Document:

EX-4.2

Exhibit
4.2

	 
	BankAtlantic Bancorp, Inc.
250 Royall Street, Suite V
Canton MA 02021
Information Agent:
Georgeson
Telephone 888 219 8320
MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 ADD 5 ADD 6
C 1234567890 J N T
Subscription Rights 12345678901234
BANKATLANTIC BANCORP, INC. RIGHTS OFFERING
“COMPANY”) THIS RIGHTS (SUCH OFFERING DATE EXPIRES AND TIME, AT AS 5:00 IT P. MAY M., NEW BE
EXTENDED, YORK CITY THE TIME, “EXPIRATION ON SEPTEMBER DATE”) 29, . 2009, UNLESS EXTENDED IN THE
SOLE DISCRETION OF BANKATLANTIC BANCORP, INC. (THE
The $0.01 Company per share has (“Class distributed, B Common at no charge, Stock”), to each (each
holder a “Record of record Date of Shareholder”) the Company’s as Class of the A Common close of
business Stock, par on value August $0.01 24, per 2009 share (the (“Class “Record A Date”), Common
4.441 Stock”), subscription and Class rights B Common for each share stock, of par Class value A
Common received will Stock be and rounded Class up B to Common the next Stock largest held whole as
of number. the close Each of business whole subscription on the Record right Date. entitles No the
fractional holder shares thereof or to cash subscribe in lieu for thereof one share will be of
issued Class or A paid. Common Instead, Stock the (the number “Subscription of subscription
Rights”) rights at a subscription price of $2.00 per share.
The supplemented, terms and collectively, conditions of the the “Prospectus”), Rights Offering
which are is set incorporated forth in the into Company’s this Subscription prospectus Certificate
dated July by reference. 8, 2008, and Capitalized accompanying terms used prospectus but not
supplement, defined herein dated have August the meanings 28, 2009 set (as forth may in the be
amended Prospectus. or The Subscription owner of Certificate. this certificate is entitled to the
number of Subscription Rights, and is entitled to exercise the Subscription Rights for the number
of shares of Class A Common Stock, shown on this
THE SUBSCRIPTION RIGHTS ARE NON-TRANSFERABLE SUBJECT TO CERTAIN EXCEPTIONS exchange The
Subscription or quoted Rights on any are automated non-transferable quotation except system. to
affiliates of the recipient and by operation of law. The Subscription Rights will not be listed on
the New York Stock Exchange or any other securities
METHOD OF EXERCISE OF SUBSCRIPTION RIGHTS
IN SUBSCRIPTION ORDER TO EXERCISE AGENT, COMPUTERSHARE YOUR SUBSCRIPTION TRUST RIGHTS, COMPANY, YOU
N.A. MUST , TOGETHER PROPERLY WITH COMPLETE PAYMENT IN AND FULL SIGN FOR THIS AN AMOUNT
SUBSCRIPTION EQUAL TO CERTIFICATE THE SUBSCRIPTION ON THE PRICE BACK MULTIPLIED AND RETURN BY THE
IT TO TOTAL THE AND NUMBER PAYMENT OF SHARES IN FULL OF FOR CLASS THE A SHARES COMMON OF STOCK
CLASS SUBSCRIBED A COMMON STOCK FOR. SUBSCRIBED TO BE TIMELY, FOR THE AT SUBSCRIPTION OR BEFORE
5:00 AGENT P.M. ,MUST NEW YORK RECEIVE CITY THE TIME, PROPERLY ON THE COMPLETED EXPIRATION DATE.
AND EXERCISED FORM ALTERNATIVELY, THE SUBSCRIPTION YOU AGENT CAN SUBSCRIBE MUST RECEIVE FOR (I)
SHARES THE PAYMENT OF CLASS IN FULL A COMMON FOR THE STOCK SHARES BY USING OF CLASS A NOTICE A
COMMON OF GUARANTEED STOCK SUBSCRIBED DELIVERY. FOR IF A AT NOTICE OR BEFORE OF GUARANTEED 5:00
P.M., NEW DELIVERY YORK CITY IS USED, TIME, DATE ON THE AND EXPIRATION (III) THE PROPERLY DATE,
(II) COMPLETED THE PROPERLY AND COMPLETED EXECUTED EXERCISE AND EXECUTED FORM EVIDENCING NOTICE OF
GUARANTEED THE SUBSCRIPTION DELIVERY RIGHTS AT OR BEING BEFORE EXERCISED 5:00 P. M. AT , OR NEW
BEFORE YORK CITY 5:00 P. TIME, M., NEW ON THE YORK EXPIRATION CITY TIME, ON THE THIRD BUSINESS DAY
AFTER THE EXPIRATION DATE.
Full or express payment money for the order shares payable of Class to “Computershare A Common
Stock Trust subscribed Company, for N. pursuant A. acting to as the subscription Subscription Agent
Rights for must BankAtlantic be payable Bancorp, in U.S. Inc. dollars “ Payments by check of or the
bank subscription draft drawn p
rice upon for a U. the S. shares bank or of postal, Class A
telegraphic Common Stock to the subscribed Subscription for Agent may of be any withdrawn funds
received by the Company following at the any Expiration time after Date, receipt unless and, the in
any Company event, terminates will be distributed the Rights to the Offering. Company You no will
later not than be paid the next any business interest on day funds following paid to the the
immediate Subscription availability Agent, regardless of whether the funds are applied to the
subscription price or returned to you.
For information a complete agent description (Shareholders: of the (888) terms 219-8320; and
conditions Banks and of the Brokers: Rights (212) Offering, 440-9800) please . refer to the
Prospectus. Copies of the Prospectus are available upon request from Georgeson Inc., the
Class Stock A certificates, Common Stock if any, subscribed for the shares for has of Class been
received A Common and Stock cleared. acquired In the pursuant event the to shares the Subscription
of Class A Rights Common will Stock be mailed acquired promptly pursuant after to the the
Expiration Subscription Date Rights and after are not full represented payment for by the
certificates, shares of such shareholder shares will will be be mailed deposited by the in a
Subscription book-entry Agent account to such held on shareholder your behalf as in promptly
accordance as possible. with the Delivery applicable to an time address period other described than
one in the of the preceding addresses sentences. listed will Any not excess constitute payment
valid delivery. to be refunded to a
Holder ID COY Class Rights Qty Issued Rights Cert #
123456789 BBX Subscription Rights XXX.XXXXXX 12345678
Signature of Owner and U.S. Person for Tax Certification Signature of Co-Owner (if more than one
registered holder listed) Date (mm/dd/yyyy)
1 2 3 4 5 6 7 8 C L S X R T 2 C O Y C 1 2 3 4 5 6 . 7 8
001CD40006 013GHG

 

 

	PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY 

SECTION 1: OFFERING INSTRUCTIONS (check the appropriate boxes) 

IF YOU WISH TO SUBSCRIBE FOR YOUR FULL ENTITLEMENT OF SUBSCRIPTION RIGHTS:
	 	 	 	 	 	 
	I apply for ALL of
my entitlement of
Class A x 4.441 = x $2.00 =
Common Stock
pursuant to the
Subscription Rights (no. of shares of Class A (no. of Class A Common
Common Stock currently
owned) Stock shares subscribed for)
EXAMPLE: [1,000 shares If you of Class own 1,000 A Common shares Stock of Class x 4.441 A Common =
4,441 Stock, Subscription your Subscription Rights allowing Right for permits the subscription the
purchase of: 4,441 of 4,441 shares shares x $2.00/share of Class A Common = $8,882] Stock for
$2.00.
IF YOU DO NOT WISH TO APPLY FOR YOUR FULL ENTITLEMENT OF RIGHTS:
money order
I apply for x $2.00 = $ _ enclosed $
(no. of Class A Common (Total)
Stock shares subscribed for)
IF YOU DO NOT WISH TO EXERCISE YOUR RIGHT TO SUBSCRIBE:

	 	$

(Total)
	 	_
	 	Amount of Check or
	Please disregard this mailing.
SECTION 2: SUBSCRIPTION AUTHORIZATION:

I Common acknowledge Stock that indicated I have above received on the the Prospectus terms and
conditions for this offering set forth of Subscription in the Prospectus Rights . and I hereby
irrevocably subscribe for the number of shares of Class A Signature of Subscriber(s)
(and address if different than that listed on this Subscription Certificate) Telephone number
(including area code)
SECTION 3: SPECIAL ISSUANCE INSTRUCTIONS (IF YOU COMPLETE THIS SECTION, YOU MUST ALSO COMPLETE
SECTIONS 4 AND 5): represent The Subscription and warrant that Rights the are person not
transferable in whose name in any you way, are except requesting to affiliates that we of issue the
recipient the Class and A Common except by Stock operation is your of affiliate law. By or
executing is a transferee below, by you operation hereby of Computershare law. Evidence Trust
satisfactory Company, to the N.A Company . at the address that any specified such permitted on the
reverse transfer side is proper prior to must the Expiration be delivered Date by. mail, express
mail or overnight courier to
Complete the following ONLY if the shares of Class A Common Stock subscribed for are to be issued
in a name other than that of the registered holder.
Issue Shares to: Soc. Sec. #/Tax ID#: Address:
	 	 	 	 	 	 
	SECTION 4: COMPLETE ACKNOWLEDGMENT SECTION (TO 5): BE COMPLETED ONLY IF YOU COMPLETED SECTION 3. IF
YOU COMPLETE THIS SECTION, YOU MUST ALSO

Bancorp, I/We Inc. acknowledge , I/we may receipt not modify of the or Prospectus revoke this
subscription and understand rights that, certificate. after delivery Under to penalties
Computershare of perjury, Trust I/we Company, certify that N. A. the as information Subscription
contained Agent for herein, BankAtlantic including the social security number or taxpayer
identification number given above, is correct. alteration The signature or change below whatsoever.
must correspond with the name of the registered holder exactly as it appears on the books of the
Company’s transfer agent without any
Signature(s) of Registered Holder:
	 	 	 	 	 	 
	Date: If signature is by trustee(s), executor(s),
administrator(s), guardian(s),
attorney(s)-in-fact, agent(s), officer(s) of a
corporation or another acting in a fiduciary or
representative capacity, please provide the
following information (please print).
Name: Capacity: Soc. Sec. #/Tax ID #:
	 	 	 	 	 	 
	Address: Phone:
	 	 	 	 	 	 
	SECTION 5: GUARANTEE OF SIGNATURES (TO BE COMPLETED ONLY IF YOU COMPLETED SECTIONS 3 AND 4):
	 	 	 	 	 	 
	All defined Subscription in Rule 17Ad-15 Rights holders of the who Securities specify Exchange
special issuance Act of 1934, or delivery as amended. instructions must have their signatures
guaranteed by an Eligible Guarantor Institution, as
Name of Firm: Authorized Signature:
	 	 	 	 	 	 
	Address: Name:
	 	 	 	 	 	 
	City, State, Zip Code: Title:
	 	 	 	 	 	 
	Area Code and Telephone Number:
	 	 	 	 	 	 

 

 

SUBSCRIPTION RIGHTS CERTIFICATE FOR BANKATLANTIC BANCORP, INC. RIGHTS OFFERING

BankAtlantic Bancorp, Inc. (the “Company”) is conducting a rights offering (the “Rights Offering”)
pursuant to which the holders of the Company’s Class A Common Stock, par value $0.01 per share
(“Class A Common Stock”), and Class B Common Stock, par value $0.01 per share (“Class B Common
Stock”), as of the close of business on August 24, 2009 (the “Record Date”) will receive 4.441
subscription rights for each share of Class A Common Stock and Class B Common Stock held of record
as of the close of business on the Record Date. No fractional shares or cash in lieu thereof will
be issued or paid. Instead, the number of subscription rights received will be rounded up to the
next largest whole number. Each whole subscription right entitles the holder thereof to subscribe
for one share of Class A Common Stock (the “Subscription Rights”) at a subscription price of $2.00
per share. The Rights Offering will expire at 5:00 p.m., New York City time, on September 29, 2009,
unless extended in the sole discretion of the Company (as it may be extended, the “Expiration
Date”).

METHOD OF EXERCISE OF RIGHTS

IN ORDER TO EXERCISE YOUR SUBSCRIPTION RIGHTS, COMPLETE AND SIGN THE EXERCISE FORM WHERE INDICATED
AND RETURN IT, TOGETHER WITH PAYMENT IN FULL FOR THE SHARES OF CLASS A COMMON STOCK SUBSCRIBED FOR,
TO THE SUBSCRIPTION AGENT, COMPUTERSHARE TRUST COMPANY, N.A. TO BE TIMELY, THE SUBSCRIPTION AGENT
MUST RECEIVE THE PROPERLY COMPLETED AND EXECUTED EXERCISE FORM AND PAYMENT IN FULL FOR THE SHARES
OF CLASS A COMMON STOCK SUBSCRIBED FOR AT OR BEFORE 5:00 P.M., NEW YORK CITY TIME, ON THE
EXPIRATION DATE.

ALTERNATIVELY, YOU CAN SUBSCRIBE FOR SHARES OF CLASS A COMMON STOCK BY USING A NOTICE OF GUARANTEED
DELIVERY. IF A NOTICE OF GUARANTEED DELIVERY IS USED, THE SUBSCRIPTION AGENT MUST RECEIVE (I) THE
PROPERLY COMPLETED AND EXECUTED NOTICE OF GUARANTEED DELIVERY AND PAYMENT IN FULL FOR THE SHARES OF
CLASS A COMMON STOCK SUBSCRIBED FOR AT OR BEFORE 5:00 P.M. NEW YORK CITY TIME, ON THE EXPIRATION
DATE AND (II) THE PROPERLY COMPLETED AND EXECUTED EXERCISE FORM AT OR BEFORE 5:00 P.M. NEW YORK
CITY TIME, ON THE THIRD BUSINESS DAY AFTER THE EXPIRATION DATE.

Full payment for the shares of Class A Common Stock subscribed for pursuant to the Subscription
Rights must be made payable in United States dollars by check, bank draft or money order payable to
“Computershare Trust Company, N.A. acting as Subscription Agent for BankAtlantic Bancorp, Inc.”

For a more complete description of the terms and conditions of the Rights Offering, please refer to
the Company’s prospectus, dated July 8, 2008, and accompanying prospectus supplement, dated August
28, 2009 (collectively, the “Prospectus”), which is incorporated herein by reference. Copies of the
Prospectus are available upon request from Georgeson Inc., the information agent (Shareholders:
(888) 219-8320; Banks and Brokers: (212) 440-9800).

Stock certificates, if any, for the shares of Class A Common Stock acquired pursuant to the
Subscription Rights will be mailed promptly after the Expiration Date and after full payment for
the shares of Class A Common Stock subscribed for has been received and cleared. In the event the
shares of Class A Common Stock acquired pursuant to the Subscription Rights are not represented by
certificates, such shares will be deposited in a book-entry account held on your behalf in
accordance with the applicable time period described in the preceding sentences. Any excess
payment to be refunded to a shareholder will be mailed by the Subscription Agent to such
shareholder as promptly as possible. Delivery to an address other than one of the addresses listed
below will not constitute valid delivery.

	 	 	 
	BY MAIL:
	 	BY EXPRESS MAIL OR OVERNIGHT COURIER:
	Computershare
	 	Computershare
	c/o Voluntary Corporate Actions
	 	c/o Voluntary Corporate Actions
	P.O. Box 43011
	 	Suite V
	Providence, RI 02941-3011
	 	250 Royall Street
	 
	 	Canton, MA 02021

DELIVERY OF THIS SUBSCRIPTION CERTIFICATE TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE DOES NOT

CONSTITUTE A VALID DELIVERY.

Any questions regarding this Subscription Certificate and Subscription Rights
Offering may be directed to Georgeson Inc. toll free at (888) 219-8320 or for
banks and brokers at (212) 440-9800.exv10w1

Exhibit 10.1

PETSMART, INC.

EXECUTIVE SHORT-TERM INCENTIVE PLAN

Originally Adopted effective: February 4, 2002

Originally Approved by the Stockholders: June 27, 2002

Amended and Restated effective: March 24, 2009

Amendment Approved by the Stockholders: June 17, 2009

Section 1 — Purposes.

          This PetSmart Executive Short-Term Incentive Plan (the “Plan”) provides for incentive
compensation to those key officers and employees of PetSmart, Inc. or any affiliated entity
(collectively, the “ Company ”), who, from time to time may be selected for participation. The Plan
is intended to provide incentives and rewards for the contributions of such employees toward the
successful achievement of the Company’s financial and business goals established for the applicable
performance period. The Company’s policy is to have a significant portion of a participant’s total
compensation tied to the Company’s performance. Payments pursuant to the Plan are intended to
qualify as “performance-based compensation” within the meaning of Section 162(m) of the Internal
Revenue Code (“ Section 162(m) ”).

Section 2 – Administration.

          The Plan shall be administered by the committee (the “Committee”) of the Board of
Directors of PetSmart, Inc. (“ PetSmart ”) that has been designated to administer programs intended
to qualify as “performance-based compensation” within the meaning of Section 162(m). The Committee
shall have authority to make rules and adopt administrative procedures in connection with the Plan
and shall have discretion to provide for situations or conditions not specifically provided for
herein consistent with the purposes of the Plan. The Committee shall determine the beginning and
ending dates for each performance period. Unless otherwise determined by the Committee, the
performance period shall correspond to PetSmart’s fiscal year. Notwithstanding any other provision
of the Plan to the contrary, the Plan shall be administered and its provisions interpreted so that
payments pursuant to the Plan qualify as “performance-based compensation” within the meaning of
Section 162(m). Determinations by the Committee shall be final and binding on the Company and all
participants.

Section 3 – Selection of Participants.

          The executive officers of the Company as well as those other key employees of the Company
who, in the opinion of the Committee, may become executive officers of the Company or who otherwise
may make comparable contributions to the Company shall be eligible to participate in the Plan. Each
performance period, the Committee may designate from among those employees who are eligible to
participate in the Plan those employees who shall participate in the Plan for such performance
period. In the event an individual is selected to participate in the Plan, such individual shall
not also participate in the Company’s regular Short-Term Incentive Plan.

Section 4 – Establishing Performance Objectives.

          During the first ninety (90) days of each performance period the Committee shall
establish one or more performance objectives, at least one of which shall be based on a shareholder
approved business criteria. The Committee shall have discretion to establish objectives that are
not based on shareholder approved business criteria, including objectives the achievement of which
may require subjective assessments by the Committee. Notwithstanding the foregoing, the maximum
possible payout shall be based solely on shareholder approved business criteria. The use of
non-shareholder approved business criteria shall be used solely to reduce an award. The shareholder
approved business criteria are as follows:

	 	•	 	Net income of PetSmart as set forth in PetSmart’s audited financial statements
	 
	 
	 	•	 	Earning per share of PetSmart as set forth in PetSmart’s audited financial
statements 

 

 

	 	•	 	Customer satisfaction as determined by an independent professional survey research firm
	 
	 	•	 	Increase in the trading price of PetSmart’s stock above the trading price at the time the criteria is established
	 
	 	•	 	Return on equity, including return on invested capital as calculated from PetSmart’s audited financial statements
	 
	 	•	 	Return on assets as calculated from PetSmart’s audited financial statements
	 
	 	•	 	Return on investments as calculated from PetSmart’s audited financial statements
	 
	 	•	 	Increase in sales, including sales growth as calculated from PetSmart’s audited financial statements
	 
	 	•	 	end-of-year net cash (cash, restricted cash and cash equivalents, less outstanding
debt on PetSmart’s revolving credit agreement) as calculated from PetSmart’s audited
financial statements

          All criteria that are based on PetSmart’s audited financial statements may be modified by
the Committee at the time the specific criteria are selected to take into consideration one or more
of the following: (1) changes in accounting principles that become effective during the performance
period, (2) extraordinary, unusual or infrequently occurring events, (3) the disposition of a
business or significant assets, (4) gains or losses from all or certain claims and/or litigation
and insurance recoveries, (5) the impact of impairment of intangible assets, (6) restructuring
activities, (7) the impact of investments or acquisitions, (8) changes in corporate capitalization
such as stock splits and certain reorganizations (9) changes in PetSmart’s dividend policy, (10)
common share repurchases, (10) changes in capital expenditures, and/or (11) changes to PetSmart’s
accounts payable policies relative to payment terms. Notwithstanding the foregoing, the Committee
must select criteria that collectively satisfy the requirements of performance-based compensation
for the purposes of Section 162(m), including by establishing the targets at a time when the
performance relative to such targets is substantially uncertain.

Section 5 – Establishing Target Awards.

          During the first ninety (90) days of each performance period the Committee shall
establish a target award for each participant in the Plan. Individual participants may earn an
award payout ranging from zero percent to a maximum of five hundred percent of their target award.
The Committee will establish an award payout schedule based upon the extent to which the Company
performance objectives and/or other performance objectives are or are not achieved or exceeded.
Pursuant to Section 4, entitlement to an award shall be based solely on shareholder approved
business criteria; however, non-shareholder approved criteria may be used to reduce the amount of
an award payable to one or more participants. Notwithstanding the foregoing, no participant shall
receive a payment pursuant to the Plan that exceeds $5 million for any twelve (12) month period. To
the extent that a target award is expressed by reference to a number of shares of the Company’s
common stock, for the purpose of applying the limitations on a maximum award as set forth in this
Section 5, unless otherwise determined by the Committee when determining the target award, the
value of such stock shall be determined as follows: (a) if the Company’s common stock is listed on
any established stock exchange or national market system, by reference to the closing sales price
of the Company’s common stock as quoted on such exchange or system (or the exchange with the
greatest volume of trading in the Company’s common stock) on the date the target award is
determined by the Committee as reported in The Wall Street Journal or such other source as the
Committee deems reliable; and (b) if there is no closing sales price for the Company’s common stock
on the date the target award is determined by the Committee, the closing sales price on the last
preceding day for which such quotation exists.

Section 6 – Determining Final Awards.

          No later than thirty (30) days after the receipt by the Committee of the audited
financial statements for a performance period, the Committee shall determine whether the
established performance objectives for each participant in the Plan were achieved. The Committee
shall have discretion to reduce final awards from the target award depending on (a) the extent to
which the Company performance objective(s) is either exceeded or not met, and (b) the extent to
which other objectives, e.g. subsidiary, division, department, unit or other performance
objectives

 

 

are attained. The Committee shall have full discretion to reduce individual final awards based on
individual performance as it considers appropriate in the circumstances. The Committee shall not
have discretion to increase awards for the performance period.

Section 7 – Termination of Employment.

          Participants whose employment by the Company is terminated for any reason other than
death or disability during any performance period will receive no payment under the Plan for such
performance period. Participants who die or become totally and permanently disabled during any
performance period will receive prorated payments under the Plan based on the number of whole
months of employment completed during the performance period. Except as provided in Section 9,
participants whose employment by the Company is terminated for any reason after the close of the
performance period but before the distribution of payments under the Plan will be paid all amounts
applicable under this Plan for such performance period.

Section 8 – Time of and Payment of Awards.

          Payment of awards shall be made within thirty (30) days following the later of (a) the
receipt by the Committee of the audited financial statements for the applicable performance period
or (b) the certification by the Committee that the performance and other criteria for payment have
been satisfied (the “ Certification Date ”). The Committee shall have the discretion to pay awards
in the form of (i) cash, (ii) Common Stock, (iii) Restricted Stock, (iv) Stock Units, (v)
Restricted Stock Units, or (vi) a combination of the foregoing. Payroll and other taxes shall be
withheld as determined by the Company. Notwithstanding the foregoing, the Committee, in its sole
discretion, may provide the participants the opportunity to elect to defer any payments pursuant to
the Plan under a nonqualified deferred compensation plan. In the case of any such deferred payment,
the terms of such deferred compensation plan shall control; provided, however, that, unless the
Committee determines that the alternative deferred payment does not have to comply with the
following limitations in order to avoid the application of Section 162(m), any amount payable
pursuant to such deferred compensation plan in excess of the amount otherwise payable pursuant to
this Plan shall not exceed, as determined by the Committee, either (a) an amount based on either
Moody’s Average Corporate Bond Yield (or such other rate of interest that is deemed to constitute a
“reasonable rate of interest” for the purpose of Section 162(m)) over the deferral period or (b)
the return over the deferral period of one or more predetermined actual investments, as determined
by the Committee, such that the amount payable at the later date will be based upon actual returns,
including any decrease or increase in the value of the investment(s).

          For the purposes of this Section 8, the following definitions shall apply:

“Common Stock” shall mean common stock of the Company.

“Restricted Stock” shall mean Common Stock that is subject to Vesting as set forth in the
Restricted Stock Agreement adopted by the Committee.

“Stock Units” shall mean an unfunded, unsecured commitment by the Company to deliver a
pre-determined number of shares of Common Stock (or the cash equivalent of such Common Stock) to
a participant at a future time in accordance with the terms and conditions of a Stock Unit
Agreement adopted by the Committee.

“Restricted Stock Unit” shall mean a Stock Unit that is subject to Vesting as set forth in the
Restricted Stock Unit Agreement adopted by the Committee.

“Vesting” shall mean a requirement that a participant remain an employee of the Company, or an
affiliate of the Company, for an additional period of time in order to retain the Common Stock
(in the case of Restricted Stock) or the Stock Unit (in the case of a Restricted Stock Unit).

“Value of Common Stock” shall mean: (a) if the Common Stock is listed on any established stock
exchange or a national market system, the closing sales price of the Common Stock as quoted on
such exchange or system (or the exchange with the greatest volume of trading in the Common
Stock) on the day of valuation, as reported in The Wall Street Journal or such other source as
the Committee deems reliable; and (b) if there is no closing

 

 

sales price for the Common Stock on the day of valuation, the closing sales price on the last
preceding day for which such quotation exists. Vesting shall not be taken into account in
determining the Value of Common Stock for this purpose.

          In the event the Committee does not specify the form of the payment at the time the
Committee establishes the target award, the form of payment shall be in the form of cash unless the
Committee determines (a “ Retroactive Determination ”) on or before the Certification Date that the
form of payment will include some non-cash consideration. In the event the Committee makes a
Retroactive Determination, the total value of the payment shall not exceed the value if the payment
were made only in cash. The Committee shall be deemed to be in compliance with the preceding
sentence if the sum of (i) the Value of Common Stock, (ii) the Value of Common Stock that is
Restricted Stock, (iii) the Value of Common Stock that is subject to Stock Units or Restricted
Stock Units, and (iv) the cash in the payment pursuant to the Retroactive Determination would be
less than or equal to an all-cash payment on both the last day of the performance period and the
Certification Date.

          Shares of Common Stock issued directly or as Restricted Stock or pursuant to Stock Units
or Restricted Stock Units shall be issued pursuant to the 2006 Equity Incentive Plan unless
otherwise determined by the Committee.

Section 9 – Forfeiture.

          It shall be an overriding precondition to the payment of any award (a) that the
participant not engage in any activity that, in the opinion of the Committee, is in competition
with any activity of the Company or any affiliated entity or otherwise inimical to the best
interests of the Company and (b) that the participant furnish the Committee with all such
information confirming satisfaction of the foregoing condition as the Committee shall reasonably
request. If the Committee makes a determination that a participant has engaged in any such
competitive or otherwise inimical activity, such determination shall operate to immediately cancel
all then unpaid award amounts.

Section 10 – Death.

          Any award remaining unpaid, in whole or in part, at the death of a participant shall be
paid to the participant’s legal representative or to a beneficiary designated by the participant in
accordance with the rules established by the Committee.

Section 11 – No Right to Employment or Award.

          No person shall have any claim or right to receive an award, and selection to participate
in the Plan shall not confer upon any employee any right with respect to continued employment by
the Company or continued participation in the Plan. Further the Company reaffirms its at-will
relationship with its employees and expressly reserves the right at any time to dismiss a
participant free from any liability or claim for benefits pursuant to the Plan, except as provided
under this Plan or other written plan adopted by the Company or written agreement between the
Company and the participant.

Section 12 – Discretion of Company, Board of Directors and Committee.

          Any decision made or action taken by the Company or by the Board of Directors of PetSmart
or by the Committee arising out of or in connection with the creation, amendment, construction,
administration, interpretation or effect of the Plan shall be within the absolute discretion of the
Company, the Board of Directors, or the Committee, as the case may be, and shall be conclusive and
binding upon all persons. To the maximum extent possible, no member of the Committee shall have any
liability for actions taken or omitted under the Plan by such member or any other person.

Section 13 – No Funding of Plan.

          The Company shall not be required to fund or otherwise segregate any cash or any other
assets which may at any time be paid to participants under the Plan. The Plan shall constitute an
“unfunded” plan of the Company. The Company shall not, by any provisions of the Plan, be deemed to
be a trustee of any property, and any rights of any participant or former participant shall be no
greater than those of a general unsecured creditor or shareholder of the Company, as the case may
be.

 

 

Section 14 – Non-Transferability of Benefits and Interests.

          Except as expressly provided by the Committee, no benefit payable under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance
or charge, any such attempted action shall be void, and no such benefit shall be in any manner
liable for or subject to debts, contracts, liabilities, engagements or torts of any participant or
former participant. This Section 14 shall not apply to an assignment of a contingency or payment
due (i) after the death of a participant to the deceased participant’s legal representative or
beneficiary or (ii) after the disability of a participant to the disabled participant’s personal
representative.

Section 15 – Law to Govern.

          All questions pertaining to the construction, regulation, validity and effect of the
provisions of the Plan shall be determined in accordance with the laws of the State of Arizona.

Section 16 – Non-Exclusivity.

          The Plan does not limit the authority of the Company, the Board of Directors or the
Committee, or any current or future subsidiary of the Company to grant awards or authorize any
other compensation to any person under any other plan or authority, other than that specifically
prohibited herein.

Section 17 – Section 162(m) Conditions; Bifurcation of Plan.

          It is the intent of the Company that the Plan and all payments made hereunder satisfy and
be interpreted in a manner that, in the case of participants who are persons whose compensation is
subject to Section 162(m), satisfies any applicable requirements as performance-based compensation.
Any provision, application or interpretation of the Plan inconsistent with this intent to satisfy
the standards in Section 162(m) shall be disregarded. Notwithstanding anything to the contrary in
the Plan, the provisions of the Plan may at any time be bifurcated by the Board of Directors or the
Committee in any manner so that certain provisions of the Plan or any payment intended (or required
in order) to satisfy the applicable requirements of Section 162(m) are only applicable to persons
whose compensation is subject to Section 162(m).

Section 18 – Arbitration of Disputes.

          The Federal Arbitration Act shall apply to and govern all disputes arising under or
pursuant to the Plan. Any disputes with respect to the terms of this Plan or any rights granted
hereunder, including, without limitation, the scope of this arbitration, shall be subject to
arbitration pursuant to the rules of the American Arbitration Association governing commercial
disputes. Arbitration shall occur in Phoenix, Arizona. Judgment on any arbitration award may be
entered in any court having jurisdiction. A single arbitrator shall be used unless the amount in
dispute exceeds $200,000 and a party to the arbitration proceeding requests that the arbitration be
heard by a panel of three arbitrators. If a panel of three arbitrators is used, the arbitration
decision shall be made by a majority of the three arbitrators. By electing to participate in the
Plan, the Company and each participant EXPRESSLY AGREE TO ARBITRATION AND WAIVE ANY RIGHT TO
TRIAL BY JURY, JUDGE, OR ADMINISTRATIVE PROCEEDING. An arbitrator shall have the same powers
that a judge for a United States District Court located in the State of Arizona may exercise in
comparable circumstances. Nothing in this Plan shall limit or restrict any right of offset a party
may have.

 

 

Section 19 – Amendment or Termination.

          The Board of Directors of the Company and the Committee each reserves the right at any
time to make any changes in the Plan as it may consider desirable or may suspend, discontinue or
terminate the Plan at any time.

	 	 	 	 	 
	 	 	PetSmart, Inc., 
	 	 	a Delaware corporation 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name: 
	 	 
 Philip
L. Francis 
	 

	 	Its:    
	 	  Chief Executive Officer 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name: 
	 	 
  Scott
Crozier 
	 

	 	Its:    
	 	   Secretary

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