Document:

EXHIBIT 10.2

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

This Third Amendment to Credit Agreement (this “Third Amendment”)
is made as of this 29th day
of July, 2009 by and among:

 

THE CHILDREN’S PLACE RETAIL STORES, INC., a Delaware
corporation, for itself and as agent (in such capacity, the “Lead Borrower”)
for the other Borrowers party hereto;

 

the BORROWERS party hereto;

 

the GUARANTORS party hereto;

 

the LENDERS party hereto; and

 

WELLS FARGO RETAIL FINANCE, LLC, as Administrative Agent, Collateral
Agent and Swing Line Lender;

 

in consideration of the mutual covenants
herein contained and benefits to be derived herefrom.

 

W I T N E S S E T H:

 

WHEREAS, reference is made to that certain Credit Agreement, dated as
of July 31, 2008 (as amended, modified, supplemented or restated and in
effect from time to time, the “Credit Agreement”), by and among (i) the
Borrowers, (ii) the Guarantors, (iii) the Lenders, and (iv) Wells
Fargo Retail Finance, LLC, as Administrative Agent, Collateral Agent and Swing
Line Lender; and

 

WHEREAS, the Lead Borrower has informed the Agent that it intends to
prepay certain Indebtedness and repurchase certain of its capital stock and has
requested that the Agents and the Required Lenders waive certain provisions of
the Credit Agreement with respect to such prepayment and repurchase, and the
Agents and the Required Lenders are willing to waive such provisions subject to
the terms and conditions set forth herein; and

 

WHEREAS, the Loan Parties, the Agents and the Lenders have
agreed to amend certain terms and conditions of the Credit Agreement as set
forth herein.

 

NOW, THEREFORE, it is hereby agreed as follows:

 

1.                                       Definitions. 
All capitalized terms used herein and not otherwise defined shall have
the same meaning herein as in the Credit Agreement.

 

2.                                       Amendments to Article I.  The
provisions of Article I of the Credit Agreement are hereby amended by
adding the following new definitions thereto in appropriate alphabetical order as
follows:

 

1

 

“2009 Capital Stock Repurchase” means that certain repurchase by
the Lead Borrower of 2,451,315 shares of common stock of the Lead Borrower from
Ezra Dabah and the other Sellers party to the 2009 Capital Stock Repurchase
Agreement.

 

“2009 Capital Stock Repurchase Agreement” means that certain
Securities Purchase Agreement dated as of July 29, 2009 by and between the
Lead Borrower, Ezra Dabah and the other Sellers party thereto.

 

“Applicable Commitment Fee Percentage” means the applicable
percentage set forth in the grid below:

 

	
  Average daily Total

  Outstandings for the

  immediately preceding month

  	
   

  	
  Applicable Commitment Fee

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to $100,000,000

  	
   

  	
  0.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than $100,000,000

  	
   

  	
  0.75

  	
  %

  

 

3.                                       Amendment to Article II. 
The provisions of Section 2.09(a) of the Credit Agreement are
hereby amended by deleting “0.25%” on the third line thereof and by adding “the
Applicable Commitment Fee Percentage” in its stead.

 

4.                                       Amendments to Article VII.  The
provisions of Article VII of the Credit Agreement are hereby amended as
follows:

 

(a)                                  Section 7.06 of the Credit Agreement
is hereby amended by deleting “and” at the end of clause (c) thereof, by
relettering clause (d) as clause (e), and by adding the following new
clause (d) thereto:

 

“(d)         the Lead Borrower may make the 2009
Capital Stock Repurchase consummated in accordance with the terms and
conditions of the 2009 Capital Stock Repurchase Agreement; provided that,
no proceeds received from any Credit Extensions shall be used to make the 2009
Capital Stock Repurchase; and provided further that all shares of stock
repurchased by the Lead Borrower pursuant to the 2009 Capital Stock Repurchase
Agreement shall be permanently retired by the Lead Borrower.  As a result of the foregoing consent, the
Agents and the Lenders hereby confirm that no Event of Default shall have
occurred under Section 8.01(s) of the Credit Agreement as a result of
the occurrence of any “Event of Default” under the Note Documents due to the
Lead Borrower’s entering into the 2009 Capital Stock Repurchase Agreement and
performing its 

 

2

 

obligations thereunder,
so long as the 2009 Capital Stock Repurchase is consummated and the Note
Obligations are prepaid in full on or before August 3, 2009.”

 

(b)                                 Section 7.18 of the Credit Agreement
is hereby amended by deleting “and” at the end of clause (a) thereof, by
deleting the period at the end of clause (b) thereof and by substituting “;
and” in its stead, and by adding the following new clause (c) thereto:

 

“(c)         the
Lead Borrower may receive intercompany transfers outside the ordinary course of
business from its Affiliates in Canada, Asia and/or Puerto Rico in an amount
not to exceed $80,000,000 and may apply the proceeds of such transfers to make
the 2009 Capital Stock Repurchase in accordance with Section 7.06(d) hereof.”

 

5.                                       Consent to Prepayment of Note Obligations.  Section 7.07(b) of
the Credit Agreement provides, among other things, that (a) as long as the
Payment Conditions are satisfied, the Borrowers may make repayments or
prepayments of the Note Obligations in an aggregate amount not to exceed
$20,000,000.00 in any Fiscal Year, and (b) as long as (i) the Payment
Conditions are satisfied and (ii) no proceeds of any Credit Extension are
being used to finance all or any portion of such repayment or prepayment, the
Borrowers may make other repayments or prepayments of the Note Obligations in
an aggregate amount in excess of $20,000,000.00 in any Fiscal Year.  The Borrowers have requested that,
notwithstanding the provisions of Section 7.07(b) of the Credit
Agreement to the contrary, the Agent and the Lenders permit the Borrowers to
use the proceeds from Credit Extensions in an amount not to exceed $15,000,000
to prepay the entire outstanding amount of the Note Obligations.  The Borrowers hereby represent and warrant to
the Agents and the Lenders that the Borrowers have met all other conditions (including,
without limitation, the Payment Conditions) set forth in Section 7.07(b) of
the Credit Agreement for the prepayment of the entire outstanding amount of the
Note Obligations (other than the condition requiring that the certificate
required by such Section 7.07(b) be delivered five (5) days
prior to the making of such payment, which five (5) day period is hereby
waived).  Pursuant to the foregoing
representation and warranty of the Borrowers, subject to the conditions set
forth in Section 7 of this Third Amendment, the Agents and the Required
Lenders hereby consent to the prepayment in full of the Note Obligations, and
hereby agree that, notwithstanding anything to the contrary set forth in Section 7.07(b) of
the Credit Agreement, as long as the Payment Conditions have been satisfied,
the Borrowers may use the proceeds from Credit Extensions in an amount not to
exceed $15,000,000 to prepay the entire outstanding amount of the Note
Obligations;   provided that such prepayment shall be
made on or before August 3, 2009; and provided further that the
Administrative Agent shall have received a payoff letter from the Note
Purchasers acknowledging and agreeing that upon such prepayment, the Note
Obligations and all other obligations of the Loan Parties under the Note
Purchase Agreement shall be paid and satisfied in full, the Note Purchase 

 

3

 

Agreement, and all
documents and agreements executed in connection therewith, shall be terminated
and of no further force and effect, the Lien of the Note Purchasers on, and
security interest in, the assets of the Loan Parties’ shall be released and the
Note Purchasers shall have delivered to the Collateral Agent stock
certificates, stock powers and other Note Purchasers Priority Collateral in the
possession of the Note Purchasers.

 

6.                                       Ratification of Loan Documents; Waiver of
Claims.

 

(a)                                  Except as otherwise expressly provided
herein, all terms and conditions of the Credit Agreement and the other Loan
Documents remain in full force and effect. 
The Loan Parties hereby ratify, confirm, and reaffirm that all representations
and warranties of the Loan Parties contained in the Credit Agreement or any
other Loan Document, as modified by the revised schedules to the Credit
Agreement to be delivered within ten (10) Business Days after the date
hereof, are true and correct in all material respects on and as of the date
hereof, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct in
all material respects as of such earlier date.

 

(b)                                 Each of the Loan Parties hereby
acknowledges and agrees that there is no basis or set of facts on the basis of which
any amount (or any portion thereof) owed by the Loan Parties under the Loan
Documents could be reduced, offset, waived, or forgiven, by rescission or
otherwise; nor is there any claim, counterclaim, offset, or defense (or other
right, remedy, or basis having a similar effect) available to the Loan Parties
with regard thereto; nor is there any basis on which the terms and conditions
of any of the Obligations could be claimed to be other than as stated on the
written instruments which evidence such Obligations.

 

(c)                                  Each of the Loan Parties hereby
acknowledges and agrees that it has no offsets, defenses, claims, or
counterclaims against the Agents or any Lender, or any of their respective
affiliates, predecessors, successors, or assigns, or any of their respective
officers, directors, employees, attorneys, or representatives, with respect to
the Obligations, or otherwise, and that if the any Loan Party now has, or ever
did have, any offsets, defenses, claims, or counterclaims against the Agents or
any Lender, or their respective affiliates, predecessors, successors, or
assigns, or their respective officers, directors, employees, attorneys, or representatives,
whether known or unknown, at law or in equity, from the beginning of the world
through this date and through the time of execution of this Third Amendment,
all of them are hereby expressly WAIVED,
and the each of the Loan Parties hereby RELEASES
the Agents and each Lender and their respective officers, directors, employees,
attorneys, representatives, affiliates, predecessors, successors, and assigns
from any liability therefor.

 

7.                                       Conditions to Effectiveness.  This
Third Amendment and the consent of the Administrative Agent and the Required
Lenders set forth in Section 5 above shall not be 

 

4

 

effective until
each of the following conditions precedent has been fulfilled to the reasonable
satisfaction of the Administrative Agent:

 

(a)                                  The Administrative Agent shall have
received counterparts of this Third Amendment duly executed and delivered by each
of the parties hereto.

 

(b)                                 All corporate and shareholder action on
the part of the Loan Parties necessary for the valid execution, delivery and
performance by the Loan Parties of this Third Amendment shall have been duly
and effectively taken and evidence thereof reasonably satisfactory to the
Administrative Agent shall have been provided to the Administrative Agent.

 

(c)                                  The Administrative Agent shall have
received evidence satisfactory to the Administrative Agent that the Loan
Parties have met the Payment Conditions required to prepay the Note Obligations
pursuant to Section 7.07(b) of the Credit Agreement.

 

(d)                                 The Administrative Agent shall have
reviewed and be satisfied with the 2009 Capital Stock Repurchase Agreement.

 

(e)                                  The Loan Parties shall have paid to the
Administrative Agent, for the account of the Lenders entering into this Third
Amendment, an amendment fee equal to 0.50% of the amount of the Commitment of
each such Lender.

 

(f)                                    After giving effect to this Third
Amendment, no Default or Event of Default shall have occurred and be continuing.

 

8.                                       Post Closing Obligation.  Contemporaneously
with the closing of the 2009 Capital Stock Repurchase, but in any event on or
before August 3, 2009, the Loan Parties shall deliver to the
Administrative Agent an opinion of counsel to the Loan Parties reasonably
acceptable to the Administrative Agent covering the representations and
warranties of the Lead Borrower set forth in Section 2.2(a), (b) and (c) of
the 2009 Capital Stock Repurchase Agreement in all material respects.

 

9.                                       Miscellaneous.

 

(a)                                  This Third Amendment may be executed in
several counterparts and by each party on a separate counterpart, each of which
when so executed and delivered shall be an original, and all of which together
shall constitute one instrument. 
Delivery of an executed counterpart of a signature page to this Third
Amendment by telecopy or other electronic transmission shall be effective as
delivery of a manually executed counterpart of this Third Amendment.

 

5

 

(b)                                 This Third Amendment expresses the entire
understanding of the parties with respect to the transactions contemplated
hereby.  No prior negotiations or
discussions shall limit, modify, or otherwise affect the provisions hereof.

 

(c)                                  Any determination that any provision of
this Third Amendment or any application hereof is invalid, illegal or
unenforceable in any respect and in any instance shall not effect the validity,
legality, or enforceability of such provision in any other instance, or the
validity, legality or enforceability of any other provisions of this Third Amendment.

 

(d)                                 The Loan Parties represent and warrant
that they have consulted with independent legal counsel of their selection in
connection with this Third Amendment and are not relying on any representations
or warranties of the Agents or the Lenders or their counsel in entering into
this Third Amendment.

 

(e)                                  The Loan Parties shall pay all reasonable
costs and expenses of the Agents (including, without limitation, reasonable
attorneys’ fees) in connection with the preparation, negotiation, execution and
delivery of this Third Amendment and related documents.  The Loan Parties hereby acknowledge and agree
that the Administrative Agent may charge the Loan Account to pay such costs and
expenses.

 

(f)                                    THIS THIRD AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

[SIGNATURE
PAGES FOLLOW]

 

6

 

IN WITNESS WHEREOF, the parties have hereunto caused this Third
Amendment to be executed and their seals to be hereto affixed as of the date
first above written.

 

	
   

  	
  THE CHILDREN’S PLACE
  RETAIL STORES, INC., as Lead Borrower and as a Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
  Title:

  	
  Executive Vice President,
  Finance & Administration

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE CHILDREN’S PLACE
  SERVICES COMPANY, LLC, as a Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
  Title:

  	
  Executive Vice President,
  Finance & Administration

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE CHILDRENSPLACE.COM,
  INC., as a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adrienne Urban

  
	
   

  	
  Name:

  	
  Adrienne Urban

  
	
   

  	
  Title:

  	
  Assistant Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE CHILDREN’S PLACE
  (VIRGINIA), LLC, as a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
  Title:

  	
  Senior Vice President and
  Treasurer

  

 

S-1

 

	
   

  	
  THE CHILDREN’S PLACE
  CANADA HOLDINGS, INC., as a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
  Title:

  	
  Senior Vice President and
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TWIN BROOK INSURANCE
  COMPANY, INC., as a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
  Title:

  	
  Senior Vice President and
  Treasurer

  

 

S-2

 

	
   

  	
  WELLS FARGO RETAIL
  FINANCE, LLC, as Administrative Agent, Collateral Agent, Swingline Lender and
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jennifer Blanchette

  
	
   

  	
  Name: Jennifer Blanchette

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as
  a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kathleen DiMock

  
	
   

  	
  Name: Kathleen DiMock

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC BUSINESS CREDIT (USA)
  INC., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel J. Williams

  
	
   

  	
  Name: Daniel J. Williams

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry Favre

  
	
   

  	
  Name: Larry Favre

  
	
   

  	
  Title: Senior Vice
  President

  

 

S-3Exhibit
10.3

 

FIRST LEASE
MODIFICATION AGREEMENT

 

THIS FIRST
LEASE MODIFICATION AGREEMENT, made this 27th day of August, 2009 by and between 500 PLAZA DRIVE CORP., a New Jersey corporation, having an
office at 400 Plaza Drive, Secaucus, New Jersey 07096-1515 (hereinafter
referred to as “Landlord”) and THE CHILDREN’S PLACE
SERVICES COMPANY, LLC, a Delaware limited liability company, having
an office at 915 Secaucus Road, Secaucus, New Jersey (hereinafter referred to
as “Tenant”).

 

WITNESSETH:

 

WHEREAS, by Agreement of Lease dated March 12,
2009, as amended and/or supplemented by (i) that certain Guaranty (the “Guaranty”)
of The Children’s Place Retail Stores, Inc. (the “Guarantor”) dated March 12,
2009, (ii) that certain Letter Agreement among Landlord, Tenant and
Guarantor dated February 19, 2009, and (iii) that certain letter from
Landlord to Tenant dated May 5, 2009 (such agreements collectively
referred to as the “Lease”), Landlord leased to Tenant and Tenant hired from
Landlord 119,979 square feet of Floor Space (hereinafter referred to as the “Original
Demised Premises”) located at 500 Plaza Drive in Secaucus, New Jersey
(hereinafter referred to as the “Building”); and

 

WHEREAS, Landlord and Tenant wish to modify the
Lease to reflect, inter alia, Tenant’s lease of
additional space in the Building, and to amend the Lease accordingly;

 

NOW,
THEREFORE, for
and in consideration of the Lease, the mutual covenants herein contained and
the consideration set forth herein, the parties agree as follows:

 

1.             Same Meaning.  Except as otherwise expressly set forth
herein, capitalized terms referenced in this First Lease Modification Agreement
shall have the meanings ascribed in the Lease.

 

2.             Additional Premises/Rights
to Install Generator:  Landlord
hereby leases to Tenant, and Tenant hereby hires from Landlord 17,544 square
feet of Floor Space representing a portion of the fifth (5th) floor of the Building (hereinafter referred to as the
“Additional Premises”). The Additional Premises are outlined in bold on the
floor plan attached hereto as Exhibit A. Except as expressly provided
herein, effective upon the Additional Premises Commencement Date (as that term
is defined below), the Demised Premises will be deemed to include (and any
reference in the Lease to the term “Demised Premises” shall be deemed to
incorporate) the Original Demised Premises and the Additional Premises. Effective
upon the Additional Premises Commencement Date, the Demised Premises will, in
the aggregate, contain 137,523 square feet of Floor Space. Article 1.01 M.
of the Lease shall be deemed so amended. Landlord further agrees to grant
Tenant the right to use the existing generator located on the grade level of
the Building subject to and in accordance with the terms and conditions of that
certain Tri-Party Agreement (the “Tri-Party Agreement”) among Landlord, Tenant
and AXA Equitable Life Insurance Co. (“AXA”); provided, however, in the event
the Tri-Party Agreement is not so executed among Landlord, Tenant and AXA, 

 

1

 

Tenant shall have the
right to install a new generator (the “New Generator”) under the Building at a
location mutually agreed upon by Landlord and Tenant (provided the same shall
be within the area of one or more of Tenant’s exclusive parking spaces under
the Building). The installation of the New Generator shall be deemed an
alteration requiring Landlord’s consent under the Lease, which consent shall
not be unreasonably withheld or delayed, and Tenant shall be obligated to
deliver for Landlord’s approval complete plans and specifications for the New
Generator (as well as the related fuel tanks, connective wiring and means and
method of enclosing the New Generator) prior to installation thereof.  Tenant shall be solely responsible for all costs
associated with the installation, maintenance and repair of the New Generator
(as well as any fuel storage tank attendant thereto) as well as all mechanical
connections related thereto.  Tenant
shall also be responsible for the cost of all repairs to the areas immediately
surrounding the New Generator (and attendant fuel tank) as a result of the
installation, maintenance and operation of the New Generator and attendant fuel
tank.  Tenant shall indemnify and hold Landlord
any all Superior Lessors and Superior Mortgagees harmless from all loss,
damage, cost, liability and expense arising out of or related to the
installation, maintenance and operation of the New Generator or any fuel tank
attendant thereto and for all equipment related thereto. In no event shall
Landlord be responsible for any damages or abatements arising out of the
failure or inoperability of such systems or equipment. Tenant shall not be
obligated to remove the New Generator upon the expiration or earlier
termination of the Lease so long as the New Generator is in good working
condition upon the expiration or earlier termination of the Lease.  If the New Generator is not in good working
condition upon the expiration or earlier termination of the Lease, Tenant shall
be obligated to remove same upon the expiration or earlier termination of the
Lease at Tenant’s sole cost and expense and in accordance with applicable Legal
Requirements.

 

3.             Additional Premises
Commencement Date:  The Term
of the lease of the Additional Premises shall commence on February 1, 2010
(said date, the “Additional Premises Commencement Date”). Tenant’s obligation
to pay Fixed Rent, Real Estate Taxes, Operating Expenses, and all other charges
due under the Lease with respect to the Additional Premises shall commence on
the Additional Premises Commencement Date. Article 1.01 K. of the Lease
shall be deemed so amended.

 

4.             Expiration Date of the
Demised Premises:  The
Term of the Lease of the Additional Premises shall expire on May 31, 2024.
The “Tenant’s Termination Right,” referenced in Article 1.01 P. of the
Lease, shall not apply with respect to the Additional Premises. Article 1.01
P. of the Lease shall be deemed so amended.

 

5.             Fixed Rent:  Commencing on the Additional Premises
Commencement Date, Tenant shall pay Fixed Rent with respect to the Additional
Premises as follows: For the period from the Additional Premises Commencement
Date until the day prior to the fifth (5th)
anniversary of the Additional Premises Commencement Date, the Fixed Rent for the
Additional Premises shall be an amount at the annual rate of Twenty Seven and 50/100
($27.50) Dollars multiplied by the Floor Space of the Additional Premises; for
the period from the fifth (5th)
anniversary of the Additional Premises Commencement Date until the day prior to
the tenth (10th) anniversary of the Additional Premises
Commencement Date, the Fixed Rent for the Additional Premises shall be an
amount at the annual rate of Twenty Eight and 50/100 ($28.50) Dollars
multiplied by the Floor Space of the

 

2

 

Additional Premises; and
for the period from the tenth (10th)
anniversary of the Additional Premises Commencement Date until the Expiration
Date, the Fixed Rent for Additional Premises shall be an amount at the annual
rate of Thirty and 00/100 ($30.00) Dollars multiplied by the Floor Space of
Demised Premises. Article 1.01 Q. of the Lease shall be deemed so amended.

 

6.             Base Year for the
Additional Premises:  The
Base Year for the Additional Premises shall be Calendar Year 2010. Accordingly,
when, in Articles 6.01 and 6.02 of the Lease, Landlord is calculating Tenant’s
Fraction of Operating Expenses and Real Estate Taxes, a separate calculation
shall be made for the Additional Premises (as
distinguished from the Original Demised Premises),
wherein the Base Year shall be Calendar Year 2010. Articles 1.01 D., 6.01 and
6.02 of the Lease shall be deemed so amended.

 

7.             Tenant’s Fraction:  Tenant’s Fraction with respect to the
Additional Premises shall be 3.94%. Accordingly, when, in Articles 6.01 and
6.02 of the Lease, Landlord is calculating Tenant’s Fraction of Operating
Expenses and Real Estate Taxes, a separate calculation shall be made for the Additional Premises (as distinguished from the
Original Demised Premises), wherein the
Tenant’s Fraction shall be 3.94%. Articles 1.01 OO., 6.01 and 6.02 of the Lease
shall be deemed so amended.

 

8.             Option to Extend Term:
 In the event Tenant does not exercise
Tenant’s Termination Right referenced in Article 1.01 P. of the Lease with
respect to the Original Demised Premises, Tenant shall have two (2) options
to extend the Term of the Lease with respect to the Additional Premises from
the date(s) upon which the lease of the Additional Premises would
otherwise expire for two (2) periods of five (5) years each; such
rights to be exercised in accordance with and subject to the provisions of Article 38
of the Lease except that the Fixed Rent to be paid by Tenant during the first
five (5) year option period with respect to the Additional Premises shall
be at the annual rate of Thirty Three and 50/100 Dollars ($33.50) multiplied by
the square footage of Floor Space of the Additional Premises. The Fixed Rent
for the Additional Premises during the second five (5) year option period,
if such right is so exercised, shall be at FMV as that term is defined pursuant
to and determined in accordance with Article 38 of the Lease.

 

9.             Security Deposit:
 On or prior to the Additional Premises
Commencement Date, Tenant shall deliver the Landlord an additional Security
Deposit (in the form of a new Letter of Credit, an additional Letter of Credit,
or an amendment to the Letter of Credit posted with respect to the Original
Demised Premises) in the amount of $50,527.00 Article 1.01 HH. of the
Lease shall be deemed so amended.

 

10.           Floor Space:
 Reference is made to Article 1.01
R. of the Lease. For purposes of determining the Floor Space of the Additional
Premises, the Loss Factor shall be 17.00 %. Article 1.01 R. of the Lease
shall be deemed so amended.

 

11.           Landlord’s Work:  Landlord shall perform the following work in
and to the Additional Premises (hereinafter referred to as the “Additional
Premises Landlord’s Work”) at Landlord’s sole cost and expense: Landlord shall
demise the Additional Premises from the balance of 

 

3

 

the fifth floor of the Building, and furnish all demising walls to the
underside of the roof with metal studs and gypsum board on both sides of the
studs [such gypsum board to maintain a one (1) hour fire rating if
required by applicable Legal Requirements (or higher as required by applicable
Legal Requirements)], and taped and spackled, smooth and ready for paint, and
Landlord shall install a building standard common corridor, as depicted on the
attached Exhibit A, in compliance with applicable Legal Requirements.

 

Except as expressly provided herein, the Additional Premises will be
delivered to Tenant, and Tenant agrees to accept the same, in “AS IS” condition.
Further, reference is made to Article 5.01 (a) of the Lease. It is
expressly agreed and acknowledged by the parties hereto that the first and last
sentences of Article 5.01 (a) shall not apply to the Additional
Premises. In addition, and with reference to Article 5.01 (a) of the
Lease and that certain letter from Landlord to Tenant dated May 5, 2009,
Tenant hereby releases Landlord from any obligation to remove the staircase
between the fourth (4th) and fifth (5th) floors of the Building.

 

Within forty five (45) days of the substantial completion of Landlord’s
Work, Tenant shall provide Landlord with notice of any incomplete or
unsatisfactory items of Landlord’s Work (such items creating the “Punch List”).
Landlord shall complete any such Punch List items within thirty (30) days of
Landlord’s receipt thereof. If Landlord shall fail to complete such Punch List
Items within such thirty (30) day period, Tenant shall be entitled to complete
such Punch List Items and Landlord shall reimburse Tenant for such costs within
ten (10) days of receipt of an invoice therefore.

 

12.           Landlord’s
Contribution:  So long as Tenant shall not be in
monetary or other material default of the Lease beyond the applicable notice
and cure period, if any, Landlord agrees that it shall contribute up to the sum
of Twenty Eight and 83/100 Dollars ($28.83) per square foot of Floor Space of
the Additional Premises (“Landlord’s Additional Premises Contribution”) towards
the cost of Tenant’s work with respect to the Additional Premises (the “Additional
Premises Tenant’s Work”) on the terms set forth below:

 

(A)          Landlord shall not be required to make
Landlord’s Additional Premises Contribution if this Lease is not then in full
force and effect or if the Additional Premises are not free of all liens,
claims or encumbrances created by Tenant or its contractors.

 

(B)           Landlord’s Contribution shall be paid within
thirty (30) days of the later of (x) completion of the Additional Premises
Tenant’s Work and (y) satisfaction of the conditions set forth in
subparagraph (C) below.

 

(C)           Prior to and as a condition precedent to
Landlord’s obligation to make such payment, Tenant shall deliver to Landlord:

 

(i)  a signed statement by an officer of Tenant
stating that all material and all property constituting the Additional Premises
Tenant’s Work has been fully paid for and the same are free and clear of all
encumbrances, liens or charges;

 

4

 

(ii)  an
affidavit sworn to by Tenant’s general contractor to the effect that it has
been paid all sums due to it and containing a statement that all
subcontractors, materialmen and suppliers and all costs of labor, including
payroll taxes and charges, have been paid; said affidavit shall contain the
names of all subcontractors;

 

(iii)  lien waivers executed by Tenant’s
general contractor and all subcontractors;

 

(iv)  a permanent (and/or continuing as may
be applicable) certificate of occupancy for the Additional Premises and such
other approvals of the Additional Premises Tenant’s Work or which may be
necessary for the conduct of Tenant’s business in the Additional Premises as
may be required of any governmental authority;

 

(v)  an
affidavit from the architect having supervision over the Additional Premises
Tenant’s Work, to the effect that the Additional Premises Tenant’s Work has
been substantially completed in accordance with the plans and specifications
reasonably and previously approved by Landlord and in compliance with all
applicable Legal Requirements; and

 

(vi)  a
cost breakdown, in reasonable detail, certified by Tenant, detailing the items
comprising the Additional Premises Tenant’s Work.

 

(E)           Tenant shall not mortgage, pledge, assign
or hypothecate Tenant’s right to receive Landlord’s Additional Premises
Contribution.

 

13.           Electric:  Reference is made to Article 18.01 of
the Lease.  The parties hereto
acknowledge and agree that Article 18.01 of the Lease shall apply with
respect to the Additional Premises; provided, however, Tenant shall be
obligated to install either a direct meter or sub-meter to measure electric
consumption in the Additional Premises the cost of which shall be at Tenant’s
sole cost and expense. If such consumption is measured by sub-meter, said sub-meter
shall be tied into Tenant’s electric metering system for the Original Demised Premises.

 

14.           HVAC:  Reference is made to Article 19.01 of the
Lease.  The parties hereto acknowledge
and agree that Article 19.01 of the Lease shall apply with respect to the
Additional Premises, it being the agreement and understanding of the parties
that the current overtime HVAC Charge for the Additional Premises (see the last
sentence of Article 19.02) shall be $50.00 per hour (same being subject to
change upon written notice to Tenant). Further, notwithstanding anything
contained in the Lease to the contrary, Landlord agrees, in concept, that
Tenant shall be permitted to install supplemental HVAC capacity and systems in
the Building; same, however, is to be performed as an alteration requiring
Landlord’s consent pursuant to and in accordance with the terms and conditions
of Article 15 of the Lease, including, but not limited to, compliance with
applicable Legal Requirements.

 

5

 

15.           Parking:  Reference is made to Article 7.04 of
the Lease.  Effective upon the Additional
Premises Commencement Date, Tenant shall be entitled to an additional four (4) parking
spaces per 1000 square feet of Floor Space of the Additional Space. Such
parking shall be located in the parking deck(s) and grade level parking
serving the Building and shall be provided on a non-exclusive basis.

 

16.           Broker.  Each party represents to the other that no
broker except the Broker was instrumental in bringing about or consummating
this First Lease Modification Agreement and that neither party had any
conversations or negotiations with any broker except the Broker concerning the
leasing of the Additional Premises.  Each
party agrees to indemnify and hold harmless the other party against and from
any claims for any brokerage commissions and all costs, expenses and
liabilities in connection therewith, including, without limitation, attorneys’
fees and expenses, arising out of any conversations or negotiations had by such
party with any broker other than the Broker with respect to the leasing of the
Additional Premises.  Landlord shall pay
any brokerage commissions due the Broker with respect to the leasing of the
Additional Premises by Tenant pursuant to a separate agreement between Landlord
and the Broker.

 

17.           Lease Effectiveness.
 Except as provided herein, all of
the terms and conditions of the Lease are in full force and effect and are
confirmed as if fully set forth herein.

 

18.           Authority.  Each party represents and warrants that it has
the power and authority to execute this First Lease Modification Agreement.

 

19.           Headings.  The section headings set forth herein shall
have absolutely no legal significance and are used solely for convenience of
reference.

 

20.           Counterparts.  This First Lease Modification Agreement may
be executed in counterparts, each of which will be deemed an original, and both
of which together shall be deemed to constitute one and the same
instrument.  Each of the parties hereto
shall be entitled to rely upon a counterpart of the instrument executed by the
other party and sent by facsimile transmission.

 

6

 

IN
WITNESS WHEREOF,
the parties hereto have caused this First Lease Modification Agreement to be
duly executed as of the day and year first above written.

 

	
   

  	
   

  	
  500 PLAZA DRIVE CORP.

  
	
   

  	
   

  	
  (“Landlord”)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irwin A. Horowitz

  
	
   

  	
   

  	
  Irwin A. Horowitz

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  	
  THE CHILDREN’S PLACE SERVICE

  
	
   

  	
   

  	
  COMPANY, LLC

  
	
   

  	
   

  	
  (“Tenant”)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles Crovitz

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Charles Crovitz

  
	
   

  	
   

  	
  Title:

  	
  Interime Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President, Finance & Administration

  

 

 

Copyright © Hartz
Mountain Industries, Inc. 2003. All Rights Reserved. No portion of this
document may be reproduced without the express written consent of Hartz
Mountain Industries, Inc.

 

7

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