Document:

Exhibit 10.42

Exhibit 10.42

SUBLEASE

This Sublease is
made and effective this
 30th 
day of September, 2010, between The Capital Group
Companies, Inc., a Delaware corporation (“Sublessor”), and Kids Line, LLC, a Delaware limited
liability company (“Sublessee”).

1. Sublease. Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from
Sublessor, certain premises located at 400 South Hope Street, Los Angeles, California 90071 (the
“Building”), containing approximately 27,515 rentable square feet on the 6th floor and
marked by crosshatching on the floor plan attached hereto as Exhibit A (the “Subleased Premises”),
for the term and upon the terms and conditions set forth in this Sublease. The Subleased Premises
are a portion of premises (the “Premises”) leased by Sublessor from 400 South Hope Street
Associates LLC, a Delaware limited liability company (“Landlord”) under a lease dated November 29,
2004 (the “Office Lease”) as amended by that certain First Amendment to Lease dated June 22, 2006
and as amended by that certain Second Amendment to Lease dated October 2009. The Original Lease,
the First Amendment to Lease and the Second Amendment to Lease are hereinafter collectively
referred to as the “Lease”, copies of which are attached hereto as Exhibit B. This Sublease is made
subject to and is subordinate to all of the terms and conditions of the Lease. Capitalized terms
not otherwise defined in this Sublease have the meanings given them in the Lease.

2. Sublease Term. The “Sublease Term” shall commence on the date upon which all of the
following conditions have been satisfied: (i) execution of this Sublease by authorized
representatives of both parties and receipt by Sublessor of Sublessee’s insurance certificate, a
fully executed Guaranty of Sublease by Kid Brands, Inc. (“Guarantor”), in the form set forth in
Exhibit F, and first month’s Base Rent, (ii) receipt of Landlord’s consent in writing which shall
be incorporated herein as Exhibit D, and (iii) the later of (1) December 1, 2010 or (2) the first
Business Day after the twelve week period following delivery of possession of the Subleased
Premises to Sublessee (“Construction Period”) in accordance with the terms of Exhibit C attached
hereto (upon satisfaction of all of the foregoing conditions, the “Commencement Date”) and, unless
earlier terminated, shall expire on February 28, 2018, except that this Sublease shall
automatically terminate upon the earlier termination or expiration of the Lease. This Sublease
shall be in full force and effect following satisfaction of the conditions set forth in clauses (i)
and (ii), above, provided that Sublessor has provided a letter of credit as described in Exhibit C
attached hereto. Sublessor agrees not to enter into any amendment to the Lease that terminates the
Lease prior to February 28, 2018, or in any way modifies, reduces or terminates any of the rights
of Sublessee under this Sublease.

(a) The Construction Period shall be extended on a day-for-day basis for each day that
Sublessee is prevented from performing the Initial Alterations, as defined in Exhibit C, by Force
Majeure, the negligence or willful misconduct of Landlord or Sublessor, or the failure of Landlord
or Sublessor to reasonably cooperate in good faith with Sublessee to the extent needed in
connection with the Initial Alterations. Notwithstanding the foregoing, no such delay shall be
deemed to have occurred unless and until Sublessee has provided written notice of such delay to
Sublessor. If the delay continues for one (1) Business Day after receipt of such notice, then the
delay shall be deemed to have commenced as of the date such notice is received by Sublessor and
continued for the number of days that Initial Alterations were in fact delayed. Sublessee’s right
to an extension in accordance with this paragraph shall be conditioned upon the absence of any
material breach of this Sublease on the part of Sublessee.

 

 

 

(b) If Landlord’s written consent to this Sublease is not received by Sublessor within 45
days from mutual execution of this Sublease, or if possession of the Subleased Premises is not
delivered to Sublessee in accordance with Exhibit C, Sublessee shall have the right to terminate
this Sublease by
providing Sublessor with written notice of termination; provided however that in the event
Sublessor receives Landlord’s written consent to Sublease after such 45-day period, or delivers
possession of the Subleased Premises later than specified in Exhibit C, but prior to receiving
Sublessee’s notice of termination, then (i) Sublessee shall be deemed to have waived all rights of
termination pursuant to this subparagraph (b) and (ii) any written notice of termination pursuant
to this subparagraph (b) from Sublessee given after receipt of the Landlord’s consent or delivery
of possession of the Subleased Premises shall be deemed void and of no effect and this Sublease
shall remain in effect in accordance with all terms herein.

3. Use. Sublessee shall use and occupy the Subleased Premises for any use permitted under the
Lease and for no other purpose without the prior written consent of Sublessor and Landlord.
Sublessee agrees that it shall use the Subleased Premises and Common Areas in a manner which is
consistent with the terms of this Sublease and the Lease.

4. Rights and Obligations Under the Lease. Sublessee shall be entitled to receive all of the
services and other benefits that Sublessor is entitled to receive as Tenant under the Lease to the
extent such services and other benefits relate to the Subleased Premises; provided however that
Sublessee shall have no rights of expansion, extension, renewal, holdover, audit or any other
personal rights specific to Sublessor as Tenant under the Lease (including but not limited to
rights granted by Landlord to Sublessor as Tenant under Sections 5, 25, 26, 27, Exhibit C, I, J, L,
Schedule 1 and Schedule 2 of the Lease, the First Amendment and Second Amendment to Lease), except
as set forth in Exhibit C or elsewhere in this Sublease. Notwithstanding the foregoing, Sublessor
shall have no obligation to perform the Landlord’s obligations under the Lease but shall for the
benefit of Sublessee, comply with all of its obligations as Tenant under the Lease. If after
written request from Sublessee, Landlord fails to perform in accordance with its Lease obligations
with respect to the Subleased Premises, Sublessor shall cooperate reasonably with Sublessee in
assisting Sublessee in availing itself of rights afforded to Sublessee under the Lease, including
submitting requests, demands, or notices to Landlord on behalf of Sublessee (e.g, with respect to
obtaining parking, after hours HVAC, access to freight elevators, signage, and the like). Sublessor
is not bound by any representation or warranty made by Landlord under the Lease. Sublessee assumes
and agrees to timely perform all of Sublessor’s obligations as Tenant under the Lease related to
the Subleased Premises; provided, however, that, subject to the provisions of paragraph 22(a) and
(b), Sublessee shall not be obligated to perform any provision of the Lease that is contrary to any
provision of this Sublease. Without limiting the generality of the preceding sentence, except to
the extent expressly set forth in this Sublease to the contrary with respect to the Subleased
Premises, Sublessee shall have no obligation to perform any of the covenants of Sublessor pursuant
to the provisions of Sections 3.1, 3.2, 5.3, 9.1.4, 10.5.2, or 10.5.4 of the Lease, or Sections
4.1, 4.2, 5.1 or 5.2 of the First Amendment. Furthermore, Sublessee’s obligation to comply with
Sections 10.5.1 and 10.5.3 of the Lease shall be applicable only to tenant improvements made by
Sublessee and to all of Sublessee’s personal property, but in no event shall Sublessee have any
obligation upon expiration of the term of this Sublease to remove any existing tenant improvements
in the Premises as of the date of delivery by Sublessor to Sublessee. For the avoidance of doubt,
Sublessee’s obligations under Sections 4.1 and 4.3.2 of the Lease shall apply only with respect to
the procedure relating to Sublessee’s obligations under Section 6, below. Sublessor shall have all
rights and remedies against Sublessee as Landlord has against Sublessor as Tenant under the Lease,
with respect to Sublessee’s obligations under this Sublease.

 

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5. Base Rent. Commencing on the Commencement Date, Sublessee shall pay base rent (the
“Base Rent”) in the amount of twenty three dollars ($23.00) per rentable square foot per annum.
This will amount to $52,737.08 per month ($632,845.00 per annum). The Base Rent shall increase by
three percent (3%) per annum during the Sublease Term, commencing on the first anniversary of the
Commencement Date, and thereafter on each succeeding anniversary.

(a) First Months Rent. First month’s Base Rent is due upon execution of this Sublease.

(b) Base Rent Abatement. Base Rent shall be abated for the second, third and fourth months of
the Sublease Term.

6. Additional Rent. Sublessee shall be responsible for, and shall pay to Sublessor any
Additional Rent, as such term is defined in the Lease, relating to the Subleased Premises.

(a) Excess Expenses. Sublessee shall pay with Sublessee’s Base Rent, its proportionate share
of the Excess Expenses, calculated in accordance with Section 4 of the Lease; provided however that
with respect to Sublessee, the Base Year shall be the calendar year 2011, and provided further that
any successful real estate tax appeal by Landlord that results in a refund of Taxes paid for any
year prior to calendar year 2011 (e.g. 2008, 2009 or 2010) which is received by Landlord in
calendar year 2011 or any subsequent year, shall not serve to reduce the taxes for the Base Year or
any subsequent year used in calculating Excess Expenses during the Sublease Term. For avoidance of
doubt, 2012 is the first calendar year for which Sublessee may be liable for its share of Excess
Expenses based on increases in Operating Expenses and Taxes in 2012 over those incurred for 2011,
(excluding any tax refunds received in 2011 relating to any prior year), which share, if any, would
be payable in accordance with the Lease, including estimated amounts payable in 2012 in accordance
with the Lease.

(b) Information. Sublessor shall provide to Sublessee, within fifteen (15) days after
receipt, copies of all Annual Statements and other documents provided by Landlord with respect to
Operating Expenses and Taxes.

(c) Excise and Similar Taxes. In addition to all other amounts payable by Sublessee under
this Sublease, Sublessee shall pay to Sublessor, any rental, sales, use, transaction privilege, or
other excise taxes now in effect or hereafter enacted and applicable to Sublessee’s occupancy of
the Subleased Premises or measured by any amount payable to Sublessor under this Sublease,
regardless of whether imposed by its terms upon Landlord, Sublessor or Sublessee, and if any such
tax is payable by Landlord or Sublessor, Sublessee shall promptly reimburse the amount thereof to
Sublesssor or Landlord as applicable upon demand, as Additional Rent. For avoidance of doubt,
Sublessee shall not be obligated to reimburse Sublessor for City of Los Angeles gross receipts
taxes, or any federal or state income or franchise taxes of Sublessor.

(d) Personal Property Taxes. Sublessee shall pay all personal property taxes assessed on all
Furniture and Equipment situated in the Subleased Premises, as defined in Exhibit C, in accordance
with Section 3(a)(iii) of Exhibit C.

(e) Payment of Rent. All amounts due under this Sublease, including Base Rent and Additional
Rent shall collectively be referred to as “Rent”. All Rent shall be paid to Sublessor in advance,
at such address as Sublessor may designate from time to time, and is due on the first day of each
and every month during the Sublease Term, except months noted above in Sections 5(a) and 5(b),
without notice, deduction or offset. All late payment of Rent shall be subject to the provision of
Section 18.2 of the Lease.

 

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(f) Expense Reimbursements. Any expense reductions or other settlement benefits received by
Sublessor with respect to any objection made by Sublessor to Landlord regarding Operating Expenses,
whether or not pursuant to an Audit, shall be credited to Sublessee to the extent such reductions
or benefits relate to the Sublease Term and the Subleased Premises.

7. Security Deposit. No security deposit is required from Sublessee under this Sublease.

8. Construction of Alterations.

(a) Alterations. Except as specifically set forth herein, any additions, alterations or
improvements by Sublessee to the Subleased Premises (“Alterations”), are subject to the terms of
the Lease including but not limited to Section 10 therein and shall require Sublessor’s and
Landlord’s reasonable approval. Additional terms relating to Sublessee’s Initial Alterations are
set forth in Exhibit C. Sublessor hereby preliminarily approves of the conceptual changes planned
as set forth on both Attachment 1 and Attachment 2 as referred to in Exhibit C, but Sublessee
acknowledges and agrees that Sublessor shall have all rights provided in Section 10 of the Lease
with respect to further approvals as needed with respect to the Initial Alterations, as such term
is defined in Exhibit C, including with respect to approval of construction drawings.

(b) Mechanics Liens. Sublessee shall not permit any mechanics’ or materialmens’ liens to be
filed or recorded against the Subleased Premises as a result of any work or services performed on
the Subleased Premises by or on behalf of Sublessee, or materials ordered by or on behalf of
Sublessee. If any such lien is filed, Sublessee shall cause it to be discharged (or bonded) within
fifteen (15) days and upon Sublessee’s failure to do so, Sublessor shall have the right to
discharge such lien and to be reimbursed by Sublessee for the cost thereof, which reimbursement
shall be required to be paid by Sublessee upon Sublessor’s demand. Further, Sublessee shall
defend, indemnify and hold harmless Sublessor from and against any and all loss, cost, damage,
injury, or expense, including attorneys’ fees, arising out of or in any way related to such liens.

(c) Demolition or Removal. To the extent Alterations require the demolition or removal of
any existing improvements or furniture, Sublessee shall notify and consult with Sublessor prior to
any commencement of such demolition or removal. Sublessor reserves the right to retain any
materials, finishes and furniture not used by Sublessee (i.e., deemed to be demolished or removed),
including but not limited to any desks, chairs, doors, hardware, lights, etc. Sublessee shall
remove all such items and shall use its best efforts not to damage the items. Once Sublessee
completes all removal of such items, Sublessee shall provide Sublessor with written notice that
such items are ready for Sublessor to pick up. Sublessor shall be responsible for pick-up and the
storage of such items in accordance with Section 3(a)(iv) of Exhibit C.

(d) Restoration. Sublessee shall comply with all removal and restoration obligations set
forth in the Lease except for Sections 10.5.2 and 10.5.4 of the Lease. Additional restoration
obligations for Sublessee, if any, are set forth in Exhibit C. In no event shall Sublessee be
obligated to remove any improvements existing in the Premises as of date of delivery of possession
of the Subleased Premises by Sublessor to Sublessee.

 

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9. Maintenance Repairs and Security. Sublessee shall maintain the Subleased Premises in
accordance with the provisions of the Lease and Sublessor shall have all the rights of Landlord
thereunder
as to Sublessee. Sublessor shall have no obligation whatsoever to maintain or repair the Subleased
Premises. Sublessee shall defend, indemnify and hold Sublessor harmless for, from, and against all
claims, liabilities, damages, losses, costs and expenses, including attorneys’ fees, arising from
any breach by Sublessee of this Section.

10. Confidentiality. Sublessee acknowledges that the terms and conditions of this Sublease
are confidential and the disclosure of those terms and conditions could adversely affect
Sublessor’s business including, without limitation, existing and potential leases of space in the
Building. Sublessee agrees that it will not disclose the terms and conditions of this Sublease and
will hold such terms and conditions confidential except that Sublessee may disclose the terms
hereof to its officers, directors, employees, legal advisors, financial advisors, auditors,
brokers, and others employed by or under contract with the Sublessee as is necessary for such
person to adequately perform their responsibilities to the Sublessee; provided however, Sublessee
will inform such persons that the information is confidential and is not to be disclosed. Sublessee
will not be responsible for any disclosure if the information: (i) is a matter of public knowledge
as of the date of mutual execution of this Sublease, (ii) hereafter becomes a matter of public
knowledge through no fault of Sublessee; (iii) is disclosed by Sublessee or Guarantor pursuant to
the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, (v) is
otherwise required to be disclosed by Sublessee or Guarantor pursuant to any other legal
requirement, or (v) is disclosed under operation of law. If Sublessee or any officer, director or
employee is legally required to disclose any of the terms of this Sublease, other than as specified
in clause (iii), above, Sublessee shall inform Sublessor of such requirement immediately upon
receipt of notice of such requirement and will use reasonable efforts to give Sublessor the
opportunity to eliminate such requirement. Sublessee acknowledges that Sublessor’s remedies at law
for any actual or threatened disclosure of any of the terms and conditions of this Sublease other
than as herein permitted or to which Sublessor has given its consent would be inadequate and that
Sublessor shall be entitled to equitable relief including injunction and specific performance, if a
breach of any provision of this section, in addition to all other remedies available at law or in
equity.

11. Sublessor’s Access. Sublessor and its agents, representatives, contractors, prospective
mortgagees and lessees, may, with reasonable prior notice, enter the Subleased Premises at any
reasonable time, during normal business hours, except in the case of Emergencies in which case no
such notice shall be required and such entry may be at any time, to inspect the Subleased Premises
and for any other business purpose relating to the Sublease, provided Sublessor makes commercially
reasonable efforts to minimize interfering with Sublessee’s occupancy. Landlord will have the
access rights provided in the Lease.

12. Assignment and Subletting. Except as set forth in Exhibit C, Sublessee shall not assign
or sublet the Subleased Premises or any part thereof without Sublessor’s and Landlord’s prior
written consent.

(a) Rights Under Lease. Sublessor shall be entitled to receive the same information and to
grant or withhold consent on the same grounds as are applicable to Landlord with respect to an
assignment or subletting under the Lease.

(b) No. Waiver. No consent by Sublessor or Landlord to any assignment or sublease shall
constitute a waiver of Sublessor’s right to consent to any subsequent assignment or sublease.

 

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(c) Sublessee Remains Liable. Notwithstanding any assignment or subletting or any acceptance
of Rent by Sublessor from any assignee or sub-sublessee, Sublessee shall remain fully liable
for the payment of Rent due and for the performance of all other terms, covenants and conditions
contained in this Sublease on Sublessee’s part to be observed and performed, and any default beyond
any applicable notice and cure periods under any term, covenant or condition of this Sublease by
any sub-sublessee shall be deemed a default under this Sublease by Sublessee.

(d) Brokerage for Assignment and Subletting. Sublessee shall indemnify, defend, protect and
hold harmless Sublessor and Landlord from and against any and all losses, liabilities, claims,
costs, interest and expenses of any kind or nature (including, without limitation, reasonable
attorneys’ fees and disbursements) resulting from any claims that may be made against Sublessor or
Landlord by the proposed assignee or sub-sublessee or by any brokers or other persons or entities
claiming a commission or similar compensation in connection with the proposed assignment or
sublease, irrespective of whether Sublessor and/or Landlord shall give or decline to give its
consent to any proposed assignment or sublease.

(e) Guarantor Remains Liable. Notwithstanding any assignment or subletting or any acceptance
of Rent by Sublessor from any assignee or sub-sublessee, Guarantor’s obligation shall at all times
remain fully responsible and liable for the payment of Rent due and for the performance of all
other terms, covenants and conditions contained in this Sublease on Guarantor’s part to be observed
and performed, and any default beyond any applicable notice and cure periods under any term,
covenant or condition of this Sublease by any assignee or sub-sublessee shall be deemed a default
under this Sublease by Guarantor.

13. Remedies. If Sublessee defaults under this Sublease, or if any breach of the Lease is
caused by Sublessee, Sublessor shall have, in addition to those rights and remedies provided by
law, rights and remedies against Sublessee identical to those available to the Landlord in the
event of a breach of the Lease, including but not limited to such rights and remedies set forth in
Sections 17 and 18 of the Lease, which is hereby incorporated by this reference. A failure of
Sublessee to comply with the terms of the Lease shall be deemed a default under this Sublease.

14. Insurance. Sublessee, at Sublessee’s expense, shall obtain and keep in force during the
term of this Sublease insurance policies as required under Section 15 of the Lease and shall name
Sublessor and Landlord as additional insureds thereunder, which policies shall consist of
$10,000,000.00 of commercial general liability coverage with no per location aggregate, pursuant to
a combination of commercial general liability in the amount of $1,000,000.00 and umbrella/excess
liability coverage for the balance of $9,000,000.00.

15. Estoppel Certificates. Upon request by Sublessor, Sublessee shall provide to Sublessor
written statements as described in Section 21.1 of the Lease, with respect to this Sublease. Upon
request by Sublessee, Sublessor shall provide to Sublessee written statements as described in
Section 21.2 of the Lease, with respect to this Sublease.

16. Financial Statements. If at any time during the term of this Sublease Guarantor shall
cease to be a publicly traded company and no longer file its audited financial statements with the
Securities and Exchange Commission, upon request, Sublessee and Guarantor shall each supply audited
financial statements to Sublessor and/or Landlord, or, if either of such parties shall supply
unaudited financial statements, such party shall represent and warrant that such unaudited
financial statements are accurate and complete to the best of its knowledge.

 

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17. Notices. All notices, demands, requests, consents and approvals that may or are
required
to be given under this Sublease by either party shall be in writing and shall be deemed given when
received in person, by United States certified registered mail, postage prepaid or by overnight
courier to the names and addresses below, or such other address and to such other persons as either
party may establish by written notice to the other:

If to Sublessor:

The Capital Group Companies, Inc.

Attention: Bill Brooks (BEEB)

6455 Irvine Center Drive

Irvine, California 92618

with a required copy to:

The Capital Group Companies, Inc.

Attention: Maria Manotok (MRM)

333 South Hope Street, 55th Floor

Los Angeles, California 90071

Rent Payment Address:

The Capital Group Companies, Inc.

Attn: SNO A/P # L3100

P.O. BOX 659528

SAN ANTONIO, TX 78265

If to Sublessee:

PRIOR TO THE COMMENCEMENT DATE:

Kids Line, LLC

Attention: Charles Ginn

2601 Sequoia Drive

South Gate, CA 90280

AFTER THE COMMENCEMENT DATE

Kids Line, LLC

Attention Charles Ginn

400 South Hope Street

Sixth Floor

Los Angeles, CA 90071

with a required copy in either case to:

Kids Brands, Inc.

Attention: Marc Goldfarb

1800 Valley Road

Wayne, NJ 07470

 

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18. Conditioned on Landlord’s Consent. This Sublease is subject to and conditioned upon the
written consent of Landlord under the Lease. Sublessee shall have no rights under this Sublease
until the consent of Landlord is executed and delivered by Landlord.

19. Brokerage. Sublessor and Sublessee each warrant that they have dealt with no other real
estate broker in connection with this transaction except: Frank Scott, John McRoskey, Tony Morales
and Maureen Hawley from Jones Lang LaSalle, who exclusively represents the Sublessor and Tom
McDonald from Jones Lang LaSalle, who exclusively represents Sublessee. Sublessor and Sublessee
hereby confirm that they were timely advised of the dual representation and that they consent to
the same, and that they do not expect said broker to disclose to either of them the confidential
information of the other party. Sublessor and Sublessee each warrant and represent to the other
that no other real estate broker, agent or other person is entitled to claim a commission, broker’s
fee or other compensation in connection with this Sublease. Each party shall defend, indemnify and
hold the other harmless from all claims or liabilities arising from that party’s breach of the
foregoing representation and warranty.

20. Authority. Any individual executing this Sublease on behalf of Sublessee represents and
warrants that he or she is duly authorized to execute and deliver the Sublease on behalf of
Sublessee in accordance with Sublessee’s bylaws and a duly adopted resolution of Sublessee’s Board
of Directors. Upon Sublessor’s request, Sublessee shall deliver to Sublessor a certified copy of
such bylaws or the resolution.

21. Indemnification. Sublessee hereby indemnifies and agrees to defend, save and hold
Landlord and Sublessor and their Affiliates harmless from and against any and all Claims for injury
or death to persons or damage to property occurring within or about the Subleased Premises, arising
directly or indirectly out of the use or occupancy of the Subleased Premises or a breach or default
by Sublessee in the performance of any of its obligations hereunder, except to the extent caused by
the willful misconduct or gross negligence of Landlord or Sublessor and their Affiliates. Landlord
and Sublessor shall not be liable to Sublessee for, and Sublessee assumes all risk of damage to,
personal property, including loss of records kept within the Subleased Premises. Sublessee further
waives any and all Claims against Landlord or Sublessor and their Affiliates for injury to
Sublessee’s business or loss of income relating to any such damage or destruction of personal
property, including any loss of records. Landlord and Sublessor shall not be liable for any damages
arising from any act, omission or neglect of any tenant in the Project or of any other third party.
Sublessor hereby indemnifies and agrees to defend, save and hold Sublessee and Sublessee Parties
harmless from and against any and all Claims for injury or death to persons or damage to property
occurring within the Subleased Premises, arising directly or indirectly out of any conduct by
Sublessor or its representatives or Affiliates within the Subleased Premises, or as a result of a
breach or default by Sublessor in the performance of any of its obligations hereunder, except to
the extent caused by the willful misconduct or gross negligence of Sublessee and its Affiliates.

 

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22. LIMITATION OF LIABILITY. NEITHER SUBLESSOR NOR LANDLORD WILL BE LIABLE TO.SUBLESSEE, NOR
SHALL SUBLESSEE BE LIABLE TO SUBLESSOR OR LANDLORD, FOR INDIRECT, CONSEQUENTIAL, OR INCIDENTAL
LOSSES OR DAMAGES INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOST OR DAMAGED DATA, LOSS OF USE OF
FACILITY OR EQUIPMENT, OR THE FAILURE OR INCREASED EXPENSE OF OPERATIONS, REGARDLESS OF WHETHER ANY
SUCH LOSSES OR DAMAGES ARE CHARACTERIZED AS ARISING FROM BREACH OF CONTRACT, BREACH OF WARRANTY,
TORT, STRICT LIABILITY, OR OTHERWISE, EVEN IF THE PARTY INCURRING SUCH DAMAGE IS ADVISED OF THE
POSSIBILITY OF SUCH LOSSES OR DAMAGES, OR IF SUCH LOSSES OR DAMAGES ARE FORESEEABLE; PROVIDED,
HOWEVER, THAT
NOTWITHSTANDING THE ABOVE, THIS SECTION 22 SHALL NOT LIMIT OR OTHERWISE AFFECT (a) ANY PARTY’S
LIABILITY WITH RESPECT TO CLAIMS OF GROSS NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT, OR (b)
SUBLESSEE’S LIABILITY FOR CONSEQUENTIAL DAMAGES RESULTING FROM A HOLDOVER OF THE SUBLEASED PREMISES
BY SUBLESSEE AFTER THE EXPIRATION OR EARLIER TERMINATION OF THIS SUBLEASE, SUBJECT TO THE
PROVISIONS OF SECTION 2.4 OF THE LEASE (FOR THE AVOIDANCE OF DOUBT, SUBLESSEE’S LIABILITY FOR
CONSEQUENTIAL DAMAGES RESULTING FROM A HOLDOVER SHALL INCLUDE ANY SUCH DAMAGES SUFFERED BY BOTH
LANDLORD AND SUBLESSOR).

23. General. This Sublease shall be binding upon and shall inure to the benefit of the
parties and their successors and assigns. This Sublease is governed by California law. If any
litigation arises out of this Sublease, the prevailing party shall be entitled to recover its
reasonable attorneys’ fees, costs, and litigation expenses (including travel, postage, copying
costs, expert witness fees, investigation fees, and like costs) for all actions, including appeals.
This Sublease constitutes the entire agreement of the parties with respect to its subject matter,
and no provision hereof can be waived or modified except in writing signed by the party against
whom enforcement of the waiver or modification is sought. Time is of the essence of each and every
obligation hereunder. All references herein to Sections, Paragraphs, Subparagraphs or Exhibits
shall mean Sections, Paragraphs and Subparagraphs in, and Exhibits attached to, this Sublease,
unless otherwise expressly stated.

24. Terms of Lease Applicable. Except as otherwise provided in this Sublease, all other
terms and provisions of the Lease shall be applicable to and shall be performed by Sublessor and
Sublessee, which Lease is attached as Exhibit B and hereby incorporated by reference. If there is
an inconsistency between the terms of the Lease and any terms, conditions or provisions of this
Sublease which is not otherwise addressed in this Sublease, such inconsistency shall be resolved in
favor of this Sublease with respect to all rights, duties and obligations of Sublessor and
Sublessee under this Sublease.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUBLESSOR	 	SUBLESSEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Bryan Lewis	 	 	 	By:	 	/s/ Charles Ginn	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Bryan Lewis	 	 	 	Name:	 	Charles Ginn	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Sr. VP	 	 	 	Title	 	Chief Operating Officer	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

 

9Exhibit 10.43

Exhibit 10.43

LANDLORD CONSENT

400 S. HOPE, L.P.,

c/o Tishman Speyer

45 Rockefeller Plaza

New York, New York 10111

September 30, 2010

The Capital Group Companies, Inc.

6455 Irvine Center Drive

Irvine, California 92618

Attention: Bill Brooks

	 
	Kids Line, LLC 

2601 Sequoia Drive 

South Gate, California 90280

Attention: Charles Ginn

	 	 	 	 	 
	RE:	 	CONSENT TO SUBLEASE
	 
	 	 	 	 
	 

	 	“Building”:
	 	400 South Hope Street, Los Angeles, California
	 
	 	 	 	 
	 

	 	“Premises”:
	 	133,869 rentable square feet comprising the entire sixth (6th), twenty-first
(21st), twenty-second (22nd), twenty-third (23rd) and twenty-fourth (24th) floors of
the Building
	 
	 	 	 	 
	 

	 	“Sublet Space”:
	 	27,515 rentable square feet comprising the entire sixth (6th)
floor of the Building
	 
	 	 	 	 
	 

	 	“Landlord”:
	 	400 S. Hope, L.P., a Delaware limited partnership
	 
	 	 	 	 
	 

	 	“Tenant”:
	 	The Capital Group Companies, Inc., a Delaware corporation
	 
	 	 	 	 
	 

	 	“Subtenant”:
	 	Kids Line, LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	“Lease”:
	 	Office Lease dated November 29, 2004 (the “Office Lease”), as amended by that
certain First Amendment to Office Lease, dated June 22, 2006 (the “First Amendment”)
and that certain Second Amendment to Lease, dated October 2009 (the “Second
Amendment”), as the same may be amended, modified, extended or restated from time to
time
	 
	 	 	 	 
	 

	 	“Sublease”:
	 	Sublease annexed hereto as Exhibit A, as the same may be amended, modified,
extended or restated from time to time, as may be permitted hereunder

Ladies and Gentlemen:

You have requested our consent to the Sublease. Such consent is hereby granted on the terms
and conditions, and in reliance upon the representations and warranties, set forth in this letter
(this “Agreement”).

1. As of the date first stated above, Tenant represents and warrants to Landlord that (a) the
Lease is in full force and effect; (b) the Lease has not been assigned, encumbered, modified,
extended or supplemented; (c) to the best of Tenant’s knowledge, Tenant knows of no defense or
counterclaim to the enforcement of the Lease; (d) to the best of Tenant’s knowledge, Tenant is not
entitled to any reduction, offset or abatement of the rent payable under the Lease; (e) a true and
complete copy of the Sublease is attached hereto, and the Sublease constitutes the complete
agreement between Tenant and Subtenant with respect to the subject matter thereof, (f) Landlord has
completed all work to be performed by Landlord under the Lease and has paid all contributions and
other sums due to Tenant under the Lease in connection with the initial occupancy of the Premises
under the Lease and (g) neither Tenant, nor to
the best of Tenant’s knowledge, Landlord is in default of any of their respective obligations
or covenants, and neither has breached any of their respective representations or warranties, under
the Lease. For the purposes of this Agreement, any references to the “knowledge” of Tenant shall
be deemed to refer to facts within the actual knowledge of only Bryan Lewis and Bill Brooks and no
others, at the times set forth herein only, without any duty of inquiry. Tenant represents and
warrants to Landlord that Bryan Lewis and Bill Brooks are the Tenant representatives who are best
positioned to have knowledge of the facts heretofore represented.

 

 

 

2. The Sublease shall be subject and subordinate to the Lease and all of its provisions.
Neither Tenant nor Subtenant shall take, permit or suffer any action which would violate the
provisions of the Lease or this Agreement.

3. Landlord’s obligations to Tenant are governed only by the Lease and this Agreement and
Landlord’s obligations to Subtenant are only as set forth in this Agreement. Landlord shall not be
bound or estopped by any provision of the Sublease, including any provision purporting to impose
any obligations upon Landlord (except as provided in Paragraph 6 of this Agreement). Nothing
contained herein shall be construed as a consent to, approval of, or ratification by Landlord of,
any of the particular provisions of the Sublease or any plan or drawing referred to or contained
therein (except as may be expressly provided herein). Landlord has not reviewed or approved any
provision of the Sublease.

4. If Tenant or Subtenant violates any of the terms of this Agreement, or if any
representation by Tenant or Subtenant in this Agreement is untrue in any material respect, or if
Subtenant takes any action which would constitute a default under the Lease beyond any applicable
notice and cure period set forth in the Lease, then Landlord may declare the Lease to be in default
and avail itself of all remedies provided at law or in equity or in the Lease with respect to
defaults.

5. Except as provided in Paragraph 6 of this Agreement, if the Lease is terminated prior to
the stated expiration date provided in the Lease, the Sublease, on the date of such termination,
shall likewise terminate. In connection with such termination, Subtenant, at its sole expense,
shall surrender the Sublet Space to Landlord in the manner provided for in the Lease, including the
removal of all its personal property from the Sublet Space and from any part of the Building to
which it is not otherwise entitled to occupancy, and repair all resulting damage to the Sublet
Space and the Building. Except as otherwise provided in the Lease, Landlord shall have the right to
retain any property and personal effects which remain in the Sublet Space or the Building on the
day immediately following the termination of the Sublease, without any obligation or liability to
Tenant or Subtenant, and to retain any net proceeds realized from the sale thereof, without waiving
Landlord’s rights with respect to any default by Tenant under the Lease or Subtenant under the
foregoing provisions of this paragraph and the provisions of the Lease and Sublease. If Subtenant
shall fail to vacate and surrender the Sublet Space in accordance with the provisions of this
paragraph, Landlord shall be entitled to all of the rights and remedies which are available to a
landlord against a tenant holding over after the expiration of a term, and any such holding over
shall be deemed a default under the Lease. In addition, Subtenant agrees that it will not seek, and
it expressly waives any right to seek, any stay of (a) the prosecution of, or (b) the execution of
any judgment awarded in, any action by Landlord to recover possession of the Sublet Space.
Subtenant may not vacate the Sublet Space on a Sunday or holiday. If the Sublease terminates on a
Sunday or holiday, Subtenant must comply with this paragraph by the end of the preceding Saturday
or business day. This paragraph shall survive the earlier termination of the Lease and Sublease.

 

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6. In accordance with Section 20.10 of the Office Lease and the terms of this
Paragraph 6, subject to the observance and performance by Subtenant of all covenants, terms and
conditions of the Sublease and of any modification or amendment thereto specified herein or
subsequently approved by Landlord, in the event the Lease is terminated due to a default by Tenant,
Landlord hereby covenants that the Sublease and any modifications or amendments thereto specified
herein or subsequently approved by Landlord will continue in full force and effect, and Landlord
shall recognize the Sublease and any modifications or amendments thereto specified herein or
subsequently approved by Landlord and Subtenant’s rights thereunder, which will thereby establish
direct privity of estate and contract between Landlord and Subtenant with the same force and effect
and with the same relative priority in time and
right as though the Sublease and any modification or amendment thereto specified herein or
subsequently approved by Landlord were directly made from Landlord in favor of Subtenant.
Accordingly, if the Lease is terminated before the stated expiration date of the Sublease,
Subtenant shall attorn to Landlord or any such party upon the then executory terms of the Sublease
(as modified pursuant to the terms of this Paragraph 6) for the remainder of the stated term of the
Sublease. The party to whom Subtenant attorns shall, under such circumstances, agree not to disturb
Subtenant in its use and enjoyment of the Sublet Space, provided that subject to the terms of the
Lease and this Paragraph 6, Subtenant performs all of its obligations under the Sublease, provided
that (x) the rent payable to Landlord for the Sublet Space following such attornment shall be equal
to the greater of (a) the Rent payable per rentable square foot under the Lease, and (b) the Rent
payable per rentable square foot under the Sublease, and (y) the terms of Section 20.10 of
the Office Lease shall be applicable to Subtenant’s sublease of the Sublet Space. Such party shall
not be required to honor or credit Subtenant for (i) any payments of rent made to Tenant for more
than one month in advance or for any other payment owing by, or on deposit with, Tenant for the
credit of Subtenant, (ii) any obligation to perform any work or make any payment to Subtenant
pursuant to a work letter, the Sublease or otherwise, (iii) any security deposits not in Landlord’s
actual possession, (iv) any obligation of, or liability resulting from any act or omission of,
Tenant, (v) any amendment of the Sublease not expressly consented to by Landlord, or (vi) any
defenses, abatements, reductions, counterclaims or offsets assertable against Tenant. This
provision is self-operative whether or not, as a matter of law, the Sublease may terminate upon the
expiration or termination of the term of the Lease. Subtenant however, agrees to give Landlord or
such other party, on request, an instrument acknowledging an attornment according to these terms.
No attornment pursuant to this paragraph shall be deemed a waiver or impairment of Landlord’s
rights under the Lease to pursue any remedy not inconsistent with the attornment.

In the event of such termination of the Lease, recognition and attornment as provided in this
Paragraph 6 above, (i) Tenant shall deliver to Landlord or such other party any security deposit
which Tenant is then holding under the Sublease, (ii) Tenant shall assign all of its rights under
the Guaranty of Sublease by Kid Brands, Inc. (“Guarantor”) dated September
 ____, 2010 (the
“Guaranty”) to Landlord and deliver the original Guaranty and such assignment to Landlord, (iii)
Subtenant and Guarantor hereby consent to the assignment of such Guaranty to Landlord and (iv)
Subtenant shall reimburse Landlord or such other party for any costs that may be incurred by it in
connection with such attornment, including reasonable legal fees and disbursements.

7. Tenant and Subtenant each agrees:

a. The liability of Landlord for Landlord’s obligations under this Agreement, the Lease and
any other documents executed by Landlord, Tenant, and/or Subtenant, as the case may be, in
connection with this Agreement or the Lease (collectively, the “Lease Documents”) shall be limited
pursuant to the terms of Section 28.1 of the Office Lease;

b. Except as otherwise set forth in the Lease, in no event shall Landlord or the Parties be
liable for, and Tenant and Subtenant, on behalf of themselves and all other subtenants or occupants
of the Premises and their respective agents, contractors, subcontractors, employees, invitees or
licensees, hereby waive any claim against Landlord and the Parties for, any indirect, consequential
or punitive damages, including loss of profits or business opportunity, arising under or in
connection with the Lease Documents; and

c. The obligations of Landlord under this Agreement shall not be binding upon Landlord after
the sale, conveyance, assignment or transfer by Landlord of its interest in the Building, and
Tenant and Subtenant shall look solely to the transferee for the satisfaction of such obligations,
provided that any such transferee assumes all of Landlord’s obligations under this Agreement
arising from and after such sale, conveyance, assignment or transfer.

8. Tenant and Subtenant each represents and warrants that, except as otherwise specifically
provided in the Sublease, no rent or other consideration is being paid or is payable to Tenant by
Subtenant for the right to use or occupy the Sublet Space or for the use, sale or rental of
Tenant’s
fixtures, leasehold improvements, equipment, furniture or other personal property in excess of
the pro-rata portion of the fixed rent and any additional rent payable pursuant to the Lease
(collectively, the “Rent’) for the Sublet Space, and if such rent or other consideration exceeds
such pro-rata portion of the Rent, Tenant shall comply with Section 20.7 of the Office
Lease and pay to Landlord fifty percent (50%) of such excess in accordance with the provisions of
the Lease.

 

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9. The Lease and this Agreement constitute the entire agreement of the parties with respect to
Landlord’s consent to the Sublease. This Agreement may not be changed except in writing signed by
each party hereto.

10. All statements, notices and other communications given pursuant to this Agreement must be
in writing and must be delivered personally with receipt acknowledged, or sent by a nationally
recognized reputable overnight courier (against a receipt of delivery), or by registered mail,
return receipt requested, addressed to Tenant, Subtenant and Landlord at their addresses set forth
below, or at such other address as any party may designate upon not less than ten (10) days prior
notice given in accordance with this paragraph. Any such communication shall be deemed delivered
when personally delivered, or on the date received or rejected as indicated by the receipt if sent
by overnight courier or by the return receipt if sent by mail.

	 	 	 
	To Landlord:

	 	400 S. Hope, L.P.

c/o Tishman Speyer Properties, L.P.

400 South Hope Street, Suite 200

Los Angeles, California 90071

Attn: Property Manager

	 
	 	 
	 

	 	With copies to:
	 
	 	 
	 

	 	Tishman Speyer Properties, L.P.

45 Rockefeller Plaza

New York, New York 10111

Attn: Chief Legal Officer
	 
	 	 
	 

	 	and:
	 
	 	 
	 

	 	Tishman Speyer Properties, L.P.

45 Rockefeller Plaza

New York, New York 10111

Attn: Chief Financial Officer
	 
	 	 
	To Tenant:

	 	The Capital Group Companies, Inc.

6455 Irvine Center Drive

Irvine, California 92618

Attention: Bill Brooks (BEEB)
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	The Capital Group Companies, Inc.

333 South Hope Street, 55th Floor

Los Angeles, California 90071

Attention: Maria Manotok (MRM)

	 
	 	 
	To Subtenant:

	 	Kids Line, LLC

2601 Sequoia Drive

South Gate, California 90280

Attention: Charles Ginn
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	Kid Brands, Inc.

1800 Valley Road

Wayne, New Jersey 07470

Attention: Marc Goldfarb

 

-4-

 

11. This Agreement will be construed and governed by California law.

12. Landlord’s rights and remedies under this Agreement shall be in addition to every other
right or remedy available to it under the Lease, at law, in equity or otherwise and Landlord shall
be able to assert its rights and remedies at the same time as, before, or after its assertion of
any other right or remedy to which it is entitled without in any way diminishing such other rights
or remedies. The invalidity or unenforceability of any provision of this Agreement shall not impair
the validity and enforceability of any other provision of this Agreement.

13. This Agreement shall bind and inure to the benefit of the parties and their respective
successors and assigns, except as provided in Paragraph 7 above and except that it shall not inure
to the benefit of any successor or assign of Tenant or Subtenant whose status was acquired in
violation of the Lease or this Agreement.

14. Each of the persons executing this Agreement on behalf of Landlord, Tenant and Subtenant
represents that he or she is duly authorized to execute and deliver this Agreement on behalf of
Landlord, Tenant and Subtenant, as the case may be, and that each of Landlord, Tenant and Subtenant
has full power and authority to enter into this Agreement.

15. Tenant and Subtenant, jointly and severally, indemnify Landlord against, and hold it
harmless from, all costs, damages and expenses, including reasonable attorneys’ fees and
disbursements, arising out of any claims for brokerage commissions, finders fees or other
compensation in connection with the Sublease or procuring possession of the Sublet Space. Tenant
and Subtenant, at their sole expense, may defend any such claim with counsel reasonably acceptable
to Landlord and settle any such claim at their expense, but only Landlord may approve the text of
any stipulation, settlement agreement consent order, judgment or decree entered into on its behalf.
The provisions of this Paragraph 15 shall survive the expiration or sooner termination of the Lease
or Sublease.

16. Without limitation of Article 22 of the Office Lease, Tenant and Subtenant,
jointly and severally, indemnify Landlord against, and hold it harmless from any and all losses,
costs, expenses, claims and liabilities including, but not limited to, reasonable counsel fees,
arising from any accident, injury or damage whatsoever caused to any person or entity or the
property of any person or entity occurring during the term of the Sublease in or about the Sublet
Space, provided that the foregoing shall not limit Landlord’s liability, if any, pursuant to
applicable law for bodily injury and property damage to the extent caused by the gross negligence
or willful misconduct of Landlord, and further provided that as between Tenant and Subtenant, the
indemnification obligations of each party shall be governed by the terms set forth in the Sublease.
If any proceeding is brought against Landlord by reason of any such claim, Tenant and Subtenant,
jointly and severally, shall be responsible for Landlord’s costs and expenses (including, without
limitation, reasonable attorneys’ fees and expenses) incurred in connection therewith. If any
action or proceeding is brought against Landlord by reason of any such claim, Subtenant and/or
Tenant, upon written notice from Landlord, shall, at Tenant’s or Subtenant’s sole cost and expense,
as the case may be, resist or defend such action or proceeding using counsel reasonably approved by
Landlord, but may not settle any such claim without Landlord’s prior written approval. The
provisions of this Paragraph 16 shall survive the expiration or earlier termination of the term of
the Sublease or the Lease. The indemnity and any right granted to Landlord pursuant to this
paragraph shall be in addition to, and not in limitation of Landlord’s rights under the Lease.

 

-5-

 

17. Tenant and Subtenant hereby acknowledge and agree that, notwithstanding any provision to
the contrary set forth in the Sublease or the Lease, Subtenant shall not be entitled to any rights
under (i)
Article 5, Section 9.7, Section 13.2, Article 25, Article
26, and Article 27 of the Office Lease, (ii) Exhibits C, I, J,
L and Schedules 1 and 2 of the Office Lease, (iii) Section 3 of the
First Amendment, and (iv) Section 2 of the Second Amendment. Additionally, Tenant and
Subtenant hereby acknowledge and agree that (a) the number of parking spaces that Tenant is
entitled to rent from Landlord under the terms of the Lease shall be reduced by the number of
parking spaces that Subtenant elects to rent pursuant to the terms of the Sublease and (b)
Subtenant shall not be entitled to the 10% discount on the then prevailing rate charged by Landlord
for parking as set forth in Section 7.1 of the Office Lease, as amended by Section
6 of the First Amendment.

18. Landlord’s consent to the Sublease does not include consent to any modification,
supplement or amendment of the Sublease, or to any assignment of the Sublease or sub-subletting of
the Sublet Space, or to any additional subleasing of the Sublet Space or any other portion of the
Premises, each of which requires Landlord’s prior written consent (except that Tenant may terminate
the Sublease without Landlord’s prior consent). If Tenant or Subtenant desires Landlord’s consent
to any such other action it must specifically and separately request such consent. Tenant shall
give Landlord prompt written notice if the Sublease terminates prior to its stated term.

19. Neither the execution and delivery of this Agreement or the Sublease, nor any acceptance
of rent or other consideration from Subtenant by Landlord or Landlord’s agent, shall operate to
waive, modify, impair, release or in any manner affect Tenant’s liability or obligations under the
Lease or Subtenant’s liability or obligations under the Sublease.

20. If there shall be any conflict or inconsistency between the terms, covenants and
conditions of this Agreement or the Lease and the Sublease, then the terms, covenants and
conditions of this Agreement or the Lease shall prevail. If there shall be any conflict or
inconsistency between this Agreement and the Lease, then the terms of this Agreement shall prevail.

21. Each of the parties hereby irrevocably and unconditionally waives its right to a jury
trial in any cause of action arising out of, or relating to, this Agreement.

22. Tenant agrees to pay, upon demand, Landlord’s reasonable out-of-pocket fees and
disbursements incurred in connection with and related to the preparation and execution of this
Agreement.

23. This Agreement may be executed in counterparts, each of which shall be deemed an original,
and all such counterparts shall together constitute one and the same instrument.

24. Please acknowledge your agreement to the terms and conditions of this Agreement by signing
the copy of this Agreement enclosed herewith and returning it to the Landlord. You may consider
Landlord’s consent to the Sublease to be effective upon your receipt of a fully executed copy of
this Agreement.

 

-6-

 

	 	 	 	 	 
	 	LANDLORD:

400 S. HOPE, L.P.,

a Delaware limited partnership

 	 
	 	By:  	400 S. Hope GP, L.L.C.,
 	 
	 	 	a Delaware limited liability company 	 
	 	 	Its: General Partner 	 
	 	 	 
	 	By:  	/s/ Russell Makowsky
 	 
	 	 	Its: Vice President and Treasurer 	 
	 	 	 	 

Agreed to:

TENANT:

THE CAPITAL GROUP COMPANIES, INC.,

a Delaware corporation

	 	 	 	 	 
	By:

	 	/s/ Bryan Lewis
 

Its: Senior Vice President
	 	 

SUBTENANT:

KIDS LINE, LLC,

a

Delaware limited liability company

	 	 	 	 	 
	By:

	 	/s/ Charles Ginn
 

Its: Chief Operating Officer
	 	 

[Guarantor’s signature appears on following page]

 

-7-

 

GUARANTOR:

KID BRANDS, INC.,

a New Jersey corporation

	 	 	 	 	 
	By:

	 	/s/ Marc S. Goldfarb
 

Its: Senior Vice President and General Counsel
	 	 

 

-8-

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