Document:

EXHIBIT 10.68

 

GUARANTY

 

THIS GUARANTY is made
this 12th day of March, 2009, by The Children’s Place Retail Stores, Inc.,
a Delaware corporation, with an address of 915 Secaucus Road, Secaucus, New
Jersey 07094 (“Guarantor”)

 

WHEREAS, 500 Plaza Drive
Corp., a New Jersey corporation with an office at 400 Plaza Drive, P.O. Box
1515, Secaucus, New Jersey 07094-1515 (“Landlord”) has leased certain premises
located in Secaucus, New Jersey to The Children’s Place Services Company, LLC,
a Delaware limited liability company (“Tenant”) pursuant to a Lease Agreement (“Lease”)
of even date herewith, to which this Guaranty is attached; and

 

WHEREAS, Landlord has
refused to enter into the Lease unless the Guarantor executes and delivers this
Guaranty; and

 

WHEREAS, in order to
induce Landlord to enter into the Lease, the Guarantor has agreed to guarantee
the payment of Rent and any other charges provided for in the Lease and the
performance by Tenant of all the covenants to be performed and observed on its
part pursuant to the Lease.

 

NOW THEREFORE, in
consideration of the premises and of the sum of Ten Dollars ($10.00) paid to
Guarantor, the receipt and sufficiency of which are hereby acknowledged, the
terms of the Guaranty are as follows:

 

1.                                       The
Guarantor agrees that the obligation of the Guarantor is a primary and
unconditional obligation, and the Guarantor unconditionally and absolutely
guarantees the due and punctual payment of the Rent, the Additional Charges and
any other moneys due or which may become due pursuant to the terms of the
Lease, and the due and punctual performance and observance by the Tenant of all
the terms, covenants and conditions of the Lease whether according to the
present terms thereof, or pursuant to any extension of time or any change or
changes in the terms, covenants and conditions thereof now or at any time
hereafter made or granted.  The liability
of the Guarantor hereunder shall be enforceable against the Guarantor without
the necessity for any suit or proceedings on the Landlord’s part of any kind or
nature whatsoever against the Tenant.

 

2.                                       The
Guarantor, without affecting the Guarantor’s obligations hereunder in any
respect, hereby waives notice of the acceptance of this Guaranty by the
Landlord; notice of presentment, diligence, demand for payment, nonpayment,
protest, notice of dishonor, extension of time of payment, and indulgences and
notices of every kind.

 

3.                                       The
Guarantor, without affecting the Guarantor’s obligations hereunder in any
respect, hereby consents to the acceptance or release of security, the release
or addition of parties liable under the Lease, any and all forbearances and
extensions of the time of payment of Rent, and any and all changes in the
terms, covenants and conditions of the Lease, and any extension or renewal of
the 

 

 

Term of the Lease, any
assignment or transfer of the Lease by Tenant and any consents given by
Landlord hereafter made or granted; it being the intention hereof that the
Guarantor shall remain liable in principal until the full amount of the Rent
and any other sums due or to become due under the Lease shall have been fully
paid and the terms, covenants and conditions shall have been fully performed
and observed by the Tenant, notwithstanding any act, omission or thing which
might otherwise operate as a legal or equitable discharge of the Guarantor.

 

4.                                       The
Guarantor hereby waives all defenses, offsets or counterclaims which the
Guarantor or the Tenant may at any time have in connection with the Lease.

 

5.                                       Until
all the covenants and conditions in said Lease on the Tenant’s part to be
performed and observed are fully performed and observed, the Guarantor: (a) shall
have no right of subrogation against the Tenant by reasons of any payments or
acts of performance by the Guarantor hereunder; (b) waives any right to
enforce any remedy which the Guarantor now or hereafter shall have against the
Tenant by reason of any one or more payment or acts of performance in
compliance with the obligations of the Guarantor hereunder; and (c) subordinates
any liability or indebtedness of the Tenant arising out of the Lease or this
Guaranty now or hereafter held by the Guarantor to the obligations of the
Tenant to the Landlord under said Lease.

 

6.                                       The
Guarantor agrees that this Guaranty may be enforced by Landlord without first
resorting to or exhausting any other remedy.

 

7.                                       The
Guarantor agrees that the Guarantor’s obligation to make payment in accordance
with the terms of this Guaranty shall not be limited, modified, changed,
released or impaired in any manner whatsoever by any impairment, modification,
change, release or limitation of the liability of Tenant or its estate in
bankruptcy or the rejection or disaffirmance of the Lease resulting from the
operation of any present or future provision of the United States Bankruptcy
Code or other similar statute, or from the decision of any court or from the
cessation from any cause whatsoever of the liability of Tenant.

 

8.                                       The
Guarantor agrees that in the event this Guaranty is placed in the hands of an
attorney for enforcement, the Guarantor will reimburse Landlord for all
expenses incurred in enforcing this Guaranty, including reasonable attorney’s
fees and court costs.

 

9.                                       The
Guarantor agrees that this Guaranty shall inure to the benefit of the Landlord
and shall be binding upon and enforceable by Landlord and any successor to
Landlord against the Guarantor and the Guarantor’s successors and assigns.  The Landlord shall have the right to assign
and transfer this Guaranty to any assignee of Landlord’s interest under this
Lease.

 

10.                                 This
Guaranty shall be governed by and construed and interpreted in accordance with
the laws of the State of New Jersey. 
Guarantor hereby irrevocably agrees that any legal action or proceeding
arising out of or relating to this Guaranty may be brought in the Courts of the
State of New Jersey, or the Federal District Court for the District of New
Jersey, as Landlord may elect.  By
execution and delivery of this Guaranty, Guarantor hereby irrevocably accepts
and submits generally 

 

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and unconditionally for
itself and with respect to its properties, to the jurisdiction of any such
court in any such action or proceeding, and hereby waives in the case of any
such action or proceeding brought in the courts of the State of New Jersey, or
Federal District Court for the District of New Jersey, any defenses based on
jurisdiction, venue or forum non conveniens.

 

11.                                 If
any provision or portion thereof of this Guaranty is declared or found by a
court of competent jurisdiction to be unenforceable or null and void, such
provision or portion thereof shall be deemed stricken and severed from this
Guaranty and the remaining provisions and portions thereof shall continue in
full force and effect.

 

12.                                 Capitalized
terms not defined herein shall be construed as defined in the Lease.

 

13.                                 Attached
hereto is a certified copy of Guarantor’s corporate resolution authorizing the
execution and delivery of this Guaranty.

 

IN WITNESS WHEREOF, the
Guarantor has executed this instrument the day and year first above written.

 

 

	
  ATTEST/WITNESS

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE CHILDREN’S PLACE
  RETAIL STORES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
  /s/ Charles Crovitz

  
	
   

  	
   

  	
   

  	
  Name: Charles Crovitz

  
	
   

  	
   

  	
   

  	
  Title: Interim Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
  /s/ Susan J. Riley

  
	
   

  	
   

  	
   

  	
  Name: Susan J. Riley

  
	
   

  	
   

  	
   

  	
  Title: Executive Vice
  President

  

 

3Exhibit 10.69

 

LEASE TERMINATION
AGREEMENT

 

THIS LEASE TERMINATION
AGREEMENT (this “Agreement”) made as of this 12th day of March 2009
between HARTZ MOUNTAIN METROPOLITAN, a New Jersey general partnership, having
an office at 400 Plaza Drive, P.O. Box 1515, Secaucus, New Jersey 07096-1515
(“Landlord”) and THE CHILDREN’S PLACE SERVICES COMPANY, LLC, a Delaware limited
liability company, having an office at 2 Emerson Lane, Secaucus, New Jersey (“Tenant”);

 

WHEREAS by an Agreement
of Lease dated May 3, 2006, as amended by Lease Modification Agreement
dated November 27, 2006, Letter Agreement dated January 17, 2007, and
Consent to License dated January 1, 2008 (collectively, “the Lease”),
Landlord leased certain Demised Premises (as that term is defined in the Lease)
at 2 Emerson Lane, Secaucus, New Jersey to Tenant; and

 

WHEREAS, the parties are
desirous of providing for the termination of the Lease Term prior to the date
provided in said Lease;

 

NOW, THEREFORE, in
consideration of Ten and 00/100 Dollars ($10.00) in hand paid by Tenant to
Landlord, the receipt and sufficiency of which are hereby acknowledged and the
mutual promises set forth herein, it is agreed that:

 

1.                                       Notwithstanding
the provisions of Article 1.01 M., the Lease shall terminate and Tenant
shall vacate the Demised Premises as of May 31, 2009 with the same effect
as though said date were the Expiration Date set forth in the Lease.  Tenant shall vacate and surrender the Demised
Premises on the aforesaid date in accordance with Article 24 of the Lease.

 

2.                                       Tenant
agrees to promptly satisfy all accounts owing by reason of its occupancy of the
Demised Premises plus all applicable utility charges, real property taxes,
maintenance charges, and the cost of any repairs by reason of Tenant’s
occupancy or removal of its goods and equipment from the Demised Premises as
set forth in said Lease. It is agreed that all adjustments for charges detailed
hereunder shall be made as of May 31, 2009.  Notwithstanding anything herein contained to
the contrary, Tenant shall pay to Landlord, upon execution of this Agreement,
the sum of Six Hundred Fifty Thousand and No/100 Dollars ($650,000.00), in good
funds, as an Additional Charge under the Lease, same representing the balance
due Landlord in connection with the completion of the construction of the
Parking Garage (as that term is defined in the Lease).

 

3.                                       Tenant
warrants that in consideration of Landlord’s termination of the Lease, it shall
vacate the Demised Premises in accordance with Paragraph 1 of this
Agreement.  In the event that Tenant
shall not, for any reason so vacate the Demised Premises, Landlord shall not be
precluded from pursuing Tenant for any further damages arising therefrom.  If Tenant shall vacate the Demised Premises
as provided herein and pay to Landlord all sums owing pursuant to paragraphs 2
and 6(i) 

 

 

hereof, Landlord shall
thereafter return to Tenant its security deposit (in the form of a Letter of
Credit) in the amount of $292,900.00 as provided for in Article 8 of the
Lease. Notwithstanding anything contained herein to the contrary, nothing
contained in this Agreement shall release Tenant from any of its obligations
under Article 13 or Article 21 of the Lease.

 

4.                                       This
agreement shall inure to the benefit of and be binding upon the successors and
assigns of the parties hereto.

 

5.                                       Notwithstanding
the previous Paragraph, Tenant shall not enter into any agreements of
assignment, subletting or encumbrance pursuant to Article 11 of the Lease.

 

6.                                       In
consideration of Landlord’s consent to the termination of the Lease prior to
its stated Expiration Date, Tenant shall pay to Landlord, in good funds, as an
Additional Charge, a “Termination Fee” in the amount of Two Million Two Hundred
Fifty Thousand and No/100 Dollars ($2,250,000.00) as follows:

 

(i) The sum of One
Million Two Hundred Fifty Thousand and No/100 Dollars ($1,250,000.00) shall be
paid to Landlord on or before February 28, 2009; and

 

(ii)  The sum of One
Million and No/100 Dollars ($1,000,000.00) shall be paid to Landlord on or
before January 10, 2010.

 

As security for
the payment of the installment due under subparagraph (ii) above, Tenant
shall, upon execution of this Agreement, deliver to Landlord a Letter of
Credit, in the form and subject to the conditions and requirements set forth in
Article 8 of the Lease, in the amount of $1,000,000.00 to be held by
Landlord pending Tenant’s payment of the installment due under subparagraph (ii) above.
The Letter of Credit so posted in accordance with this provision shall not
expire prior to February 10, 2010. In the event Tenant fails to make the
payment of the installment due under subparagraph (ii) above by January 10,
2010, Landlord shall have the right, upon five (5) days notice to Tenant,
to draw upon the Letter of Credit and to retain the proceeds there from in
satisfaction of Tenant’s obligations hereunder. In the event Tenant timely
makes the payment of the installment due under subparagraph (ii) above,
Landlord shall forthwith return the Letter of Credit to Tenant.

 

7.                                       Tenant
represents that its North American Industrial Classification System (“NAICS
Code”) [as that term is referred to in the Environmental Clean-Up
Responsibility Act (“ISRA”), N.J.S.A. 13:1K-1] is 5651.  Tenant further represents that the Demised
Premises do not constitute an “Industrial Establishment” pursuant to ISRA.  In the event Tenant is subject to ISRA,
Tenant will comply with all statutes, regulations, rules, ordinances, or other
directives governing the termination of Tenant’s Lease.

 

8.                                       The
performance by Tenant of its obligations under this Agreement shall not be
deemed conditions to the termination of the Lease as set forth in
Paragraph 1. hereof.

 

2

 

9.                                       The
Landlord and Tenant represent and warrant to each other that the signatories
hereto are duly authorized to act on their respective behalf in the entering
into this Agreement.

 

10.                                 Tenant
certifies that:  (i) It is not
acting, directly or indirectly, for or on behalf of any person, group, entity,
or nation named by any Executive Order or the United States Treasury Department
as a terrorist, “Specially Designated National and Blocked Person,” or other
banned or blocked person, entity, nation, or transaction pursuant to any law,
order, rule, or regulation that is enforced or administered by the Office of
Foreign Assets Control; and (ii)  it is not engaged in this transaction,
directly or indirectly on behalf of, or instigating or facilitating this
transaction, directly or indirectly on behalf of, any such person, group,
entity, or nation. Tenant hereby agrees to defend, indemnify, and hold harmless
Landlord from and against any and all claims, damages, losses, risks,
liabilities, and expenses (including attorney’s fees and costs) arising from or
related to any breach of the foregoing certification.

 

11.                                 Capitalized
terms referenced herein shall have the meaning ascribed to such terms in the
Lease unless otherwise set forth herein.

 

12.                                 Tenant
hereby acknowledges and agrees that that certain License Agreement by and between
Tenant and LCI Holdings, Inc. dated January 1, 2008 (which was the
subject of Landlord’s Consent to License dated January 1, 2008), shall
terminate, expire and be of no further force and effect as of May 31,
2009, and Licensee shall be required to fully vacate the Demised Premises on or
prior to May 31, 2009.

 

13.                                 This
Agreement, and the rights and obligations of the parties hereto, is/are
expressly conditioned and contingent upon the execution of that certain Lease
Agreement by and between 500 Plaza Drive Corp., an affiliate of Landlord, and Tenant
for premises located at 500 Plaza Drive, Secaucus, New Jersey (the “500 Plaza
Drive Lease”). In the event the 500 Plaza Drive Lease is not executed and
delivered by the parties thereto, then this Agreement shall be deemed
terminated, and the rights and obligations of the parties hereunder shall be
rendered null and void a and without further force and effect.

 

IN WITNESS WHEREOF, the
parties have caused this Lease Termination Agreement to be signed by their duly
authorized officers, and their corporate seals to be affixed hereto, the day
and year first above written.

 

 

	
   

  	
   

  	
  HARTZ MOUNTAIN
  ASSOCIATES

  
	
   

  	
  By:

  	
  Hartz Mountain
  Industries, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irwin A. Horowitz

  
	
   

  	
   

  	
  Irwin A. Horowitz,
  Executive Vice President

  

 

3

 

	
   

  	
   

  	
   

  	
  THE CHILDREN’S PLACE
  SERVICES COMPANY, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles Crovitz

  	
   

  	
  By:

  	
  /s/ Susan J. Riley

  
	
   

  	
  Name:

  	
  Charles Crovitz

  	
   

  	
   

  	
  Name:

  	
  Susan J. Riley

  
	
   

  	
  Title: 

  	
  Interim Chief Executive
  Officer

  	
   

  	
   

  	
  Title: 

  	
  Executive Vice
  President

  
									

 

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.

 

4

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