Document:

Registration Rights Agreement

 EXHIBIT 10.5 
 REGISTRATION RIGHTS AGREEMENT 
 BY
AND AMONG 
 THE PARENT COMPANY, 
 LAMINAR DIRECT CAPITAL, L.L.C. 
 AND 
 JOHN C. TEXTOR

 DATED 
 JULY 10, 2008 

 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this “Agreement”) is made and entered into as of July 10, 2008, by and among The Parent
Company, a Colorado corporation (the “Company”), and Laminar Direct Capital, L.L.C., a Delaware limited liability company (“LDC”), and John C. Textor, a resident of the State of Florida (“Textor”).

 This Agreement is made pursuant to the Investment Agreement, dated as of the date hereof by and among the Company, LDC, and the other
parties signatory thereto (the “Investment Agreement”), and in consideration of Textor’s execution and delivery of a personal guaranty in favor of LDC in connection therewith. 
 The Company, LDC and Textor hereby agree as follows: 
 1. Definitions 
 Capitalized terms used and not otherwise defined herein that are defined in the Investment Agreement shall
have the meanings given such terms in the Investment Agreement. As used in this Agreement, the following terms shall have the following meanings: 
 “Advice” shall have the meaning set forth in Section 7(d) hereof. 
 “Capital Stock” means the Company’s Common Stock and any other class of securities which the Company’s Common Stock is converted or reclassified into or any other securities created by the Company in the future.

 “Commission” means the Securities and Exchange Commission. 
 “Effectiveness Date” means (i) the 90th calendar day following the Closing Date, and, with respect to any additional Registration Statements which may be required pursuant to Section 3(b),
(ii) the 45th calendar day following the date on which the Company first knows, or reasonably should have known, that such additional
Registration Statement is required hereunder; provided, however, in the event the Company is notified by the Commission that one of the above Registration Statements will not be reviewed or is no longer subject to further review and
comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates required above. 
 “Effectiveness Period” shall have the meaning set forth in Section 2(a) hereof. 
 “Event” shall have the meaning set forth in Section 2(b) hereof. 
 “Event Date” shall have the meaning set forth in Section 2(b) hereof. 
 “Filing Date” means the 45th calendar day following the Closing Date and, with respect to any additional Registration Statements which may be required pursuant to Section 3(b), the 10th day following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement is required hereunder.

  

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 “Holder” or “Holders” means the holder or holders, as
the case may be, from time to time of Registrable Securities. 
 “Indemnified Party” shall have the meaning
set forth in Section 5(c) hereof. 
 “Indemnifying Party” shall have the meaning set forth in
Section 5(c) hereof. 
 “Losses” shall have the meaning set forth in Section 5(a)
hereof. 
 “Proceeding” shall mean any threatened, pending or completed claim, action, suit, arbitration,
alternate dispute resolution process, investigation, administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal or informal, including a proceeding initiated by an Indemnified
Party pursuant to Section 5 hereof to enforce such Indemnified Party’s rights hereunder. 
 “Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a
Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
 “Registrable Securities” means (i) any Capital Stock issued or issuable to LDC or Textor pursuant to any Warrant
(ii) any Capital Stock issued or issuable with respect to the Capital Stock referred to in clause (i) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or
other reorganization and (iii) all other shares of Capital Stock held by (or issued pursuant to clause (ii) above, to) LDC, Textor and each entity controlled by Textor. 
 “Registration Statement” means the registration statements required to be filed hereunder and any additional registration
statements contemplated by Section 3(b), including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
 “Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and
effect as such Rule. 
 “Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 
 “Trading Day” means, a day on which the Company’s Common Stock is traded on the Principal Market. 
 “Warrant” means any of: (i) the common stock purchase warrant, of even date herewith, issued by the Company to LDC,
initially to acquire 12.0% of the Company’s Common Stock on a fully-diluted basis; and (ii) each of the two common stock purchase warrants, of even date herewith, issued by the Company to Textor, initially to acquire an aggregate of
300,000 shares of the Company’s Common Stock. 
  

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 2. Shelf Registration 
 (a) On or prior to each Filing Date, the Company shall prepare and file with the Commission a “Shelf” Registration Statement
covering the resale of the Registrable Securities outstanding on such Filing Date for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3 (unless the Company is not then eligible to
register the Registrable Securities for resale on Form S-3, in which case such registration shall be on another appropriate form in accordance herewith) and shall contain (unless otherwise directed by the Holders and except to the extent the Company
determines that modifications thereto are required under applicable law) substantially the “Plan of Distribution” attached hereto as Annex A. Subject to the terms of this Agreement, the Company shall use its best efforts to cause
the Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event prior to the applicable Effectiveness Date, and shall use its best efforts to keep such Registration
Statement continuously effective under the Securities Act until the date which is two years after the date that such Registration Statement is declared effective by the Commission or such earlier date when all Registrable Securities covered by such
Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s
transfer agent and the affected Holders (the “Effectiveness Period”). 
 (b) If: (i) a Registration
Statement is not filed on or prior to its Filing Date (if the Company files a Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a), the Company shall not be
deemed to have satisfied clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five Trading Days of the date that the Company is
notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be “reviewed,” or not subject to further review or (iii) prior to its Effectiveness Date, the Company fails to file a
pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement within 15 Trading Days after the receipt of comments by or notice from the Commission that such amendment is
required in order for a Registration Statement to be declared effective, or (iv) a Registration Statement filed or required to be filed hereunder is not declared effective by the Commission by its Effectiveness Date, or (v) after the
Effectiveness Date, a Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are not permitted to utilize the Prospectus therein to
resell such Registrable Securities for 5 consecutive Trading Days or in any individual case an aggregate of 15 Trading Days during any 12 month period (which need not be consecutive Trading Days) (any such failure or breach being referred to as an
“Event”, and for purposes of clause (i) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such five Trading Day period is exceeded, or for purposes of clause (iii) the
date on which such 15 Trading Day period is exceeded, or for purposes of clause (v) the date on which such 5 or 15 Trading Day period, as applicable, is exceeded, being referred to as “Event Date”), then, on each such Event
Date and every monthly anniversary thereof until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as liquidated damages and not as a penalty, equal to 2.0% per month of the product of (x) the Aggregate
Number (as defined in the applicable Warrant) multiplied by (y) the Exercise Price (as defined in the applicable Warrant). If the Company fails to pay any liquidated damages pursuant to this Section 2(b) in full within seven days
after the date payable, the 

  

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Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the
Holder, accruing daily from the date such liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The liquidated damages pursuant to the terms hereof shall apply on a pro-rata basis for any portion of a month
prior to the cure of an Event. 
 3. Registration Procedures 
 In connection with the Company’s registration obligations hereunder, the Company shall: 
 (a) Not less than five Trading Days prior to the filing of each Registration Statement or any related Prospectus or any amendment or
supplement thereto (excluding any document that would be incorporated or deemed incorporated therein by reference), (i) furnish to each Holder copies of all such documents proposed to be filed, which documents (other than those incorporated or
deemed to be incorporated by reference) will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective counsel to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file the Registration Statement or any such Prospectus or any amendments or supplements thereto to which
the Holders of a majority of the Registrable Securities shall reasonably and in good faith object, provided, the Company is notified of such objection in writing no later than 5 Trading Days after the Holders have been so furnished copies of such
documents. In the event of any such objection, the Filing Date and the Effectiveness Date shall be extended on a day by day basis until such objection has been resolved. 
 (b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional
Registration Statements as may be necessary in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement
(subject to the terms of this Agreement), and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible, and in any event within 15 Trading Days, to any comments received from the
Commission with respect to a Registration Statement or any amendment thereto and as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement;
and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance
(subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented. 
 (c) Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (ii) through (vi) hereof be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible (and, in the case of (i)(A) below, not less than five Trading Days prior to such filing) and (if
requested by any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the 

  

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Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto
to each of the Holders); and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement
ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a
Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (vi) the occurrence or existence of any pending corporate development with respect to the Company that
the Company believes may be material and that, in the determination of the Company, makes it not in the best interests of the Company to allow continued availability or the Registration Statement or Prospectus. 
 (d) Promptly deliver to each Holder, without charge, an electronic copy of the Prospectus or Prospectuses (including each form of
prospectus) and each amendment or supplement thereto. Filing on the Commission’s EDGAR system shall be deemed to satisfy such delivery requirement. Subject to the terms of this Agreement, the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 
 (e) Use commercially reasonable efforts to register or qualify the resale of such Registrable Securities as required under applicable
securities or Blue Sky laws of each State within the United States as any Holder requests in writing, and to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period; provided, that the Company
shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or subject the Company to any material tax in any such jurisdiction where it is not then so subject. 
 (f) Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be
delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted by the applicable Warrant, of all restrictive legends, and in such denominations and registered in such names as any such
Holders may request. 
 (g) Upon the occurrence of any event contemplated in Section 3(c)(ii)-(vi), as promptly as
reasonably possible, prepare a supplement or amendment including a post-effective amendment; to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement 

  

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of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (ii) through (v) of Section 3(c) above to suspend the use of any Prospectus until the requisite changes to such
Prospectus have been made, or the Company otherwise notifies the Holders of its election to suspend the availability of a Registration Statement and Prospectus pursuant to clause (vi) of Section 3(c), then the Holders shall suspend
use of such Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable, except that in the case of suspension of the availability of a Registration Statement and Prospectus
pursuant to clause (vi) of Section 3(c), the Company shall not be required to take such action until such time as it shall determine that the continued availability of the Registration Statement and Prospectus is no longer not in
the best interests of the Company. 
 (h) Comply with all applicable rules and regulations of the Commission. 
 (i) Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, (i) any order suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 
 (j) At any time prior to the third Trading Day prior to the Filing Date or the date by which the Company must respond to comments of the
Commission in accordance with the terms of this Agreement, require each Holder to furnish to the Company a statement as to the number of shares of the Company’s Common Stock beneficially owned by such Holder and, if requested by the Commission,
the controlling Person thereof, within three Trading days of the Company’s request. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities solely because
any Holder fails to furnish such information within three Trading Days of the Company’s request, any liquidated damages that are accruing at such time shall be tolled until such information is delivered to the Company. 
 4. Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by
the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings required to be made with the Principal Market, and (B) in compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as
requested by the Holders )); (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses requested by the Holders; (iii) messenger, telephone and delivery
expenses; (iv) fees and disbursements of counsel for the Company; and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition,
the Company shall be responsible for (i) all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder and
(ii) reasonable fees and expenses of one counsel to the Holders in connection with this Agreement. In no event shall the Company be responsible for any broker or similar commissions or, except to the extent provided for in the Transaction
Documents or other agreements between the parties, any legal fees or other costs of the Holders. 
  

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 5. Indemnification 
 (a) Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of the Company’s Common Stock),
investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of
each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and reasonable attorneys’ fees) and
expenses (collectively, “Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions or alleged untrue
statements or omissions are based upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto or
(2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(vi), such Holder used an outdated or defective Prospectus after the Company had notified such Holder in writing that the Prospectus was outdated or
defective and prior to the receipt by such Holder of the Advice contemplated in Section 7(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the
transactions contemplated by this Agreement of which the Company is aware. 
 (b) Indemnification by Holders. Each
Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses (as determined by a court of competent jurisdiction in a final judgment
not subject to appeal or review) arising out of or based upon any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising out of or
based upon: (i) such Holder’s failure to comply with the prospectus delivery requirements of the Securities Act or (ii) any omission of a material fact required to be stated therein or necessary to make the statements therein not
misleading to the extent, but only to the extent that (1) such untrue statements or omissions are based upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent such
information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or
such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in 

  

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Section 3(c)(ii)-(vi), such Holder used an outdated or defective Prospectus after the Company has notified such Holder in writing that the
Prospectus was outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 7(d). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the
net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 
 (c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the
Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this
Agreement, except (and only) to the extent that such failure shall have prejudiced the Indemnifying Party. 
 An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the
Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in
any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a material
conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate
counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the expense of one such counsel for each Holder shall be at the expense of the Indemnifying Party). The Indemnifying
Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such
Proceeding. 
 Subject to the terms of this Agreement, all fees and expenses of the Indemnified Party (including reasonable
fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 5(c)) shall be paid to the Indemnified Party, as incurred, within ten Trading
Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified
Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder). 
 (d) Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as
is 

  

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appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including
any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set
forth in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section were available to such party in accordance with its terms. 
 The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by
such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. 
 The indemnity and contribution agreements contained in this Section 5 are in addition to any
liability that the Indemnifying Parties may otherwise have to the Indemnified Parties. 
 6. Reporting. 
 (a) Reports Under The Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the
Securities Act or any other similar rule or regulation of the Commission that may at any time permit the Holders to sell securities of the Company to the public without registration (“Rule 144”), the Company shall use reasonable
efforts to: 
 (i) make and keep current public information available, as those terms are understood and defined in Rule 144;

 (ii) file with the Commission in a timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act; and 
 (iii) furnish to each Holder, so long as such Holder owns Registrable Securities,
promptly upon request, (A) a written statement by the Company, if true, that it has complied with the applicable reporting requirements of Rule 144, the Securities Act and the Exchange Act, (B) a copy of the most recent annual or quarterly
report of the Company and copies of such other reports and documents so filed by the Company, and (C) such other information as may be reasonably requested to permit the Holders to sell such securities pursuant to Rule 144 without registration.

 (b) Rule 144A Information. The Company shall, upon request of any Holder, make available to such Holder the
information required by Rule 144A(d)(4) (or any successor rule) under the Securities Act, if any. 
  

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 7. Miscellaneous. 
 (a) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and all of the Holders of the then outstanding Registrable Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions, hereof with respect to a matter that relates exclusively to the rights of certain Holders and that does not directly or indirectly affect the rights of other Holders
may be given by Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the
provisions of the immediately preceding sentence. 
 (b) No Inconsistent Agreements. Neither the Company nor any of its
Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights
granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Except as and to the extent specified in Schedule 7(b) hereto, neither the Company nor any of its Subsidiaries has previously entered into any
agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied in full. 
 (c) Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration
Statement. 
 (d) Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable Securities that,
upon receipt of a notice from the Company of the occurrence of any event of the kind described in Sections 3(c)(ii), (iii) or (vi), such Holder will forthwith discontinue disposition of such Registrable Securities under a
Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 3(g), or until it is advised in writing (the “Advice”) by
the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement. The Company may provide appropriate stop orders to enforce the provisions of this paragraph. The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the
Registrable Securities hereunder shall be subject to the provisions of Section 2(b). 
 (e) Piggy-Back
Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each Holder
written notice of such determination and, if within fifteen days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such
Holder requests to be 

  

 11 

 
registered; provided, that, the Company shall not be required to register any Registrable Securities pursuant to this Section 7(e) that are then
eligible for resale pursuant to Rule 144(b) promulgated under the Securities Act. 
 (f) Notices. Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in the applicable Warrant. 
 (g) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The
Company may not assign its rights or obligations hereunder without the prior written consent of all of the Holders of the then-outstanding Registrable Securities. Each Holder may assign its respective rights hereunder in the manner and to the
Persons as permitted under the applicable Warrant. 
 (h) Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature were the original thereof. 
 (i) Governing Law; Venue. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof or of any other jurisdiction. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE
PARTIES WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE CITY OF NEW YORK IN THE STATE OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES ACCEPTS, FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND IRREVOCABLY AGREES TO BE BOUND BY ANY FINAL JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT FROM WHICH NO
APPEAL HAS BEEN TAKEN OR IS AVAILABLE. EACH OF THE PARTIES IRREVOCABLY AGREES THAT ALL SERVICE OF PROCESS IN ANY SUCH PROCEEDINGS IN ANY SUCH COURT MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY
SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO IT AT ITS ADDRESS OR AT SUCH OTHER ADDRESS OF WHICH THE PARTIES SHALL HAVE BEEN NOTIFIED PURSUANT THERETO, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY THE PARTIES TO BE EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN ANY SUCH JURISDICTION. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE HOLDER TO BRING PROCEEDINGS AGAINST THE PARTIES IN THE COURT OF ANY OTHER
JURISDICTION. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by 

  

 12 

 
applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby. If any party shall commence a Proceeding to enforce any provisions of this Agreement, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred in
connection with the investigation, preparation and prosecution of such Proceeding. 
 (j) Cumulative Remedies. The
remedies provided herein are cumulative and not exclusive of any remedies provided by law. 
 (k) Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated thereby, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable. 
 (l) Headings. The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  

 13 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	COMPANY:
	THE PARENT COMPANY
		
	By:	 	 /s/ Barry Hollingsworth

	Name:	 	Barry Hollingsworth
	Title:	 	Chief Financial Officer
	
	LDC:
	LAMINAR DIRECT CAPITAL, L.L.C.
		
	By:	 	 /s/ Daniel Posner

	Name:	 	Daniel Posner
	Title:	 	Authorized Signatory
	
	TEXTOR:
		
	By:	 	 /s/ John C. Textor

		 	John C. Textor

  

 14Fourth Amendment to Amended and Restated Credit Agreement

 EXHIBIT 10.6 
 Execution Copy 
 FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of July 10, 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 “Administrative Agent”). 
 WHEREAS, The Parent
Company, a Colorado corporation (“Parent”), BabyUniverse, Inc., a Colorado corporation (“BabyUniverse”), eToys Direct, Inc., a Colorado corporation (“eToys Direct”), PoshTots, Inc, a Colorado
corporation (“PoshTots”), Dreamtime Baby, Inc., a Colorado corporation (“Dreamtime”), My Twinn, Inc., a Colorado corporation (“My Twinn”, and collectively with Parent, BabyUniverse, eToys Direct,
PoshTots and Dreamtime, the “Borrowers”), the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto and the Administrative Agent have entered into that certain Amended and Restated Credit
Agreement dated as of October 12, 2007, as modified by that certain letter agreement dated as of December 14, 2007, as amended by that certain First Amendment to Amended and Restated Credit Agreement and Consent dated as of January 8,
2008, as amended by that certain Second Amendment to Amended and Restated Credit Agreement dated as of February 1, 2008, and as amended by that certain Third Amendment to Amended and Restated Credit Agreement dated as of March 10, 2008 (as
so modified and amended, and as the same may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made, and, subject to the terms and conditions set
forth therein, have agreed to continue to make, Loans (as defined in the Credit Agreement) to the Borrowers and certain other financial accommodations available to the Loan Parties; 
 WHEREAS, concurrently herewith, the Loan Parties are entering into an Investment Agreement dated as of the date hereof (as amended, supplemented or
otherwise modified from time to time, the “Subordinated Investment Agreement”) among the Loan Parties, the lenders party thereto (the “Subordinated Creditors”), and Laminar Direct Capital, L.L.C., a Delaware limited
liability company, as collateral agent for the Subordinated Creditors (together with its successors and assigns, the “Subordinated Creditors’ Agent”), pursuant to which (a) the Borrowers are issuing to the Subordinated
Creditors, and the Subordinated Creditors are purchasing from the Borrowers, subordinated notes in the aggregate original principal amount of $10,000,000 on the date hereof (the “Fourth Amendment Date Subordinated Notes”),
(b) the Borrowers may issue to the Subordinated Creditors, and the Subordinated Creditors may purchase from the Borrowers, additional subordinated notes in an aggregate original principal amount of $15,000,000 after the date hereof (the
“Delayed Draw Subordinated Notes” and, together with the Fourth Amendment Date Subordinated Notes, the “Subordinated Notes”) and (c) the Loan Parties have granted to the Subordinated Creditors’ Agent, for
the ratable benefit of the Subordinated Creditors, a second lien on substantially all assets of the Loan Parties to secure the obligations of the Loan Parties in respect of the Subordinated Notes; and 
 WHEREAS, the Loan Parties, the Administrative Agent and the Lenders desire to amend certain provisions of the Credit Agreement as set forth herein.

 NOW, THEREFORE, in consideration of the foregoing and the agreements contained herein, the parties agree that the Credit Agreement is
hereby amended as follows: 
 1. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings set forth in
the Credit Agreement. 

 2. Amendments to Credit Agreement. Subject to the satisfaction of the conditions precedent set
forth in Section 5 hereof, and in reliance on the representations, warranties and covenants of the Loan Parties set forth in Section 3 of this Amendment, 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 “Applicable Rate”, “Collateral Documents”, “Loan Documents”, “New Capital
Infusion”, “Revolving Maturity Date” and “Subordinated Indebtedness” in their entirety and substituting the following therefor: 
 “Applicable Rate” means (a) during the period commencing on the Fourth Amendment Date and continuing to and including January 31, 2009, a rate per annum equal to 0.50%, and
(b) thereafter, a rate per annum equal to 1.00%. 
 “Collateral Documents” means, collectively, the
Security Agreements, all Website Consent Agreements, all Blocked Account Agreements and Deposit Account Control Agreements, all Processor Control Agreements, the Limited Guaranty and Pledge Agreement and any other security documents delivered
pursuant to this Agreement or any of the other Loan Documents to secure payment of the Obligations 
 “Loan
Documents” means this Agreement, any promissory notes issued pursuant to this Agreement, any Letter of Credit applications, the Collateral Documents, the Subordination and Intercreditor Agreement, the Fee Letter and all other agreements,
instruments, documents and certificates identified in Section 4.01 executed and delivered to, or in favor of, the Administrative Agent, Collateral Agent or any Lenders and including all other pledges, powers of attorney, consents,
assignments, contracts, notices, letter of credit agreements and all other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party, or any employee of any Loan Party, and delivered to the Administrative Agent,
Collateral Agent or any Lender in connection with this Agreement or the transactions contemplated hereby. Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and
all amendments, restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative. 
 “New Capital Infusion” means either (a) the issuance of Capital Stock of the Parent to Laminar Direct Capital,
L.L.C. or any Affiliate thereof (other than another Loan Party) after the Fourth Amendment Date or (b) the incurrence of Subordinated Indebtedness by the Parent after the Fourth Amendment Date pursuant to the Delayed Draw Subordinated Notes, in
each case, on terms reasonably acceptable to the Administrative Agent, and in each case which results in the receipt by Parent of Net Cash Proceeds in an aggregate amount of not less than $15,000,000 (which, for avoidance of doubt, shall be
exclusive of the Net Cash Proceeds received from the issuance of the Fourth Amendment Date Subordinated Notes) less the reasonable out-of-pocket costs and expenses incurred and paid by the Parent in connection with the issuance of such Capital Stock
or incurrence of such Subordinated Indebtedness, as applicable. 
 “Revolving Maturity Date” means the
earlier of (i) January 31, 2010 and (ii) the date on which the Revolving Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof. 
  

 2 

 “Subordinated Indebtedness” means (a) the Indebtedness of the
Borrowers under the Subordinated Debt Documents and (b) any Indebtedness of any Loan Party (other than the Indebtedness referred to in the foregoing clause (a)) incurred after the Effective Date, the payment of which is subordinated to payment
of the Obligations to the written satisfaction of the Administrative Agent. 
 (ii) The definition of “Change of Control” set forth
in Section 1.01 of the Credit Agreement is hereby amended by (i) deleting the word “and” set forth after the semi-colon at the end of clause (c), (ii) deleting the period at the end of clause (d) and inserting a
semi-colon and the word “and” at the end of clause (d), and (iii) inserting the following as new clause (e) thereof: 
 “(e) the occurrence of any “Change of Control” or similar event under the Subordinated Investment Agreement.” 
 (iii) Section 1.01 of the Credit Agreement is hereby further amended by inserting the following new definitions therein in appropriate alphabetical order: 
 “Annual Clean-Up Period” means the period commencing on December 31 of each calendar year and continuing to and
including January 31 of the next calendar year, provided that the Annual Clean-Up Period commencing on December 31, 2008 shall continue until the later to occur of (a) January 31, 2009 and (b) the consummation of the
New Capital Infusion. 
 “Delayed Draw Subordinated Notes” means the Senior Secured Subordinated Notes issued
by the Borrowers to the Subordinated Creditors after the Fourth Amendment Date pursuant to the Subordinated Investment Agreement in the original aggregate principal amount of $15,000,000, as the same may be amended from time to time in accordance
with this Agreement. For avoidance of doubt, the Fourth Amendment Date Subordinated Notes shall not constitute Delayed Draw Subordinated Notes. 
 “Fourth Amendment” means the Fourth Amendment to Amended and Restated Credit Agreement dated as of the Fourth Amendment Date, among the Borrowers, the Loan Guarantors party thereto, the Lenders party
thereto, and the Administrative Agent. 
 “Fourth Amendment Date” means July 10, 2008. 
 “Fourth Amendment Date Subordinated Notes” means the Senior Secured Subordinated Notes dated as of the Fourth Amendment
Date issued by the Borrowers to the Subordinated Creditors pursuant to the Subordinated Investment Agreement in the original aggregate principal amount of $10,000,000, as the same may be amended from time to time in accordance with this Agreement.

 “Subordinated Creditors” means the lenders party to the Subordinated Investment Agreement from time to
time, together with their successors and assigns. 
 “Subordinated Creditors’ Agent” means Laminar
Direct Capital, L.L.C., a Delaware limited liability company, in its capacity as collateral agent for the Subordinated Creditors, together with its successors and assigns in such capacity. 
 “Subordinated Debt Documents” means, collectively, the Subordinated Investment Agreement and all other instruments or
documents delivered or to be delivered from time to time in connection with the Subordinated Investment Agreement, as the same shall be amended, restated, supplemented or otherwise modified from time to time in accordance with this Agreement.

  

 3 

 “Subordinated Investment Agreement” means that certain Investment
Agreement dated as of the Fourth Amendment Date among the Borrowers, the guarantors from time to time party thereto, the Subordinated Creditors, and the Subordinated Creditors’ Agent, as the same may be amended from time to time in accordance
with this Agreement. 
 “Subordinated Notes” means, collectively, the Delayed Draw Subordinated Notes and the
Fourth Amendment Date Subordinated Notes. 
 “Subordination and Intercreditor Agreement” means that certain
Subordination and Intercreditor Agreement among the Subordinated Creditors’ Agent, the Administrative Agent, The CIT Group/Business Credit, Inc., in its capacity as control agent for the Administrative Agent and the Subordinated Creditors’
Agent, and the Loan Parties, in form and substance satisfactory to the Administrative Agent, as the same may be amended from time to time. 
 (b) Amendment to Section 2.09 of the Credit Agreement. Section 2.09 of the Credit Agreement is hereby amended by inserting the following as new clause (f) thereof: 
 “(f) Notwithstanding anything herein to the contrary, from and at all times after the Fourth Amendment Date, the Borrower shall not
have any right to request that any Borrowing be made or continued as, or converted to, a Eurodollar Borrowing and all Borrowings hereunder shall be made and maintained solely as ABR Borrowings. 
 (c) Amendment to Section 2.13 of the Credit Agreement. Section 2.13 of the Credit Agreement is hereby amended by deleting clause
(b) thereof in its entirety and substituting the following therefor: 
 “(b) (i) The Borrowers agree to pay to the
Administrative Agent, for its own account, fees due and payable pursuant to the Fee Letter and fees payable in the amounts and at the times separately agreed upon between the Borrowers and the Administrative Agent; provided, however,
that, effective as of the Fourth Amendment Date, the “Collateral Monitoring Fee” referred to in the Fee Letter shall be payable as provided in clause (ii) of this Section 2.13(b) and not as provided in the Fee Letter. 

(ii) The Borrowers agree to pay to the The CIT Group/Business Credit, Inc. (“CIT”), for its own account in its
capacities as Administrative Agent and Collateral Agent, an annual Collateral Monitoring Fee (the “Collateral Monitoring Fee”) in the amount of (x) $24,000 for the first year of the credit facility and (y) $50,000 for each
year of the credit facility thereafter. The Borrowers paid to CIT the Collateral Monitoring Fee for the first year of the credit facility on the date the Existing Credit Agreement became effective. The Borrowers shall pay to CIT the annual
Collateral Monitoring Fee for the second year of the credit facility in two installments, the first of which was in the amount of $24,000 and was paid by the Borrowers on or about June 29, 2008 and the second of which is in the amount of
$26,000 and is payable on the Fourth Amendment Date. The Collateral Monitoring Fee for each year of the credit facility after the second year shall be payable by the Borrowers in advance on June 29th of each year continuing until the Credit
Agreement has been terminated and all Obligations have been paid in full.” 
 (d) Amendment to Article II of the Credit Agreement.
Article II of the Credit Agreement is hereby amended by inserting the following as new Section 2.22 thereof: 
 “SECTION 2.22. Annual Clean-up. Notwithstanding anything herein to the contrary, the Borrowers agree that (a) on the first day of the Annual Clean-Up Period of each year, commencing on December 31, 2008, the
Borrowers shall repay the entire 

  

 4 

 
outstanding principal balance of all Loans and cash collateralize all outstanding Letters of Credit in accordance with Section 2.07(c) and (b) the
Borrowers shall not request any additional Loans or Letters of Credit at any time during any Annual Clean-Up Period.” 
 (e)
Amendment to Section 5.06 of the Credit Agreement. Section 5.06 of the Credit Agreement is hereby amended by deleting such section in its entirety and substituting the following therefor: 
 “SECTION 5.06. Books and Records; Inspection Rights. Each Loan Party will, and will cause its Subsidiaries to, keep
proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities in conformity with GAAP and all requirements of law. The Loan Parties shall implement by
January 31, 2008 and shall at all times thereafter maintain an automated account receivable reporting system reasonably satisfactory to the Administrative Agent. Each Loan Party will, and will cause its Subsidiaries to, permit any
representatives or independent contractors designated by the Agents, upon reasonable prior notice, at the expense of the Borrowers, to visit and inspect during normal business hours its properties, to inspect and verify the Collateral, to examine
and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; provided that such inspections
shall be limited to twice per calendar year so long as no Default or Event of Default exists and Availability is equal to or greater than $2,500,000. After the occurrence and during the continuance of any Event of Default or if Availability falls
below $2,500,000, each Loan Party will use commercially reasonable efforts to provide the Agents and each Lender with access to its suppliers. In addition to and not in limitation of any other inspection rights set forth above in this
Section 5.06, each Loan Party will, and will cause its Subsidiaries to, permit the Agents or any representatives designated by the Agents (including any third party consultants, accountants, lawyers and appraisers) to conduct, at the
Loan Parties’ sole cost and expense, up to two commercial field examinations of the business, operations and assets of the Loan Parties, including without limitation, the assets including in the Borrowing Base, in each twelve month period
following the Effective Date; provided, however, that during the time that a Default or an Event of Default has occurred and is continuing or if Availability is less than $2,500,000, the Agents may conduct, at the Loan Parties’
sole cost and expense, field examinations with greater frequency and at such additional time or times as the Agents may determine. The Loan Parties acknowledge, that the Agents, after exercising their right of inspection and right to conduct or
cause to be conducted commercial field examinations, may prepare and distribute to the Lenders certain Reports pertaining to the Loan Parties’ assets for internal use by the Agents and the Lenders.” 
 (f) Amendment to Section 5.10 of the Credit Agreement. Section 5.10 of the Credit Agreement is hereby amended by deleting such section
in its entirety and substituting the following therefor: 
 “SECTION 5.10. Appraisals. At any time that the
Administrative Agent or Collateral Agent requests, each Borrower will, and will cause each other Loan Party to, at the sole expense of the Loan Parties, provide the Agents with appraisals or updates thereof of their Inventory from an appraiser
selected and engaged by the Agents, and prepared on a basis satisfactory to the Agents, such appraisals and updates to include, without limitation, information required by applicable law and regulations; provided, however, if no
Default or Event of Default shall have occurred and be continuing and Availability is equal to or greater than $2,500,000, only two (2) such appraisals or updates per calendar year shall be conducted; provided, further, that
either Agent may require appraisals or updates more frequently at its own expense.” 
  

 5 

 (g) Amendment to Section 6.01 of the Credit Agreement. Section 6.01 of the Credit
Agreement is hereby amended by deleting clause (l) in its entirety and substituting the following therefor: 
 “(l)
Subordinated Indebtedness owed to the Subordinated Creditors under the Subordinated Notes in an aggregate principal amount not to exceed $25,000,000, provided that such Subordinated Indebtedness is at all times subordinate in right of payment
to the Obligations pursuant to the Subordination and Intercreditor Agreement.” 
 (h) Amendment to Section 6.02 of the
Credit Agreement. Section 6.02 of the Credit Agreement is hereby amended by (i) deleting the word “and” set forth after the semi-colon at the end of clause (d) of such Section 6.02, (ii) replacing the
“.” at the end of clause (e) of such Section 6.02 with a “;” and the word “and”, and (iii) adding the following clause (f) after clause (e) of such Section 6.02: 
 “(f) Liens securing the Subordinated Notes to the extent such Indebtedness is permitted under Section 6.01(l) hereof;
provided that (i) such Liens are subordinated to the Liens in favor of the Collateral Agent upon the terms and conditions set forth in the Subordination and Intercreditor Agreement and (ii) no such Lien shall cover any asset of any
Loan Party or other Person that is not also subject to a Lien in favor of the Collateral Agent.” 
 (i) Amendment to
Section 6.06 of the Credit Agreement. Section 6.06 of the Credit Agreement is hereby amended by deleting clause (b) of such Section 6.06 and substituting the following therefor: 
 “(b) The Loan Parties will not, and will not permit any Subsidiary of any Loan Party to, make or agree to make, directly or
indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of principal of or interest on any Subordinated Indebtedness, or any payment or other distribution (whether in cash, securities or other
property), including any sinking fund, deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Subordinated Indebtedness, except 
 (i) payments under the Subordinated Debt Documents to the extent such payments are permitted by the Subordination and Intercreditor
Agreement; and 
 (ii) payments of regularly scheduled principal and interest in respect of any Indebtedness permitted under
Section 6.01(d) to the extent such payments are permitted by Section 9.19.” 
 (j) Amendment to
Section 6.07 of the Credit Agreement. Section 6.07 of the Credit Agreement is hereby amended by deleting the last sentence of such Section 6.07 and substituting the following therefor: 
 “Notwithstanding any of the foregoing, the Loan Parties (x) shall be permitted to enter into the Subordinated Debt Documents and
make payments with respect thereto to the extent permitted by Section 6.06(b)(i) and (y) shall be permitted to pay to D. E. Shaw Lending in consideration of D. E. Shaw Lending entering into the Limited Guaranty and Pledge Agreement the
fees described in Section 1 of the D. E. Shaw Lending Compensation Agreement (as in effect on the Second Amendment Date) in such amounts and on such dates as specified in the D. E. Shaw Lending Compensation Agreement (as in effect on the Second
Amendment Date); provided that the Loan Parties shall not make any additional fee payments to D. E. Shaw Lending of the type referred to in the foregoing clause (y) after the earlier to occur of (a) a declaration by the
Administrative Agent in 

  

 6 

 
accordance with clause (ii) of the final paragraph of Section 7.01 that the Obligations then outstanding are due and payable in whole and
(b) any event with respect to any Loan Party described in clauses (g) or (h) of Section 7.01. Nothing herein shall be deemed to permit the Loan Parties to pay to D. E. Shaw Lending, and the Loan Parties expressly agree not
to pay to D. E. Shaw Lending, any other amounts (including, without limitation, any interest on any cash deposited into the D. E. Shaw Lending Pledged Account and withdrawn by the Administrative Agent or any indemnification, reimbursement or other
payments whatsoever) pursuant to the D. E. Shaw Lending Compensation Agreement or otherwise, prior to the payment in full of the Obligations.” 
 (k) Amendment to Section 6.12 of the Credit Agreement. Section 6.12 of the Credit Agreement is hereby amended by deleting such section in its entirety and substituting the following therefor: 
 “Section 6.12. Minimum Availability; Minimum EBITDA. 
 (a) At all times during the period commencing on September 1, 2008 and ending on January 30, 2009, the Loan Parties will not
permit Availability to be less than the lesser of (x) $2,000,000 or (y) 15% of Gross Availability at such time. 
 (b) If, at any time from and after January 31, 2009, a Trigger Event shall occur, then until such time as a Restoration Event shall occur, the Loan Parties will not permit EBITDA of the Loan Parties for each period set forth below to
be less than the amount set forth below corresponding to such period: 
  

				
	 Period
	  	Minimum EBITDA
	 Period of twelve Fiscal Months ending on or about January 31, 2009
	  	$	1,096,000
		
	 Period of twelve Fiscal Months ending on or about February 28, 2009
	  	$	1,596,000

 (c) If, at any time from and after January 31, 2009, a Trigger Event shall
occur, then until such time as a Restoration Event shall occur, the Loan Parties will not permit EBITDA of the Loan Parties for each twelve Fiscal Month period ending on or about the last day of each calendar month thereafter, commencing with the
calendar month ending on or about March 31, 2009 and continuing until the Obligations have been repaid in full, to be less than the sum of (x) the minimum EBITDA required to be maintained by the Loan Parties for the twelve Fiscal Month
period ending on or about the last day of the prior calendar month plus (y) $500,000; provided that the Loan Parties shall not be required to achieve EBITDA for any period of twelve Fiscal Months that is greater than $7,000,000.

 (d) If a Trigger Event shall not have occurred, the Loan Parties will not permit EBITDA of the Loan Parties for the twelve
Fiscal Month period ending on or about January 31, 2009 to be less than $(4,000,000). For avoidance of doubt, the amount set forth in the preceding sentence is be deemed to be a negative number.” 
  

 7 

 (l) Amendment to Section 7.01 of the Credit Agreement. 
 (i) Section 7.01 of the Credit Agreement is hereby amended by deleting clauses (m) and (q) thereof in their entirety and substituting the
following therefor: 
 “(m) any Collateral Document shall for any reason fail to create a valid and perfected first
priority security interest in any Collateral purported to be covered thereby, except as permitted by the terms of any Collateral Document or this Agreement, or any Collateral Document shall fail to remain in full force or effect or any action shall
be taken to discontinue or to assert the invalidity or unenforceability of any Collateral Document, or any Loan Party or other Person (other than the Administrative Agent, the Collateral Agent or any Lender) shall fail to comply with any of the
terms or provisions of any Collateral Document;” 
 “(q) (i) any provision of the Subordination and
Intercreditor Agreement or any subordination provision of any agreement or instrument governing any Subordinated Indebtedness is for any reason revoked or invalidated, or otherwise ceases to be in full force and effect, (ii) any Person contests
in any manner the validity or enforceability of any provision of the Subordination and Intercreditor Agreement or any subordination provision of any agreement or instrument governing any Subordinated Indebtedness, (iii) any Person fails to
comply with any provision of the Subordination and Intercreditor Agreement or any subordination provision of any agreement or instrument governing any Subordinated Indebtedness, or (iv) the Indebtedness hereunder is for any reason subordinated
or does not have the priority contemplated by the Loan Documents, any provision of the Subordination and Intercreditor Agreement or any subordination provision of any agreement or instrument governing any Subordinated Indebtedness; or”

 (ii) Section 7.01 of the Credit Agreement is hereby further amended by (x) deleting the word “or” at the end of clause
(p) of such Section 7.01 and (y) inserting the following as new clause (r) of such Section 7.01: 
 “(r) any Event of Default (as defined in the Subordinated Investment Agreement) under the Subordinated Investment Agreement shall occur and be continuing;” 
 3. No Default; Representations and Warranties, Etc. The Loan Parties hereby represent, warrant, confirm and covenant that (a) after giving
effect to this Amendment, 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, and (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; (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 Loan Parties of this Amendment, the Subordinated Debt Documents, 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. 
  

 8 

 4. 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, the Loan Parties
hereby acknowledge and confirm that all obligations, liabilities and Indebtedness of the Loan Parties under the Credit Agreement, as amended hereby, constitute “Obligations” under and as defined in the Credit Agreement and are secured by
and entitled to the benefits of the Collateral Documents and the other Loan Documents and the Loan Parties hereby ratify and confirm the grant of the liens and security interests in the Collateral (as defined in the Security Agreement) in favor of
the Collateral Agent, for the benefit of the Lenders, pursuant to the Collateral Documents and the other Loan Documents as security for such Obligations. 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.

 5. 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 Administrative 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 Administrative 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) Subordinated Debt Documents. The Administrative Agent shall have received copies of the
Subordinated Debt Documents and the same shall be reasonably satisfactory to the Administrative Agent and shall be in full force and effect and shall not have been amended, modified or supplemented, the Borrowers shall have received Net Cash
Proceeds from the issuance of the Fourth Amendment Date Subordinated Notes in the aggregate principal amount of $10,000,000 and the Administrative Agent shall have received a certificate of the chief financial officer of the Borrowers as to the
foregoing, which certificate shall be in form and substance satisfactory to the Administrative Agent. 
 (c) Subordination and
Intercreditor Agreement. The Administrative Agent shall have a counterpart of the Subordination and Intercreditor Agreement, duly executed by each party thereto. 
 (d) Collateral Monitoring Fee. The Administrative Agent shall have received payment of the installment of the Collateral Monitoring Fee payable on the Fourth Amendment Date pursuant to Section 2.13(b)(ii)
of the Credit Agreement, as amended hereby. 
 (e) Other Documents. The Administrative Agent shall have received such other documents
as the Administrative Agent or its special counsel shall have reasonably requested. 
 6. Fees and Expenses. The Borrowers agree to
pay all fees and other amounts due and payable to the Administrative Agent and Edwards Angell Palmer & Dodge LLP, special counsel to the Administrative 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. 
 7. 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

  

 9 

 
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.

 (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] 
  

 10 

 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:	 	Chief Financial Officer
	
	BABYUNIVERSE, INC.
		
	By:	 	 /s/ Barry Hollingsworth

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President, Secretary and Treasurer
	
	eTOYS DIRECT, INC.
		
	By:	 	 /s/ Barry Hollingsworth

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President, Secretary and Treasurer
	
	POSHTOTS, INC.
		
	By:	 	 /s/ Barry Hollingsworth

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President, Secretary and Treasurer
	
	DREAMTIME BABY, INC.
		
	By:	 	 /s/ Barry Hollingsworth

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President, Secretary and Treasurer
	
	MY TWINN, INC.
		
	By:	 	 /s/ Barry Hollingsworth

	Name:	 	Barry Hollingsworth
	Title:	 	Vice President, Secretary and Treasurer

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

			
	LOAN GUARANTORS:
	
	eTOYS DIRECT 1, LLC
		
	By:	 	eTOYS DIRECT, INC.,
		 	Its Managing Member
		
	By:	 	 /s/ Michael J. Wagner

	Name:	 	Michel J. Wagner
	Title:	 	Chief Executive Officer
	
	eTOYS DIRECT 2, LLC
		
	By:	 	eTOYS DIRECT, INC.,
		 	Its Managing Member
		
	By:	 	 /s/ Michael J. Wagner

	Name:	 	Michel J. Wagner
	Title:	 	Chief Executive Officer
	
	eTOYS DIRECT 3, LLC
		
	By:	 	eTOYS DIRECT, INC.,
		 	Its Managing Member
		
	By:	 	 /s/ Michael J. Wagner

	Name:	 	Michel J. Wagner
	Title:	 	Chief Executive Officer
	
	GIFT ACQUISITION, L.L.C.
		
	By:	 	eTOYS DIRECT, INC.,
		 	Its Managing Member
		
	By:	 	 /s/ Michael J. Wagner

	Name:	 	Michel J. Wagner
	Title:	 	Chief Executive Officer

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

			
	ADMINISTRATIVE 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 Fourth Amendment to Amended and Restated Credit Agreement]

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