Document:

Amended and Restated Toys "R" Us, Inc. Grantor Trust Agreement dated 01/31/2003

 Exhibit 10.24 
  
 GRANTOR TRUST AGREEMENT 
  
 FOR TOYS “R” US, INC. 
  
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
  
  
  
  
  
  
  
  
 Amended and Restated To 
 Include All Amendments Effective 
 Through
January 31, 2003 

 This amended GRANTOR TRUST AGREEMENT, effective January 31, 2003, by and between Toys “R” Us
(“the Company”) and Wachovia Bank, N.A. is hereinafter set forth. 
  
 WHEREAS, the Company has adopted the Toys “R” Us, Inc. Supplemental Executive Retirement Plan (the “Plan”); 
  

WHEREAS, the Company has incurred or expects to incur liability under the terms of the Plan with respect to the individuals participating in or
benefiting under the Plan (the “Participants and Beneficiaries”); 
  
 WHEREAS, the Company has established an irrevocable trust (the “Trust”) by Trust Agreement dated April 1, 1996 (the “Original Trust Agreement”), and has contributed assets to the Trust that are
held therein, subject to the claims of the Company’s creditors in the event of the Company’s Insolvency, as herein defined, until disbursed as provided in this Trust Agreement; 
  
 WHEREAS, it is the Company’s intention that the Trust shall constitute an unfunded arrangement and shall not affect the
status of the Plan as an unfunded plan maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of 1974;

  
 WHEREAS, it is the intention of the Company to continue making
contributions to the Trust to provide a source of funds (the “Trust Fund”) to assist the Company in satisfying its liabilities under the Plan; 
  
 WHEREAS, Allmerica Trust Company (“Prior Trustee”) was designated by the Company in the Original Trust Agreement as trustee of the Trust;

  
 WHEREAS, Section 11(b) of the Original Trust Agreement gives
the Company the right to remove the Prior Trustee, upon 60 days notice or as otherwise agreed by the Prior Trustee; 
  
 WHEREAS, Section 12 (a) of the Original Trust Agreement authorizes the Company to appoint a successor trustee to replace any trustee removed by the
Company; 
  
 WHEREAS, Section 13(a) of the Original Trust
Agreement provides that the Company may amend the Original Trust Agreement by written instrument, provided that the amendment does not conflict with the Plan nor make the Trust revocable; 
  
 WHEREAS, the Company desires to amend and restate the Original Trust Agreement in its entirety as herein set forth;

  
 WHEREAS, the Company has removed the Prior Trustee as trustee
of the Trust effective January 31, 2003 and has appointed Wachovia Bank, N.A. to serve as the successor 

 trustee of the Trust effective as of the same date, and Wachovia Bank, N.A. has agreed to assume the duties and
responsibilities of trustee pursuant to the terms of this amended and restated Trust Agreement; 
  
 NOW, THEREFORE, the Original Trust Agreement is hereby amended as set forth in this Amended and Restated Trust Agreement between Toys “R” Us,
Inc. and Wachovia Bank, N.A. effective as of January 31, 2003 (“Trust Agreement”) and Wachovia Bank, N.A. (“Trustee”) shall hereafter hold the Trust assets upon the terms and conditions hereinafter set forth. 
  
 Section 1. Establishment of the Trust 
  

	 	(a)	The Trust is intended to be a grantor trust, of which the Company is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal
Revenue Code of 1986, as amended, and shall be construed accordingly. 

  

	 	(b)	The Trust is irrevocable by the Company. 

  

	 	(c)	The Trustee acknowledges receipt of the life insurance policy certificates on the lives of the Participants transferred by the Prior Trustee and listed on Attachment A, which shall
become the principal of the Trust to be held, administered and disposed of by the Trustee as provided in this Trust Agreement. 

  

	 	(d)	To augment the Trust principal to be held, administered and disposed of by the Trustee as provided in this Trust Agreement, the Company, in its sole discretion, may at any time, or
from time to time, make additional contributions to the Trust of cash or other property acceptable to the Trustee, including additional life insurance policy certificates. 

  

	 	(e)	The principal of the Trust, and any earnings thereon, shall be held separate and apart from other funds of the Company and shall be used exclusively for the benefit of the
Participants and Beneficiaries, to pay the expenses of the Plan and Trust, to reimburse the Company as set forth in Section 3(c) and to satisfy the general creditors of the Company as herein set forth. 

  

	 	(f)	Notwithstanding anything to the contrary in Section 1(e), the Participants and Beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any assets of
the Trust. Any rights created under the Plan and this Trust Agreement shall be unsecured contractual rights of the Participants and Beneficiaries against the Company. If the Company becomes Insolvent, as defined in Section 4(a), the assets of the
Trust shall be subject to the claims of the Company’s general creditors as determined by federal and state law. 

  
 Section 2. Duties of the Company 
  

	 	(a)	The Company, acting through the Compensation and Organizational Development Committee (“Compensation Committee”) of the Board of Directors of the Company, shall provide
the Trustee with a certified copy of the Plan and all amendments thereto and the resolutions of the Board of Directors of the Company and the Compensation Committee approving the Plan and all amendments thereto, promptly upon their adoption.

	 	(b)	Within 60 days of the execution of this Trust Agreement, the Company shall forward to the Trustee a certified list of names and titles of any persons properly designated and
authorized to exercise any authority or responsibility in the management or administration of the Plan or the Trust. Until receipt by the Trustee of notice that any person is no longer authorized so to act, the Trustee may continue to rely on the
authority of the person. All certifications, notices and directions by any such person or persons to the Trustee shall be in writing signed by such person or persons, and the Trustee may rely on any such certification, notice or direction purporting
to have been signed by or on behalf of such person or persons that the Trustee believes to have signed thereby. Furthermore, the Trustee may rely on any certification, notice or direction of the Company that the Trustee reasonably believes to have
been signed by a duly authorized officer or agent of the Company. 

  
 Section 3. Payments to Plan Participants and their Beneficiaries 
  

	 	(a)	The establishment of the Trust and the payment or delivery to the Trustee of money or other property acceptable to the Trustee, including life insurance policies, shall not entitle
any Participant or Beneficiary to any right, title or interest in or to any assets of the Trust. 

  

	 	(b)	The Administrative Committee of the Plan (the “Administrative Committee”) shall deliver to the Trustee a schedule (the “Payment Schedule”) that indicates the
amounts payable with respect to each Participant and Beneficiary under the terms of the Plan or shall provide a formula or other instructions acceptable to the Trustee for determining the amounts so payable, the form in which such amount is to be
paid (as provided for or available under the Plan), and the time of commencement of payment of such amounts. Except as otherwise provided herein, the Trustee shall make payments to the Participants and Beneficiaries in accordance with such Payment
Schedule. 

  

	 	(c)	The Company, in its discretion, may make payment of benefits directly to the Participants or Beneficiaries as they become due under the terms of the Plan. Prior to the time amounts
are payable to Participants or Beneficiaries, the Company or the Administrative Committee shall notify the Trustee of the Company’s decision to make direct payment of benefits. Upon presentation of proof of payment, the Trustee shall reimburse
the Company out of the Trust Fund an amount equal to the benefit payments made directly by the Company to the Participants or Beneficiaries. 

  

	 	(d)	Nothing in this Agreement shall relieve the Company of its liabilities to pay the benefits due under the Plan except to the extent such liabilities are satisfied by Trust assets.

  

	 	(e)	Except as provided in Section 14(c)(1), the entitlement of a Participant or Beneficiary to benefits under the Plan shall be determined by the Company or the Administrative Committee
and any claim for such benefits shall arise under and be subject to the review and appeal procedures set out in the Plan. 

	 	(f)	The Trustee shall make provision for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits
pursuant to the terms of the Plan and shall pay amounts withheld to the appropriate taxing authorities unless such amounts have been reported, withheld and paid by the Company. With the consent of the Company, the Trustee may delegate to the Company
or the Administrative Committee the responsibility for the reporting and withholding as described above. 

  

	 	(g)	In addition to any returns required of the Trustee by law, the Trustee shall prepare and file such tax reports and other returns as the Company and the Trustee may from time to time
agree. 

  
 Section 4. Trustee Responsibility Regarding
Payments when the Company is Insolvent 
  

	 	(a)	The Trustee shall cease payment of benefits to the Participants and Beneficiaries if the Company is Insolvent. The Company shall be considered “Insolvent” for purposes of
this Trust Agreement if (i) the Company is unable to pay its debts as they become due, or (ii) the Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 

  

	 	(b)	At all times during the continuance of this Trust, the principal and income of the Trust shall be subject to claims of general creditors of the Company, as determined under federal
and state law, as set forth below. 

  

	 	(1)	The Board of Directors or the Chief Executive Officer of the Company shall have the duty to inform the Trustee in writing that the Company is Insolvent. If a person claiming to be a
creditor of the Company alleges in writing to the Trustee that the Company has become Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such determination, the Trustee shall discontinue payment of benefits to the
Participants and Beneficiaries. 

  

	 	(2)	Unless the Trustee has actual knowledge that the Company is Insolvent, or has received notice from the Company or a person claiming to be a creditor alleging that the Company is
Insolvent, the Trustee shall have no duty to inquire whether the Company is Insolvent. The Trustee may in all events rely on such evidence concerning solvency as may be furnished to the Trustee which provides the Trustee with a reasonable basis for
making a determination concerning the solvency of the Company. 

  

	 	(3)	If at any time the Trustee has determined that the Company is Insolvent, the Trustee shall discontinue payments to the Participants and Beneficiaries and shall hold the Trust assets
for the benefit of the Company’s general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of the Participants or Beneficiaries to pursue their rights as general creditors of the Company with respect to benefits
due under the Plan or otherwise. 

	 	(4)	The Trustee shall resume the payment of benefits to the Participants and Beneficiaries in accordance with Section 3 hereof only after the Trustee has been notified in writing by the
Board of Directors or the Chief Executive Officer of the Company or determined that the Company is not (or is no longer) Insolvent. 

  

	 	(c)	Provided that there are sufficient Trust assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Section 4(b) hereof and subsequently resumes such
payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Participants and Beneficiaries under the terms of the Plan for the period of such discontinuance less the aggregate amount of any
payments made to Participants or their Beneficiaries by the Company or any other person or entity in lieu of the payments provided for hereunder during any such period of discontinuance. 

  
 Section 5. Payments to the Company 
  

	 	(a)	Except as otherwise provided in this Section 5 and in Sections 3, 13 and 14 (b), the Company shall have no right or power to direct the Trustee to return to the Company, or to
divert to others, any Trust assets before payment of all benefits have been made to the Participants and Beneficiaries pursuant to the terms of the Plan and all fees and expenses of the Trust have been paid. The Trustee shall return to the Company
any amounts remaining in the Trust Fund after all such benefits, fees, and expenses have been satisfied. 

  

	 	(b)	Except as provided in Section 14(c)(4)(A), in the event the Company determines that, as of the date of such determination, the value of the Trust Fund exceeds 120 percent of the
anticipated benefit obligations and Trust fees and expenses that are to be paid under the Plan and Trust Agreement, the Trustee shall, upon the direction of the Company, distribute to the Company such excess portion of the Trust Fund.

  
 Section 6. Investment Authority 
  

	 	(a)	Powers of the Trustee. Subject to investment guidelines agreed to in writing from time to time between the Company and the Trustee, the Trustee shall have the power, in
investing and reinvesting the Trust Fund, in its sole discretion: 

  

	 	(1)	To exercise all powers conferred on the Trustee by applicable law, unless expressly provided otherwise herein; provided, however, that if a life insurance policy is held as an asset
of the Trust, the Trustee shall have only those powers specified in Section 6(e) hereof with respect to such policy; 

  

	 	(2)	To invest and reinvest in any readily marketable common and preferred stocks, bonds, notes, debentures, certificates of deposit or demand or time deposits (including any such
deposits with the Trustee) and shares of 

	 	  	investment companies and mutual funds, without being limited to the classes or property in which the Trustees are authorized to invest by any law or any rule of court of any state
and without regard to the proportion any such property may bear to the entire amount of the Trust Fund; 

  

	 	(3)	To commingle for investment purposes all or any portion of the Trust Fund with assets of any other similar trust or trusts established by the Company with the Trustee for the
purpose of safeguarding deferred compensation or retirement income benefits of its employees and/or directors, provided, however, that the Trustee shall create one or more sub-accounts if, prior to a Change in Control, the Company so directs;

  

	 	(4)	To retain any property at any time received by the Trustee; 

  

	 	(5)	To sell or exchange any property held by it at public or private sale, for cash or on credit, to grant and exercise options for the purchase or exchange thereof, to exercise all
conversion or subscription rights pertaining to any such property and to enter into any covenant or agreement to purchase any property in the future; 

  

	 	(6)	To participate in any plan of reorganization, consolidation, merger, combination, liquidation or other similar plan relating to property held by it and to consent to or oppose any
such plan or any action thereunder or any contract, lease, mortgage, purchase, sale or other action by any person; 

  

	 	(7)	To deposit any property held by it with any protective, reorganization or similar committee, to delegate discretionary power thereto, and to pay part of the expenses and
compensation thereof any assessments levied with respect to any such property to deposit; 

  

	 	(8)	To extend the time of payment of any obligation held by it; 

  

	 	(9)	To hold uninvested any moneys received by it, without liability for interest thereon, but only in anticipation of payments due for investments, reinvestments, expenses or
disbursements; 

  

	 	(10)	To exercise all voting or other rights with respect to any property held by it and to grant proxies, discretionary or otherwise; 

  

	 	(11)	For the purposes of the Trust Fund, to borrow money from others, to issue promissory note or notes therefor, and to secure the repayment thereof by pledging any property held by it;

  

	 	(12)	To register investments in its own name or in the name of a nominee; to hold any investment in bearer form; and to combine certificates representing securities with certificates of
the same issue held by it in other fiduciary capacities or to deposit or to arrange for the deposit of such securities with any depository, even though, when so deposited, such securities may be held 

	 	  	in the name of the nominee of such depository with other securities deposited therewith by other persons, or to deposit or to arrange for the deposit of any securities issued or
guaranteed by the United States government, or any agency or instrumentality thereof, including securities evidenced by book entries rather than by certificates, with the United States Department of the Treasury or a Federal Reserve Bank, even
though, when so deposited, such securities may not be held separate from securities deposited therein by other persons; provided, however, that no securities held in the Trust Fund shall be deposited with the United States Department of the Treasury
or a Federal Reserve Bank or other depository in the same account as any individual property of the Trustee, and provided, further, that the books and records of the Trustee shall at all times show that all such securities are part of the Trust
Fund; 

  

	 	(13)	To settle, compromise or submit to arbitration any claims, debts or damages due or owing to or from the Trust, respectively, to commence or defend suits or legal proceedings to
protect any interest of the Trust, and to represent the Trust in all suits or legal proceedings in any court or before any other body or tribunal; provided, however, that the Trustee shall not be required to take any such action unless it shall have
been indemnified by the Company to its reasonable satisfaction against liability or expenses it might incur therefrom; 

  

	 	(14)	To hold and retain policies of life insurance, annuity contracts, and other property of any kind which are transferred or contributed to the Trust by a prior trustee or the Company
or are purchased by the Trustee; 

  

	 	(15)	To hold any other class of assets which may be contributed by the Company and deemed reasonable by the Trustee, unless expressly prohibited herein; 

  

	 	(16)	To lend any securities at any time held by it to brokers or dealers upon such security as may be deemed advisable, and during the terms of any such loan to permit the loaned
securities to be transferred into the name of and voted by the borrower or others; and 

  

	 	(17)	To employ suitable contractors and counsel, who may be counsel to the Company or to the Trustee, and to pay their reasonable expenses and compensation from the Trust Fund to the
extent not paid by the Company; 

  

	 	(18)	Generally, to do all acts, whether or not expressly authorized, that the Trustee may deem necessary or desirable for the protection of the Trust Fund. 

  

	 	(b)	Trustee Appointment of Investment Manager. The Trustee shall have the right, in its sole discretion, to delegate its investment responsibility to an investment manager who
may be an affiliate of the Trustee. In the event the Trustee shall exercise this right, the Trustee shall remain, at all times responsible for the acts of an investment manager. 

	 	(c)	Powers of the Company. The Company shall have the right, subject to the provisions of this Section 6, to direct the Trustee with respect to investments, as follows:

  

	 	(1)	Except as provided in Section 14(c)(2), the Company may at any time direct the Trustee to segregate all or a portion of the Trust Fund in a separate investment account or accounts
and may appoint one or more investment managers and/or an investment committee established by the Company to direct the investment and reinvestment of each such investment account or accounts. In such event, the Company shall notify the Trustee of
the appointment of each such investment manager and/or investment committee. No such investment manager shall be related, directly or indirectly, to the Company, but members of the investment committee may be employees of the Company.

  

	 	(2)	If an investment manager and/or investment committee is appointed by the Company, the Trustee shall make every sale or investment with respect to such investment account as directed
in writing by the investment manager or investment committee. It shall be the duty of the Trustee to act strictly in accordance with each direction. The Trustee shall be under no duty to question any such direction of the investment manager or
investment committee, to review any securities or other property held in such investment account or accounts acquired by it pursuant to such directions or to make any recommendations to the investment managers or investment committee with respect to
such securities or other property. 

  

	 	(3)	Notwithstanding the foregoing, the Trustee, without obtaining prior approval or direction from an investment manager or investment committee, may invest cash balances held by it
from time to time in short term cash equivalents including, but not limited to, through the medium of any short term mutual, common, collective or commingled trust fund established and maintained by the Trustee subject to the instrument establishing
such Trust Fund, U.S. Treasury Bills, commercial paper (including such forms of commercial paper as may be available through the Trustee’s Trust Department), certificates of deposit (including certificates issued by the Trustee in its separate
corporate capacity), and similar type securities, with a maturity not to exceed one year; and, furthermore, sell such short term investments as may be necessary to carry out the instructions of an investment manager or investment committee regarding
more permanent type investment and directed distributions. 

  

	 	(d)	Substitution of Assets. Except as provided in Section 14(c)(4)(C), the Company has the right at any time, and from time to time, in its sole discretion, to substitute assets
of equal fair market value for any asset held by the Trust. This right is exercisable by the Company in a nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity. 

	 	(e)	Life Insurance Policies. 

  

	 	(1)	The Trustee shall hold in the Trust all of the life insurance policy certificates on the lives of Participants (“Policies”) it receives, the proceeds of any sale,
assignment or surrender of any such Policy, and any and all dividends and other payments of any kind received with respect to any such Policy. 

  

	 	(2)	Except as provided in Section 14(c)(2), the Trustee shall invest part or all of the Trust Fund in insurance contracts, the type and amount thereof to be specified by the Company.
The Trustee shall be under no duty to make inquiry as to the propriety of the type or amount so specified. 

  

	 	(3)	The Trustee shall have the right to purchase an insurance policy or an annuity to fund the benefits of the Plan. 

  

	 	(4)	Upon the Administrative Committee’s written direction, or subject to the Investment Guidelines established by the Company with respect to the Trust, the Trustee shall pay, from
the Trust Fund, premiums, assessments, dues, charges and interest, if any, upon any Policy held in the Trust. 

  

	 	(5)	Each insurance contract issued shall provide that the Trustee shall be the owner thereof with the power to exercise all rights, privileges, options and elections granted by or
permitted under such contract or under the rules of the insurer. Except as provided for in Section 14(c)(4)(b), the exercise by the Trustee of any incidents of ownership under any contract shall be subject to the direction of the Company.

  

	 	(6)	Notwithstanding the foregoing, the Trustee shall have no power to name a beneficiary of a policy other than the Trust, to assign the policy (as distinct from conversion of the
policy to a different form) other than to a successor trustee, or to lend to any person the proceeds of any borrowing against an insurance policy held in the Trust Fund. 

  
 Section 7. Disposition of Income 
  
 During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested within the Trust.

  
 Section 8. Accounting by the Trustee 
  

	 	(a)	The Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such specific records as
shall be agreed upon in writing between the Company and the Trustee. 

  

	 	(b)	The Trustee shall deliver to the Company, within 45 days following the close of each calendar year and within 45 days after the removal or resignation of the Trustee, a written
account of its administration of the Trust during such year or during the 

	 	  	period from the close of the last preceding year to the date of such removal or resignation setting forth all investments, receipts, disbursements and other transactions effected by
it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and showing all cash, securities and other
property held in the Trust at the end of such year or as of the date of such removal or resignation, as the case may be. 

  

	 	(c)	The Company may approve the Trustee’s account by an instrument in writing delivered to the Trustee. In the absence of the Company’s filing with the Trustee objections to
any such account within 90 days after its receipt, the Company shall be deemed to have approved the account. In such case, or upon the written approval by the Company of any such account, the Trustee shall, to the extent permitted by law, be
discharged from all liability to the Company for its acts or failures to act described by the account. 

  

	 	(d)	Nothing contained in this Trust Agreement shall be construed as depriving the Trustee or the Company of the right to have a judicial settlement of the Trustee’s account. In
addition to the Trustee, the only necessary parties to any proceeding for a judicial settlement of the Trustee’s accounts or for instructions, shall be the Company (or the Administrative Committee, if the Company so designates) and the
Participants and Beneficiaries. 

  

	 	(e)	At the direction of the Administrative Committee, the Trustee shall from time to time permit an independent public accountant selected by the Administrative Committee to have access
during ordinary business hours to such records as may be necessary to audit the Trustee’s accounts. 

  

	 	(f)	As of the last day of each fiscal year, and at such other times as the Administrative Committee may reasonably direct, the Trustee shall determine the fair market value of the
assets held in the Trust. 

  
 Section 9. Responsibility and
Indemnification of the Trustee 
  

	 	(a)	The Trustee shall have, without exclusion, all powers conferred on the Trustee by applicable law, unless expressly provided otherwise herein. 

  

	 	(b)	Except as provided in Section 14(c)(4)(D), the Trustee may consult with legal counsel (who may also be counsel for the Company generally) with respect to any of its duties or
obligations hereunder. 

  

	 	(c)	The Trustee may hire agents, accountants, actuaries, investment advisors, financial consultants or other professionals to assist it in performing any of its duties or obligations
hereunder and may rely on any determinations made by such agents and information provided to it by the Company. 

  

	 	(d)	Notwithstanding any powers granted to the Trustee pursuant to this Trust Agreement or applicable law, the Trustee shall not have any power that could give this Trust the

	 	  	objective of carrying on a business and dividing the gains therefrom, within the meaning of Section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant
to the Internal Revenue Code. 

  

	 	(e)	The Company hereby agrees to indemnify the Trustee against losses, liabilities, claims, costs and expenses in connection with the administration of the Trust, if the Trustee
discharges its duties set forth in this Trust Agreement (including, without limitation, its duty to invest and reinvest the Trust Fund) with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting
in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. 

  

	 	(f)	If the Trustee meets the prudent person standard set forth in Section 9(e) and undertakes or defends any litigation arising in connection with this Trust or the Plan, including
protecting a Participant’s or Beneficiary’s rights under the Plan as authorized in Section 14(c)(1), the Company agrees to indemnify the Trustee against the Trustee’s costs, reasonable expenses and liabilities (including, without
limitation, attorneys’ fees and expenses) relating thereto and to be primarily liable for such payments. The Trustee shall be under no obligation to undertake or defend any such litigation unless there are sufficient assets available at the
time in the Trust Fund to cover the Trustee’s costs, reasonable expenses and liabilities (including, without limitation attorney’s fees and expenses) relating thereto. If the Company does not pay such costs, expenses and liabilities in a
reasonably timely manner, the Trustee may obtain payment from the Trust. 

  

	 	(g)	The Trustee shall incur no liability to any person for any action taken pursuant to a written direction, request or approval given by the Company. The Trustee shall also be
indemnified and saved harmless by the Company from and against any and all liability to which the Trustee may be subjected by carrying out any directions of a Company-appointed investment manager or investment committee or for failure to act in the
absence of directions of the investment manager or investment committee, including all expenses reasonably incurred in its defense in the event the Company fails to provide such defense; provided, however, the Trustee shall not be so indemnified if
it participates knowingly in, or knowingly undertakes to conceal, an act or omission of an investment manager or investment committee; provided further, however, that the Trustee shall not be deemed to have knowingly participated in or knowingly
undertaken to conceal an act or omission of an investment manager or investment committee by merely complying with directions of an investment manager or investment committee or for failure to act in the absence of directions of an investment
manager or investment committee. The Trustee may rely upon any order, certificate, notice, direction or other documentary confirmation purporting to have been issued by the investment manager or investment committee which the Trustee believes to be
genuine and to have been issued by the investment manager or investment committee. The Trustee shall not be charged with knowledge of the termination of the appointment of any investment manager or investment committee until it receives written
notice thereof from the Company. 

	 	(h)	The Trustee may apply to a court of competent jurisdiction to institute an action for settlement of the Trustee’s account pursuant to Section 8(d), to appoint a successor
Trustee pursuant to the terms of Section 12(a), and to collect a contribution due the Trust by the Company following a Change in Control pursuant to the terms of Section 14 (c)(3)(B) or in the event that the Trust should experience a short-fall in
the amount of Trust assets necessary to make payments pursuant to the terms of the Plan. 

  

	 	(i)	Except as provided in Section 14(c)(1), the Trustee may not apply to a court of competent jurisdiction to resolve a dispute between the Company and a Participant, Beneficiary or
other person or entity in connection with payments allegedly due from or alleged obligations of the Trust Fund. 

  
 Section 10. Compensation and Expenses of the Trustee 
  
 The Trustee’s compensation shall be as agreed in writing from time to time by the Company and the Trustee. The Company shall pay all administrative
expenses and Trustee’s fees and expenses and shall promptly reimburse the Trustee for any fees and expenses of its agents. If not so paid, the fees and expenses shall be paid from the Trust. 
  
 Section 11. Resignation and Removal of the Trustee 
  

	 	(a)	Except as provided in Section 14(c)(4)(E), the Trustee may be removed by the Company upon 30 days notice or upon shorter notice accepted by the Trustee. 

  

	 	(b)	The Trustee may resign at any time by written notice to the Company, which shall be effective 30 days after receipt by the Company of such notice unless the Company and the Trustee
agree otherwise. 

  

	 	(c)	Upon resignation or removal of the Trustee and appointment of a successor trustee, all assets shall subsequently be transferred to the successor trustee. The transfer shall be
completed within 60 days after receipt of notice of resignation, removal or transfer, unless the Company authorizes an extension. 

  

	 	(d)	In the event of the removal or resignation of the Trustee, the Trustee shall deliver to the successor trustee all records which shall be required by the successor trustee to enable
it to carry out the provisions of this Trust Agreement. 

  
 Section 12. Appointment of Successor 
  

	 	(a)	Except as provided in Section 14(c)(5), the Company shall appoint a successor trustee, such as a bank trust department or other party that has corporate trustee powers under state
law, upon the resignation or removal of the Trustee. If no such appointment has been made by the effective date of resignation or removal under Section 12, whichever applicable, the Trustee may apply to a court of competent jurisdiction for
appointment of a successor or for instructions. All expenses of the Trustee in connection with such proceeding shall be allowed as an administrative expense of the Trust. 

	 	(b)	The successor trustee shall have all of the rights and powers of the prior trustee, including ownership rights in the Trust. The prior trustee shall execute any instrument necessary
or reasonably requested by the Company or the successor trustee to evidence the transfer. 

  

	 	(c)	Wachovia Bank, N.A., as Trustee, or any future successor trustee need not examine the records and acts of this or any other Prior Trustee and may retain or dispose of existing Trust
assets in accordance with the terms of the Plan and this Trust Agreement. Wachovia Bank, N.A. or any future successor trustee shall not be responsible for, and the Company shall indemnify and defend Wachovia Bank, N.A. or any future successor
trustee from, any claim or liability resulting from any action or inaction of this or any other Prior Trustee or from, any other past event, or any condition existing at the time it becomes Trustee. 

  
 Section 13. Amendment or Termination 
  

	 	(a)	Except as provided in Section 14(c)(6), this Trust Agreement may be amended by a written instrument executed by the Trustee and the Company (or the Company’s delegate).
Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plan or make the Trust revocable. 

  

	 	(b)	Unless otherwise agreed in writing by all Participants and Beneficiaries entitled to payment of benefits pursuant to the Plan, the Trust shall not terminate until the date on which
all Participants and their Beneficiaries have received all of the benefits due them under the terms and conditions of the Plan. 

  

	 	(c)	Except as provided in Section 4, but notwithstanding any other provision of this Trust Agreement to the contrary, if at any time (i) the Trust is finally determined by the Internal
Revenue Service (the “IRS”) not to be a “grantor trust,” with the result that the income of the Trust is not treated as income of the Company pursuant to Sections 671 through 679 of the Code, (ii) a federal tax is finally
determined by the IRS to be payable by the Trust beneficiaries with respect to the entire value of the assets maintained under the Trust prior to the final distribution to the Trust beneficiaries, or (iii) the Trustee receives an opinion of counsel
satisfactory to it to the effect that it is likely that the IRS will determine that a tax will be payable by Trust beneficiaries as described in (ii) above and it is likely that such determination will be upheld, then, upon the written direction of
the Administrative Committee, the Trustee shall immediately terminate the Trust and, as specified in writing by the Administrative Committee, the assets, shall be liquidated and paid in cash in a lump sum, subject to Section 6(e), as soon as
practicable by the Trustee to the Trust beneficiary, regardless of whether such Trust beneficiary’s employment with the Company has terminated and regardless of the form and time of payment specified in any applicable Payment Schedule. All
remaining assets (less any expenses or costs due under Section 10 hereof) shall then be paid by the Trustee to the Company. 

 If the IRS determination referred to in (ii) above or the opinion referred to in (iii) above applies to
less than the entire value of the Trust, then, upon the written direction of the Administrative Committee, that part of the assets of the Trust to which such determination or opinion relates shall be liquidated and paid in cash in a lump sum,
subject to Section 6(e), as soon as practicable by the Trustee to the Trust beneficiary upon whom such tax is or will be imposed, and the Trust shall continue in effect. 
  

	 	(d)	After payment of all fees and expenses of the Trust, any remaining assets in the Trust at termination shall be returned to the Company. 

  
 Section 14. Change in Control 
  

	 	(a)	Definitions. For purposes of this Section 14, the following terms shall be defined as set forth below: 

  

	 	(1)	Affiliate: an affiliate within the meaning of Rule 12b-2 promulgated under the Exchange Act. 

  

	 	(2)	Beneficial Ownership: ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act. 

  

	 	(3)	Business Combination: a reorganization, merger or consolidation of the Company or sale or other disposition of all or substantially all of the assets of the Company.

  

	 	(4)	Change in Control: 

  

	 	(A)	The acquisition by a Person of Beneficial Ownership of 25 percent or more of either (i) the Outstanding Company Common Stock or (ii) the Outstanding Company Voting Securities;
provided, however, that for purposes of this subsection (A), the following acquisitions shall not constitute a Change of Control: (i) any acquisition by the Company of any of its subsidiaries, (ii) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any subsidiary of the Company, or (iii) any acquisition by any Person pursuant to a transaction approved by the Incumbent Board; or 

  

	 	(B)	The cessation of the Incumbent Board for any reason to constitute at least a majority of the Board; or 

  

	 	(C)	The consummation of Business Combination, in each case, unless, immediately following such Business Combination each of the following would be correct: 

  

	 	(i)	all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding 

	 	  	Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60 percent of,
respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the Person resulting from such Business
Combination (including, without limitation, a Person which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and 

  

	 	(ii)	no Person (excluding any employee benefit plan or related trust sponsored or maintained by the Company or any subsidiary of the Company, or such corporation resulting from such
Business Combination or any Affiliate of such corporation) beneficially owns, directly or indirectly, 25 percent or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination, or
the combined voting power of the then outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and 

  

	 	(iii)	at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the
action of the Incumbent Board providing for such Business Combination; or 

  

	 	(D)	Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

  

	 	(5)	Exchange Act: Securities Exchange Act of 1934, as amended. 

  

	 	(6)	Incumbent Board: the members of the Board of Directors on the effective date of this Trust Agreement and any member of the Board of Directors subsequent to the effective date
of this Trust Agreement whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board, except that the Incumbent Board shall not
include any member of the Board of Directors whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board of Directors. 

	 	(7)	Outstanding Company Common Stock: outstanding shares of common stock of the Company. 

  

	 	(8)	Outstanding Company Voting Securities: outstanding voting securities of the Company entitled to vote generally in the election of directors. 

  

	 	(9)	Person: any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act. 

  

	 	(10)	Potential Change of Control: the occurrence of either of the following circumstances: (i) the Company enters into a definitive written agreement, the consummation of which
would result in the occurrence of a Change in Control; or (ii) the Company or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control. 

  

	 	(b)	Potential Change in Control. 

  

	 	(1)	Upon a Potential Change in Control, the Board of Directors, the Chief Executive Officer, or the General Counsel of the Company shall notify the Trustee in writing of the occurrence
of the Potential Change in Control. The Company, as soon as possible, but in no event longer than 30 days following the occurrence of such Potential Change in Control, make a contribution to the Trust in an amount sufficient to fund the Trust in an
amount equal to no less than 100 percent of that amount necessary to pay each Participant and Beneficiary the benefits to which he is entitled pursuant to the terms of the Plan as of the date on which the Potential Change in Control occurred.

  

	 	(2)	In the event a Change in Control does not occur within one year of a Potential Change in Control, the Board of Directors, the Chief Executive Officer, or the General Counsel of the
Company shall notify in writing the Trustee that a Potential Change in Control no longer exists. The Company shall then have the right to recover any amounts contributed to the Trust pursuant to Section 14(b)(1), as directed in writing by the
Company, provided, however, that the amounts recovered by the Company shall not reduce the balance of the Trust Fund to an amount less than the balance immediately before such contribution was made less any interim distributions for benefit payments
or Trust expenses 

  

	 	(c)	Change in Control. 

  

	 	(1)	Payments to Plan Participants and Beneficiaries. The Board of Directors, the Chief Executive Officer, or the General Counsel of the Company shall notify

	 	  	the Trustee in writing when a Change in Control occurs. Upon a Change in Control, a Participant or Beneficiary may request that the Trustee make an independent decision as to the
timing, amount or form of his or her benefits due under the Plan. In making any determination required or permitted to be made by the Trustee under this Section 14(c)(1), the Trustee shall, in each such case, reach its own independent determination,
in its absolute and sole discretion, as to the Participant’s or Beneficiary’s entitlement to a payment hereunder. In making its determination, the Trustee may consult with and make such inquiries of such persons, including the Participant
or Beneficiary, the Company, legal counsel, actuaries or other persons, as the Trustee may reasonably deem necessary. Any reasonable costs incurred by the Trustee in arriving at its determination shall be reimbursed by the Company and, to the extent
not paid by the Company within a reasonable time, shall be charged to the Trust. 

  

	 	(2)	Investment Authority. Upon a Change in Control, the Company shall have no right to direct the Trustee with respect to investments. Rather, the Trustee shall have the sole and
absolute discretion to manage the Trust assets and shall have all the powers set forth under Section 6 hereof. In investing the Trust assets, the Trustee shall consider: 

  

	 	(A)	the needs of the Plan; and 

  

	 	(B)	the need for matching of the Trust assets with the liabilities of the Plan. 

  

	 	(3)	Contributions. 

  

	 	(A)	Upon a Change in Control, the Company shall, as soon as possible, but in no event longer than 30 days following the occurrence of such Change in Control, make an irrevocable
contribution to the Trust in an amount sufficient to fund the Trust in an amount equal to no less than 100 percent of that amount necessary to pay each Participant and Beneficiary the benefits to which he is entitled pursuant to the terms of the
Plan as of the date on which the Change in Control occurred. The Company shall also fund an expense reserve for the Trustee in an amount not to exceed $150,000 for the five years following the Change in Control. 

  

	 	(B)	The Trustee and any Participant or Beneficiary shall have the right to compel the Company to make the contributions set forth in Section 14(c)(3)(A) only if the Company has failed
to make such contributions within 30 days of the Change in Control. 

  

	 	(4)	Limitations. Upon a Change in Control: 

  

	 	(A)	payments to Company of excess Trust amounts authorized under Section 5(b) are prohibited; 

	 	(B)	the Trustee shall be the owner of each insurance contract with the power to exercise all rights, privileges, options and elections granted by or permitted under such contract or
under the rules of the insurer. The exercise by the Trustee of any incidents of ownership under any contract shall not be subject to the direction of the Company; 

  

	 	(C)	the substitution of assets is subject to the approval and acceptance of the Trustee; 

  

	 	(D)	the Trustee shall select legal counsel that is independent from and does not serve as counsel to the Company; 

  

	 	(E)	the Trustee may only be removed by the Company with the consent of a majority of the Participants. 

  

	 	(5)	Appointment of Successor. If the Trustee resigns within two years after a Change in Control, the Company (or, if the Company fails to act within a reasonable period of time
following such resignation, the Trustee) shall apply to a court of competent jurisdiction for the appointment of a successor Trustee or for instructions. 

  

	 	(6)	Amendment. Notwithstanding anything to the contrary in Section 13, this Trust Agreement may not be amended by the Company for two years following a Change in Control without
the written consent of a majority of the Participants, except to the extent necessary to comply with legal or regulatory requirements necessary to maintain the tax deferred status of the Plan. 

  
 Section 15. Miscellaneous 
  

	 	(a)	Any word contained in the text of this Trust Agreement shall be read as the singular or plural and as the masculine, feminine or neuter as may be applicable or permissible in the
particular context. Unless otherwise specifically stated, the words “or” and “any” shall be taken to mean “any one or more or all of.” 

  

	 	(b)	Benefits payable to Participants and their Beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered or
subjected to attachment, garnishment, levy, execution or other legal or equitable process except as otherwise provided in the Plan. 

  

	 	(c)	Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.

  

	 	(d)	The Company hereby represents and warrants that the Plan has been established, maintained and administered in accordance with all applicable laws (including, to the extent
applicable, ERISA). 

	 	(e)	This Trust Agreement shall be governed by and construed in accordance with the laws, and the Trust shall have its situs in, the Commonwealth of Massachusetts.

  
 IN WITNESS WHEREOF, this Grantor Trust Agreement
has been executed on behalf of the parties hereto on the day and year first above written. 
  

									
	 TOYS “R” US
	 	 	 	 WACHOVIA BANK, N.A., TRUSTEE

					
	 By:
	 	  

	 	 	 	 By:
	 	  

	 Its:
	 	  

	 	 	 	 Its:
	 	  

	 Date:
	 	  

	 	 	 	 Date:Retention Agreement b/w Toys "R" Us, Inc. and Kay, dated August 3, 2000

 Exhibit 10.31 
  
 RETENTION AGREEMENT 
  
 BETWEEN 
  
 TOYS “R” US, INC. 
  
 AND 
  
 Christopher K. Kay 
  
 DATED AS OF 
  
 August 3, 2000 

 TABLE OF CONTENTS 
  

					
	1	  	Employment Period	  	1
			
	2.	  	Terms of Employment	  	1
			
	 	  	(a) Position	  	1
			
	 	  	(b) Compensation	  	1
	 	  	            (i)Base Salary	  	1
	 	  	            (ii)Incentive Bonus	  	1
	 	  	            (iii)Participation in Other Plans	  	2
	 	  	            (iv)Stock Units	  	2
			
	3.	  	Termination of Employment Upon Death, Disability or Retirement	  	2
			
	4.	  	Other Termination of Employment	  	2
			
	 	  	(a) Company Termination	  	2
			
	 	  	(b) Good Reason	  	2
			
	 	  	(c) Notice of Termination	  	2
			
	 	  	(d) Obligations of the Company Upon Termination Under Section 4	  	3
			
	 	  	(e) Contract Non-Renewal	  	4
			
	 	  	(f) Cause	  	5
			
	5.	  	Release Agreement	  	5
			
	6.	  	Offset	  	5
			
	7.	  	Compensation and Benefits Following Change of Control	  	5
			
	8.	  	Nonexclusivity of Rights	  	5
			
	9.	  	Full Settlement; Legal Fees	  	6
			
	 	  	(a)No Obligation to Mitigate	  	6
			
	 	  	(b)Expenses of Contests	  	6
			
	10.	  	Certain Additional Payments by the Company	  	6

					
	11.	  	Restrictions and Obligations of the Officer	  	7
			
	 	  	(a) Consideration for Restrictions and Covenants	  	7
			
	 	  	(b) Confidentiality	  	7
			
	 	  	(c) Non-Solicitation or Hire	  	7
			
	 	  	(d) Non-Competition and Consulting	  	7
			
	 	  	(e) Definitions. For purposes of this Section 11	  	8
			
	 	  	(f) Relief	  	9
			
	12.	  	Successors	  	9
			
	13.	  	Miscellaneous	  	9
			
	 	  	(a) Governing Law	  	9
			
	 	  	(b) Captions	  	9
			
	 	  	(c) Amendment	  	9
			
	 	  	(d) Notices	  	9
			
	 	  	(e) Assistance to Company	  	10
			
	 	  	(f) Severability of Provisions	  	10
			
	 	  	(g) Withholding	  	10
			
	 	  	(h) Waiver	  	10
			
	 	  	(i) Arbitration	  	10

  
 EXHIBIT A Separation and Release
Agreement 
 EXHIBIT B Definitions 
 EXHIBIT C Change of
Control and Tax Gross-Up 
  
 ANNEX A Stock Unit Agreement 

 TOYS “R” US, INC. 
 RETENTION AGREEMENT 
  
 AGREEMENT
(this “Agreement”), by and between Toys “R” Us, Inc., a Delaware corporation (the “Company”), and Christopher K. Kay (the “Officer”), dated as of August 3, 2000. Capitalized terms used in this Agreement and in
Exhibit A hereto that are not defined in the operative provisions shall have the meanings ascribed to them on Exhibit B hereto. 
  
 1. Employment Period. The Company hereby agrees to continue to employ the Officer and the Officer hereby agrees to remain in the employ of the
Company subject to the terms and conditions of this Agreement, for the Employment Period. The term “Employment Period” means the period commencing on the date hereof and ending on the second anniversary of such date as automatically
extended for successive additional one-year periods unless, at least six months prior to the scheduled expiration of the Employment Period, the Company shall give notice to the Officer that the Employment Period shall not be so extended. 

 
 2. Terms of Employment. (a) Position. (i) Commencing on the
date hereof and for the remainder of the Employment Period, the Officer shall continue to serve in the Officer’s current position at the Company or such other senior Officer position to which the Officer may be appointed by the Company. The
Officer shall be based in Northeastern New Jersey. 
  
 (ii) During
the Employment Period, and excluding any periods of vacation and sick leave to which the Officer is entitled, the Officer agrees to devote full time during normal business hours to the business and affairs of the Company and to use the
Officer’s best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period, the Officer may, so long as such activities do not interfere with the performance of the Officer’s responsibilities as an
employee of the Company in accordance with this Agreement, continue the corporate directorships on which the Officer serves, if any, as of the date hereof and such other corporate directorships as are consented to by the Chief Executive Officer. It
is expressly understood and agreed that to the extent that any such activities have been conducted by the Officer with the knowledge of the Company prior to a Change of Control, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to a Change of Control shall not thereafter be deemed to violate this Agreement. 
  
 (b) Compensation. 
  
 (i) Base Salary. During the Employment Period, the Officer shall receive the Officer’s Annual Base Salary which will be paid in accordance
with the Company’s regular payroll policies as in effect from time to time. 
  
 (ii) Incentive Bonus. The Officer shall also be eligible, for each fiscal year ending during the Employment Period, to receive an annual incentive bonus and long-term incentive awards pursuant to the
Company’s incentive Plans and subject to the terms thereof at a level commensurate with the Officer’s current grants and the Officer’s current position or any more senior position(s) to which the Officer may be appointed. Each such
incentive bonus shall be paid in accordance with the Company’s incentive Plans. 

 (iii) Participation in Other Plans. During the Employment Period, the Officer shall be eligible to
participate in all other Plans at a level commensurate with the Officer’s position. 
  
 (iv) Stock Units. As further inducement for the Officer to enter into this Agreement and to continue in the employ of the Company, the Company has granted to the Officer 50,000 stock units contingent on
performance and future service, pursuant to the Stock Unit Agreement executed and delivered by the Company on the date hereof in the form attached as Annex A hereto. 
  
 3. Termination of Employment Upon Death, Disability or Retirement. The Officer’s employment shall terminate upon
the Officer’s death, Disability or Retirement during the Employment Period and the obligations of the Company upon such termination shall be limited to those benefits provided by the Company’s Plans at the Date of Termination, except as
specifically set forth herein or in the Stock Unit Agreement. 
  
 4. Other Termination of Employment. (a) Company Termination. The Company may terminate the Officer’s employment during the Employment Period with or without Cause. 
  
 (b) Good Reason. The Officer’s employment may be terminated
during the Employment Period by the Officer for Good Reason. 
  
 (c) Notice of Termination. (i) Any termination by the Company for Cause, or by the Officer for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with this Agreement. The failure
by the Officer or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Officer or the Company, respectively, hereunder or preclude the
Officer or the Company, respectively, from asserting such fact or circumstance in enforcing the Officer’s or the Company’s rights hereunder. 
  
 (ii) Resignation. Without limiting the obligations of the Officer, or the rights of the Company, in connection with, or relating to, this
Agreement, the Officer agrees that in order for the Officer to resign his employment without Good Reason with the Company or any of its Subsidiaries, the Officer shall provide the Company with six (6) months notice of resignation (the
“Mandatory Notice Period”) prior to the effective date of such resignation. During the Mandatory Notice Period, the Officer shall continue to perform all of his duties in accordance, and in compliance, with the terms of this Agreement.
Prior to and during the Mandatory Notice Period, the Officer shall not disclose to any third parties, other than executive search firms, prospective employers (collectively, the “Permitted Third Parties”) and the Officer’s spouse, his
intention and/or decision to terminate employment with the Company. The Officer shall, prior to any disclosure of such information to any Permitted Third Party, secure such Permitted Third Party’s written agreement not to disclose such
information until after the Mandatory Notice Period to anyone other than officers and directors of such Permitted Third Party who need to know such information. 

 (d) Obligations of the Company Upon Termination Under Section 4. If the Officer’s employment
shall have been terminated under Section 4(a) (other than for Cause) or 4(b): 
  
 (i) the Company shall make a lump sum cash payment to the Officer within 30 days after the Date of Termination in an amount equal to the sum of (1) the Officer’s pro rata Annual Base Salary payable through the
Date of Termination to the extent not theretofore paid, (2) the targeted amount of the Officer’s annual bonus and long-term incentive awards that would have been payable with respect to the fiscal year in which the Date of Termination occurs in
each case absent the termination of the Officer’s employment prorated for the portion of such fiscal year through the Date of Termination taking into account the number of complete months during such fiscal year through the Date of Termination
and (3) the Officer’s actual earned annual or long-term incentive awards for any completed fiscal year or period not theretofore paid or deferred; 
  
 (ii) the Company shall pay to the Officer in equal installments, made at least monthly, over the twenty-four months following the Date of Termination an
aggregate amount equal to (1) two times the Officer’s Annual Base Salary in effect on the Date of Termination, (2) two times the targeted amount of the annual incentive bonus that would have been paid to the Officer with respect to the
Company’s fiscal year in which such Date of Termination; 
  
 (iii) the Company shall continue to provide, in the manner and timing provided for in the Plans (other than stock options and except as set forth in this Section 4(d) and in Section 7(b)), the benefits provided under the Plans that the
Officer would receive on an after-tax basis if the Officer’s employment had continued for two years after the Date of Termination assuming for this purpose that the Officer’s compensation for each such year would have been one-half of the
amount paid pursuant to clause (ii) above, and the Officer shall be fully vested in any account balance and all other benefits continuation under such Plans; provided, however that the benefits provided under this clause (iii) shall be limited to
the coverage permitted by law or as would otherwise not potentially adversely impact on the tax qualification of any Plans; provided, further, that if such benefits may not be continued under the Plans, the Company shall pay to the Officer an amount
equal to the Company’s cost had such benefits been continued. 
  
 (iv) (1) all unvested options held by the Officer shall continue to vest in accordance with their terms for two years after the Date of Termination, and all remaining unvested options held by the Officer shall vest on the two year
anniversary date of the Date of Termination, (2) all unvested profit shares held by the Officer or for the benefit of the Officer by a grantor trust established by the Company shall continue to vest in accordance with their terms for two years after
the Date of Termination and all remaining profit shares shall vest on the two year anniversary date of the Date of Termination, provided that, if permitted by the terms of any such trust, any unvested profit shares shall continue to be held by such
grantor trust until such profit shares vest pursuant to this clause (iv) and any such unvested profit share not permitted to be so held shall vest immediately and be delivered to the Officer, (3) any other unvested equity based award (including,
without limitation, restricted stock and stock units) held by the Officer shall vest on the two year anniversary date of the Date of Termination on a pro rata basis determined by a fraction, the numerator of which is the number of months elapsed
from the grant of such 

 equity award through the Date of Termination plus the twenty-four months after the Date of Termination and the
denominator of which is the total number of months in the vesting period for such award and shall be promptly delivered to the Officer entirely in the form of Common Stock, $.10 par value per share, of the Company, (4) any options held by the
Officer that are vested on the Date of Termination or vest thereafter pursuant to this clause (iv) may be exercised until the earlier of (x) the thirty-month anniversary date of the Date of Termination and (y) the expiration date of such options and
(5) the Officer shall not be entitled to any additional grants of any stock options, restricted stock, other equity based or long-term awards; and 
  
 (v) the Officer will be entitled to continuation of health benefits under the Plans at a level commensurate with the Officer’s current position or
more senior position(s) to which the Officer may be appointed, and if the Officer elects to receive such health benefits, the Company shall pay the medical premiums therefore for the first twenty-four months after the Date of Termination, and
thereafter the Officer shall pay the premium charged to former employees of the Company pursuant to Section 4980B of the Code for the twenty-fifth through thirty-sixth months following the Date of Termination, after which such health benefits shall
terminate; provided, that the Company can amend or otherwise alter the Plans to provide benefits to the Officer that are no less than those commensurate with the Officer’s current position or more senior position(s) to which the Officer may be
appointed; provided, that to the extent such benefits cannot be provided to the Officer under the terms of the Plans or the Plans cannot be so amended in any manner not adverse to the Company, the Company shall pay the Officer, on an after-tax
basis, an amount necessary for the Officer to acquire such benefits from an independent insurance carrier; and provided, further, that the obligations of the Company under this clause (v) shall be terminated if, at any time after the Date of
Termination, the Officer is employed by or is otherwise affiliated with a party that offers comparable health benefits to the Officer. 
  
 (e) Contract Non-Renewal. If the Officer’s employment terminates upon the expiration of the initial two-year Employment Period due to the
decision not to renew or extend the Employment Period other than for Cause (as to the Company’s decision) or Good Reason (as to the Officer’s decision): 
  
 (i) the Company shall make a lump sum cash payment to the Officer within 30 days after the Date of Termination in an amount
equal to the sum of (1) the Officer’s pro rata Annual Base Salary payable through the Date of Termination to the extent not theretofore paid, (2) the targeted amount of the Officer’s annual bonus and long-term incentive awards that would
have been payable with respect to the fiscal year in which the Date of Termination occurs in each case absent the termination of the Officer’s employment prorated for the portion of such fiscal year through the Date of Termination taking into
account the number of complete months during such fiscal year through the Date of Termination and (3) the Officer’s actual earned annual or long-term incentive awards for any completed fiscal year or period not theretofore paid or deferred; and

  
 (ii) (1) all unvested options held by the Officer shall vest
on the Date of Termination, (2) all unvested profit shares held by the Officer or for the benefit of the Officer by a grantor trust established by the Company shall vest on the Date of Termination and be delivered to the 

 Officer, (3) any other unvested equity based award (including, without limitation, restricted stock and stock units) held
by the Officer shall vest on the Date of Termination, and (4) any options held by the Officer that are vested on the Date of Termination or vest thereupon pursuant to this clause (ii) may be exercised until the earlier of (x) the thirty-month
anniversary date of the Date of Termination and (y) the expiration date of such options. 
  
 (f) Cause. If the Officer’s employment shall be terminated for Cause during the Employment Period or if the Officer voluntarily terminates employment during the Employment Period, excluding a termination
for Good Reason, death, Disability or Retirement, the Employment Period shall terminate without further obligations to the Officer other than the obligation to pay to the Officer all payments and benefits due, in accordance with the Company’s
Plans through the Date of Termination. 
  
 5. Release
Agreement. The benefits pursuant to Section 4 are contingent upon the Officer (i) executing a Separation and Release Agreement (the “Release Agreement”) upon or after any Date of Termination, a copy of which is attached as Exhibit A to
this Agreement and (ii) not revoking or challenging the enforceability of the Release Agreement or this Agreement. 
  
 6. Offset. The Company shall have the right to offset the amounts required to be paid to the Officer under this Agreement against any amounts owed
by the Officer to the Company, and nothing in this Agreement shall prevent the Company from pursuing any other available remedies against the Officer. 
  
 7. Compensation and Benefits Following Change of Control. 
  

(a) Notwithstanding any provision of this Agreement or any Plan, in no event shall any compensation or benefits, individually or in the aggregate, to
which the Officer would be entitled be less favorable for the two years following a Change of Control than the Officer would have been entitled based upon the most favorable of the Company’s Plans in effect for the Officer at any time during
the 120-day period immediately preceding such Change of Control. 
  
 (b) In the event of termination of the Officer’s employment under Section 4(a) (other than for Cause) or 4(b), whether before or after a Change of Control, following a Change of Control: (i) any remaining amounts payable under Sections
4(d)(i), (ii) and (iii) shall be payable in a lump sum within 30 days after the later of the Date of Termination or the Change of Control and (ii) in lieu of the Company’s obligations under Section 4(d)(iv), all unvested options and equity
based awards shall vest immediately on the later of the Date of Termination or the Change of Control and all such options may be exercised until the earlier of (x) the thirty-month anniversary date of the Date of Termination and (y) the expiration
date of such options. 
  
 8. Nonexclusivity of Rights.
Nothing in this Agreement shall prevent or limit the Officer’s continuing or future participation in any Plan for which the Officer may qualify nor shall anything herein limit or otherwise affect such rights as the Officer may have under any
contract or agreement with the Company. Amounts that are vested benefits or that the Officer is otherwise entitled to receive under any Plan, contract or agreement with the Company at or subsequent to the Date of Termination shall be payable in
accordance with such Plan, or contract or agreement except as explicitly modified by this Agreement. 

 9. Full Settlement: Legal Fees. 
  
 (a) No Obligation to Mitigate. In no event shall the Officer be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Officer under any of the provisions of this Agreement, and, except as specifically provided in this Agreement, such amounts shall not be reduced whether or not the Officer obtains other
employment. 
  
 (b) Expenses of Contests. 
  
 (i) The following shall apply for any dispute arising hereunder, under the
Release Agreement or under the Stock Unit Agreement prior to a Change of Control: In each case solely to the extent that the Officer is successful with respect thereto, the Company agrees to pay all reasonable legal and professional fees and
expenses that the Officer may reasonably incur as a result of any contest by the Officer, by the Company or others of the validity or enforceability of, or liability under, any provision of this Agreement, the Release Agreement or the Stock Unit
Agreement (including as a result of any contest by the Officer about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Code or any successor Section of the Code. 
  
 (ii) The following
shall apply for any dispute arising hereunder, under the Release Agreement or under the Stock Unit Agreement upon or following a Change of Control: The Company agrees to advance to the Officer all reasonable legal and professional fees and expenses
that the Officer may reasonably incur as a result of any contest by the Officer, by the Company or others of the validity or enforceability of, or liability under, any provision of this Agreement, the Release Agreement or the Stock Unit Agreement
(including as a result of any contest by the Officer about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code or
any successor Section of the Code. 
  
 (iii) The Officer shall
reimburse the Company for its reasonable legal and professional fees and expenses, and in the case of advances made pursuant to paragraph (ii) above, shall refund the Company the amount of such advances, to the extent there is a final determination
that such fees, expenses or advances relate to claims brought by the Officer against, or defenses by the Officer of any claim of, the Company with respect to this Agreement, the Release Agreement or the Stock Unit Agreement that were determined to
have been made or asserted by the Officer in bad faith or frivolously. 
  
 10. Certain Additional Payments by the Company. Anything in this Agreement to the contrary notwithstanding, in the event that any actual or constructive payment or distribution by the Company to or for the benefit of the Officer
(whether paid or payable or distributed or 

 distributable pursuant to the terms of this Agreement, the Stock Unit Agreement or otherwise) is subject to the excise
tax imposed by Section 4999 of the Code or any successor provision of the Code (the “Excise Tax”), then the Company shall make the payments described on Exhibit C hereto. 
  
 11. Restrictions and Obligations of the Officer. 
  
 (a) Consideration for Restrictions and Covenants. The parties hereto acknowledge and agree that the principal
consideration for the agreement to make the payments provided in Sections 3 and 4 hereof from the Company to the Officer and the grant to the Officer of the stock units of the Company as set forth in Section 2 hereof is the Officer’s compliance
with the undertakings set forth in this Section 11. Specifically, Officer agrees to comply with the provisions of this Section 11 irrespective of whether the Officer is entitled to receive any payments under Section 3 or 4 of this Agreement.

  
 (b) Confidentiality. The confidential and proprietary
information and in any material respect trade secrets of the Company are among its most valuable assets, including but not limited to, its customer and vendor lists, database, computer programs, frameworks, models, its marketing programs, its sales,
financial, marketing, training and technical information, and any other information, whether communicated orally, electronically, in writing or in other tangible forms concerning how the Company creates, develops, acquires or maintains its products
and marketing plans, targets its potential customers and operates its retail and other businesses. The Company has invested, and continues to invest, considerable amounts of time and money in obtaining and developing the goodwill of its customers,
its other external relationships, its data systems and data bases, and all the information described above (hereinafter collectively referred to as “Confidential Information”), and any misappropriation or unauthorized disclosure of
Confidential Information in any form would irreparably harm the Company. The Officer shall hold in a fiduciary capacity for the benefit of the Company all Confidential Information relating to the Company and its business, which shall have been
obtained by the Officer during the Officer’s employment by the Company and which shall not be or become public knowledge (other than by acts by the Officer or representatives of the Officer in violation of this Agreement). After termination of
the Officer’s employment with the Company, the Officer shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate, divulge or use any such information, knowledge or data to
anyone other than the Company and those designated by it. 
  
 (c)
Non-Solicitation or Hire. During the Employment Period and for a two-year period following the termination of the Officer’s employment for any reason, the Officer shall not, directly or indirectly (i) employ or seek to employ any person
who is at the Date of Termination, or was at any time within the six-month period preceding the Date of Termination, an officer, general manager or director or equivalent or more senior level employee of the Company or any of its subsidiaries or
otherwise solicit, encourage, cause or induce any such employee of the Company or any of its subsidiaries to terminate such employee’s employment with the Company or such subsidiary for the employment of another company (including for this
purpose the contracting with any person who was an independent contractor (excluding consultant) of the 

 Company during such period) or (ii) take any action that would interfere with the relationship of the Company or its
subsidiaries with their suppliers and franchisees without, in either case, the prior written consent of the Company’s Board of Directors, or engage in any other action or business that would have a material adverse effect on the Company.

  
 (d) Non-Competition and Consulting. (i) During the
Employment Period and for a two-year period (the “Consulting Period”) following the termination of the Officer’s employment for any reason, the Officer shall not, directly or indirectly: 
  
 (x) engage in any managerial, administrative, advisory, consulting,
operational or sales activities in a Restricted Business anywhere in the Restricted Area, including, without limitation, as a director or partner of such Restricted Business, or 
  
 (y) organize, establish, operate, own, manage, control or have a direct or indirect investment or ownership interest in a
Restricted Business or in any corporation, partnership (limited or general), limited liability company enterprise or other business entity that engages in a Restricted Business anywhere in the Restricted Area; and 
  
 (ii) During the Consulting Period, the Officer shall 
  
 (x) be available to render services to the Company as an independent
contractor/consultant but not as an employee of the Company; and 
  
 (y) perform such duties as may be reasonably requested in writing from time to time during the Consulting Period by the Chief Executive Officer; provided that such duties shall not conflict with the duties of the Officer for a new employer
if such employment does not violate the terms of Section 11(d)(i) hereof. 
  
 (iii) Section 11(d) shall not bind the Officer during any period following the termination of the Officer’s employment if there has been a Change of Control irrespective of whether the Change of Control occurs
before or after the Date of Termination. 
  
 (iv) Nothing
contained in this Section 11(d) shall prohibit or otherwise restrict the Officer from acquiring or owning, directly or indirectly, for passive investment purposes not intended to circumvent this Agreement, securities of any entity engaged, directly
or indirectly, in a Restricted Business if either (i) such entity is a public entity and such Officer (A) is not a controlling Person of; or a member of a group that controls, such entity and (B) owns, directly or indirectly, no more than 3% of any
class of equity securities of such entity or (ii) such entity is not a public entity and the Officer (A) is not a controlling Person of, or a member of a group that controls, such entity and (B) does not own, directly or indirectly, more than 1% of
any class of equity securities of such entity. 
  
 (e)
Definitions. For purposes of this Section 11: 
  
 (i)
“Restricted Business” means the retail store or mail order business or any business, in 

 each case if it is involved in the manufacture or marketing of toys, juvenile or baby products, juvenile furniture or
children’s clothing or any other business in which the Company may be engaged on the Date of Termination. 
  
 (ii) “Restricted Area” means any country in which the Company or its subsidiaries owns or franchises any retail store operations or otherwise
has operations on the Date of Termination. 
  
 (f) Relief.
The parties hereto hereby acknowledge that the provisions of this Section 11 are reasonable and necessary for the protection of the Company and its subsidiaries. In addition, the Officer further acknowledges that the Company and its subsidiaries
will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Officer agrees that, in addition to any other relief to which the Company may be entitled, the Company will be entitled to seek and obtain injunctive
relief (without the requirement of any bond) from a court of competent jurisdiction for the purposes of restraining the Officer from any actual or threatened breach of such covenants. In addition, without limiting the Company’s remedies for any
breach of any restriction on the Officer set forth in Section II, except as required by law, the Officer shall not be entitled to any payments set forth in Section 3 or 4 hereof if the Officer breaches any of the covenants applicable to the Officer
contained in this Section 11, the Officer will immediately return to the Company any such payments previously received upon such a breach, and, in the event of such breach, the Company will have no obligation to pay any of the amounts that remain
payable by the Company under Section 3 or 4. 
  
 12.
Successors. (a) This Agreement is personal to the Officer and without the prior written consent of the Company shall not be assignable by the Officer otherwise than by will or the laws of descent and distribution. This Agreement shall inure
to the benefit of and be enforceable by the Officer’s legal representatives. 
  
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
  
 (c) The Company will, within thirty days after a Change of Control, and the Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company within thirty days after any such event of succession to, assume expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as
aforesaid that assumes and agrees to perform this Agreement by operation of law, or otherwise. 
  
 13. Miscellaneous. (a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without reference to principles of conflict of law.

  
 (b) Captions. The captions of this Agreement are not
part of the provisions hereof and shall have no force or effect. 

 (c) Amendment. This Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal representatives. 
  
 (d) Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows: 
  
 (i) If to the Officer, to the
address on file with the Company; and 
  
 (ii) If to the Company,
to it at Toys “R” Us, Inc., 461 From Road, Paramus, New Jersey 07652, Attention: Senior Vice President - Human Resources; 
  
 or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually
received by the addressee. 
  
 (e) Assistance to Company.
At all times during and after the Employment Period and at the Company’s expense for significant out-of-pocket expenses actually and reasonably incurred by the Officer in connection therewith, the Officer shall provide reasonable assistance to
the Company in the collection of information and documents and shall make the Officer available when reasonably requested by the Company in connection with claims or actions brought by or against third parties or investigations by governmental
agencies based upon events or circumstances concerning the Officer’s duties, responsibilities and authority during the Employment Period. 
  
 (f) Severability of Provisions. Each of the sections contained in this Agreement shall be enforceable independently of every other section in this
Agreement, and the invalidity or nonenforceability of any section shall not invalidate or render unenforceable any other section contained in this Agreement. The Officer acknowledges that the restrictive covenants contained in Section 11 are a
condition of this Agreement and are reasonable and valid in geographical and temporal scope and in all other respects. If any court or arbitrator determines that any of the covenants in Section 11, or any part of any of them, is invalid or
unenforceable, the remainder of such covenants and parts thereof shall not thereby be affected and shall be given full effect, without regard to the invalid portion. If any court or arbitrator determines that any of such covenants, or any part
thereof; is invalid or unenforceable because of the geographic or temporal scope of such provision, such court or arbitrator shall reduce such scope to the minimum extent necessary to make such covenants valid and enforceable. 
  
 (g) Withholding. The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  
 (h) Waiver. The Officer’s or the Company’s failure to insist upon strict compliance with any provision hereof or any other provision of
this Agreement or the failure to assert any right the Officer or the Company may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

 (i) Arbitration. Except as otherwise provided for herein, any controversy arising under, out of,
in connection with, or relating to, this Agreement, and any amendment hereof, or the breach hereof or thereof; shall be determined and settled by arbitration in New York, New York, by a three person panel mutually agreed upon, or in the event of a
disagreement as to the selection of the arbitrators, in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. Any award rendered therein shall specify the findings of fact of the arbitrator or arbitrators
and the reasons of such award, with the reference to and reliance on relevant law. Any such award shall be final and binding on each and all of the parties thereto and their personal representatives, and judgment may be entered thereon in any court
having jurisdiction thereof. 

 IN WITNESS WHEREOF, the Officer has hereunto set the Officer’s hand and the Company has caused these
presents to be executed in its name on its behalf; all as of the day and year first above written. 
  

			
	 /s/ Christopher K. Kay

	 Christopher K. Kay

	
	 TOYS “R” US, INC.

		
	 By:
	 	  

	 Name:

	 Title:

 EXHIBIT A 
 SEPARATION AND RELEASE AGREEMENT 
  
 This Separation and Release Agreement (“Agreement”) is entered into as of this              day of
                    , 20    , between TOYS “R” US, INC. and any successor thereto (collectively the
“Company”) and                      (the “Officer”). 
  
 The Officer and the Company agree as follows: 
  
 1. The employment relationship between the Officer and the Company terminated on
                     (the “Termination Date”). 
  
 2. In accordance with the Officer’s Retention Agreement, the Company has agreed to pay the Officer certain payments and
to make certain benefits available after the Termination Date. 
  
 3. In consideration of the above, the sufficiency of which the Officer hereby acknowledges, the Officer, on behalf of the Officer and the Officer’s heirs, executors and assigns, hereby releases and forever discharges the Company and
its members, parents, affiliates, subsidiaries, divisions, any and all current and former directors, officers, employees, agents, and contractors and their heirs and assigns, and any and all employee pension benefit or welfare benefit plans of the
Company, including current and former trustees and administrators of such employee pension benefit and welfare benefit plans, from all claims, charges, or demands, in law or in equity, whether known or unknown, which may have existed or which may
now exist from the beginning of time to the date of this letter agreement, including, without limitation, any claims the Officer may have arising from or relating to the Officer’s employment or termination from employment with the Company,
including a release of any rights or claims the Officer may have under Title VII of the Civil Rights Act of 1964, as amended, and the Civil Rights Act of 1991 (which prohibit discrimination in employment based upon race, color, sex, religion, and
national origin); the Americans with Disabilities Act of 1990, as amended, and the Rehabilitation Act of 1973 (which prohibit discrimination based upon disability); the Family and Medical Leave Act of 1993 (which prohibits discrimination based on
requesting or taking a family or medical leave); Section 1981 of the Civil Rights Act of 1866 (which prohibits discrimination based upon race); Section 1985(3) of the Civil Rights Act of 1871 (which prohibits conspiracies to discriminate); the
Employee Retirement Income Security Act of 1974, as amended (which prohibits discrimination with regard to benefits); any other federal, state or local laws against discrimination; or any other federal, state, or local statute, or common law
relating to employment, wages, hours, or any other terms and conditions of employment. This includes a release by the Officer of any claims for wrongful discharge, breach of contract, torts or any other claims in any way related to the
Officer’s employment with or resignation or termination from the Company. This release also includes a release of any claims for age discrimination under the Age Discrimination in Employment Act, as amended (“ADEA”). The ADEA requires
that the Officer be advised to consult with an attorney before the Officer waives any claim under ADEA. In addition, the ADEA provides the Officer with at least 21 days to decide whether to waive 

 claims under ADEA and seven days after the Officer signs the Agreement to revoke that waiver. This release does not
release the Company from any obligations due to the Officer under Section 4, 7, 9(b), 10, 11 or 13(e) of the Officer’s Retention Agreement, the Officer’s Indemnification Agreement with the Company or under this Agreement. 
  
 Additionally, the Company agrees to discharge and release the Officer and the
Officer’s heirs from any claims, demands, and/or causes of action whatsoever, presently known or unknown, that are based upon facts occurring prior to the date of this Agreement, including, but not limited to, any claim, matter or action
related to the Officer’s employment and/or affiliation with, or termination and separation from the Company; provided that such release shall not release the Officer from any loan or advance by the Company or any of its subsidiaries, any act
that would constitute “Cause” under the Officer’s Retention Agreement or a breach under Section 9(b), 11 or 13(e) of the Officer’s Retention Agreement. 
  
 4. This Agreement is not an admission by either the Officer or the Company of any wrongdoing or liability. 
  
 5. The Officer waives any right to reinstatement or future employment with
the Company following the Officer’s separation from the Company on the Termination Date. 
  
 6. The Officer agrees not to engage in any act after execution of the Separation and Release Agreement that is intended, or may reasonably be expected to harm the reputation, business, prospects or operations of the
Company, its officers, directors, stockholders or employees. The Company further agrees that it will engage in no act which is intended, or may reasonably be expected to harm the reputation, business or prospects of the Officer. 
  
 7. The Officer shall continue to be bound by Sections 11 and 13(e) of the
Officer’s Retention Agreement. 
  
 8. The Officer shall
promptly return all the Company property in the Officer’s possession, including, but not limited to, the Company keys, credit cards, cellular phones, computer equipment, software and peripherals and originals or copies of books, records, or
other information pertaining to the Company business. The Officer shall return any leased or Company car at the expiration of the Consulting Period (as defined in the Officer’s Retention Agreement). 
  
 9. This Agreement shall be governed by and construed in accordance with the
laws of the State of New Jersey, without reference to the principles of conflict of laws. Exclusive jurisdiction with respect to any legal proceeding brought concerning any subject matter contained in this Agreement shall be settled by arbitration
as provided in the Officer’s Retention Agreement. 
  
 10.
This Agreement represents the complete agreement between the Officer and the Company concerning the subject matter in this Agreement and supersedes all prior agreements or understandings, written or oral. This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 

 11. Each of the sections contained in this Agreement shall be enforceable independently of every other
section in this Agreement, and the invalidity or nonenforceability of any section shall not invalidate or render unenforceable any other section contained in this Agreement. 
  
 12. It is further understood that for a period of 7 days following the execution of this Agreement in duplicate originals,
the Officer may revoke this Agreement, and this Agreement shall not become effective or enforceable until the revocation period has expired. No revocation of this Agreement by the Officer shall be effective unless the Company has received within the
7-day revocation period, written notice of any revocation, all monies received by the Officer under this Agreement and all originals and copies of this Agreement. 
  
 13. This Agreement has been entered into voluntarily and not as a result of coercion, duress, or undue influence. The
Officer acknowledges that the Officer has read and fully understands the terms of this Agreement and has been advised to consult with an attorney before executing this Agreement. Additionally, the Officer acknowledges that the Officer has been
afforded the opportunity of at least 21 days to consider this Agreement. 

 The parties to this Agreement have executed this Agreement as of the day and year first written above.

  

			
	 TOYS “R” US, INC.

		
	 By:
	 	  

	 Name:

	 Title:

	
	
 Christopher K. Kay

 EXHIBIT B 
  
 Capitalized terms used in the Agreement that are not elsewhere defined in the Agreement have the definitions set forth
below: 
  
 “Annual Base Salary” means the annual base
salary of the Officer as of the date of the Agreement as may be increased from time to time in the discretion of the Committee. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Cause” means: (i) the conviction of, or pleading guilty or nolo contendere to, a felony involving moral turpitude; (ii) the commission of any
fraud, misappropriation or misconduct which causes demonstrable injury to the Company or a subsidiary; (iii) an act of dishonesty resulting or intended to result, directly or indirectly, in material gain or personal enrichment to the Officer at the
expense of the Company or a subsidiary; (iv) any material breach of the Officer’s fiduciary duties to the Company as an employee or officer; (v) a serious violation of the Toys “R” Us Ethics Agreement or any other serious violation of
a Company policy; (vi) the willful and continued failure of the Officer to perform substantially the Officer’s duties with the Company or one of its subsidiaries (other than any such failure resulting from incapacity due to physical or mental
illness resulting in a Disability), within a reasonable time after a written demand for substantial performance is delivered to the Officer by the Board, which specifically identifies the manner in which the Board believes that the Officer has not
substantially performed the Officer’s duties; (vii) the failure by the Officer to comply, in any material respect, with the provisions of Section 11 of the Agreement; or (viii) the failure by the Officer to comply with any other undertaking set
forth in the Agreement or any breach by the Officer hereof that is reasonably likely to result in a material injury to the Company. 
  
 For purposes of this provision, no act or failure to act, on the part of the Officer, shall be considered “willful” unless it is done, or
omitted to be done, by the Officer in bad faith or without reasonable belief that the Officer’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or based upon the advice of regular outside counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Officer in good faith and in the best interests of the Company. The cessation of
employment of the Officer shall not be deemed to be for Cause unless and until there shall have been delivered to the Officer a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the Board at a
meeting of the Board called and held for such purpose (after reasonable notice is provided to the Officer and the Officer is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the
Board, the Officer is guilty of the conduct described, and specifying the particulars thereof in detail. 
  
 “Change of Control” - See Exhibit C. 

 “Committee” means the Company’s Management Compensation and Stock Option Committee of the
Board of Directors or any successor committee of the Board performing equivalent functions. 
  
 “Date of Termination” means (i) if the Officer’s employment is terminated by the Company for Cause, or by the Officer for Good Reason, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be (although such Date of Termination shall retroactively cease to apply if the circumstances providing the basis of termination for Cause or Good Reason are cured in accordance with the Agreement), (ii) if the
Officer’s employment is terminated by the Company other than for Cause, the Date of Termination shall be the date so designated by the Company in its notification to the Officer of such termination, (iii) if the Officer’s employment is
terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Officer or the effective date of the Disability, as the case may be, and (iv) the last day of the Employment Period during which the Company shall
have given notice to the Officer that the Employment Period shall not be extended. 
  
 “Disability” means the determination that the Officer is disabled pursuant to the terms of the TRU Partnership Employees’ Savings and Profit Sharing Plan, as amended and restated as of October 1, 1993,
as the same may be amended from time to time. 
  
 “Good
Reason” means, without the Officer’s prior written consent, the occurrence of any of the following, provided that the Officer delivers a Notice of Termination specifying such occurrence within 30 days thereof: 
  
 (i) the assignment of the Officer to a position materially inconsistent with
the requirements of Section 2(a) of the Agreement, excluding for this purpose an action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Officer; provided, however, that the foregoing
shall not constitute “Good Reason” if it is not attendant to a reduction in the Officer’s Annual Base Salary or total target compensation, except that a request by the Company for the Officer to relocate outside Northeastern New
Jersey shall constitute “Good Reason”; 
  
 (ii) any
failure by the Company to comply in any material respect with any of the provisions of Section 2(b) of the Agreement, other than failure not occurring in bad faith and that is remedied by the Company within a reasonable time after receipt of notice
thereof given by the Officer; 
  
 (iii) any failure by the Company
to comply with and satisfy Section 12(c) of the Agreement; or 
  
 (iv) notice by the Company that it is not extending the termination date of the Employment Period. 

 “Notice of Termination” means a written notice that (i) indicates the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Officer’s employment under the provision so indicated and
(iii) if the Date of Termination (as defined above) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice). 
  
 “Plans” means all employee compensation, benefit and welfare plans,
policies and programs of the Company, which may include, without limitation, incentive, savings, retirement, stock option, restricted stock, supplemental Officer retirement, pension, medical, prescription, dental, disability, salary continuance,
employee life, group life, accidental death and travel accident insurance plans, vacation practices, fringe benefit practices and policies relating to the reimbursement of business expenses. 
  
 “Retirement” shall have the meaning ascribed to that term in the
Plan under which benefits are being sought by the Officer. 

 EXHIBIT C 
 CHANGE OF CONTROL AND TAX GROSS-UP 
  
 I. Certain Definitions 
  
 “Change of Control” means, after the date hereof: 
  
 (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition by the Company or any of its subsidiaries, (ii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary of
the Company, (iii) any acquisition by any Person pursuant to a transaction that complies with clauses (i), (ii) and (iii) of subsection (c) below, or (iv) any acquisition by any entity in which the Officer has a material direct or indirect equity
interest; or 
  
 (b) The cessation of the “Incumbent
Board” for any reason to constitute at least a majority of the Board. “Incumbent Board” means the members of the Board on the date hereof and any member of the Board subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board, except that the Incumbent Board shall not include any member of the Board whose initial assumption of
office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.

  
 (c) The consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, immediately following such Business Combination each of the following would be correct:

  
 (i) all or substantially all of the individuals and entities
who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of, respectively,
the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the Person resulting from such Business Combination
(including, without limitation, a Person which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or 

 more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and 
  
 (ii) no Person (excluding (A) any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary of the Company, or
such corporation resulting from such Business Combination or any Affiliate of such corporation, or (B) any entity in which the Officer has a material equity interest, or any “Affiliate” (as defined in Rule 405 under the Securities Act of
1933, as amended) of such entity) beneficially owns, directly or indirectly, 25% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination, or the combined voting power of the
then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination, and 
  
 (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
  
 (d) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  
 II. Tax Gross-Up 
  
 (a) If required by Section 10 of the Agreement, in addition to the payments
described in Sections 4 and 7 of the Agreement and the grants described in the Stock Unit Agreement, the Company shall pay to the Officer an amount (the “Gross-up”) such that the net amount retained by the Officer, after deduction of any
Excise Tax and any Federal, state and local income taxes, equals the amount of such payments that the Officer would have retained had such Excise Tax not been imposed. In addition, the Company shall indemnify and hold the Officer harmless on an
after-tax basis from any Excise Tax imposed on or with respect to any such payment (including, without limitation, any interest, penalties and additions to tax) payable in connection with any such Excise Tax. For purposes of determining the amount
of any Gross-up or the amount required to make an indemnity payment on an after-tax basis, it shall be assumed that the Officer is subject to Federal, state and local income tax at the highest marginal statutory rates in effect for the relevant
period after taking into account any deduction available in respect of any such tax (e.g., if state and local taxes are deductible for Federal income tax purposes in the relevant period, it shall be assumed that such taxes offset income that would
otherwise be subject to Federal income tax at the highest marginal statutory rate in effect for such period). 
  
 (b) Subject to the provisions of paragraph (c) of this Exhibit C, the determination of (i) whether a Gross-up is required and the amount of such Gross-up
and (ii) the amount necessary to make any payment on an after-tax basis, shall be made in accordance with the assumptions set forth in paragraph (a) of this Exhibit C by Ernst & Young LLP or such other “Big Six” accounting firm
designated by the Officer and reasonably acceptable to the Company. 

 (c) The Officer shall notify the Company as soon as practicable in writing of any claim by the Internal
Revenue Service that, if successful, would require any Gross-up or indemnity payment. The Officer shall not pay such claim prior to the expiration of the 30-day period following the date on which it gives such notice to the Company. If the Company
notifies the Officer in writing prior to the expiration of such period that it desires to contest such claim, the Officer shall take all actions necessary to permit the Company to control all proceedings taken in connection with such contest. In
that connection, the Company may, at its sole option, pursue or forgo any and all administrative appeals, proceedings, hearings and conferences in respect of such claim and may, at its sole option, either direct the Officer to pay the tax claimed
and sue for a refund or contest the claim in any permissible manner; provided, however, that the Company shall pay and indemnify the Officer from and against all costs and expenses incurred in connection with such contest; provided further, however,
that if the Company directs the Officer to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Officer on an interest-free basis and at no net after-tax cost to the Officer. If the Officer becomes
entitled to receive any refund or credit with respect to such claim (or would be entitled to a refund or credit but for a counterclaim for taxes not indemnified hereunder), the Officer shall promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon) plus the amount of any tax benefit available to the Officer as a result of making such payment (any such benefit calculated based on the assumption that any deduction available to the Officer
offsets income that would otherwise be taxed at the highest marginal statutory rates of Federal, state and local income tax for the relevant periods).

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