Document:

Amendment No.1, dated as of September 20, 2010, to the New Secured Term Loan

 EXHIBIT 10.7 
 AMENDMENT NO. 1 
 THIS AMENDMENT NO. 1, dated as of
September 20, 2010 (this “Amendment No. 1”), is entered into by and among TOYS “R” US-DELAWARE, INC., a Delaware corporation (the “Borrower”), the lenders party hereto (collectively, the
“Lenders”; and each individually, a “Lender”), and BANK OF AMERICA, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 

W I T N E S S E T H 
 WHEREAS, the Borrower, certain lenders party thereto (the “Initial Lenders”), the Administrative Agent, and certain other agents and lenders named therein entered into that certain
Amended and Restated Credit Agreement, dated as of August 24, 2010 (as amended from time to time pursuant to the terms thereof, the “Amended and Restated Credit Agreement”) pursuant to which the Initial Lenders made certain
loans and certain other extensions of credit to the Borrower; and 
 WHEREAS, the parties hereto intend to amend the
Amended and Restated Credit Agreement as set forth herein; 
 NOW, THEREFORE, in consideration of the agreements
hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1 
 DEFINITIONS 

1.1 Certain Definitions. The following terms (whether or not underscored) when used in this Amendment shall have the
following meanings (such meanings to be equally applicable to the singular and plural form thereof): 
 (a) “Amended and
Restated Credit Agreement” shall have the meaning assigned to such term in the recitals hereto. 
 (b)
“Amendment Date” shall mean the first date on which all conditions set forth in Section 3 of this Agreement are satisfied, which date was September 20, 2010. 

1.2 Other Definitions. Unless otherwise defined or the context otherwise requires, capitalized terms for which
meanings are not provided herein shall have the meanings ascribed such terms in the Amended and Restated Credit Agreement. 

 SECTION 2  

AMENDMENTS 
 2.1 Amendment to Credit Agreement. Subject to the satisfaction of the closing conditions set forth in Section 3 below, from and after the Amendment Date, the Amended and Restated
Credit Agreement is amended as follows: 
 (i) The definition “Amendment No. 1” shall be added in appropriate
alphabetical order to read as follows: 
 ‘“Amendment No. 1” means Amendment No. 1 to this
Agreement, dated as of September 20, 2010, among the Borrower, the Lenders party thereto and Bank of America, as Administrative Agent.’; 
 (ii) The definition of “Eligible Assignee” is amended by amending and restating clause (d) thereof in its entirety to read as follows: 

“(d) any other commercial bank, insurance company, investment or mutual fund that is engaged in the business of making, purchasing,
holding or investing in commercial or bank loans and similar extensions of credit or a commercial finance company, which Person, together with its Affiliates or Approved Funds, have a combined capital and surplus or net asset value in excess of
$750.0 million;”; and 
 (iii) The definition of “Loan Documents” is amended and restated in its entirety to read
as follows: 
 ‘“Loan Documents” means this Agreement, each Note, the Guarantees, the Security Documents
and Amendment No. 1.”. 
 2.2 Effect of Amendment. Except as modified hereby, all of the terms
and provisions of the other Loan Documents remain in full force and effect. To the extent that any conflict may exist between the provisions of this Amendment No. 1 and the provisions of the Amended and Restated Credit Agreement, then this
Amendment No. 1 shall control. 
 SECTION 3 
 CLOSING CONDITIONS 
 3.1 Conditions Precedent.
This Amendment No. 1 shall become effective as of the Amendment Date upon receipt by the Administrative Agent of this Amendment No. 1, duly executed by the Borrower, the Administrative Agent and the Required Lenders. 

 SECTION 4  

MISCELLANEOUS 
 4.1 Amended Terms. The term “Credit Agreement” as used in each of the Loan Documents shall hereafter mean the Amended and Restated Credit Agreement as amended by this
Amendment No. 1. Except as specifically amended hereby or otherwise agreed, each of the Loan Documents are hereby ratified and confirmed and shall remain in full force and effect according to their respective terms. 

4.2 Loan Document. This Amendment No. 1 shall constitute a Loan Document under the terms of the Amended and
Restated Credit Agreement and shall be subject to the terms and conditions thereof (including, without limitation, Sections 10.14 and 10.15 of the Credit Agreement). 
 4.3 Entirety. This Amendment No. 1 and the other Loan Documents embody the entire agreement between the parties hereto and supersede all prior agreements and understandings, oral
or written, if any, relating to the subject matter hereof. 
 4.4 Counterparts. This Amendment No. 1
may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of executed counterparts of this Amendment No. 1 by
telecopy or electronic mail shall be effective as an original and shall constitute a representation that an original shall be delivered. 
 4.5 Fees. Notwithstanding anything to the contrary in the Amended and Restated Credit Agreement, including without limitation Section 10.04 thereof, the Borrower shall not be
required to reimburse the Administrative Agent or any other Agent or Lender, and shall not be liable, for any expenses (including fees and expenses of counsel) incurred in connection with the preparation, execution or delivery of this Amendment
No. 1. 
 4.6 GOVERNING LAW. THIS AMENDMENT NO. 1 AND ALL ACTIONS ARISING UNDER THIS AMENDMENT NO. 1 SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 [Signature pages follow] 

 IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
Amendment No. 1 to be duly executed and delivered as of the date first above written. 
  

					
	TOYS “R” US-DELAWARE, INC.,
	as Borrower
		
	By:	 	/s/ F. Clay Creasey, Jr.
		 	Name:	 	F. Clay Creasey, Jr.
		 	Title:	 	Executive Vice President – Chief Financial Officer

 [Amendment No. 1] 

 
					
	BANK OF AMERICA, N.A.,
	as Administrative Agent
		
	By:	 	/s/ Kimberly D. Williams
		 	Name:	 	Kimberly D. Williams
		 	Title:	 	Vice President

 [Amendment No. 1]

 
			
	[                ],
as a Lender
		
	By:	 	 
		 	Name:

 [Amendment No. 1]Amendment No. 3 to the Amended and Restated Management Equity Plan

 EXHIBIT 10.21 
 AMENDMENT NO. 3 TO THE 
 AMENDED AND RESTATED TOYS “R” US, INC.

 2005 MANAGEMENT EQUITY PLAN 
 This Amendment No. 3 (this “Amendment”) to the Amended and Restated Toys “R” Us, Inc. 2005 Management Equity Plan, as last amended on June 8, 2009 (the
“Plan”) shall become effective as of November 29, 2010. Capitalized terms used but not otherwise defined in this Amendment have the meaning given to such terms in the Plan. 

 

	 1.
	 The following sentence is added to the end of Section 1.1 of the Plan: 

“Effective as of November 29, 2010, the Board adopted Amendment 3 to the Plan to change the definitions of
Retirement, Competing Business and Non-Competition Period, to provide for the accelerated vesting and extended exercisability of Options upon termination of employment under certain conditions, to extend the put rights of Article X of the Plan, and
to make certain changes to the Management Stockholders Addendum to the Plan.” 
  

	 2.
	 Article II of the Plan is hereby amended by adding the following defined terms: 

“ ‘Board’ means the Board of Directors of the Company.” 

“ ‘Company’ means Toys “R” Us, Inc., a Delaware corporation.” 

 

	 3.
	 Article II of the Plan is hereby amended by deleting the following defined terms and replacing them with the following:

 “ ‘Competing Business’ means, with respect to any Participant at any
time, any Person engaged wholly or in part (directly or through one or more Subsidiaries) in the retail sale or retail distribution (via stores, mail order, e-commerce, or similar means) of Competing Products, if more than one-third (1/3) of
such Person’s gross sales for the twelve (12) month period preceding such time (or with respect to the period after such Participant’s Termination Date, as of such Termination Date) are generated by engaging in such sale or
distribution of Competing Products. Without limiting the foregoing, Competing Businesses shall in any event include Wal-Mart, Sears (K-Mart), Target, Amazon.com, Buy Buy Baby, Mattel, Hasbro, Tesco, Carrefour, or any of their respective Subsidiaries
or Affiliates.” 
 “ ‘Non-Competition Period’ for a Participant means (i) in the
case of termination by the Company with Cause, the period of such Participant’s employment plus one (1) year after such Participant’s Termination Date, (ii) in the case of 

 
resignation for any reason (including Retirement), the period of such Participant’s employment plus one (1) year after such Participant’s Termination Date, and
(iii) otherwise, the period of such Participant’s employment plus the greater of one (1) year after such Participant’s Termination Date or the length of time, if any, for which the Participant receives (or is eligible to receive,
where Participant declines or otherwise takes action to reject) in connection with such Participant’s termination severance benefits or other similar payments from the Company or its Subsidiaries pursuant to an agreement with such Participant,
the severance policies of the Company and its Subsidiaries then in effect, at the Company’s or any of its Subsidiaries’ election, or otherwise (or the length of time in terms of compensation used to determine the amount of such
Participant’s severance benefits in the event such severance benefits are payable in a lump sum or on a schedule different than such length of time). In no event shall any amount received by a Participant pursuant to Articles IX or
X of the Plan constitute severance or other similar payments for purposes of this definition.” 

“ ‘Retirement’ means, for any Participant, the meaning given to such term in an employment or other
similar agreement entered into by such Participant on or after the Effective Date and approved by the Board, or in the absence of such an agreement it shall mean voluntary resignation by such Participant at or after the age of sixty
(60) following continuous employment by the Company and its Subsidiaries for a period of at least ten (10) years.” 
  

	 4.
	 Section 4.2 of the Plan is hereby deleted and replaced with the following: 

“4.2 Vesting of Options. Unless otherwise set forth in an Award Agreement, all Options shall be subject to
vesting in accordance the provisions of this Section 4.2. Options shall be exercisable only to the extent that they are vested. In addition to the other requirements set forth in this Section 4.2, Options shall vest only so
long as a Participant remains employed by the Company or one of its Subsidiaries, unless such termination of employment is due to the Participant’s death, Disability or Retirement. Unless otherwise set forth in an Award Agreement, all Awards of
Options shall be subject to time vesting and will time vest on each date set forth below with respect to the cumulative percentage of shares of Common Stock issuable upon each of the Options set forth opposite such date if the respective Participant
is, and has been, continuously employed by the Company or any of its Subsidiaries from the date of award through such date: 
  

			
	 Date
	  	 Cumulative Percentage

of Shares Vested

	 2nd anniversary of date of grant
	  	40%
	 3rd anniversary of date of grant
	  	60%
	 4th anniversary of date of grant
	  	80%
	 5th anniversary of date of grant
	  	100%

Notwithstanding the foregoing, (i) all of a Participant’s Options shall be considered 100% vested upon
termination of the Participant’s employment due to 

  
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death, Disability or Retirement, and (ii) all Options shall be considered 100% vested upon consummation of a Change in Control. Consistent with the Board’s authority under
Section 13.2 of the Plan to change the terms of an Award Agreement without the prior written approval of such Participant, any Options outstanding as of June 8, 2009 that were originally granted as Tranche II or Tranche III Options shall
be and hereby are amended to eliminate any performance vesting requirements, so that such Options shall be subject only to time vesting in accordance with the above schedule, based on the applicable anniversary of the original date of grant of such
Options.” 
  

	 5.
	 Section 6.2 of the Plan is hereby deleted and replaced with the following: 

“6.2 Exercise on Termination. If a Participant ceases to be employed by the Company and its Subsidiaries for
any reason, then the portion of such Participant’s Options that have not fully vested as of the Termination Date shall expire at such time. Unless otherwise set forth in an Award Agreement, the portion of a Participant’s Options that have
fully vested as of such Participant’s Termination Date (including any accelerated vesting pursuant to Section 4.2) shall expire (i) 30 days after the Termination Date if a Participant is terminated without Cause or if a Participant
resigns for any reason other than Retirement, (ii) one (1) year after the Termination Date if a Participant is terminated due to death, Disability or Retirement, and (iii) immediately upon termination if a Participant is terminated
with Cause, but in no event shall an Option be exercisable later than the end of its stated term. All of a Participant’s Rollover Options shall expire at the end of their stated term, notwithstanding any termination of a Participant’s
employment.” 
  

	 6.
	 The last sentence of Section 6.3 of the Plan is hereby deleted and replaced with the following two sentences: 

“Notwithstanding the foregoing, any Participant who gives at least six months’ advance notice of his or her
Retirement shall be permitted to exercise his or her Options and Rollover Option on or after Retirement pursuant to a cashless exercise. Any cashless exercise shall be effectuated by the Company delivering shares of Common Stock to the Participant
with a Fair Market Value equal to (a) the Fair Market Value of all shares issuable upon exercise of such Options or Rollover Options, minus (b) the aggregate exercise price of all shares issuable upon exercise of such Options or Rollover
Options (together with the amount of any income taxes or employee’s social security contributions arising in respect of such cashless exercise).” 
  

	 7.
	 Section 10.3 of the Plan is hereby deleted and replaced with the following: 

“10.3 Put Rights on Retirement. In order to provide a market for Award Stock, each Participant shall have the
right (solely at their option) to require the Company to repurchase a portion (as determined below) of such Participant’s shares of Award Stock (whether actually issued or issuable upon exercise of

  
 - 3 -

 
Rollover Options) in the event such Participant’s employment is terminated because of resignation due to Retirement. Such put right must be exercised no more than 30 days following such
Participant’s Termination Date by giving written notice to the Company. The purchase price per share payable by the Company in connection with such put shall be Fair Market Value determined as of a date determined by the Board that is the
anticipated closing date of the repurchase (in accordance with Section 9.8 above). Each Participant who has given at least six months’ advance notice of Retirement shall have the right to require the Company to repurchase all of his
or her Award Stock acquired as an original investment (whether actually issued or issuable upon exercise of Rollover Options). Each Participant who has not given at least six months’ advance notice of Retirement shall have the right to require
the Company to repurchase no more than those number of shares of Award Stock (whether actually issued or issuable upon exercise of Rollover Options) that would produce total pre-tax proceeds to such Participant equal to the aggregate Original Value
of all Rollover Options and Restricted Stock held by such Participant. The closing of the transactions contemplated by this Section 10.3 will take place no later than 180 days after delivery of notice of exercise of the put right by the
Participant (or, if later, delivery of a Repurchase Notice or Supplemental Repurchase Notice) and otherwise in accordance with the provisions of Sections 9.8 and 9.9, to the extent applicable. Notwithstanding the foregoing put right,
the Company and/or the Sponsors, as applicable, shall still have the repurchase rights set forth in Article IX with respect to any termination otherwise subject to this Section 10.3.” 

 

	 8.
	 Section 10.6 of the Plan is hereby deleted in its entirety and not replaced. 

 

	 9.
	 Section 1 of the Management Stockholders Addendum to the Plan is hereby amended by adding the following defined term:

 “ ‘Executive Officer’ shall mean any Management Stockholder who is an
officer of the Company (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended).” 
  

	 10.
	 Section 3(b)(iii) of the Management Stockholders Addendum to the Plan is hereby deleted and replaced with the following:

 “Public Transfers. A Management Stockholder may Transfer Shares: (a) in a
Public Offering pursuant to Section 5 below, or (b) (I) with respect to any Executive Officer, from and after the two-year anniversary of the closing of the Initial Public Offering, pursuant to Rule 144 or a block sale to a financial
institution in the ordinary course of its trading business or any other legally permitted sale, or (II) with respect to any other Management Stockholder, from and after the six-month anniversary of the closing of the Initial Public Offering,
pursuant to Rule 144 or a block sale to a financial institution in the ordinary course of its trading business or any other legally permitted sale. Notwithstanding clause (I) above, an Executive Officer may Transfer in any legally permitted
sale, from and after the six-month anniversary of the closing of the Initial Public 

  
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Offering, any Award Stock acquired by such Executive Officer from an expiring Rollover Option that is exercised after the Initial Public Offering and within 30 days prior to the expiration of
such Rollover Option. Shares Transferred pursuant to this Section 3(b)(iii) shall conclusively be deemed thereafter not to be Shares under this Addendum.” 
  

	 11.
	 Continuing Force and Effect. The Plan, as modified by the terms of this Amendment, shall continue in full force and effect from and after the
date of the adoption of this Amendment set forth above. 

  
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