Form 8-K
8-K — Childrens Place, Inc.
Accession: 0001104659-26-097257
Filed: 2026-08-14
Period: 2026-08-11
CIK: 0001041859
SIC: 5651 (RETAIL-FAMILY CLOTHING STORES)
Item: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
Item: Financial Statements and Exhibits
Documents
8-K — tm2623304d1_8k.htm (Primary)
EX-10.1 — EXHIBIT 10.1 (tm2623304d1_ex10-1.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — FORM 8-K
8-K (Primary)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of report (Date of earliest event reported):
August 11, 2026
THE CHILDREN’S PLACE, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-23071
31-1241495
(Commission File Number)
(IRS Employer Identification No.)
500 Plaza Drive, Secaucus, New Jersey
07094
(Address of Principal Executive Offices)
(Zip Code)
(201) 558-2400
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12-b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards pursuant to Section 13(a) of the Exchange Act. ¨
Securities registered pursuant to Section
12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on
which registered
Common Stock, $0.10 par value
PLCE
NASDAQ Global Select Market
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers.
On August 11, 2026, Mithaq
Capital SPC (“Mithaq”), the controlling shareholder of The Children’s Place, Inc. (the “Company”),
entered into a Restricted Stock Transfer Agreement (the “Agreement”) with Muhammad Asif Seemab, the Vice Chairman of the Company’s
board of directors, and the Company’s President and Interim Chief Executive Officer, pursuant to which Mithaq has agreed to transfer
to Mr. Seemab 500,000 shares of the Company’s common stock, par value $0.10 per share, subject to certain restrictions on transfer
and risks of forfeiture (the “Restricted Shares”). The Company is not a party to the Agreement.
The Restricted Shares vest
in three equal tranches upon the Company’s market capitalization (measured using a 45-day volume-weighted average price) equaling
or exceeding $265 million, $400 million and $600 million, respectively, subject to adjustment by Mithaq in connection with corporate transactions
or events affecting the Company’s market capitalization, and subject to Mr. Seemab’s continued employment with the Company.
Any Restricted Shares that have not vested by the fifth anniversary of the Agreement will be forfeited and returned to Mithaq.
As previously reported, Mithaq
is a controlling shareholder of the Company and Mr. Seemab is a director of Mithaq. Mithaq’s entry into the Agreement with
Mr. Seemab was reviewed and approved as a related person transaction in accordance with the Company’s policies.
The foregoing description
of the Agreement is qualified in its entirety by reference to the full text thereof, a copy of which is filed as Exhibit 10.1 to
this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibits
Exhibit 10.1
Restricted Stock
Transfer Agreement, dated as of August 11, 2026, by and between Mithaq Capital SPC and Muhammad Asif Seemab
Exhibit 104
Cover Page Interactive
Data File – the cover page XBRL tags are embedded within the Inline XBRL document
2
Forward-Looking Statements
This Current Report on
Form 8-K, including Exhibit 10.1, contains or may contain forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by use of terms such as “may,”
“will,” “should,” “plan,” “project,” “expect,” “anticipate,” “estimate,”
“believe” and similar words, although some forward-looking statements are expressed differently. These forward-looking statements
are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could
cause actual results and performance to differ materially. Some of these risks and uncertainties are described in the Company’s
filings with the Securities and Exchange Commission, including in the “Part I, Item 1A. Risk Factors” section of
its annual report on Form 10-K for the fiscal year ended January 31, 2026. Included among the risks and uncertainties that could
cause actual results and performance to differ materially are the risk that the Company will be unable to achieve operating results at
levels sufficient to fund and/or finance the Company’s current level of operations and repayment of indebtedness, the risk that
changes in trade policy and tariff regimes, including newly imposed U.S. tariffs and any responsive non-U.S. tariffs, may impact the Company’s
international manufacturing and operations or customers’ discretionary spending habits, the risk that the Company will be unsuccessful
in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company’s
business and its dependence on consumer spending patterns, which may be affected by changes in economic conditions (including inflation),
the risk that changes in the Company’s plans and strategies with respect to pricing, capital allocation, capital structure, investor
communications and/or operations may have a negative effect on the Company’s business, the risk that the Company’s strategic
initiatives to increase sales and margin, improve operational efficiencies, enhance operating controls, decentralize operational authority
and reshape the Company’s culture are delayed or do not result in anticipated improvements, the risk of delays, interruptions, disruptions
and higher costs in the Company’s global supply chain, including resulting from disease outbreaks, foreign sources of supply in
less developed countries, more politically unstable countries, or countries where vendors fail to comply with industry standards or ethical
business practices, including the use of forced, indentured or child labor, the risk that the cost of raw materials or energy prices will
increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases,
various types of litigation, including class action litigation brought under securities, consumer protection, employment, and privacy
and information security laws and regulations, risks related to the existence of a controlling stockholder, and the uncertainty of weather
patterns, as well as other risks discussed in the Company’s filings with the SEC from time to time. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation
to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
3
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 14, 2026
THE CHILDREN’S PLACE, INC.
By:
/s/ Kenneth Li
Name:
Kenneth Li
Title:
General Counsel & Corporate Secretary
4
EX-10.1 — EXHIBIT 10.1
EX-10.1
Filename: tm2623304d1_ex10-1.htm · Sequence: 2
Exhibit 10.1
RESTRICTED STOCK TRANSFER AGREEMENT
THE CHILDREN’S PLACE, INC.
August 11, 2026
This Restricted Stock Transfer
Agreement (the “Agreement”), effective as of August 11, 2026, is entered into by and between Mithaq Capital SPC
(the “Shareholder”), and Muhammad Asif Seemab (the “Awardee”) with respect to the Awardee’s
service to The Children’s Place, Inc., a Delaware corporation (the “Company”).
WHEREAS, the Shareholder desires
to provide the Awardee an incentive to participate in the success and growth of the Company through the opportunity to retain a proprietary
interest in the Company; and
WHEREAS, to give effect to
the foregoing intentions, the Shareholder desires to transfer to the Awardee shares of the Company’s common stock, par value $0.10
per share (the “Common Stock”), held by the Shareholder subject to certain restrictions on transfer and risks of forfeiture,
subject to the terms and conditions set forth herein.
NOW THEREFORE, in consideration
of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree as follows:
1. Award.
(a) Subject
to the terms and conditions set forth in this Agreement, the Shareholder hereby transfers to the Awardee five hundred thousand (500,000)
shares of Common Stock (the “Restricted Shares”) held by the Shareholder, which Restricted Shares shall be subject
to the restrictions on transfer and risks of forfeiture set forth herein. The restrictions and risks of forfeiture applicable to the
Restricted Shares shall lapse with respect to the applicable tranche of Restricted Shares upon the achievement of the market capitalization
milestones set forth in Exhibit A to this Agreement (each such achievement, a “Vesting Event”), as follows:
(i) one-third (1/3) of the Restricted Shares (166,667 shares) shall vest upon the first occurrence of a Vesting Event set forth
in Tranche 1 of Exhibit A; (ii) one-third (1/3) of the Restricted Shares (166,667 shares) shall vest upon the first
occurrence of a Vesting Event set forth in Tranche 2 of Exhibit A; and (iii) the final one-third (1/3) of the Restricted
Shares (166,666 shares) shall vest upon the first occurrence of a Vesting Event set forth in Tranche 3 of Exhibit A. For
purposes of this Agreement, the Company’s “market capitalization” shall be determined by multiplying (x) the total
number of shares of Common Stock outstanding as of the applicable date of determination by (y) the VWAP of a share of Common Stock
as of such date. “VWAP” means, as of any date of determination, the volume-weighted average closing price of a share of Common
Stock on NASDAQ (or such other national securities exchange on which the Common Stock is then listed) over the forty-five (45) consecutive
trading day period ending on, and including, such date of determination (or, if such date is not a trading day, the immediately preceding
trading day).
(b) Notwithstanding
anything herein to the contrary, any Restricted Shares that have not vested on or prior to the fifth (5th) anniversary of the date of
this Agreement (the “Expiration Date”) shall be immediately forfeited and returned to the Shareholder, unless (i) the
forfeiture and returning of such Restricted Shares to Shareholder on such date would give rise to any profit on behalf of either the
Shareholder or the Awardee that would be recoverable by the Company pursuant to 15 U.S. Code § 78p(b) (“short-swing
profits”) (in which case the Expiration Date shall be automatically extended until the first date on which such forfeiture
and returning of such Restricted Shares would not give rise to short-swing profits; provided that the Expiration Date shall not be extended
by more than six months in the aggregate pursuant to this clause (i) without the written consent of the Shareholder) or (ii) the
Shareholder, in its sole discretion, grants a written extension of the Expiration Date, in which case (in the case of each of clause
(i) and clause (ii) of this Section 1(b)) such unvested Restricted Shares shall remain outstanding and subject
to the terms of this Agreement until the extended expiration date specified by the Shareholder or otherwise applicable pursuant to clause
(i). For the avoidance of doubt, the transfer by the Shareholder of the Restricted Shares is in addition to any other compensation to
which the Awardee may otherwise be entitled in respect of the Awardee’s service to the Company.
2. Termination.
(a) If
the Awardee’s employment with the Company terminates for any reason prior to the occurrence of a Vesting Event with respect to
any tranche of Restricted Shares, such unvested Restricted Shares will be immediately forfeited and returned to the Shareholder unless
(i) the forfeiture and returning of such Restricted Shares to Shareholder on such date would give rise to short-swing profits (in
which case the forfeiture and return date shall be automatically extended until the first date on which such forfeiture and returning
of such Restricted Shares would not give rise to short-swing profits; provided that the forfeiture and return date shall not be extended
by more than six months in the aggregate pursuant to this clause (i) without the written consent of the Shareholder) or (ii) otherwise
specifically provided by the Shareholder. For purposes of this Agreement, the Awardee will not be considered to have incurred a termination
of employment with the Company unless the Awardee’s employment has terminated from the Company and each of its subsidiaries and
Affiliates.
(b) For
purposes of this Agreement, “Board” shall mean the board of directors of the Company.
3. Dividends.
During the period in which the Restricted Shares remain subject to restrictions and risks of forfeiture hereunder, the Awardee shall
be entitled to receive any dividends declared and paid by the Company in respect of the Restricted Shares; provided, however,
that any such dividends paid in respect of Restricted Shares that have not yet vested shall be held in escrow by the Shareholder and
shall be subject to the same restrictions, risks of forfeiture and vesting conditions as the underlying Restricted Shares to which such
dividends relate. Upon the vesting of the applicable Restricted Shares, any accumulated dividends in respect of such Restricted Shares
shall be paid to the Awardee. Upon the forfeiture of any Restricted Shares, any accumulated and unpaid dividends in respect of such forfeited
Restricted Shares shall also be forfeited.
4. Withholding
Taxes. Each of the Shareholder and the Awardee shall be solely responsible for the payment of any and all taxes imposed on or incurred
by such party in connection with the transfer, vesting or forfeiture of the Restricted Shares, or any other payment or transfer under
this Agreement. The Company or its subsidiary shall have the right (but not the obligation) and is hereby authorized to withhold from
amounts payable and/or property deliverable to the Awardee, the amount of any required withholding taxes in respect of the Restricted
Shares, or any other payment or transfer under this Agreement, and to take such other action as may be necessary in the opinion of the
Board or a committee thereof, as applicable, or the Company to satisfy all obligations for the payment of such withholding taxes.
5. Stockholder
Rights; Transfer Restrictions. Upon the transfer of the Restricted Shares, the Awardee shall have all rights of a stockholder of
the Company with respect to the Restricted Shares, including the right to vote such shares and to receive dividends thereon (subject
to Section 3 (Dividends) above); provided, however, that the Restricted Shares shall be subject to the restrictions
on transfer and risks of forfeiture set forth in this Agreement. Prior to the lapsing of the restrictions applicable to any Restricted
Shares, the Awardee may not sell, assign, pledge or otherwise transfer (voluntarily or involuntarily) this Agreement or any of the unvested
Restricted Shares. The Shareholder may, in its discretion, require that any certificates representing the Restricted Shares be held in
custody by the Shareholder or its designee until the restrictions thereon shall have lapsed, and that the Awardee deliver a stock power,
endorsed in blank, relating to the Restricted Shares. The Awardee further acknowledges that, in addition to the other restrictions set
forth in this Agreement, the Restricted Shares may constitute “control securities” under the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder (the “Securities Act”) by virtue of the Awardee’s
status as an affiliate of the Company (as such term is defined in Rule 144 promulgated under the Securities Act), and that any sale,
transfer or other disposition of the Restricted Shares, including following the lapse of the restrictions and risks of forfeiture set
forth herein, shall be subject to compliance with all applicable requirements under the Securities Act, including the volume, manner
of sale, notice and other requirements of Rule 144 or another available exemption from registration under the Securities Act. The
Company shall be under no obligation to register the Restricted Shares for resale. The Awardee agrees not to sell, transfer or otherwise
dispose of any Restricted Shares except in compliance with this Section 5 and all applicable federal and state securities
laws.
2
6. Restrictions.
Subject to any exceptions set forth in this Agreement, during the period commencing on the date of this Agreement and ending on the date
on which the restrictions and risks of forfeiture applicable to the Restricted Shares have lapsed in accordance with the terms of this
Agreement (the “Restricted Period”), the Restricted Shares or the rights relating thereto may not be assigned, alienated,
pledged, attached, sold or otherwise transferred or encumbered by the Awardee. Any attempt to assign, alienate, pledge, attach, sell
or otherwise transfer or encumber the Restricted Shares or the rights relating thereto during the Restricted Period shall be wholly ineffective
and, if any such attempt is made, the Restricted Shares will be forfeited by the Awardee and all of the Awardee’s rights to such
shares shall immediately terminate without any payment or consideration from the Company or the Shareholder. For the avoidance of doubt,
the expiration of the Restricted Period shall not relieve the Awardee of any obligations or restrictions imposed by applicable federal
and state securities laws with respect to the sale, transfer or other disposition of the Restricted Shares, including any restrictions
arising from the Awardee’s status as an affiliate of the Company and the requirements of Rule 144 or another available exemption
from registration under the Securities Act.
7. Changes
in Capitalization. In the event of (a) any dividend (other than regular cash dividends) or other distribution (whether in the
form of cash, shares of Common Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of Common Stock or other securities
of the Company, issuance of warrants or other rights to acquire shares of Common Stock or other securities of the Company, or other similar
corporate transaction or event that affects the shares of Common Stock, or (b) unusual or nonrecurring events affecting the Company,
any Affiliate, or the financial statements of the Company or any Affiliate, or changes in applicable rules, rulings, regulations or other
requirements of any governmental body or securities exchange or inter-dealer quotation service, accounting principles or law, such that
in any case an amendment to this Agreement is determined by the Shareholder, in its sole discretion to be necessary or appropriate, then
this Agreement shall be amended in such manner as the Shareholder may deem equitable.
8. Government
Regulations. Notwithstanding anything contained herein to the contrary, the Shareholder’s obligation to transfer the Restricted
Shares or any certificates evidencing such shares shall be subject to the terms of all applicable laws, rules and regulations and
to such approvals by any governmental agencies or national securities exchanges as may be required.
9. Administration.
The Shareholder, acting in good faith, will have the sole discretion and authority to administer and interpret this Agreement. The decisions
of the Shareholder will be final, binding and conclusive on the Awardee and the Company.
3
10. Representations
and Warranties of the Awardee. The Awardee hereby represents and warrants to the Shareholder that:
(a) Purchase
Entirely for Own Account. This Agreement is made with the Awardee in reliance upon the Awardee’s representation to the Shareholder,
which by the Awardee’s execution of this Agreement, the Awardee hereby confirms, that the Restricted Shares to be acquired by the
Awardee will be acquired for investment for the Awardee’s own account, not as a nominee or agent, and not with a view to the resale
or distribution of any part thereof, and that the Awardee has no present intention of selling, granting any participation in, or otherwise
distributing the same. By executing this Agreement, the Awardee further represents that the Awardee does not presently have any contract,
undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person,
with respect to any of the Restricted Shares.
(b) Disclosure
of Information. The Awardee has had an opportunity to discuss the Company’s business, management, financial affairs and the
terms and conditions of the offering of the Restricted Shares with the Company’s management and has had an opportunity to review
the Company’s facilities, and as Executive Vice-Chairman, President and Interim Chief Executive Officer of the Company he possesses
extensive knowledge regarding the Company, its operations, and its business and financial prospects.
(c) Restricted
Securities. The Awardee understands that the Restricted Shares have not been, and will not be, registered under the Securities Act,
by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of the Awardee’s representations as expressed herein. The Awardee understands
that the Restricted Shares are “restricted securities” or “control securities” under applicable U.S. federal
and state securities laws and that, pursuant to these laws, the Awardee must hold the Restricted Shares indefinitely, unless they are
registered with the U.S. Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration
and qualification requirements is available. The Awardee acknowledges that the Company has no obligation to register or qualify the Restricted
Shares for resale. The Awardee further acknowledges that if an exemption from registration or qualification is available, it may be conditioned
on various requirements including, but not limited to, the time and manner of sale, the Restricted Period, and on requirements relating
to the Company which are outside of the Awardee’s control, and which the Company is under no obligation and may not be able to
satisfy.
(d) Legends.
The Awardee understands that the Restricted Shares may be notated with the following legend:
“THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE
SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO (A) AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, OR (C) A
TRANSACTION NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS. IN ADDITION, THESE SECURITIES ARE HELD BY A PERSON WHO MAY BE DEEMED TO BE AN AFFILIATE OF THE COMPANY, AND ANY
RESALE OF THESE SECURITIES MAY BE SUBJECT TO THE VOLUME, MANNER OF SALE, NOTICE, AND OTHER REQUIREMENTS OF RULE 144 OR ANOTHER AVAILABLE
EXEMPTION UNDER THE SECURITIES ACT. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY
TO THE COMPANY, OR SUCH OTHER EVIDENCE AS THE COMPANY MAY REASONABLY REQUEST, TO ESTABLISH THAT ANY PROPOSED TRANSFER COMPLIES WITH
APPLICABLE FEDERAL AND STATE SECURITIES LAWS.”
4
(e) Accredited
Investor. The Awardee is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities
Act.
(f) No
General Solicitation. The Awardee has not directly or indirectly, including, through a broker or finder (a) engaged in any general
solicitation, or (b) published any advertisement in connection with the transfer of the Restricted Shares.
(g) Exculpation
By Awardee. The Awardee acknowledges that it is not relying upon any Person in making its decision to acquire the Restricted Shares.
(h) Residence.
The Awardee resides in the state or province identified in the address of the Awardee set forth on the Awardee’s signature page or
Exhibit B.
11. Employment.
Neither this Agreement nor any action taken hereunder shall be construed as giving the Awardee any right of continuing employment by
the Company or its subsidiaries.
12. Notices.
Notices or communications to be made hereunder shall be in writing and shall be delivered in person, by electronic mail, by registered
mail, by confirmed facsimile or by a reputable overnight courier service to the Company and the Shareholder at their respective principal
offices or to the Awardee at his or her address and/or email address, as applicable, as contained in the records of the Company.
13. Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to
contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof.
14. Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof,
and supersedes all prior agreements and understandings relating to the subject matter of this Agreement.
15. Interpretation.
The Shareholder, acting in good faith, shall have final authority to interpret and construe this Agreement and to make any and all determinations
under it, and its decision shall be binding and conclusive upon the Awardee and his or her legal representative in respect of any questions
arising under this Agreement. By signing this Agreement, Awardee acknowledges that he or she has had an opportunity to review this Agreement
and agrees to be bound by all the terms and provisions of this Agreement.
16. Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the Shareholder and the Awardee and their respective permitted
successors, assigns, heirs, beneficiaries and representatives. This Agreement is personal to the Awardee and may not be assigned by the
Awardee without the prior written consent of the Shareholder and the Company. Any attempted assignment in violation of this Section 16
shall be null and void. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the
other provisions of this Agreement will remain in full force and effect.
17. Amendment.
This Agreement may be amended or modified only by a written instrument executed by both the Shareholder and the Awardee.
18. Survivorship.
This Agreement shall continue in effect until there are no further rights or obligations of the parties outstanding hereunder and shall
not be terminated by either party without the express written consent of both parties.
5
19. Section 83(b) Election.
The Awardee may, within thirty (30) days following the date of this Agreement, file an election under Section 83(b) of the
Internal Revenue Code of 1986, as amended, with the Internal Revenue Service, substantially in the form attached hereto as Exhibit B.
If the Awardee makes such an election, the Awardee shall notify the Company and the Shareholder in writing within one (1) business
day after filing such election with the Internal Revenue Service and shall provide the Company and the Shareholder with a copy of the
executed election. The Awardee acknowledges that it is the Awardee’s sole responsibility to timely file any such election, and
neither the Company nor the Shareholder shall have any obligation or liability in connection therewith.
20. Third
Party Beneficiaries. Except as provided in the immediately following sentence, there are no third party beneficiaries to this Agreement.
The Company shall be a third party beneficiary of, and entitled to enforce, Section 4, Section 10, Section 16
and Section 19 of this Agreement..
* * *
6
IN WITNESS WHEREOF, the parties hereto have
executed this Agreement or caused their duly authorized officer to execute this Agreement as of the date first written above.
MITHAQ CAPITAL SPC
By:
/s/ Turki Saleh A. AlRajhi
Name:
Turki Saleh A. AlRajhi
Title:
Director
Date:
August 11, 2026
AWARDEE
By:
/s/ Muhammad Asif Seemab
Name:
Muhammad Asif Seemab
Date:
August 11, 2026
[Signature Page to Restricted Stock Transfer
Agreement]
Exhibit A
Market Capitalization Milestone*
Number of Restricted
Shares
Tranche 1: Market capitalization of the Company equals or exceeds $265,000,000
166,667
Tranche 2: Market capitalization of the Company equals or exceeds $400,000,000
166,667
Tranche 3: Market capitalization of the Company equals or exceeds $600,000,000
166,666
* Shall be subject to adjustment as determined by the Shareholder in connection
with any corporate transactions or events affecting the Company’s market capitalization.
Exhibit B
Section 83(b) Election
[See Attached]
SECTION 83(b) ELECTION INSTRUCTIONS
Set out below are instructions for completing
these forms. You should obtain your own tax advice regarding this election. You must file this election within 30 days
following the grant date of the shares issued to you.
1. Complete Section 83(b) Election Cover Letter:
¨ Date
the letter.
¨ Include your Social Security Number
in the letter.
¨ Include
appropriate IRS Address. Please refer to the IRS website for the proper IRS address (which
will be based on the state in which you live and will be the same state you include in your
personal, federal tax return): https://www.irs.gov/uac/Where-to-File-Addresses-for--Taxpayers-and--Tax-Professionals-Filing-Form-1040.
The IRS address we have included in the attached cover letter applies for individuals who
reside in the following states: Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa,
Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey,
New York, Rhode Island, Vermont, Virginia, West Virginia, and Wisconsin. You should confirm
that the correct IRS address has been included in the cover letter using the information
on the IRS website.
¨ Sign
the letter (e-signature is acceptable).
2. Complete Section 83(b) Election:
¨ Confirm
your name and include your address.
¨ Include
your social security number.
¨ Confirm
the number of shares granted to you.
¨ Sign
and date the form (e-signature is acceptable).
3. Provide Copy of Cover Letter and Section 83(b) Election
to the Company.
4. Retain Copy of Cover Letter and Section 83(b) Election
for Your Records.
¨ If
you intend to file a copy of the election with your annual tax return, you must retain two
(2) copies of the completed 83(b) election form for filing with your Federal and
state tax returns for the current tax year.
5. Mail Original Cover Letter and Section 83(b) Election
to IRS:
¨ Must
be mailed (postmarked) within 30 days after the grant date of the shares issued
to you.
¨ Should
be mailed by registered or certified mail, return receipt requested (although registered
or certified mail is not required).
¨ Must
be mailed to the appropriate IRS Address, which, as noted above, is based on the state in
which you live and will be the same state you include in your personal, federal tax return.
THE 83(b) ELECTION SHOULD BE SENT IMMEDIATELY
BECAUSE YOU ONLY HAVE 30 DAYS FROM THE GRANT DATE WITHIN WHICH TO MAKE THE ELECTION. THE IRS DOES NOT GRANT ANY WAIVERS, LATE FILINGS
OR EXTENSIONS FOR THIS ELECTION. YOU ARE SOLELY RESPONSIBLE FOR THE TIMELY FILING OF YOUR OWN SECTION 83(b) ELECTION AND ANY
TAX CONSEQUENCES TO YOU IF YOU FAIL TO MAKE A TIMELY 83(b) ELECTION.
________, 20__
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Department of the Treasury
Internal Revenue Service
[Kansas City, MO 64999-0002]
Re: 83(b) Election of ________________________________
Social Security Number:
Dear Sir/Madam:
Enclosed is an election under Section 83(b) of the Internal
Revenue Code of 1986, as amended, with respect to: shares of Common Stock, par value $0.10 per share, of The Children’s Place, Inc.
that were transferred to me on ______________, 20__.
The attached information is submitted as required by Treas. Reg. §
1.83-2(e).
Sincerely,
_______________________________
encl.
cc: The Children’s Place, Inc.
Mithaq Capital SPC
SECTION 83(b) ELECTION
The undersigned taxpayer hereby elects, and makes this statement,
under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), pursuant to Treasury Regulations
Section 1.83-2, to include in gross income as compensation for services the excess (if any) of the fair market value of the property
described below over the amount paid for such property.
(1) The taxpayer who is performing the services in connection with which
the property was transferred is:
Name:
Address:
City, State, Zip:
Social Security Number:
(2) The property with respect to which this election
is made is _______ shares of Common Stock, par value $0.10 per share (the “Shares”),
of The Children’s Place, Inc.
(3) The property was transferred to the taxpayer on ______________, 20__.
(4) The taxable year for which this election is being made is the calendar
year 20__.
(5) The property is subject to the following
restrictions: The Shares are subject to certain market capitalization-based vesting conditions
and are subject to forfeiture and return to the transferring shareholder if the vesting conditions
are not satisfied or if the taxpayer’s employment with the Company terminates prior
to vesting.
(6) The fair market value of such property at
the time of transfer (determined without regard to any restriction other than a restriction
which by its terms will never lapse) is $_____ per Share, for a total of $_____.
(7) The amount paid for such property is $0 per Share, for a total of $0.
(8) The amount to include in gross income is $_____.
(9) A copy of this statement was furnished to The Children’s Place, Inc.,
for whom taxpayer rendered the services underlying the transfer/grant of such property.
(10) This election is made to the same effect, and with the same limitations,
for purposes of any applicable state statute corresponding to Section 83(b) of
the Code.
Dated:
________________________________________
Taxpayer:
______________________________________________
This election must be filed with the Internal
Revenue Service Center with which the taxpayer files his or her Federal income tax returns and must be filed within 30 days after the
date of grant. This filing should be made by registered or certified mail, return receipt requested. The taxpayer must retain a copy
for his or her records. Pursuant to Final Regulations adopted on July 26, 2016 under Section 83(b) of the Code, the taxpayer
is no longer required to file a copy of this election with his or her annual tax return. However, the taxpayer may choose to do so following
consultation with his or her personal tax advisor. If the taxpayer intends to file a copy of the election with his or her annual tax
return, the taxpayer must retain two (2) copies of the completed form for filing with his or her Federal and state tax returns for
the current tax year.
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