this Amendment, no Default or
Event of Default has occurred and is continuing; and (c) the execution, delivery and performance by Obligors of this Amendment and
all other documents, instruments and agreements executed and delivered in connection herewith or therewith (i) have been duly authorized
by all necessary action on the part of Obligors (including any necessary shareholder consents or approvals), (ii) do not violate,
conflict with or result in a default under and will not violate or conflict with or result in a default under any applicable law or regulation,
any term or provision of the organizational documents of any Obligor or any term or provision of any material indenture, agreement or
other instrument binding on any Obligor or any of its assets, and (iii) do not require the consent of any Person which has not been
obtained.

 

7.            Ratification
and Confirmation. Obligors hereby ratify and confirm all of the terms and provisions of the Loan Agreement and the other Loan
Documents and agree that all of such terms and provisions, as amended hereby, remain in full force and effect. Without limiting the generality
of the foregoing, Obligors hereby acknowledge and confirm that all of the “Obligations” under and as defined in the Loan Agreement
are valid and enforceable and are secured by and entitled to the benefits of the Loan Agreement and the other Loan Documents, and Obligors
hereby ratify and confirm the grant of the liens and security interests in the Collateral in favor of Agent, for the benefit of itself
and Lenders, pursuant to the Loan Agreement and the other Loan Documents, as security for the Obligations.

 

8.            Waiver;
Release. To induce Agent and Lenders to enter into this Amendment, including providing the waivers provided for herein, and for
other good and valuable consideration, each Obligor hereby forever waives, relieves, releases, and forever discharges Agent and Lenders,
together with its respective present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from
any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses, actions and causes of action,
of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent,
arising out of or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims, or by reason
of any matter, cause or anything whatsoever existing or arising from the beginning of time through and including the date of execution
of this Amendment relating to or arising out of the Loan Agreement and any of the Loan Documents or otherwise, including, without limitation,
any actual or alleged act or omission of or on behalf of Agent and/or Lenders with respect to the Loan Documents and any security interest,
Liens or Collateral in connection therewith, or the enforcement of any of Agent’s and/or Lenders’ rights or remedies thereunder
(collectively “Released Claims”). Without limiting the foregoing, the Released Claims shall include any and all liabilities
or claims arising out of or in any manner whatsoever connected with or related to the Loan Agreement and the other Loan Documents, this
Amendment, the Recitals hereto, any instruments, agreements or documents executed in connection with any of the foregoing, and/or the
origination, negotiation, administration, servicing and/or enforcement of any of the foregoing.

 

(a)            By
entering into this release, each Obligor recognizes that no facts or representations are ever absolutely certain and it may hereafter
discover facts in addition to or different from those which it presently knows or believes to be true, but that it is the intention of
each Obligor hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown, suspected
or unsuspected; accordingly, if any Obligor should subsequently discover that any fact that it relied upon in entering into this release
was untrue, or that any understanding of the facts was incorrect, no Obligor shall be entitled to set aside this release by reason thereof,
regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Each Obligor acknowledges that it is not relying
upon and has not relied upon any representation or statement made by Agent or Lenders with respect to the facts underlying this release
or with regard to any of such party’s rights or asserted rights.

 

    4

     

    

 

(b)            This
release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding
that may be instituted, prosecuted or attempted in breach of this release. Each Obligor acknowledges that the release(s) contained
herein constitute(s) a material inducement to Agent and Lenders to enter into this Amendment, and that Agent and Lenders would not
have done so but for Agent’s and Lenders’ expectation that such release(s) is valid and enforceable in all events.

 

(c)            Each
Obligor hereby represents and warrants to Agent and Lenders, and Agent and Lenders are relying thereon, as follows:

 

i.            Except
as expressly stated in this Amendment, neither Agent nor any Lender nor any other agent, employee or representative of Agent and/or Lenders,
has made any statement or representation to any Obligor regarding any fact relied upon by such Obligor in entering into this Amendment;

 

ii.            Each
Obligor has made such investigation of the facts pertaining to this Amendment and all of the matters appertaining thereto, as it deems
necessary;

 

iii.            The
terms of this Amendment are contractual and not a mere recital; and

 

iv.            This
Amendment has been carefully read by each Obligor, the contents hereof are known and understood by each such Obligor, and this Amendment
is signed freely, and without duress, by each such Obligor.

 

(d)            Each
Obligor further represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and
every other matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer,
to any person, firm or entity any claims or other matters herein released. Each Obligor shall indemnify Agent and Lenders, and defend
and hold it/them harmless from and against all claims based upon, or arising in connection with, prior assignments or purported assignments
or transfers of any claims or matters released herein.

 

    5

     

    

 

9.            Expenses
of Agent and Lenders. Borrowers agree to pay, on demand, all reasonable costs and expenses incurred by Agent and Lenders in connection
with the preparation, negotiation and execution of this Amendment and any other Loan Documents executed pursuant hereto and any and all
agreements, amendments, modifications, and supplements to the Loan Agreement, including, without limitation, the reasonable fees of Agent’s
and Lenders’ legal counsel and any taxes or expenses associated with or incurred in connection with any instrument or agreement
referred to herein or contemplated hereby. Each Borrower acknowledges that Agent and Lenders may charge any and all such reasonable fees,
costs and expenses to Borrowers’ loan account in accordance with the Loan Agreement, and Agent and Lenders agree to promptly provide
all invoices to Borrowers related to such fees, costs and expenses after charging the loan account therefor.

 

10.            Conditions
to Effectiveness of Amendment. This Amendment shall become effective as of the date when, and only when, each of the following
conditions precedent shall have been satisfied or waived in writing by Agent (such date being defined as the “Effective Date”):

 

(a)            Agent
shall have received counterparts to this Amendment, duly executed by Agent, Lenders and Obligors; and

 

(b)            Agent
shall have received a duly executed amendment to the First Lien Loan Agreement, in form and substance satisfactory to Agent, which amendment
shall become effective contemporaneous with this Amendment on the Effective Date.

 

11.            Reservation
of Rights. This Amendment shall be limited precisely as written and, except as expressly set forth herein, neither the fact of
Agent and Lenders’ agreement to enter into this Amendment nor any other term or provisions herein shall, or shall be deemed or construed
to, (i) be a consent to any forbearance, waiver, amendment or modification of any term, provision or condition of the Loan Documents,
(ii) affect, impair, operate as a waiver of, or prejudice any right, power or remedy which Agent and Lenders may now or hereafter
have pursuant to the Loan Documents or any other document, agreement, security agreement or instrument executed in connection with or
related to the Loan Documents, or at law or in equity or by statute including, without limitation, with regard to any existing or hereafter
arising Event of Default, (iii) impose upon Agent or Lenders any obligation, express or implied, to consent to any amendment or further
modification of the Loan Documents, or (iv) be a consent to any waiver of any existing Event of Default. Agent and Lenders hereby
expressly reserve all rights, powers and remedies specifically given to either of them under the Loan Documents or now or hereafter existing
at law, in equity or by statute.

 

12.            Miscellaneous.

 

(a)            Further
Assurances. Obligors shall take such further actions, and execute and deliver to Agent and Lenders such additional assignments,
agreements, supplements, powers and instruments, as Agent and/or Lenders may deem necessary or appropriate, wherever required by law,
in order to perfect, preserve and protect the security interest in the Collateral and the rights and interests granted to Agent and Lenders
under the Loan Agreement and the other Loan Documents, or to permit Agent and Lenders to exercise and enforce their rights, powers and
remedies with respect to any Collateral. Without limiting the generality of the foregoing, but subject to applicable law, Obligors shall
make, execute, endorse, acknowledge, file or refile and/or deliver to Agent from time to time upon request such lists, descriptions and
designations of the Collateral, copies of warehouse receipts, receipts in the nature of warehouse receipts, bills of lading, documents
of title, vouchers, invoices, schedules, confirmatory assignments, supplements, additional security agreements, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, reports, and other assurances or instruments.

 

    6

     

    

 

(b)            Full
Force and Effect; Entire Agreement. Except to the extent expressly provided in this Amendment, the terms and conditions of the
Loan Agreement and each other Loan Document shall remain in full force and effect. This Amendment, the Loan Agreement and the other Loan
Documents constitute and contain the entire agreement of the parties hereto and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications between the parties, whether written or oral, respecting the subject matter hereof.

 

(c)            Non-Waiver.
Except as specifically provided herein, none of this Amendment or Agent’s and/or any Lender’s continued making of Loans or
other extensions of credit at any time extended to Borrowers in accordance with this Amendment, the Loan Agreement, and the other Loan
Documents shall be deemed a waiver of or consent to any Default or Event of Default. Obligors agree that any such Default and/or Event
of Default, if any, shall not be deemed to have been waived, released or cured by virtue of Loans or other extensions of credit at any
time extended to Borrowers, or by Agent’s and/or Lenders’ agreements provided for herein. Nothing in this Amendment shall
restrict Agent’s or Lenders’ ability to take or refrain from taking or exercise any right that may exist under the Loan Documents.

 

(d)            Counterparts.
This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original,
but all such counterparts taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature
page to this Amendment by telecopier, pdf or by other electronic means acceptable to Agent (including, without limitation, by electronic
signature to the extent acceptable to Agent) shall be equally as effective as delivery of an original, manually executed, counterpart.
Any party delivering an executed counterpart of a signature page to this Amendment by telecopier, pdf or other electronic means (including
by electronic signature) shall also deliver an original executed counterpart of this Amendment but the failure to deliver an original
executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

 

(e)            No
Third Parties Benefited. This Amendment is made and entered into for the sole benefit
of Obligors, Agent and the Lenders, and their permitted successors and assigns, and except as otherwise expressly provided in this Amendment,
no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection
with, this Amendment.

 

(f)            Governing
Law. THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER
IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF
(BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

(g)            Severability.
In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

(h)            Jury
Trial Waiver. BORROWERS, GUARANTORS, AGENT AND LENDERS EACH HEREBY WAIVE ANY RIGHT
TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES TO THIS AMENDMENT IN RESPECT OF THIS AMENDMENT OR THE OTHER
LOAN DOCUMENTS OR THE RELATED TRANSACTIONS, INCLUDING, WITHOUT LIMITATION, THE OBLIGATIONS OF BORROWERS, THE COLLATERAL, OR ANY INSTRUMENT
OR DOCUMENT DELIVERED PURSUANT TO THIS AMENDMENT, OR THE VALIDITY, PROTECTION, INTERPRETATION, ADMINISTRATION, COLLECTION OR ENFORCEMENT
OF THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS, WHETHER NOW EXISTING OR HEREAFTER ARISING, WHETHER IN CONTRACT, TORT, EQUITY OR
OTHERWISE. BORROWERS, GUARANTORS, AGENT AND LENDERS EACH HEREBY AGREES THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT SUCH OBLIGOR PARTY OR LENDERS MAY FILE AN ORIGINAL COUNTERPART OF THIS AMENDMENT
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO A TRIAL BY JURY.

 

(i)            Loan
Document. This Amendment shall be deemed to be a Loan Document for all purposes.

 

[Remainder of page intentionally left blank]

 

    7

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this Amendment, which shall be deemed to be a sealed instrument as of the date first above written.

 

	 	BORROWERS:
	 	 
	 	SUMMER INFANT, INC.
	 	 
	 	 
	 	By: 	/s/ Bruce Meier
	 	 	Name: 	Bruce Meier
	 	 	Title: 	Interim Chief Financial Officer
	 	 
	 	SUMMER INFANT (USA), INC.
	 	 
	 	 
	 	By: 	/s/ Bruce Meier
	 	 	Name: 	Bruce Meier
	 	 	Title:	 Chief Financial Officer

 

[Signature Page to
Amendment No. 1 to Loan and Security Agreement]

 

    

     

    

 

	 	AGENT:
	 	 
	 	WYNNEFIELD CAPITAL, INC.,as Agent
	 	 
	 	 
	 	By: 	/s/ Nelson Obus
	 	 	Name: 	Nelson Obus
	 	 	Title: 	President

 

	 	LENDERS:
	 	 
	 	WYNNEFIELD PARTNERS
    SMALL CAP VALUE, L.P I, as Lender
	 	 
	 	By: WYNNEFIELD
    CAPITAL MANAGEMENT, LLC, its General Partner
	 	 
	 	By:	/s/ Nelson Obus
	 	 	Name: Nelson Obus
	 	 	Title:	Co-Managing Member

 

	 	WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P,, as Lender
	 	 
	 	By: WYNNEFIELD CAPITAL MANAGEMENT, LLC, its General Partner
	 	 
	 	By:	 /s/ Nelson Obus
	 	 	Name: 	Nelson Obus
	 	 	Title:	 Co-Managing Member

 

[Signature Page to Amendment No. 1 to
Loan and Security Agreement]Exhibit 10.3

 

 

PROPRIETARY AND CONFIDENTIAL

 

Fourth Amendment to Engagement Letter

 

This Fourth Amendment (the “Fourth Amendment”)
is to the Interim Chief Executive Officer Services Engagement Letter, effective as of December 9, 2019 and amended on February 28,
2020, November 30, 2020 and January 3, 2022, between Riveron RTS, LLC (successor by merger to Winter Harbor LLC) (“Riveron”)
and Summer Infant, Inc and its various affiliates and subsidiaries (collectively the “Company”) (as amended, the “Original
Engagement Letter”).

 

The parties hereby agree to amend the Original Engagement
Letter as follows:

 

		1.	The section Services to Be Provided section is amended to add the following task:

 

“Act as principal executive and financial officer
in connection with the Agreement and Plan of Merger (the “Merger Agreement”) by and among Kids2, Inc., Project Abacus
Acquisition Corp., and Summer Infant, Inc. (the “Merger Entities”), including, without limitation, assistance with due
diligence in connection with the Merger Agreement, negotiation and implementation of the Merger Agreement, execution of the Merger Agreement
and related documents and execution of any required certifications.”

 

		2.	The section Fees and Expenses shall be amended to add the following:

 

“If, prior to or in connection with the termination
of this Agreement, the Company consummates a transaction constituting a “Change in Control” (as defined in the Company’s
Amended and Restated Change in Control Plan) (a “Sale Transaction”), the Company shall pay Riveron a success fee, payable
at closing of the Sale Transaction, based on the per share consideration received by holders of the Company’s common stock in the
Sale Transaction as set forth on the attached Schedule A.”

 

		3.	Sections 9(a) and 9(b). Indemnification
and Limitation of Liability, of the General Business Terms are hereby replaced with the Indemnification and Limitation of Liability on the attached Schedule B. Sections
                                                          9(c) through 9(h) shall remain in full force and effect.

 

		4.	Section 11. Termination, of the General Business Terms shall be amended to add the following
as paragraph (c), and existing paragraphs (c) and (d) shall be renumbered as paragraphs (d) and (e), respectively:

 

“(c)Termination upon Change in Control. Immediately
after the consummation of a Change in Control (as defined in the Company’s Amended and Restated Change in Control Plan), this Agreement
shall be automatically terminated without further action by the parties hereto. Upon and concurrently with the closing of the Sale Transaction,
the Company shall pay Riveron for all Services rendered and expenses incurred through the date of the consummation of the Change in Control
transaction.”

 

RIVERON │ 265 Franklin Street,
Suite 1004, Boston, MA 02110 │ RIVERON.COM

 

     

     

    

 

This Fourth Amendment shall be deemed effective upon the
execution of this Fourth Amendment by each of the parties below. For the avoidance of doubt, except to the extent expressly provided in
this Fourth Amendment, all of the terms and conditions of the Original Engagement Letter shall remain in full force and effect. Further,
for the avoidance of doubt, as provided in Section 11(d) of the Original Engagement Letter, upon termination of the Original
Engagement Letter, certain provisions of the Original Engagement Letter will remain in full force and effect, including, without limitation
the Indemnification and Limitation of Liability provisions of Section 9 of the General Business Terms.

 

The surviving terms of the Original Engagement Letter will
be binding on the Merger Entities and their affiliates and subsidiaries post-merger. This Fourth Amendment and the Original Engagement
Letter constitute and contain the entire agreement of the parties hereto and supersede any and all prior agreements, negotiations, correspondence,
undertakings and communications between the parties, whether written or oral, respecting the subject matter hereof.

 

	Riveron RTS, LLC	 	Summer Infant, Inc., on its own behalf and on behalf of its subsidiaries and affiliates
	 	 	 	 	 
	By: 	/s/ Stuart Noyes	 	By:	/s/ Mary Beth Schneider
	Name: 	Stuart Noyes	 	Name:	Mary Beth Schneider
	Title: 	Senior Managing Director	 	Title:	SVP, General Counsel
	Date:	March 16, 2022	 	Date:	March 16, 2022

 

 

     

     

    

 

SCHEDULE A

 

	Per Share Consideration*:	 	$	6.75	 	 	$	9.00	 	 	$	11.43	 	 	$	14.94	 	 	$	18.54	 	 	$	22.05	 	 	$	25.65	 
	Success Fee:	 	$	50,000	 	 	$	100,000	 	 	$	250,000	 	 	$	300,000	 	 	$	375,000	 	 	$	450,000	 	 	$	550,000	 

 

		*	Success Fee to be prorated (subject to maximum amount of $550,000 if the per share consideration exceeds $25.65).

 

 

     

     

    

 

SCHEDULE B

 

9.       Indemnification;
Limitations of Liability

 

		(a)	Indemnification. To the fullest extent permitted by applicable law, the Company agrees to indemnify,
hold harmless, and defend Riveron and certain related entities and persons as set forth in this Section 9. If Riveron or any of its
affiliates or any of their respective partners, members, officers, directors, managers, owners, shareholders, agents, employees or controlling
persons (collectively, the “Indemnified Persons” and each, an “Indemnified Person” and a “Riveron
Party”) becomes involved in any capacity in any claim, action, proceeding (including any objection to or proceeding involving
an Indemnified Person’s fees or expenses) or investigation (each an “Action”, or collectively, “Actions”)
brought by or against any person or entity, in any way related to the Agreement, the Company periodically will advance to the Indemnified
Person amounts necessary to pay such Indemnified Person’s reasonable out-of-pocket legal and other expenses (including the cost
of any investigation and preparation) incurred in connection with the Actions; provided, however, that if it is finally found (in a non-appealable
judgment) by a court of competent jurisdiction (a “Final Judgment”) that any loss, claim, judgment, damage or liability
(a “Loss”, or collectively, “Losses”) of an Indemnified Person has resulted primarily from the gross
negligence or willful misconduct of such Indemnified Person in performing the Services, such Indemnified Person shall repay such portion
of the advanced amounts, if any, that is attributable to expenses incurred in relation to the act or omission of such Indemnified Person
that is the subject of such Final Judgment. The Company also will indemnify and hold the Indemnified Persons harmless from and against
any Losses to which such Indemnified Person may become subject, that is related in any way to the Agreement, without regard to the exclusive
or contributory negligence of any Indemnified Person, except to the extent that it is finally found in a Final Judgment that a Loss resulted
primarily from the gross negligence or willful misconduct of the Indemnified Person in performing the Services. In addition, the Company
shall indemnify the Interim CEO and the Interim CFO to the same extent provided by the Company to its other officers and directors including
under any charter, by-laws, or indemnification agreement. The Company further agrees that it will not, without the prior consent of an
Indemnified Party, settle or compromise or consent to the entry of any judgment in any pending or threatened Action in respect of which
such Indemnified Person seeks indemnification hereunder (whether or not such Indemnified Person is an actual party to such proceeding)
unless such settlement, compromise or consent has a full unconditional release of such Indemnified Person from all liabilities arising
out of such claim, action or proceeding.

 

		(b)	Limitations of Liability. Neither Party shall be liable to the other for consequential, incidental,
indirect, punitive or special damages (including loss of profits, data, business or goodwill), regardless of the legal theory advanced
or of any notice given as to the likelihood of such damages, excluding only third party damages indemnifiable under Section 9(a)(if
any). The Riveron Parties shall not be liable to the Company, or any party asserting claims on behalf of the Company or otherwise, including,
without limitation, any of the Company’s equity holders, for any Loss except for direct damages found in a Final Judgment to be
the direct result of Riveron’s gross negligence or willful misconduct. The collective liability of the Riveron Parties, if any,
in relation to the Agreement or the Services shall be limited in amount to the fees actually paid to Riveron by the Company for the Services.
The parties acknowledge that the limitations set forth above are integral to the amount of fees charged in connection with the Services,
and that were Riveron to assume any further liability, such fees would of necessity be set substantially higher.

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