Document:

TRU.4.28.2012-Ex10.1

Exhibit 10.1

 

AMENDMENT NO. 4 TO THE
AMENDED AND RESTATED TOYS “R” US, INC.
2005 MANAGEMENT EQUITY PLAN

This Amendment No. 4 (this “Amendment”) to the Amended and Restated Toys “R” Us, Inc. 2005 Management Equity Plan, as last amended on November 27, 2010 (the “Plan”) shall become effective as of March 2, 2012.  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 March 2, 2012, the Board adopted Amendment 4 to the Plan (i) to allow a longer exercise period and cashless exercise of Options held by a participant who is terminated without Cause after four or more years of continuous service and (ii) to allow Rollover Options to be exercised in a cashless exercise in all cases.”

		
	2.
	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, a separate written agreement with the Company, or as provided in the immediately following sentence, 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 before reaching eligibility for Retirement 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 or is terminated without Cause after becoming eligible for 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.  Notwithstanding the foregoing, if a Participant is terminated without Cause before reaching eligibility for Retirement but after four or more years of continuous service with the Company or its Subsidiaries, then the Participant’s Options that have fully vested as of the Termination Date (including any accelerated vesting pursuant to Section 4.2) shall expire 30 days after the Board’s next determination of Fair Market Value (or confirmation of prior-determined Fair Market Value) following the Termination Date, but in no event later than the end of the stated term of the Option.  All of a Participant's Rollover Options shall expire at the end of their stated term, notwithstanding any termination of a Participant's employment.”
		
	3.
	The penultimate sentence of Section 6.3 of the Plan is hereby deleted and replaced with the following sentence:

Exhibit 10.1

“Notwithstanding the foregoing, (i) all Rollover Options may be exercised pursuant to a cashless exercise at any time, provided that the exercise date is within 30 days after a determination of Fair Market Value (or confirmation of prior-determined Fair Market Value) by the Board, but in no event later than the end of the stated term of the Rollover Option, (ii) any Participant who gives at least six months’ advance notice of his or her Retirement (or who is terminated without Cause after becoming eligible for Retirement) shall be permitted to exercise his or her other Options pursuant to a cashless exercise at any time within one year after the Participant’s Termination Date, provided that the exercise date is within 30 days after a determination of Fair Market Value (or confirmation of prior-determined Fair Market Value) by the Board, but in no event later than the end of the stated term of the Option, and (iii) any Participant who is terminated without Cause before becoming eligible for Retirement but after four or more years of continuous service with the Company or its Subsidiaries shall be permitted to exercise his or her other Options pursuant to a cashless exercise on any date that is within 30 days after the Board’s next determination of Fair Market Value (or confirmation of prior-determined Fair Market Value) following the Participant’s Termination Date, but in no event later than the end of the stated term of the Option.”

		
	4.
	Section 10.1 of the Plan is hereby deleted and replaced with the following:

“10.1    Put Rights on Death or Disability.  In order to provide a market for Award Stock, each Participant shall have the right (solely at the election of the Participant or his or her estate or personal representative) to require the Company to repurchase all (but not less than all) of such Participant's shares of Award Stock (whether actually issued or issuable upon exercise of Rollover Options) in the event such Participant's employment is terminated because of death or Disability.  Such put right must be exercised no more than (a) 240 days in event of death, or (b) 150 days in the event of Disability, following such Participant's Termination Date by giving written notice to the Company.  The purchase price payable by the Company in connection with such put shall be Fair Market Value.  The closing of the transactions contemplated by this Section 10.1 will take place no later than 60 days after delivery of notice of exercise of the put right 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 10.1.”
		
	5.
	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.TRU.4.28.2012-Ex10.2

Exhibit 10.2

AMENDMENT NO. 5 TO THE
AMENDED AND RESTATED TOYS “R” US, INC.
2005 MANAGEMENT EQUITY PLAN

                This Amendment No. 5 (this “Amendment”) to the Amended and Restated Toys “R” Us, Inc. 2005 Management Equity Plan, as last amended on March 2, 2012 (the “Plan”) shall become effective as of May 21, 2012.  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 May 21, 2012, the Board adopted Amendment 5 to the Plan to allow any Participant as long as he or she remains employed by the Company or its affiliates the right to put up to 25% of his or her Original Investment Shares (as defined in Section 10.4) to the Company at any time, during permitted transaction windows, until the occurrence of an Initial Public Offering.”

		
	2.
	A new Section 10.4 of the Plan is hereby added after Section 10.3 of the Plan, as follows, and the current Sections 10.4 and 10.5 are renumbered as Sections 10.5 and 10.6 respectively:

“10.4       Put Rights on Original Investment Shares.  Each Participant, as long as he or she remains employed by the Company or its affiliates, shall have the right (solely at his or her election) to require the Company to repurchase in one or more transactions up to 25% of his or her Original Investment Shares (as defined below) at any time, during permitted transaction windows, until the occurrence of an Initial Public Offering (the “Put Period”).  For purposes of this Section 10.4, a Participant’s Original Investment Shares means the sum of (i) his or her Award Stock purchased as an original investment, and (ii) the number of Shares determined by dividing (A) the aggregate spread value of the Participant’s original Rollover Options (whether or not subsequently exercised), assuming a fixed stock price of $44.00, by (B) $44.00, rounded to the nearest whole share.  For example, if a Participant purchased 250 shares of Award Stock as an original investment and was granted 300 Rollover Options with an exercise price of $8.25 and 100 Rollover Options with an exercise price of $11.50, the Participant holds 568 Original Investment Shares, of which 142 (25%) may be sold to the Company or its affiliates during the Put Period pursuant to this Section 10.4.  For the avoidance of doubt, shares withheld by the Company in a cashless exercise of a Rollover Option shall not count against the 25% of Original Investment Shares that may be put to the Company under this Section 10.4, which is a fixed number.  For example, if a Participant originally was granted 325 Rollover Options with an exercise price of $8.25, assuming a fixed stock price of $44.00, he would have 264 Original Investment Shares of which 66 may be put to the Company under this Section 10.4.  If he later exercises the Rollover Options in a cashless exercise when the stock price is $60, and receives a net of 162 shares after withholding of the exercise price and taxes, he could put 66 of such net shares to the Company under this Section 10.4.  Any put right for Original Investment Shares under this Section 10.4 may be exercised by giving written notice to the Company.  The purchase price per share payable by the Company in connection with any such put rights shall be the 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).  The closing of the transactions contemplated 

by this Section 10.4 will take place no later than 180 days after delivery of notice of exercise of the put right by the Participant (or, of 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 rights, the Company and/or the Sponsors, as applicable, shall still have the repurchase rights set forth in Article IX with respect to Original Investment Shares otherwise subject to this Section 10.4.”
		
	3.
	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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