Document:

Employment Termination, Release and Consulting Agreement

 EXHIBIT 10.01 
 CONFIDENTIAL 
 EMPLOYMENT TERMINATION, RELEASE AND CONSULTING AGREEMENT 
 This Employment Termination, Release And Consulting Agreement (“Agreement”) is entered into on May 31, 2006 between KANA Software, Inc.,
its officers, directors, employees, agents, attorneys, assignees, successors and predecessors (collectively, “KANA”) and Brian Kelly (referred to below as “Employee” or “Consultant”). 
 WHEREAS, Employee has been employed by KANA, and both Employee and KANA have agreed that, while Employee was notified of that his employment will
terminate on May 1, 2006, Employee’s employment shall terminate effective June 1, 2006 (“Termination Date”). KANA and Employee wish to sever their relationship in a way that preserves the good will which exists between them.

 NOW THEREFORE, in consideration of the payment by KANA to Employee of the sums described in this Agreement, the parties agree as follows:

  

	 	A.	TERMINATION OF EMPLOYMENT 

 1. Resignation; Termination
Date. Employee hereby formally submits his resignation (a) as President, Connectify. KANA hereby accepts such resignation. The parties agree that Employee’s employment with KANA is terminated effective as of the Termination Date.

 2. Acknowledgment of Payment of Wages; Expense Reimbursement. KANA will deliver to Employee a final paycheck of all accrued wages,
salary, bonuses reimbursable expenses, and accrued but unused vacation pay (if applicable) due and owing to him from KANA as of the Termination Date. Employee will submit any requests for reimbursement of expenses incurred on behalf of KANA,
together with receipts for all reimbursable expenses, within thirty (30) days after the date of this Agreement, and KANA will reimburse all properly reimbursable expenses in accordance with KANA’s standard policies and practices. KANA will
make the payments in the amounts set forth in Agreed Payment Plan set forth on Attachment A hereto. Employee will submit expenses related to tax preparation for fiscal year 2005 which expenses will be reimbursed by KANA. 
 3. Vesting of Shares. KANA will deliver to Employee a report showing the status of all option(s) to purchase shares of KANA common stock granted
to Employee (all such being “Share Awards”). Notwithstanding any provision in any plan, employment agreement, offer letter or other agreement between Employee and KANA (“Prior Agreements”) to the contrary, all of the
Employee’s remaining unvested Share Awards as of the Termination Date (hereinafter referred to as “Unvested Shares”) shall remain initially unvested, but may qualify for continued vesting pursuant to Section C below. Any Share Awards
which do not vest pursuant to Section C below shall terminate in accordance with the terms of Kana’s equity incentive plan and agreements thereunder. Any currently vested options held by Employee shall remain exercisable during the Period of
Consultancy described in Section C below. Employee acknowledges that the provisions of this Agreement may cause any incentive stock options held by Employee to become non qualified options. Employee’s E*Trade account will remain available to
Employee. 

 4. Insurance Coverage. KANA will renew Employee’s current individual and family medical
insurance coverage for the period expiring May 31, 2007. Thereafter, Employee has the option, at Employee’s expense, to continue such health insurance coverage. 
 5. Return of KANA Property. Except as otherwise provided by this Section 5, Employee hereby represents and warrants to KANA that he has returned to KANA and/or will return prior to the Termination Date,
any and all of KANA’s property, including, but not limited to, files, memoranda, computers, Blackberry wireless device, cell phone, records and credit cards, which is in his possession or control. Notwithstanding the above, Employee may retain
possession of the primary personal computer assigned by KANA to Employee for the Period of Consultancy. KANA acknowledges that during this period, and pursuant to the consulting terms described below, KANA may authorize Consultant to retain certain
files stored on such computer. 
 6. Confidential Information. Employee hereby acknowledges that as a result of his employment with
KANA, he has had access to and/or has acquired Confidential Information and trade secrets concerning KANA’s operations, its future plans and its methods of doing business, including by way of example, but by no means limited to, information
about KANA’s customers, product development, research, technology, financial, marketing, pricing, cost, compensation and other matters, that he will hold all such Confidential Information in strictest confidence and that he may not make any use
of such Confidential Information on behalf of any third party. Employee further confirms that he has delivered to KANA all documents and data of any nature containing or pertaining to such Confidential Information and that he has not taken with him
any such documents or data of any reproduction thereof, except for any such documents or data that Employee may be specifically authorized to retain during the Period of Consultancy described below, and pursuant to the consulting terms described
below. 
  

	 	B.	RELEASE 

 1. Representation Regarding Existing
Claims. Employee hereby warrants that as of the Effective Date (defined below) of this Agreement, he has not filed any legal action in any court naming KANA as a party. 
 2. Waiver of Claims. The payments and agreements set forth in the Agreement are in full satisfaction of any and all accrued salary, vacation pay,
bonus pay, profit-sharing, termination benefits or other compensation to which Employee may be entitled by virtue of his employment with KANA or any of its subsidiaries or his termination of employment. Each party hereby releases and waives any and
all claims he may have against the other party or any of their officers, directors, employees, managers, shareholders, partners, agents, attorneys, parent corporations, subsidiaries, successors, and assigns, including without limitation claims for
any additional compensation or benefits arising out of the termination of employment, any claims for any additional stock or stock options and any claims of wrongful termination, breach of contract or discrimination under state or federal law.

 Each party hereby expressly waives any benefits of Section 1542 of the Civil Code of the State of California, which provides as
follows: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 

 Employee understands that various federal, state and local laws prohibit age, sex, race, disability,
benefits, pension, health and other forms of discrimination and that these laws can be enforced through the U.S. Equal Employment Opportunity Commission, California state and local human rights agencies and federal and state courts. Employee
understands that if he believes his treatment by KANA was discriminatory, he has had the right to consult with these agencies and to file a charge with them or file a lawsuit. Employee states and confirms he has filed no Charges or Claims with any
state or federal agency or any other body, institution or tribunal. Employee has decided voluntarily to enter into this Agreement, and waive the right to recover any amounts to which he may have been entitled under such laws, including, but not
limited to: the Age Discrimination in Employment Act, 29 U.S.C. (s) 621 et seq. (as amended by the Older Workers’ Benefit Protection Act, 29 U.S.C. (s) 626(f); the California Fair Employment and Housing Act, California Government Code
(s) 12900 et seq.; the Employee Retirement Income Security Act (ERISA), 29 U.S.C. (s) 1001 et seq.; Title VII of the Civil Rights Act of 1964, 42 U.S.C. (s) 2000e et seq.; and 42 U.S.C. (s) 1981. 
  

	 	C.	CONSULTANCY 

 1. Consultant Services. KANA and
Consultant agree that Consultant shall perform certain bona fide consulting services to KANA during the period beginning on the Termination Date and lasting for eleven (11) months there from (the “Period of Consultancy”). During the
Period of Consultancy, Consultant shall be available to provide services for the number and days as reasonably requested by KANA, which is anticipated to be approximately 20 hours per month (the “Services”). Consultant shall be an
independent contractor and is not an agent or employee of, and has no authority to bind KANA by contract or otherwise. Commencing on the Termination Date, Consultant will not be an employee of KANA and therefore, except as specifically provided for
in this Agreement with respect to continued payments for health insurance, shall not be eligible to participate in any employee benefit plans of KANA, including but not limited to health, dental, vision, KANA’s 401(k) plan, and KANA’s
Employee Stock Purchase Plan. Consultant will perform the Services under the general direction of KANA, but Consultant will determine, in Consultant’s sole discretion, the manner and means by which the Services are accomplished, subject to the
requirement that Consultant shall at all times comply with applicable law. KANA has no right or authority to control the manner or means by which the Services are accomplished. 
 2. Compensation. As sole compensation for the performance of the Services, KANA will pay Consultant the fees and provide the option/stock vesting
set forth in this Section so long as Consultant is complying with the terms of this Agreement. Expenses incurred in providing the Services to KANA will be reimbursed to Employee subject to KANA’s standard expense guidelines provided that such
expenses have been approved in advance by KANA’s CEO. KANA will pay Consultant at a monthly rate equal to Consultant’s salary with KANA in effect as of the 

 Termination Date ($16,666.67 per month) for eleven (11) months as detailed in Attachment A. Each of these payments
will be paid monthly on the first day of each month beginning June 1, 2006. Consultant is no longer an employee, such payment will be made monthly via KANA’s accounts payable department. Consultant will not be eligible to receive any
bonuses. Subject to the terms of this Agreement, and in consideration of Employee’s agreement to the terms hereof and as KANA’s sole remaining payment obligations hereunder, KANA shall make the payment identified in the Agreed Payment
Plan. Each of these payment shall be made on the 15th of each month with the first payment being made as soon as
reasonably possible after execution of this Agreement. Additionally, during the Period of Consultancy, the Unvested Shares shall continue to become vested in accordance with the vesting schedule in effect with respect to such Unvested Shares
immediately prior to the execution of this Agreement until the termination of the Period of Consultancy, so long as Consultant continues to comply with each of the material terms of this Agreement. In addition, at the end of the full term of the
Period of Consultancy, and provided that Consultant shall have continuously complied with the terms of this Agreement, all Share Awards that then vested shall become fully vested and Consultant shall have a period of ninety (90) days following
the end of the Period of Consultancy to exercise any such vested Unvested Shares (the “Exercise Period”). Consultant will receive no royalty or other remuneration on the sale, marketing, production, and/or distribution of any products
sold, developed or otherwise distributed by KANA or by Consultant in connection with or based upon the Services (“Products”). All vesting shall cease upon the expiration of the Period of Consultancy. As Employee is aware, as a result of
KANA’s failure to file certain SEC filings, KANA is unable to allow option exercises. If KANA is unable to allow option exercises and as a result Employee will not be able to exercise his vested options during the normal ninety (90) day
window, KANA will recommend to its Board of Directors and/or the Compensation Committee that Employee be allowed to exercise his vested shares that are in the money at the end of such 90 day period during a period of ninety (90) days commencing
when and if KANA is again able to allow option exercises. 
 3. Property of KANA. 
 (a) Definition. For the purposes of this Agreement, “Designs and Materials” shall mean all designs, discoveries, inventions, products,
computer programs, procedures, improvements, developments, drawings, notes, documents, information and materials made, conceived or developed by Consultant alone or with others pursuant to the Services or otherwise resulting from the Services.

 (b) Assignment of Ownership. Consultant hereby irrevocably transfers and assigns any and all of its right, title, and interest in
and to Designs and Materials, including but not limited to all copyrights, patent rights, trade secrets and trademarks, to KANA. Designs and Materials will be the sole property of KANA and KANA will have the sole right to determine the treatment of
any Designs and Materials, including the right to keep them as trade secrets, to file and execute patent applications on them, to use and disclose them without prior patent application, to file registrations for copyright or trademark on them in its
own name, or to follow any other procedure that KANA deems appropriate. In addition, any and all rights, title, and interest which Consultant may have in the Services, Designs and Materials and/or Products, including any copyright, trademark, trade
secret, or other proprietary rights, under the laws of the United States or of any other jurisdiction, are hereby irrevocably assigned by Consultant to KANA, in perpetuity. Consultant agrees: (a) to disclose promptly in writing to KANA all
Designs and Materials; (b) to 

 cooperate with and assist KANA to apply for, and to execute any applications and/or assignments reasonably necessary to
obtain, any patent, copyright, trademark or other statutory protection for Designs and Materials in KANA’s name as KANA deems appropriate; and (c) to otherwise treat all Designs and Materials as “Confidential Information,” as
defined herein. These obligations to disclose, assist, execute and keep confidential will survive any expiration or termination of this Agreement. 
 (c) Moral Rights Waiver. “Moral Rights” means any right to claim authorship of a work, any right to object to any distortion or other modification of a work, and any similar right, existing under the law of any country in
the world, or under any treaty. Consultant hereby irrevocably transfers and assigns to KANA any and all Moral Rights that Consultant may have in any Services, Designs and Materials or Products. Consultant also hereby forever waives and agrees never
to assert against KANA, its successors or licensees any and all Moral Rights Consultant may have in any Services, Designs and Materials or Products, even after expiration or termination of the Period of Consultancy. 
 4. Confidential Information. Consultant acknowledges that Consultant will acquire information and materials from KANA and knowledge about the
business, products, programming techniques, experimental work, customers, clients and suppliers of KANA and that all such knowledge, information and materials acquired, the existence, terms and conditions of this Agreement, and the Designs and
Materials, are and will be the trade secrets and confidential and proprietary information of KANA (collectively “Confidential Information”). Confidential Information will not include, however, any information which is or becomes part of
the public domain through no fault of Consultant or that KANA regularly gives to third parties without restriction on use or disclosure. Consultant agrees to hold all such Confidential Information in strict confidence, not to disclose it to others
or use it in any way, commercially or otherwise, except in performing the Services, and not to allow any unauthorized person access to it, either before or after expiration or termination of this Agreement. Consultant further agrees to take all
action reasonably necessary and satisfactory to protect the confidentiality of the Confidential Information including, without limitation, implementing and enforcing operating procedures to minimize the possibility of unauthorized use or copying of
the Confidential Information. 
 5. Non-Competition, Non-Solicitation and Savings Clause. 
 (a) Noncompetition Term. Unless KANA terminates Consultant and/or the period of Consultancy, during the Period of Consultancy (the
“Noncompetition Term”), Employee hereby agrees that, except with the written consent of KANA, directly or indirectly, individually or as an employee, partner, officer, director or shareholder or in any other capacity whatsoever of or for
any person, firm, partnership, company or corporation other than KANA or its subsidiaries (other than as a holder of less than 1% of the outstanding capital stock of a publicly-traded company), he shall not: 
 (i) Own, manage, operate, sell, control or participate in the ownership, management, operation, sales or control of or be connected in any manner with
any business engaged in: (A) developing and marketing software in the fields of CRM or Service Resolution Management; or (B) developing any product or providing any service that is substantially the same as, is based upon or competes in
any material respect with any business described in clause (A) of this paragraph; 

 (ii) Recruit, attempt to hire, solicit, assist others in recruiting or hiring, or refer to others
concerning employment, any person who is or was during the Noncompetition Term an employee of KANA, any of KANA’s subsidiaries, or any of KANA’s customers or partners, or induce or attempt to induce any such employee to terminate his
employment with KANA, or any of KANA’s subsidiaries, or any of KANA’s customers or partners (as the case may be); 
 (iii) Induce
or attempt to induce any person or entity to curtail or cancel any business or contracts that such person or entity had with KANA, or any of KANA’s subsidiaries; or 
 (iv) Contact, solicit or call upon any customer or supplier of KANA, or any of KANA’s other subsidiaries, on behalf of any other person or entity for the purpose of selling or providing any services or products
of the type normally sold or provided by KANA, or any of KANA’s subsidiaries. 
 (b) The agreements set forth in this Section 5
include within their scope all cities, counties, provinces and states of all countries in which KANA or any of its subsidiaries has engaged in development or sales of products or otherwise conducted business or selling or licensing efforts at any
time before and during the Noncompetition Term. The Employee acknowledges that the scope and period of restrictions and the geographical area to which the restrictions imposed in this Section 5 shall apply are fair and reasonable and are
reasonably required for the protection of KANA and that Section 5(a) accurately describes the business to which the restrictions are intended to apply. 
 (c) It is the desire and intent of the parties that the provisions of this Section 5 shall be enforced to the fullest extent permissible under applicable law. If any provision of this Agreement or any part of any
such provision is held under any circumstances to be invalid or unenforceable by any arbitrator or court of competent jurisdiction, then: (i) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be
modified by such arbitrator or court to conform to applicable laws so as to be valid and enforceable to the fullest possible extent; (ii) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such
jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction; (iii) the invalidity or unenforceability of such provision or part thereof shall not
affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this Section 5. Each provision of this Section 5 is separable from every other provision of this
Section 5, and each part of each provision of this Section 5 is separable from every other part of such provision. 
 (d) The
Employee acknowledges that any breach of the covenants of Section 5 will result in immediate and irreparable injury to KANA and, accordingly, consents to the application of injunctive relief and such other equitable remedies for the benefit of
KANA as may be appropriate in the event such a breach occurs or is threatened. The foregoing remedies shall be in addition to all other legal remedies to which KANA may be entitled hereunder, including, without limitation, monetary damages.

 6. Nondisparagement. Employee agrees that he will not disparage KANA or its products, services,
agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral statement. KANA agrees
that it will not disparage Employee with any written or oral statement. Notwithstanding the foregoing, KANA acknowledges and agrees that after the Noncompetition Term, Employee may seek employment in his field of expertise and in the course of
performing his duties, Employee shall be entitled to partake of ordinary competitive practices including, without limitation, differentiating his new employer’s products, services and market opportunities from those of KANA, based solely on
publicly available information. 
 7. Termination and Expiration. 
 (a) Breach. KANA may terminate this Agreement solely in the event of a breach by Employee of Section 5 (a) of this Agreement if such
breach continues uncured for a period of (30) days after written notice. 
 (b) Expiration. Unless terminated earlier, this
Agreement, other than the provisions of Paragraphs A.6, B and C.3 and C.4, will expire at the end of the Period of Consultancy. 
 (c)
Effect of Termination. Upon termination or expiration of this Agreement, Employee shall immediately return to KANA all equipment and files received before or during the Period of Consultancy, including without limitation the equipment and
other materials referenced in Paragraph A.5 and C.4 above, and will immediately return to KANA any and all Confidential Information received by Employee, or authored, created, derived or otherwise developed by Employee, before and during the Period
of Consultancy. Should this Agreement be terminated as a result of Employee’s breach of this Agreement, any and all payment shall immediately cease and not be due and payable to Employee. 
 (d) No Election of Remedies. The election by KANA to terminate this Agreement in accordance with its terms shall not be deemed an election of
remedies, and all other remedies provided by this Agreement or available at law or in equity shall survive any termination. 
  

	 	D.	GENERAL 

 1. Legal and Equitable Remedies. Employee
agrees that KANA shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief without prejudice to any other rights or remedies KANA may have at law or in equity for breach of
this Agreement. 
 2. Arbitration. Any controversy or claim arising out of or relating to this Agreement or the breach thereof, or the
Employee’s employment or the termination thereof, with the exception of any controversy or claim arising out of or relating to Paragraph C.5, shall be settled by arbitration in San Mateo County, California in accordance with the National Rules
for the Resolution of Employment Disputes of the American Arbitration Association. The decision of the arbitrator shall be final and binding on the parties, and judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. The parties hereby agree that the 

 arbitrator shall be empowered to enter an equitable decree mandating specific enforcement of the terms of this Agreement.
KANA and the Employee shall share equally all fees and expenses of the arbitrator. Any controversy or claim arising out of or relating to Paragraph C.5 shall be settled in the appropriate federal or state court in the State of California. KANA and
the Employee hereby consent to personal jurisdiction of the state and federal courts located in the State of California for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are
participants. 
 3. Confidentiality. The contents, terms and conditions of this Agreement shall be kept confidential by Employee and
shall not be disclosed except to his attorney or as otherwise required by law. Any breach of this confidentiality provision shall be deemed a material breach of this Agreement. KANA may make such disclosure of this Agreement as may be required by
law or the rules and regulations of the Securities and Exchange Commission. 
 4. No Admission of Liability. This Agreement is not and
shall not be construed or contended by Employee to be an admission or evidence of any wrongdoing or liability on the part of KANA, its representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees,
subsidiaries, affiliates, divisions, successors or assigns. This Agreement shall be afforded the maximum protection allowable under California Evidence Code Section 1152 and/or any other state or Federal provisions of similar effect.

 5. Assignment; Successors. This Agreement and all rights and obligations of the Employee hereunder are personal to the Employee and
may not be transferred or assigned by the Employee at any time. This Agreement shall be binding upon, and KANA may assign its rights to, any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or
otherwise) to all or substantially all of KANA’s business and/or assets. This Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. 
 6. Modification. It is expressly agreed that
this Agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement which specifically refers to this Agreement, and which is duly executed by authorized representative of each of the parties
hereto. 
 7. Headings. The headings of the paragraphs of this Agreement are for convenience only and are not binding upon any
interpretation of this Agreement. 
 8. Preparation of Agreement. This Agreement will not be construed against any one party,
regardless of which party initially drafted it. The parties expressly agree that this Agreement will be construed and enforced as a mutually prepared Agreement. 
 9. Reconsideration; Right to Revoke. Employee is advised to consult with an attorney prior to executing this Agreement. Employee represents and agrees that Employee fully understands Employee’s right to
discuss all aspects of this Agreement with Employee’s private attorney, that to the extent, if any, Employee desires, Employee has availed him/herself of this right, that Employee has carefully read and fully understands all of the provisions
of this Agreement, and that Employee is voluntarily entering into this Agreement. Employee understands and agrees that 

 the General Release and Waiver of Claims contained in this Agreement is in exchange for the consideration specified
herein, including without limitation the Consultancy Period, continued vesting, and opportunity for continuing health benefits, and that Employee would not otherwise be entitled to such consideration. Employee represents that Employee is at least
forty (40) years of age. Employee acknowledges that he was offered a period of at least twenty-one (21) calendar days to consider the terms of this Agreement (“Reconsideration Period”). Employee may execute the Agreement at any
time during the Reconsideration Period which shall mean that the Reconsideration Period has ended. For a period of seven (7) days following execution of this Agreement (“Cooling Off Period”), Employee may revoke this Agreement. The
date immediately following the Cooling Off Period shall be the Effective Date of this Agreement. 
 10. Entire Agreement. This
Agreement and Attachment A, together with any applicable Option Agreements and equity incentive plans, constitute the entire agreement between Employee and KANA with respect to the subject matter hereof and supersedes all prior negotiations and
agreements, whether written or oral, relating to such subject matter. For purposes of clarification, the parties agree that the expatriate agreement dated March 25, 2005 shall terminate as of the Effective Date and neither party shall have no
further obligations thereunder. Employee acknowledges that neither KANA nor its agents or attorneys, have made any promise, representation or warranty whatsoever, either expressed or implied, written or oral, which is not contained in this Agreement
for the purpose of inducing Employee to execute the Agreement, and Employee acknowledges that he has executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein. Any and all rights that
Employee may have to indemnification by KANA pursuant to the by-laws and certificate of incorporation of KANA and pursuant to any agreement between KANA and Employee (collectively “Indemnification Obligations”) shall remain in full force
and effect following the execution and delivery of the Agreement and following the Termination Date. 
  

					
	EMPLOYEE	 	KANA SOFTWARE, INC.
			
	 /s/ Brian Kelly
	 	By:	 	 /s/ John M. Thompson

	Brian Kelly	 		 	

 ATTACHMENT A 
  

																																								
	 	  	May	  	Jun-06	  	Jul-06	  	Aug-06	  	Sep-06	  	Oct-06	  	Nov-06	  	Dec-06	  	Jan-07	  	Feb-07	  	Mar-07	  	Apr-07	  	Total
	 Consulting Fees
	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	200,000.00
														
	 Living Expenses
	  			  			  			  			  			  			  			  			  			  			  			  			  		
	 Q3 2005
	  	$	15,750.00	  			  			  			  			  			  			  			  			  			  			  			  	$	15,750.00
	 Q4 2005
	  	$	9,450.00	  			  			  			  			  			  			  			  			  			  			  			  	$	9,450.00
	 Q-1 2006
	  	$	27,000.00	  			  			  			  			  			  			  			  			  			  			  	$	9,450.00	  	$	36,450.00
	 Q-2 2006
	  			  	$	27,000.00	  			  			  			  			  			  			  			  			  			  	$	9,450.00	  	$	36,450.00
	 Q-3 2006
	  			  			  	$	27,000.00	  			  			  			  			  			  			  			  			  	$	9,450.00	  	$	36,450.00
														
	 Cancellations
	  			  			  			  			  			  			  			  			  			  			  			  			  		
		  	$	9,600.00	  			  			  			  			  			  			  			  			  			  			  			  	$	9,600.00
		  	 	0.00	  			  			  			  			  			  			  			  			  			  			  			  		
		  	 	0.00	  			  			  			  			  			  			  			  			  			  			  			  		
														
	 Relocation
	  			  			  			  			  			  			  			  			  			  			  			  			  		
		  			  			  			  			  			  			  			  	$	10,000.00	  			  			  			  	$	3,500.00	  	$	13,500.00
		  			  			  			  			  			  	$	20,000.00	  			  			  			  			  			  			  	$	20,000.00
														
	 FY 2005 Tax Preparation
	  			  			  			  			  			  			  			  			  			  			  			  	$	2,000.00	  	$	2,000.00
	 FY 2006 Tax Preparation
	  			  			  			  			  			  			  			  			  			  			  			  			  		
		  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 TOTAL
	  	$	78,466.67	  	$	43,666.67	  	$	43,666.67	  	$	16,666.67	  	$	16,666.67	  	$	36,666.67	  	$	16,666.67	  	$	26,666.67	  	$	16,666.67	  	$	16,666.67	  	$	16,666.67	  	$	50,516.67	  	$	379,650.00Employment Agreement among Toys R Us & Jon W. Kimmins

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 JON W. KIMMINS 
 This EMPLOYMENT AGREEMENT (the “Agreement”) is dated as of May 5, 2006, by and between Toys “R” Us, Inc. (the
“Company”), a subsidiary of Toys “R” Us Holdings, Inc. (“Holdings”), and Jon W. Kimmins (the “Executive”). 
 WHEREAS, Executive has been employed by the Company since February 21, 1989; 
 WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to continue such employment, pursuant to the terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows: 
 1. Term of Employment. Subject to the provisions of Section 7 of this Agreement, Executive shall be employed by the Company and, as described
below, designated subsidiaries of the Company, for a period commencing as of the date hereof (May 5, 2005) (the “Execution Date”) and ending on the fifth anniversary of the Execution Date (the “Initial Term”), on
the terms and subject to the conditions set forth in this Agreement. Following the Initial Term, the term of Executive’s employment hereunder shall automatically be renewed on the terms and conditions hereunder for additional one year periods
commencing on each anniversary of the last day of the Initial Term (the Initial Term and any annual extensions of the term of this Agreement, subject to the provisions of Section 7 hereof, together, the “Employment Term”),
unless either party gives written notice of non-renewal at least 60 days prior to such anniversary. 
 2. Position. 
 a. During the Employment Term, Executive shall serve as Executive Vice President – Business Development of the Company, Toys
“R” Us – Delaware, Inc. and any other subsidiaries of the Company that the board of directors of the Company (the “Board”) designates (such entities collectively referred to as the “TRU Group”) or in
such other capacities as the Company may determine from time to time. In such position as the Executive Vice President – Business Development, Executive shall have such duties and authority as determined by the Board and the board of directors
of each subsidiary of the Company, as applicable (each, a “Subsidiary Board”)). During the Employment Term, the Executive shall report to the Chief Executive Officer of the Company (“CEO”) and of each Subsidiary, as
applicable or such other persons as the Company may determine from time to time. 
 b. During the Employment Term, Executive
will devote Executive’s full business time and reasonable best efforts to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise 

 
which would conflict or interfere in any material respect with the rendition of such services either directly or indirectly, without the prior written
consent of the CEO; provided that nothing herein shall preclude Executive from continuing to serve on any board of directors or trustees, advisory board or government commission which is listed on Exhibit A attached hereto, or, subject
to the prior approval of the CEO, from accepting appointment to serve on any board of directors or trustees of any business corporation or any charitable organization; provided in each case in the aggregate, that such activities do not
conflict or interfere with the performance of Executive’s duties hereunder or conflict with Section 8. 
 3. Base Salary.
During the Employment Term, the Company shall pay Executive a base salary at the annual rate of $430,000, payable in substantially equal periodic payments in accordance with the Company’s practices for other executive employees, as such
practices may be determined from time to time. Executive shall be entitled to such increases in Executive’s base salary, if any, as may be determined from time to time in the sole discretion of the Board or any appropriate committee or delegee
thereof, which shall at least annually review Executive’s rate of base salary to determine if any such increase shall be made. Executive’s annual base salary, as in effect from time to time hereunder, is hereinafter referred to as the
“Base Salary.” 
 4. Annual Bonus. During the Employment Term, Executive shall be eligible to earn an annual bonus
award in respect of each fiscal year of the Company (an “Annual Bonus”), in a target amount of up to 90% of Executive’s Base Salary (the “Target Bonus”), payable upon the Company’s achievement of certain
performance targets established by the Board or any appropriate committee or delegee thereof and pursuant to the terms of the Company’s incentive plan, as in effect from time to time. Notwithstanding the foregoing, in the event the
Company’s performance exceeds such performance targets, Executive shall be eligible to earn an Annual Bonus in an amount in excess of the Target Bonus, as determined by the Board or any appropriate committee or delegee thereof in accordance
with the Company’s incentive plan, as in effect from time to time. 
 5. Employee Benefits; Perquisites; Business and Relocation
Expenses. 
 a. Employee Benefits. During the Employment Term, Executive and his spouse and dependents, as
applicable, shall be entitled to participate in the Company’s welfare benefit plans and retirement plans, including, without limitation, the Company’s 401(k) and supplemental executive retirement plans and medical, dental and life
insurance plans, as in effect from time to time (collectively, the “Employee Benefits”), on the same basis as those benefits are or may be made available to the other senior executives of the Company (other than benefits which have
been terminated or for which participation has been frozen as of the Execution Date). The Company shall be permitted to modify such benefits from time to time consistent with any modifications that impact other senior executives of the Company.

 b. Perquisites. During the Employment Term, Executive shall be entitled to receive such perquisites as are made
available to other senior executives of the Company in accordance with the Company’s policies, as in effect from time to time. Executive shall be entitled to not less than four (4) weeks of paid vacation per year, which vacation shall be
taken at such times as are reasonably acceptable to the Company in light of the Company’s operations, 

  

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Executive’s performance of his duties, and in accordance with the terms of the Company’s vacation policy, as in effect from time to time,
applicable to Executive. 
 c. Business Expenses. During the Employment Term, reasonable business expenses incurred by
Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with the Company’s policies, as in effect from time to time, applicable to senior executive officers of the Company. 

6. Equity. Executive shall purchase restricted stock in Holdings in the form of strips of securities containing nine (9) shares of
Class A Common Stock of Holdings and one (1) share of Class L Common Stock of Holdings (each a “Strip”) in an aggregate amount of $80,009.20. In connection with such purchase, Holdings shall make a grant of options to
acquire 55,551 Strips to Executive pursuant to the Toys “R” Us Holdings, Inc. 2005 Management Equity Plan (the “Equity Plan”). Holdings and Executive shall enter into certain agreements in connection with such grants. The
price per Strip of all restricted stock so purchased shall be equal to the greater of (i) the sum of the aggregate fair market value of each class of Common Stock of Holdings underlying the one Strip as of the Execution Date or (ii) the
sum of the aggregate fair market value of each class of Common Stock of Holdings underlying the one Strip as of the date of purchase (such greater amount, the “Determined Value”). The aggregate per Strip strike price of all stock
options so granted shall be equal to the greater of (i) the Determined Value or (ii) $26.75. 
 7. Termination. The
Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason; provided that Executive will be required to give the Company at least 60 days’ advance written notice of any
resignation of Executive’s employment without Good Reason (as defined in Section 7(c) below) (other than due to Executive’s death or Disability). Notwithstanding any other provision of this Agreement, the provisions of this
Section 7 shall exclusively govern Executive’s rights upon termination of employment with the TRU Group; provided, however, that nothing contained in this Section 7 shall alter Executive’s or Holdings’ rights with respect to
the Equity Documents, which shall continue to govern Executive’s equity holdings following any termination in accordance herewith. 
 a. By the Company For Cause or By Executive Without Good Reason. 
 (i) The Employment
Term and Executive’s employment hereunder may be terminated by the Company for Cause (as defined below) and shall terminate automatically upon Executive’s resignation without Good Reason (other than due to Executive’s death or
Disability); provided that Executive will be required to give the Company at least 60 days’ advance written notice of such resignation. 
 (ii) For purposes of this Agreement, “Cause” shall mean any of the following, as determined by the CEO: (A) Executive’s willful failure to perform any material portion of his duties;
(B) the commission of any fraud, misappropriation or misconduct by Executive that causes demonstrable injury, monetarily or otherwise, to the Company or an affiliate; (C) the conviction of, or pleading guilty or nolo contendere to, a
felony involving moral 

  

 3 

 
turpitude; (D) an act resulting or intended to result, directly or indirectly, in material gain or personal enrichment to the Executive at the expense
of the Company or an affiliate; (E) any material breach of Executive’s fiduciary duties to the Company or an affiliate as an employee or officer; (F) a violation of the Company’s Code of Ethical Standards, Business Practices and
Conduct or any other violation of a TRU Group policy; (G) the failure by the Executive to comply, in any material respect, with the provisions of Sections 8 and 9 of this Agreement or any of the restrictive covenants imposed pursuant to the
Equity Documents; or (H) the failure by the Executive to comply with any other undertaking set forth in this Agreement or any other agreement Executive has with the Company or any affiliate or any breach by Executive hereof or thereof if such
failure or breach is reasonably likely to result in a material injury to the Company or an affiliate. 
 (iii) If
Executive’s employment is terminated by the Company for Cause, or if Executive resigns without Good Reason, Executive shall be entitled to receive: 
 (A) a lump sum payment of the Base Salary that is earned by Executive but unpaid as of the date of Executive’s termination of employment, paid in accordance with the Company’s payroll practices, but in no
event later than thirty (30) days following Executive’s termination of employment; 
 (B) reimbursement, within 30
days following submission by Executive to the Company of appropriate supporting documentation, for any unreimbursed business expenses properly incurred by Executive in accordance with the Company policy referenced in Section 5(c) above prior to
the date of Executive’s termination; provided claims for such reimbursement (accompanied by appropriate supporting documentation) are submitted to the Company within ninety (90) days following the date of Executive’s termination of
employment; and 
 (C) such Employee Benefits, if any, as to which Executive may be entitled under the employee benefit plans
of the Company (the amounts described in clauses (A) through (C) hereof being referred to as the “Accrued Rights”). 
 Following
such termination of Executive’s employment by the Company for Cause or resignation by Executive without Good Reason, except as set forth in this Section 7(a)(iii), Executive shall have no further rights to any compensation or any other
benefits under this Agreement. 
 b. Disability or Death. 
 (i) The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death and may be terminated by the
Company upon the Executive’s Disability. For purposes of this Agreement, “Disability” shall mean the determination that the Executive is disabled pursuant to the terms of the Company’s long term disability plan. 
  

 4 

 (ii) Upon termination of Executive’s employment hereunder for either Disability or
death, Executive or Executive’s estate (as the case may be) shall be entitled to receive: 
 (A) the Accrued Rights;

 (B) a lump sum payment of any Annual Bonus that is earned by Executive but unpaid as of the date of termination for the
immediately preceding fiscal year, paid in accordance with Section 4 (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company); and 
 (C) a pro rata portion of the Annual Bonus, if any, that Executive would have been entitled to receive pursuant to Section 4 hereof
for such year based upon the Company’s actual results for the year of termination and the percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, payable to Executive pursuant to
Section 4 had Executive’s employment not terminated. 
 Following Executive’s termination of employment due to Executive’s death or
Disability, except as set forth in this Section 7(b)(ii), Executive or his estate, as applicable, shall have no further rights to any compensation or any other benefits under this Agreement. 
 c. By the Company Without Cause or by Executive for Good Reason. 
 (i) Executive’s employment hereunder may be terminated (A) by the Company without Cause (which shall not include
Executive’s termination of employment due to his death or Disability) or (B) by Executive for Good Reason (as defined below). 
 (ii) For purposes of this Agreement, “Good Reason” shall mean, without the consent of the Executive and other than in connection with a termination of the Executive’s employment by the Company
for Cause or due to Executive’s death or Disability, (A) the failure of the Company to pay any undisputed amount due under this Agreement; or (B) a substantial reduction in Executive’s targeted compensation level (other than a
general reduction in base salary or annual incentive compensation opportunities that affects all members of senior management of the Company proportionally). Notwithstanding the foregoing, any termination by Executive for Good Reason may only occur
if Executive provides a Notice of Termination (as defined in Section 7(d)) for Good Reason within 45 days after Executive learns (or reasonably should have learned) about the occurrence of the event giving rise to the claim of Good Reason.
Notwithstanding the foregoing, resignation by Executive shall not be deemed for “Good Reason” if the basis for such Good Reason is cured within a reasonable period of time (determined in light of the cure appropriate to the basis of such
Good Reason), but in no event more than thirty (30) business days after the Company receives the Notice of Termination specifying the basis of such Good Reason. The Company’s good faith determination of cure shall be binding. The Company
shall notify Executive of the timely cure of any claimed event of Good Reason and the manner in which such cure was effected, and any Notice of Termination delivered by Executive 

  

 5 

 
based on such claimed Good Reason shall be deemed withdrawn and shall not be effective to terminate the Employment Term.  
 (iii) If Executive’s employment is terminated by the Company without Cause (excluding by reason of Executive’s death or
Disability) or by Executive for Good Reason, Executive shall be entitled to receive: 
 (A) the Accrued Rights; 

(B) a lump sum payment of any Annual Bonus that is earned by Executive but unpaid as of the date of termination for the immediately
preceding fiscal year, paid in accordance with Section 4 (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company); 
 (C) subject to Executive’s continued compliance with the provisions of Sections 8 and 9 and Executive’s execution (and
non-revocation) of a release of all claims against the TRU Group in a form substantially similar to the Separation and Release Agreement attached hereto as Exhibit B (the “Release”), a pro rata portion of the Annual Bonus, if
any, that Executive would have been entitled to receive pursuant to Section 4 hereof for such year based upon the Company’s actual results for the year of termination and the percentage of the fiscal year that shall have elapsed through
the date of Executive’s termination of employment, payable to Executive pursuant to Section 4 had Executive’s employment not terminated; 
 (D) subject to Executive’s continued compliance with the provisions of Sections 8 and 9 and Executive’s execution (and non-revocation) of the Release, an amount equal to the sum of (x) the product of
the Severance Period (expressed in years as described below) times the Base Salary at the rate in effect immediately prior to the date of Executive’s termination of employment and (y) one (1) times the actual Annual Bonus received in
respect of the fiscal year immediately preceding the year of Executive’s termination of employment (the “Prior Bonus”), payable in equal installments during the Severance Period, in accordance with the Company’s periodic
payroll practices; provided, however, that the aggregate amount described in this subsection (D) shall be in lieu of notice or any other severance amounts to which the Executive may otherwise be entitled and shall be reduced by
any amounts owed by Executive to the Company or any affiliate. For purposes of this subsection (D), the “Severance Period” shall initially be an eighteen (18) month period commencing on the Executive’s termination of employment,
which period shall be increased by one and one-half (1  1/2) months on each anniversary of the Execution Date
prior to such termination of employment, up to a maximum of twenty-four (24) months; and 
 (E) continuation of
medical, dental and life insurance benefits (pursuant to the same benefit plans as in effect for active employees of the 

  

 6 

 
Company), with Executive paying a portion of such costs as if Executive’s employment had not terminated, until the earlier to occur of (1) the end
of the Severance Period and (2) the date on which Executive commences to be eligible for coverage under medical, dental and life insurance benefit plans from any subsequent employer, except to the extent that such continued coverage is not
possible under the general terms and provisions of such plan(s) of the Company. In order to facilitate any such possible coverage, Executive and his spouse and dependents, as applicable, in accordance with the Company’s policies in effect at
the time of Executive’s termination, shall agree to elect continuation coverage in accordance with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA Coverage”) and the Company may
satisfy its obligations hereunder by paying a portion of the premiums required for such COBRA Coverage. 
 Following Executive’s termination of
employment by the Company without Cause (excluding by reason of Executive’s death or Disability) or by Executive for Good Reason, except as set forth in this Section 7(c)(iii), Executive shall have no further rights to any compensation or
any other benefits under this Agreement. 
 d. Notice of Termination. Any purported termination of employment by the
Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 12(g) hereof. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of
employment under the provision so indicated. 
 e. Board/Committee Resignation. Upon termination of Executive’s
employment for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, from the Board and any Subsidiary Boards (and any committees thereof). 
 8. Non-Competition. 
 a. Executive acknowledges and recognizes the highly competitive nature of the businesses of Holdings and its affiliates and accordingly agrees as follows: 
 (i) During the Employment Term and (x) during the Severance Period following any termination of the Employment Term pursuant to
Section 7(c) hereof or (y) during the two-year period after any termination or expiration of the Employment Period for reason other than pursuant to Section 7(c) hereof (in each case, the “Restricted Period”),
Executive will not, whether on Executive’s own behalf or on behalf of or in conjunction with any person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise whatsoever
(“Person”), directly or indirectly: 
 (A) engage in any business that directly or indirectly is a
“Competitive Business.” For purposes of this subsection (A) a “Competitive 

  

 7 

 
Business” means, with respect to the Executive at any time, any Person engaged wholly or in part (directly or through one or more subsidiaries) in the
retail sale or distribution (including in stores or via 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 Executive’s termination date, as of such termination date) are generated by engaging in such sale or distribution of Competing Products. Without limiting the foregoing, Competitive Businesses shall
in any event include, Wal-Mart, K-Mart, Target, Amazon, Zellers, Sears, Right Start, Zany Brainy, FAO Schwartz, Buy Buy Baby, e-toys, KB Toys, Mattel, Hasbro, Lego, Bandai, Playmobil, Ravensburger, Evenflo, Graco/Little Tikes, Chicco, Cosco,
Maclaren, Britax, Woolworths, Argos, Tesco, Asda, Mothercare, Carrefour, Auchan, Leclerc, La Grande Recre, Karstadt, Real, Kaufhof, Mueller, El Corte Ingles, Loblaws, or any of their respective subsidiaries. For purposes of this subsection
(A) “Competing Products” means, with respect to the Executive at any time, (1) toys and games, (2) video games, computer software for children, and electronic toys or games, (3) juvenile or baby products, apparel,
equipment, furniture, or consumables, (4) wheeled goods for children, and (5) any other product or group of related products that represents more than twenty (20) percent of the gross sales of Holdings and its subsidiaries for the
twelve (12) month period preceding such time (or with respect to the period after the Executive’s termination date, as of such termination date); 
 (B) enter the employ of, or render any services to, any Person (or any division or controlled or controlling affiliate of any Person) who
or which engages in a Competitive Business; 
 (C) acquire a financial interest in, or otherwise become actively involved
with, any Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or 
 (D) interfere with, or attempt to interfere with, business relationships (whether formed before, on or after the date of this Agreement)
between Holdings or any of its affiliates and customers, clients, suppliers, partners, members or investors of Holdings or its affiliates. 
 (E) Notwithstanding anything to the contrary in this Agreement, Executive may, directly or indirectly own, solely as a passive investment, securities of any Person engaged in a Competitive Business which are publicly
traded on a national or regional stock exchange or on the over-the-counter market or which are privately held if Executive (x) is not a controlling Person of, or a member of a group which controls, such Person and (y) does not, directly or
indirectly, own 3% or more of any class of securities of such Person which is publicly traded or privately held. 
  

 8 

 (ii) During the Restricted Period, Executive will not, whether on Executive’s own
behalf or on behalf of or in conjunction with any Person, directly or indirectly: 
 (A) solicit to leave the employment of,
or encourage any employee of Holdings or its affiliates to leave the employment of, Holdings or its affiliates; or 
 (B)
hire any such employee (other than clerical or administrative support personnel) who was employed by Holdings or its affiliates as of the date of Executive’s termination of employment with the Company or who left the employment of Holdings or
its affiliates coincident with, or within one year prior to, the termination of Executive’s employment with the Company. 
 (iii) During the Restricted Period, Executive will not, directly or indirectly, solicit to leave the employment of, or encourage to cease to work with, as applicable, Holdings or its affiliates any consultant, supplier or service provider
then under contract with Holdings or its affiliates. 
 b. It is expressly understood and agreed that although Executive and
the Company consider the restrictions contained in this Section 8 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement
is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially
determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding
shall not affect the enforceability of any of the other restrictions contained herein. 
 9. Confidentiality. 
 a. Executive will not at any time (whether during or after Executive’s employment with the Company), except when required to perform
his or her duties to the TRU Group, (x) retain or use for the benefit, purposes or account of Executive or any other Person; or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any Person outside the TRU
Group (other than its professional advisers who are bound by confidentiality obligations), any non-public, proprietary or confidential information —including without limitation rates, trade secrets, know-how, research and development, software,
databases, inventions, processes, formulae, technology, designs and other intellectual property, information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel,
compensation, recruiting, training, advertising, sales, marketing, promotions, government and regulatory activities and approvals — concerning the past, current or future business, activities and operations of Holdings and its subsidiaries
and/or any third party that has disclosed or provided any of same to Holdings and its subsidiaries on a confidential basis (“Confidential Information”) without the prior written authorization of the CEO. 
  

 9 

 b. “Confidential Information” shall not include any information that is
(x) generally known to the industry or the public other than as a result of Executive’s breach of this covenant or any breach of other confidentiality obligations by third parties; (y) required by law or judicial process to be
disclosed; provided that Executive shall give prompt written notice to Holdings of such requirement, disclose no more information than is so required, and cooperate with any attempts by Holdings to obtain a protective order or similar treatment; or
(z) disclosed in connection with a litigation or arbitration proceeding between the parties. 
 c. Except as required by
law or judicial process, Executive will not disclose to anyone, other than Executive’s immediate family, legal and/or financial advisors, the existence or contents of this Agreement; provided that Executive may disclose to any
prospective future employer the provisions of Sections 8 and 9 of this Agreement, provided they agree to maintain the confidentiality of such terms. 
 d. Upon termination of Executive’s employment with the TRU Group for any reason, Executive shall (x) cease and not thereafter commence use of any Confidential Information or intellectual property (including
without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or other source indicator) owned by Holdings, its subsidiaries or affiliates; (y) immediately destroy, delete, or return to Holdings,
at Holdings’ option, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files, letters and other data) in Executive’s possession or control (including any of the foregoing stored or located
in Executive’s office, home, laptop or other computer, whether or not Holdings property) that contain Confidential Information or otherwise relate to the business of Holdings, its affiliates or subsidiaries (whether or not the retention or use
thereof would reasonably be expected to result in a demonstrable injury to Holdings, its affiliates or subsidiaries), except that Executive may retain only those portions of any personal notes, notebooks and diaries that do not contain any
Confidential Information; and (z) notify and fully cooperate with Holdings regarding the delivery or destruction of any other Confidential Information of which Executive is or becomes aware. 
 e. Executive shall not improperly use for the benefit of, bring to any premises of, divulge, disclose, communicate, reveal, transfer or
provide access to, or share with the TRU Group any confidential, proprietary or non-public information or intellectual property relating to a former employer or other third party without the prior written permission of such third party. Executive
hereby indemnifies, holds harmless and agrees to defend the TRU Group and its respective officers, directors, partners, employees, agents and representatives from any actual breach of the foregoing covenant. During the Employment Term, Executive
shall comply with all relevant written policies and guidelines of Holdings and its subsidiaries and affiliates which have been made available or disclosed to him, including regarding the protection of Confidential Information and intellectual
property and potential conflicts of interest. Executive acknowledges that Holdings and its subsidiaries and affiliates may amend any such policies and guidelines from time to time, and that Executive remains at all times bound by their most current
version; provided, however, that Executive shall not be bound by any such amendments unless and until Executive receives notice of such amendments and copies thereof are made available or disclosed to him. 
  

 10 

 f. The provisions of this Section 9 shall survive the termination of
Executive’s employment for any reason. 
 10. Specific Performance. Executive acknowledges and agrees that the Company’s
remedies at law for a breach or threatened breach of any of the provisions of Sections 8 or 9 would be inadequate and the Company and its subsidiaries and affiliates would suffer irreparable damages as a result of such breach or threatened breach.
In recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to cease making any payments or providing any
benefit otherwise required by this Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available. 
 11. Arbitration. Except as provided in Section 10, any other dispute arising out of or asserting breach of this Agreement, or any statutory
or common law claim by Executive relating to his employment under this Agreement or the termination thereof (including any tort or discrimination claim), shall be exclusively resolved by binding statutory arbitration in accordance with the
Employment Dispute Resolution Rules of the American Arbitration Association. Such arbitration process shall take place in New York, New York. A court of competent jurisdiction may enter judgment upon the arbitrator’s award. Each party shall pay
the costs and expenses of arbitration (including fees and disbursements of counsel) incurred by such party in connection with any dispute arising out of or asserting breach of this Agreement. 
 12. Miscellaneous. 
 a. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to conflicts of laws principles thereof. 
 b. Entire Agreement/Amendments. This Agreement and the Equity Documents contain the entire understanding of the parties with
respect to the employment of Executive by the TRU Group. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein
and therein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto. 
 c. No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist
upon strict adherence to that term or any other term of this Agreement. 
 d. Severability. In the event that any one
or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby. 
  

 11 

 e. Assignment. This Agreement, and all of Executive’s rights and duties
hereunder, shall not be assignable or delegable by Executive; provided, however, that if Executive shall die, all amounts then payable to Executive hereunder shall be paid in accordance with the terms of this Agreement to
Executive’s devisee, legatee or other designee or, if there be no such devisee, legatee or designee, to Executive’s estate. Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab
initio and of no force and effect. This Agreement may be assigned by the Company to a person or entity which is an affiliate, and shall be assigned to any successor in interest to substantially all of the business operations of the Company. Upon
such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person or entity. Further, 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 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 and any successor to its business and/or assets which is required by this Section 12(e) to assume and agree to
perform this Agreement or which otherwise assumes and agrees to perform this Agreement; provided, however, in the event that any successor, as described above, agrees to assume this Agreement in accordance with the preceding sentence,
as of the date such successor so assumes this Agreement, the Company shall cease to be liable for any of the obligations contained in this Agreement. 
 f. Set Off; Mitigation. The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall not be subject to set-off, counterclaim or recoupment, other
than amounts loaned or advanced to Executive by the Company or its affiliates, amounts owed by Executive under the Equity Documents, or otherwise as provided in Section 7(c) hereof. Executive shall not be required to mitigate the amount of any
payment provided for pursuant to this Agreement by seeking other employment or otherwise and the amount of any payment provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Executive’s other
employment or otherwise. 
 g. Notice. For the purpose of this Agreement, notices and all other communications provided
for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon
receipt. 
 If to the Company: 
 Toys “R” Us, Inc. 
 One Geoffrey Way 
  

 12 

 Wayne, New Jersey 07470 
 Attention: General Counsel 
 If to Executive: 
 To the most recent address of Executive set forth in the personnel records of the Company. 
 h. Executive Representation. Executive hereby represents to the Company that the execution and delivery of this Agreement by
Executive and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise
bound. 
 i. Prior Agreements. This Agreement supercedes all prior agreements and understandings (including verbal
agreements) between Executive and the Company and/or its affiliates regarding the terms and conditions of Executive’s employment with the Company and/or its affiliates; provided, however, that the Equity Documents shall govern the
terms and conditions of Executive’s equity holdings in Holdings. 
 j. Cooperation. Executive shall provide
Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder, but only to the extent the Company
requests such cooperation with reasonable advance notice to Executive and in respect of such periods of time as shall not unreasonably interfere with Executive’s ability to perform his duties with any subsequent employer; provided,
however, that the Company shall pay any reasonable travel, lodging and related expenses that Executive may incur in connection with providing all such cooperation, to the extent approved by the Company prior to incurring such expenses.
Further, Executive hereby consents to the disclosure of information about Executive that the Company is required to disclose in its annual report on Form 10-K or in other reports required to be filed with the Securities and Exchange Commission under
the Securities Act of 1933 or the Securities Exchange Act of 1934 and the rules and regulations thereunder. 
 k.
Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 
 l. Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. 
 m. Compliance with Section 409A. Notwithstanding
anything herein to the contrary, (i) if at the time of Executive’s termination of employment with the TRU Group Executive is a “specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary 

  

 13 

 
in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of
the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six months following Executive’s termination of employment with the TRU
Group (or the earliest date as is permitted under Section 409A of the Code) and (ii) if any other payment of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under
Section 409A of the Code, such payment or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to
the extent possible, in a manner, determined by the CEO (but subject to the reasonable consent of the Executive), that does not cause such an accelerated or additional tax or result in an additional cost to the Company. The Company shall consult
with Executive in good faith regarding the implementation of the provisions of this Section 12(m); provided that neither the Company nor any of its employees or representatives shall have any liability to Executive with respect thereto.
Notwithstanding anything herein to the contrary, this Section 12(m) shall not apply to any payments or benefits due to Executive under the Equity Documents. 
 [Signatures on next page.] 
  

 14 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	TOYS “R” US, INC.
		
	By:	 	  
	Name:	 	
	Title:	 	

  

			
	EXECUTIVE:
	
	  
	JON W. KIMMINS

  

 15 

 EXHIBIT A 
 [To be provided, as applicable] 

 EXHIBIT B 
 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 JON W. KIMMINS (the “Executive”). 
 The Executive and the Company agree as follows: 
 1. The employment relationship between the Executive and the Company and its subsidiaries and affiliates, as applicable, terminated on
                                        
         (the “Termination Date”). 
 2. In accordance with the Executive’s
Employment Agreement, Executive is entitled to receive certain payments and benefits after the Termination Date. 
 3. In consideration of
the above, the sufficiency of which the Executive hereby acknowledges, the Executive, on behalf of the Executive and the Executive’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 Agreement, including, without limitation, any claims the Executive may have arising from or relating to the Executive’s employment or termination from employment with the Company and its subsidiaries and
affiliates, as applicable, including a release of any rights or claims the Executive 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 Executive of any claims for wrongful discharge, breach of contract, torts or any other claims in any
way related to the Executive’s employment with or resignation or termination from the Company and its subsidiaries and affiliates, as applicable. 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 Executive be advised to consult with an 

 
attorney before the Executive waives any claim under ADEA. In addition, the ADEA provides the Executive with at least 21 days to decide whether to waive
claims under ADEA and seven days after the Executive signs the Agreement to revoke that waiver. This release does not release the Company from any obligations due to the Executive under the Executive’s Employment Agreement or under this
Agreement, any rights Executive has to indemnification by the Company and any vested rights Executive has under the Company’s employee pension benefit and welfare benefit plans. 
 4. This Agreement is not an admission by either the Executive or the Company or its subsidiaries or affiliates of any wrongdoing or liability.

 5. The Executive waives any right to reinstatement or future employment with the Company and its subsidiaries and affiliates following the
Executive’s separation from the Company and its subsidiaries and affiliates on the Termination Date. 
 6. The Executive agrees not to
engage in any act after execution of the Agreement that is intended, or may reasonably be expected to harm the reputation, business, prospects or operations of the Company or its subsidiaries or affiliates or their respective officers, directors,
stockholders or employees. 
 7. The Executive shall continue to be bound by Sections 8 and 9 of the Executive’s Employment Agreement.

 8. The Executive shall promptly return all Company and subsidiary and affiliate property in the Executive’s possession, including,
but not limited to, Company or subsidiary or affiliate keys, credit cards, cellular phones, computer equipment, software and peripherals and originals or copies of books, records, or other information pertaining to the Company or subsidiary or
affiliate business. 
 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 Executive’s
Employment Agreement. 
 10. This Agreement represents the complete agreement between the Executive 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 unenforceability of any section shall not invalidate or render unenforceable any other section contained in this Agreement. 
  

 2 

 12. It is further understood that for a period of 7 days following the execution of this Agreement in
duplicate originals, the Executive 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 Executive shall be effective unless the
Company has received within the 7 day revocation period, written notice of any revocation, all monies received by the Executive under this Agreement and the Executive’s Employment 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 Executive
acknowledges that the Executive 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 Executive acknowledges that the Executive 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:	 	

  

			
	
	  
	JON W. KIMMINS

  

 3

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