Document:

Exhibit

EXHIBIT 10.65

EMPLOYMENT AGREEMENT
This Employment Agreement is made as of May 23, 2016, by Toys “R” Us, Inc. (the “Company”) and LANCE WILLS (the “Executive”).
RECITALS
		
	1.
	The Executive has experience and expertise required by the Company and its Affiliates.

		
	2.
	Subject to the terms and conditions hereinafter set forth, the Company therefore wishes to employ the Executive as its Executive Vice President, Chief Technology Officer and the Executive wishes to accept such employment.

AGREEMENT
NOW, THEREFORE, for valid consideration received, the parties agree as follows:
		
	1
	Employment.  Subject to the terms and conditions set forth in this Agreement, the Company offers and the Executive accepts employment hereunder effective as of the date first set forth above (the “Effective Date”).

		
	2
	Term.  This Agreement shall commence on June 6, 2016 and shall remain in effect for an indefinite time until terminated by either party as set forth in Section 5 hereof.  The period during which the Executive is employed shall hereinafter be referred to as the “Term.”

		
	3
	Capacity and Performance.

		
	3.1
	Offices.  During the Term, the Executive shall serve the Company as Executive Vice President, Chief Technology Officer or such other roles and titles as may be designated by the Chief Executive Officer of the Company (“CEO”).  The Executive shall have such powers, duties and responsibilities consistent with the Executive’s position as may from time to time be prescribed by the CEO.  During the Term, Executive shall report to the CEO or such other person as the CEO shall designate.

		
	3.2
	Performance.  During the Term, the Executive shall be employed by the Company on a full‐time basis and shall perform and discharge, faithfully, diligently and to the best of his/her ability, his/her duties and responsibilities hereunder.  During the Term, the Executive shall devote his/her full business time exclusively to the advancement of the business and interests of the Company and its Affiliates and to the discharge of his/her duties and responsibilities hereunder.  The Executive shall not engage in any other business activity or serve in any industry, trade, professional, governmental, political, charitable or academic position during the Term, except for such directorships or other positions which he/she currently holds and has disclosed 

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to the CEO in Exhibit A hereof and except as otherwise may be approved in advance by the CEO.
		
	4
	Compensation and Benefits.  During the Term, as compensation for all services performed by the Executive under this Agreement and subject to performance of the Executive’s duties and obligations to the Company and its Affiliates, pursuant to this Agreement or otherwise, the Executive shall receive the following:

		
	4.1
	Base Salary.  The Company shall pay the Executive a base salary at the rate of Five Hundred and Fifty Thousand Dollars ($550,000.00) per year, payable in accordance with the payroll practices of the Company for its executives and subject to such increases as the Board of Directors of the Company (the “Board”) or any appropriate committee or delegee thereof in its sole discretion may determine from time to time (the “Base Salary”).

		
	4.2
	Bonus.  During the Term, the Executive shall be eligible to earn an annual bonus award in respect of each fiscal year of the Company (a “Bonus”), in a target amount of up to 100% of the Executive’s Base Salary, 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.  The Bonus, if any, shall be paid to the Executive not later than two and one-half (21⁄2) months after the end of the applicable fiscal year of the Company. For the current 2016 Fiscal Year, the Executive shall be eligible to earn a Bonus pro-rated for the period he was employed during Fiscal Year 2016.    

		
	4.3
	Vacations.  During the Term, the Executive shall be entitled to four weeks of vacation per calendar year, to be taken at such times and intervals as shall be determined by the Executive, subject to the reasonable business needs of the Company.  The Executive may not accumulate or carry over from one calendar year to another any unused, accrued vacation time.  The Executive shall not be entitled to compensation for vacation time not taken.

		
	4.4
	Other Benefits.  During the Term and subject to any contribution therefor required of executives of the Company generally, the Executive shall be entitled to participate in all employee benefit plans, including without limitation any 401(k) plan, from time to time adopted by the Board and in effect for executives of the Company generally.  Such participation shall be subject to (i) the terms of the applicable plan documents and (ii) generally applicable policies of the Company.  The Company may alter, modify, add to or delete any aspects of its employee benefit plans at any time as the Board, in its sole judgment, determines to be appropriate.  

		
	4.5
	Business Expenses.  During the Term, reasonable business expenses incurred by Executive in the performance of the Executive’s duties 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.

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	4.6
	Relocation Expenses.  Additionally, the Executive shall receive a standard relocation package at the beginning of the Executive’s employment for relocation of the Executive to the Wayne, New Jersey area, in accordance with the Company’s policies in relation to its executive officers (the “Relocation Expenses”) which shall be subject to repayment in accordance with the terms of the relocation policy in the event of a termination of this Agreement.

		
	4.7
	Stock Option.  The Company shall grant a stock option to the Executive in the form attached here to as Exhibit B. 

		
	5
	Termination of Employment and Severance Benefits.  The Term and the Executive’s employment hereunder shall terminate under the circumstances described in this Section 5.  All references herein to termination of employment, separation from service and similar or correlative terms, insofar as they are relevant to the payment of any benefit that could constitute nonqualified deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and other guidance thereunder (“Section 409A”) shall be construed to require a “separation from service” within the meaning of Section 409A, and the Company and the Executive shall take all steps necessary (including with regard to any post‐termination services by the Executive) to ensure that any such termination constitutes a “separation from service” as so defined.

		
	5.1
	Death.  In the event of the Executive’s death during the Term, the Executive’s employment hereunder shall immediately and automatically terminate.  In the event of death during the Term, the Company shall pay to the Executive or the Executive’s designated beneficiary or, if no beneficiary has been designated by the Executive, to the Executive’s estate) any Base Salary earned but unpaid through the date of death, any Bonus for the fiscal year preceding the year in which such death occurs that was earned but has not yet been paid and, at the times the Company pays its executives bonuses in accordance with its general payroll policies, an amount equal to that portion of any Bonus earned but unpaid during the fiscal year of death (prorated in accordance with Company policies).

		
	5.2
	Disability.

		
	5.2.1
	The Company may terminate the Executive’s employment hereunder, upon Executive’s Disability.  For purposes of this Agreement, “Disability” shall mean the determination that Executive is disabled pursuant to the terms of the Company’s long term disability plan.

		
	5.2.2
	Upon termination of the Executive’s employment hereunder for Disability, the Executive shall be entitled to receive any Base Salary earned but unpaid through the date of Disability, any Bonus for the fiscal year preceding the year in which such Disability occurs that was earned but has not yet been paid and, at the times the Company pays its executives bonuses in accordance with its general payroll policies, an amount equal to that portion of any Bonus 

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earned but unpaid during the fiscal year of Disability (prorated in accordance with Company policies).
		
	5.3
	By the Company for Cause.  The Company shall terminate the Executive’s employment hereunder for Cause at any time upon notice to the Executive setting, forth in reasonable detail the nature of such Cause.  The following events or conditions shall constitute “Cause” for termination: (i) the Executive’s willful failure to perform (other than by reason of disability), or gross negligence in the performance of his/her duties to the Company or any of its Affiliates and the continuation of such failure or negligence for a period of ten (10) days after written notice thereof to the Executive; (ii) the Executive’s willful failure to perform (other than by reason of disability) any lawful and reasonable directive of the CEO after the Executive has received a written demand of performance from the CEO that specifically sets forth the factual basis for the determination and the continuance of such failure for a period of ten (10) days after receiving such notice; (iii) the commission of fraud, embezzlement or theft by the Executive with respect to the Company or any of its Affiliates; (iv) the conviction of the Executive of, or plea by the Executive of nolo contendere to, any felony or any other crime involving dishonesty or moral turpitude; (v) any material breach of the Executive’s fiduciary duties to the Company or an Affiliate as an employee or officer; or (vi) a material violation of the Company’s Code of Ethical Standards, Business Practices and Conduct, any other violation of Company policies or this Agreement and continuation of such violation for a period of ten (10) days after written notice thereof to the Executive.  Anything to the contrary in this Agreement notwithstanding, upon the giving of notice of termination of the Executive’s employment hereunder for Cause, the Company and its Affiliates shall have no further obligation or liability to the Executive hereunder, other than for Base Salary earned but unpaid through the date of termination.  Without limiting the generality of the foregoing, the Executive shall not be entitled to receive any Bonus amounts which have not been paid prior to the date of termination.

		
	5.4
	By the Company Other Than for Cause.  The Company shall terminate the Executive’s employment hereunder other than for Cause at any time upon notice to the Executive.  

In the event of such termination, the Company shall pay the Executive promptly following termination and in all events within thirty (30) days thereof, Base Salary earned but unpaid through the date of termination.  In addition and subject to the Executive’s continued compliance with the provisions of Sections 7 and 8 and the Executive’s execution (and non-revocation) of a release of all claims against the Company and its Affiliates in a form to be provided by the Company (the “Separation and Release Agreement”), the Executive shall receive (i) an amount equal to (1) times the Base Salary at the rate in effect immediately prior to the date of Executive’s termination of employment, payable in accordance with the normal Company payroll practices in 12 equal monthly installments following the Executive’s termination (the “Severance Term”); provided, that the aggregate amount described in this Section 5.4 shall be in lieu of notice or any other severance amounts to which the 

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Executive may otherwise be entitled and shall be reduced by any amounts owed by the Executive to the Company or any Affiliate; (ii) promptly following termination and in all events within thirty (30) days thereof, any unpaid portion of any Bonus for the fiscal year preceding the year in which such termination occurs that was earned but has not been paid; and (iii) at the times the Company pays its executives bonuses generally, but no later than two and one half (2 1/2) months after the end of the fiscal year in which the Bonus is earned, an amount equal to that portion of any Bonus earned but unpaid during the fiscal year of such termination (prorated in accordance with Company policies).
		
	5.5
	By the Executive for Good Reason.  The Executive may terminate employment hereunder for Good Reason.  The following shall constitute “Good Reason” for termination by the Executive: (i) the failure of the Company to pay any undisputed amount due under this Agreement; (ii) a substantial reduction in the Executive’s targeted compensation level (other than a general reduction in Base Salary, annual incentive compensation opportunities or other benefits that effects all similarly situated executives); (iii) relocation of the Executive’s workplace to a new location that is more than fifty (50) miles away from Executive’s principal work location in Wayne, NJ.  Notwithstanding the foregoing, any termination by the Executive for Good Reason may only occur if the Executive provides a notice of termination 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.  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.  

In the event of termination in accordance with this Section 5.5, then the Company shall pay the Executive promptly following termination and in all events within thirty (30) days thereof, Base Salary earned but unpaid through the date of termination.  In addition and subject to the Executive’s continued compliance with the provisions of Sections 7 and 8 and the Executive’s execution (and non-revocation) of the Separation and Release Agreement, the Executive shall receive (i) an amount equal to (1) times the Base Salary at the rate in effect immediately prior to the date of Executive’s termination of employment, payable in accordance with the normal Company payroll practices over the Severance Term; provided, that the aggregate amount described in this Section 5.4 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 the Executive to the Company or any Affiliate; (ii) promptly following termination and in all events within thirty (30) days thereof, any unpaid portion of any Bonus for the fiscal year preceding the year in which such termination occurs that was earned but has not been paid; and (iii) at the times the Company pays its executives bonuses generally, but no later than two and one half (2 1/2) months after the end of the fiscal year in which the Bonus is earned, an amount equal 

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to that portion of any Bonus earned but unpaid during the fiscal year of such termination (prorated in accordance with Company policies).
		
	5.6
	By the Executive Other Than for Good Reason.  The Executive may terminate employment hereunder at any time upon 90 days written notice to the Company.  In the event of termination of the Executive’s employment pursuant to this Section 5.6, the CEO or the Board may elect to waive the period of notice or any portion thereof.  The Company will pay the Executive his/her Base Salary for the notice period, except to the extent so waived by the Board.  Upon the giving of notice of termination of the Executive’s employment hereunder pursuant to this Section 5.6, the Company and its Affiliates shall have no further obligation or liability to the Executive, other than (i) payment to the Executive of his/her Base Salary for the period (or portion of such period) indicated above, (ii) continuation of the provision of the benefits set forth in Section 4.4 for the period (or portion of such period) indicated above, and (iii) any unpaid portion of any Bonus for the fiscal year preceding the year in which such termination occurs that was earned but has not been paid.  The payments made under subsections (i) and (iii) hereof shall be made promptly following termination and in all events within thirty (30) days thereof.

		
	5.7
	Post‐Agreement Employment.  In the event the Executive remains in the employ of the Company or any of its Affiliates following termination of this Agreement, by the expiration of the Term or otherwise, then such employment shall be at will.

		
	6
	Effect of Termination of Employment.  The provisions of this Section 6 shall apply in the event of termination of the Executive’s employment, pursuant to Section 5, or otherwise.

		
	6.1
	Payment in Full.  Payment by the Company or its Affiliates of any Base Salary, Bonus or other specified amounts that are due to the Executive under the applicable termination provision of Section 5 shall constitute the entire obligation of the Company and its Affiliates to the Executive, except that nothing in this Section 6.1 is intended or shall be construed to affect the rights and obligations of the Company or its Affiliates, on the one hand, and the Executive, on the other, with respect to any option plans, option agreements, subscription agreements, stockholders agreements or other agreements to the extent said rights or obligations therein survive termination of employment.

		
	6.2
	Termination of Benefits.  If the Executive is terminated by the Company without Cause, or terminates employment with the Company for Good Reason, and provided that the Executive elects continuation of medical and dental coverage pursuant to Section 601 through 608 of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), the Company shall pay the Executive an amount equal to the monthly COBRA premiums for the Severance Term; provided that, such payment will cease upon the date on which the Executive becomes eligible for medical and dental coverage from any subsequent employer.  Except for medical and dental coverage continued pursuant to Section 5.2 hereof, all other benefits shall terminate 

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pursuant to the terms of the applicable benefit plans based on the date of termination of the Executive’s employment without regard to any continuation of Base Salary or other payments to the Executive following termination of employment.  The Executive and Company agree to make such changes to the reimbursement for COBRA as may be required to ensure compliance with Internal Revenue Code section 409A or Section 105(h) of the Code.
		
	6.3
	Survival of Certain Provisions.  Provisions of this Agreement shall survive any termination of employment if so provided herein or if necessary to accomplish the purpose of other surviving provisions, including, without limitation, the obligations of the Executive under Sections 7, 8 and 9 hereof.  The obligation of the Company to make payments to or on behalf of the Executive under Sections 5.2, 5.4 or 5.5 hereof is expressly conditioned upon the Executive’s continued full performance of his/her obligations under Sections 7 and 8 hereof.  The Executive recognizes that, except as expressly provided in Section 5.2, 5.4 or 5.5, no compensation is earned after termination of employment.

		
	7
	Confidential Information; Intellectual Property.

		
	7.1
	Confidentiality.  The Executive acknowledges that the Company and its Affiliates continually develop Confidential Information (as that term is defined in Section 11.2, below) and that the Executive may develop Confidential Information for the Company or its Affiliates and that the Executive may learn of Confidential Information during the course of his/her employment.  The Executive will comply with the policies and procedures of the Company and its Affiliates for protecting Confidential Information and shall never use or disclose to any Person (except as required by applicable law or judicial process) any Confidential Information obtained by the Executive incident to his/her employment or other association with the Company and its Affiliates; provided that the Executive shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and cooperate with any attempts by the Company to obtain a protective order or similar treatment.  The Executive understands that this restriction shall continue to apply after employment terminates, regardless of the reason for such termination.

		
	7.2
	Return of Documents.  All documents, records, tapes and other media of every kind and description relating to the business, present or otherwise, of the Company and its Affiliates and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by the Executive, shall be the sole and exclusive property of the Company and its Affiliates.  The Executive shall safeguard all Documents and shall surrender to the Company and its Affiliates at the time employment terminates, or at such earlier time or times as the Board or CEO designee may specify, all Documents then in the Executive’s possession or control.

		
	7.3
	Assignment of Rights to Intellectual Property.  The Executive shall promptly and fully disclose all Intellectual Property to the Company.  The Executive hereby assigns 

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to the Company (or as otherwise directed by the Company) the Executive’s full right, title and interest in and to all Intellectual Property.  The Executive shall execute any and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including without limitation the execution and delivery of instruments of further assurance or confirmation) requested by the Company or its Affiliates to assign the Intellectual Property to the Company and to permit the Company and its Affiliates to enforce any patents, copyrights or other proprietary rights to the Intellectual Property.  The Executive will not charge the Company or its Affiliates for time spent in complying with these obligations.  All copyrightable works that the Executive creates shall be considered “Work For Hire” under applicable laws.
		
	8
	Restricted Activities.

		
	8.1
	Agreement Not to Compete With the Company.  During the Executive’s employment hereunder and for a period of 24 months following the date of termination thereof (the “Non‐Competition Period”), the Executive will not, directly or indirectly, own, manage, operate, control or participate in any manner in the ownership, management, operation or control of, or be connected as an officer, employee, partner, director, principal, member, manager, consultant, agent or otherwise with, or have any financial interest in, or aid or assist anyone else in the conduct of, any business, venture or activity which in any material respect competes with the following enumerated business activities to the extent then being conducted or being planned to be conducted by the Company or its Affiliates or being conducted or known by the Executive to being planned to be conducted by the Company or by any of its Affiliates, at or prior to the date on which the Executive’s employment under this Agreement is terminated (the “Date of Termination”), in the United States or any other geographic area where such business is being conducted or being planned to be conducted at or prior to the Date of Termination (a “Competitive Business”, defined below).  For purposes of this Agreement, “Competitive Business” shall be defined as any company or other entity engaged primarily in the retail, sale or distribution (including in stores, or via mail order, e-commerce or similar means) of “Competing Products.”  Competing Products means (i) toys and games; (ii) video games, computer software for children and electronic toys or games; (iii) juvenile or baby products, apparel, equipment, furniture or consumables; (iv) wheeled goods for children; and (v) any other product or group of related products that represents more than 20% of the gross sales of the Company and its Affiliates for the twelve (12) month period preceding the Executive’s termination date.  For purposes of this Agreement, a Competitive Business includes those persons or entities who maintain or are contemplating maintaining more than 30% of their gross sales in Competing Products for the 12 month period preceding the Executive’s termination date.  Without limiting the foregoing, the term “Competitive Business” shall in any event include Wal-Mart, K-Mart/Sears, Target, Amazon, Buy Buy Baby, Mattel, Hasbro, Tesco, Carrefour and any of their respective parents, subsidiaries, affiliates or commonly controlled entities.  Notwithstanding the foregoing, (i) ownership of not more than 3% of any class of equity security of any publicly traded corporation; or 

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(ii) owning a passive equity interest in a private debt or equity investment fund over which the Executive does not have the ability to exercise control or managerial influence shall not, of itself, constitute a violation of this Section 8.1
		
	8.2
	Agreement Not to Solicit Employees or Customers of the Company.  During employment and during the Non‐Competition Period the Executive will not, directly or indirectly, (i) solicit to leave the employment of, or encourage any employee of the Company or its Affiliates to leave the employment of the Company or its Affiliates; or (ii) hire any such employee (other than clerical or administrative support personnel) who was employed by the Company or its Affiliates as of the date of the Executive’s termination of employment with the Company or who left the employment of the Company or its Affiliates coincident with, or within one (1) year prior to, the termination of the Executive’s employment with the Company; (iii) solicit to leave the employment of, or encourage to cease to work with, the Company or its Affiliates any consultant, supplier or service provider then under contract with the Company or its Affiliates.

		
	9
	Enforcement of Covenants.  The Executive acknowledges that he/she has carefully read and considered all the terms and conditions of this Agreement, including without limitation the restraints imposed upon his/her pursuant to Sections 7 and 8 hereof.  The Executive agrees that said restraints are necessary for the reasonable and proper protection of the Company and its Affiliates and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area.  The Executive further acknowledges that, were he/she to breach any of the covenants or agreements contained in Sections 7 or 8 hereof, the damage to the Company and its Affiliates could be irreparable.  The Executive, therefore, agrees that the Company and its Affiliates, in addition to any other remedies available to it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by the Executive of any of said covenants or agreements.  The parties further agree that in the event that any provision of Section 7 or 8 hereof shall be determined by any court of competent jurisdiction to be unenforceable by reason of it being extended over too great a time, too large a geographic area or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law.

		
	10
	Conflicting Agreements.  The Executive hereby represents and warrants that the execution of this Agreement and the performance of his/her obligations hereunder will not breach or be in conflict with any other agreement to which or by which the Executive is a party or is bound and that the Executive is not now subject to any covenants against competition or solicitation or similar covenants or other obligations that would affect the performance of his/her obligations hereunder.  The Executive will not disclose to or use on behalf of the Company or any of its Affiliates any proprietary information of a third party without such party’s consent.

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	11
	Definitions.  Words or phrases which are initially capitalized or are within quotation marks shall have the meanings provided in this Section 11 or as specifically defined elsewhere in this Agreement.  For purposes of this Agreement, the following definitions apply:

		
	11.1
	Affiliates.    “Affiliates” shall mean Toys “R” Us, Inc., Toys “R” Us - Delaware, Inc. and all other persons and entities controlling, controlled by or under common control with the Company, where control may be by management authority or equity interest.

		
	11.2
	Confidential Information.   “Confidential Information” means any and all information of the Company and its Affiliates that is not generally known by others, 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 the Company and its Affiliates and/or any third party that has disclosed or provided any of same to the Company and its Affiliates on a confidential basis. 

		
	11.3
	Intellectual Property.  “Intellectual Property” means inventions, discoveries, developments, methods, processes, compositions, works, concepts, recipes and ideas (whether or not patentable or copyrightable or constituting trade secrets or trademarks or service marks) conceived, made, created, developed or reduced to practice by the Executive (whether alone or with others, whether or not during normal business hours or on or off Company premises) during the Executive’s employment that relate to either the business activities or any prospective activity of the Company or any of its Affiliates.

		
	11.4
	Person.    “Person” means an individual, a corporation, an association, a partnership, a limited liability company, an estate, a trust and any other entity or organization.

		
	12
	Withholding/Other Tax Matters.  All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by the Company under applicable law.  This Agreement shall be construed consistent with the intent that all payment and benefits hereunder comply with the requirements of, or the requirements for exemption from, Section 409A.  Notwithstanding the foregoing, the Company shall not be liable to the Executive for any failure to comply with any such requirements.

		
	13
	Arbitration.  Except as provided in Section 9, any other dispute arising out of or asserting breach of this Agreement, or any statutory or common law claim by the 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 

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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.
		
	14
	Code Section 409A. 

		
	14.1
	General.  This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section 409A). Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed.  Neither the Company nor its directors, officers, employees or advisers (other than the Executive) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by the Executive as a result of the application of Section 409A.

		
	14.2
	Definitional Restrictions.  Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable hereunder, or a different form of payment of such Non-Exempt Deferred Compensation would be effected, by reason of a “change in control event” or the Executive’s Disability or termination of employment, such Non-Exempt Deferred Compensation will not be payable or distributable to the Executive, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Disability or termination of employment, as the case may be, meet any description or definition of “change in control event”, “disability” or “separation from service”, as the case may be, in Section 409A and applicable regulations (without giving effect to any elective provisions that may be available under such definition).  This provision does not affect the dollar amount or prohibit the vesting of any Non-Exempt Deferred Compensation upon Disability or termination of employment, however defined.  If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, or the application of a different form of payment, such payment or distribution shall be made at the time and in the form that would have applied absent the non-409A-conforming event.  

		
	14.3
	Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of the Executive’s separation from service during a period in which he is a “specified employee” (as defined in Section 409A and applicable regulations), then, subject to any permissible acceleration of payment by the 

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Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):  (i) the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the Executive’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Executive’s separation from service (or, if Executive dies during such period, within 30 days after the Executive’s death) (in either case, the “Required Delay Period”); and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period. 
		
	14.4
	Treatment of Installment Payments.  Each payment of termination benefits under Section 5 of this Agreement, including, without limitation, each installment payment and each payment or reimbursement of premiums for continued medical, dental or life insurance coverage under Section 6.2, shall be considered a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2), for purposes of Section 409A.  

		
	14.5
	Timing of Release of Claims.  Whenever in this Agreement the provision of a payment or benefit is conditioned on the Executive’s execution and non-revocation of a release of claims, such release must be executed, and all revocation periods shall have expired, within 60 days after the date of termination of the Executive’s employment, failing which such payment or benefit shall be forfeited.  If such payment or benefit constitutes non-exempt deferred compensation, and if such 60-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made or commence before the second such calendar year, even if the release becomes irrevocable in the first such calendar year.

		
	14.6
	Permitted Acceleration.  The Company shall have the sole authority to make any accelerated distribution permissible under Treas. Reg. Section 1.409A-3(j)(4) to the Executive of deferred amounts, provided that such distribution meets the requirements of Treas. Reg. Section 1.409A-3(j)(4).  

		
	15
	Miscellaneous.

		
	15.1
	Assignment.  Neither the Company nor the Executive may assign this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other; provided, that the Company may assign its rights and obligations under this Agreement without the consent of the Executive in the event that the Company shall hereafter affect a reorganization, consolidate with, or merge into, any other Person or transfer all or substantially all of its properties or assets to any other Person, in which event such other Person shall be deemed the “Company” hereunder, as applicable, for all purposes of this Agreement; provided, further, that nothing contained herein shall be construed to place any limitation or restriction on the transfer of the Company’s Common Stock in addition to any restrictions set forth in any stockholder agreement applicable to the holders of such shares.  This 

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Agreement shall inure to the benefit of and be binding upon the Company and the Executive, and their respective successors, executors, administrators, representatives, heirs and permitted assigns.
		
	15.2
	Severability.  If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the application of such provision in such circumstances shall be deemed modified to permit its enforcement to the maximum extent permitted by law, and both the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable and the remainder of this Agreement shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

		
	15.3
	Waiver; Amendment.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.  This Agreement may be amended or modified only by a written instrument signed by the Executive and any expressly authorized representative of the Company.

		
	15.4
	Cooperation.  The Executive shall provide the 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 the Executive and in respect of such periods of time as shall not unreasonably interfere with the Executive’s ability to perform his duties with any subsequent employer; provided, that the Company shall pay any reasonable travel, lodging and related expenses that the Executive may incur in connection with providing all such cooperation, to the extent approved by the Company prior to incurring such expenses.  The Executive is entitled to be paid or reimbursed for any expenses under this Section, the amount reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred.  The Executive’s rights to payment or reimbursement of expenses pursuant to this Section shall expire at the end of 20 years after the execution date of this Agreement and shall not be subject to liquidation or exchange for another benefit.

		
	15.5
	Notices.  Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person or deposited in the United States mail, postage prepaid, registered or certified, and addressed (i) in the case of the Executive, to the address provided by the Executive and on file at the Company; and (ii) in the case of the Company, to the attention of Chief Executive Officer, with a copy to the General Counsel, both located 

13

at One Geoffrey Way, Wayne, New Jersey 07470, or to such other address as either party may specify by notice to the other actually received.
		
	15.6
	Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes any and all prior communications, agreements and understandings, written or oral, between the Executive and the Company, or any of its predecessors, with respect to the terms and conditions of the Executive’s employment.

		
	15.7
	Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

		
	15.8
	Governing Law.  This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of New Jersey without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

IN WITNESS WHEREOF, this Agreement has been executed by the Company, by its duly authorized representative, and by the Executive, as of the date first above written.

	
						
	THE COMPANY:
	 
	 
	TOYS “R” US, INC.

	Date:
	6/30/16
	 
	 
	By:
	/s/ David A. Brandon

	 
	 
	 
	 
	Name:
	DAVID A. BRANDON

	 
	 
	 
	 
	Title:
	Chairman & Chief Executive Officer

	 
	 
	 
	 

	THE EXECUTIVE:
	 
	 
	 

	Date:
	5/23/16
	 
	 
	/s/ Lance Wills

	 
	 
	 
	LANCE WILLS

14

EXHIBIT A

1

EXHIBIT B
Form of Stock Option

2Exhibit

EXHIBIT 10.66*

EMPLOYMENT AGREEMENT
ANDRE JAVES

This EMPLOYMENT AGREEMENT (the “Agreement”) is dated as of August 26th, 2014 (the “Execution Date”) by and between Toys “R” Us (Australia) Pty Ltd (the “Company”) and Andre Javes (the “Executive”).
WHEREAS, Executive has been employed as Managing Director of the Company since on or about April 15, 2013; and 
WHEREAS, as of the Execution Date, the Company desires to continue to employ Executive and to enter into a new agreement embodying the terms of such employment and Executive desires to accept such employment and enter into such an 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 continue to be employed by the Company and designated direct and indirect subsidiaries and/or affiliates of the Company (each, a “Subsidiary”), for a period commencing on March 1, 2014 (the “Commencement Date”) and ending on the fourth  anniversary of the Commencement 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 be automatically renewed on the terms and conditions hereunder for an additional one year periods commencing on the anniversary of the last day of the Initial Term (the Initial Term and any 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 one hundred and twenty (120) days prior to such anniversary.  
2.    Position.
a.    During the Employment Term, Executive shall be seconded to Toys “R” Us (Asia) Limited (“Toys Asia”) to serve as the Managing Director, Southeast Asia & Greater China and any affiliates or other subsidiaries of Toys Asia, as shall be determined from time to time.  In such positions, Executive shall have such duties and authority as determined by Toys Asia and the board of directors of each subsidiary, as applicable and commensurate with the position of Managing Director.  During the Employment Term, the Executive shall report to Monika Merz or such other persons as Toys Asia may determine from time to time. During the secondment assignment, Executive will not be an employee of Toys Asia, but will remain an employee of the Company, in accordance with the terms of this Agreement.  This secondment assignment may be terminated at any time by the Company for any reason or no reason at all.  In the event that this assignment should be terminated, Executive shall be repatriated back to Australia within ninety (90) days of termination of the assignment. It is anticipated that after the first two years of the secondment assignment, the parties will mutually determine whether it is 

1

beneficial to continue the current terms and conditions of the expatriate package or to convert the arrangement into an international transfer.
b.    Without limiting Executive’s duties at law, in equity, under any legislation or under any applicable Company policies, during the Employment Term Executive must:
(i)     perform to the best of Executive’s abilities and knowledge the duties assigned to Executive from time to time, which may include duties for the benefit of the Company and Toys Asia;
(ii)     devote Executive's whole time and attention to the duties assigned to Executive during normal business hours and such additional hours which may be necessary for the performance of those duties; 
(iii)     use all reasonable efforts to promote the interests the Company and Toys Asia;
(iv)      promptly inform the Company and Toys Asia of (x) any matter in connection with Executive's employment which comes to Executive's notice that may be regarded as material and relevant to the Company and Toys Asia; and (y) any facts, information or circumstances (including concepts or ideas) which may be of use to further the interests of the Company and Toys Asia; 
(v)     disclose to the Company and Toys Asia any facts, information or circumstances (including concepts or ideas) which may give rise to a conflict between Executive’s interests and the interests of the Company and Toys Asia;
(vi)          immediately disclose to the Company and Toys Asia any matter which renders or may render Executive unable to perform some or all of Executive's duties under this Agreement;
(vii)     immediately disclose to the Company and Toys Asia any actual or potential breach of this Agreement; and
(viii)     comply with all laws and the rules and regulations of external agencies applying to Executive's position and duties.
c.    Without limiting Executive’s duties at law, in equity, under any legislation or under any applicable Company policy, Executive must not:
(i)     act in conflict with the best interests of the Company and Toys Asia;
(ii)     on discovery of a conflict between Executive's interests and the interests of the Company and Toys Asia, allow that conflict to continue without first obtaining the written consent of the Company and Toys Asia or the person nominated by the Company and Toys Asia from time to time;

2

(iii)     prepare to be engaged or engage in any business or employment other than for the Company and Toys Asia except with the prior written consent of the Company and Toys Asia or the person nominated by the Company and Toys Asia from time to time, although Executive may without prior consent hold (A) securities in any corporation listed on a recognized stock exchange up to 5% of the class of the security (except as provided in the Shareholders Agreement); or (B) a non-executive position on the board of any charitable or community organization, details of which must be disclosed to the Company and Toys Asia;
(iv)     compete with the Company and Toys Asia;
(v)     in performing Executive's duties, accept any financial or other benefit except from the Company and Toys Asia;
(vi)     do anything which does or may, in the Company and Toys Asia's opinion, damage the reputation of the Company and Toys Asia;
(vii)     use the Company and Toys Asia's IT Systems (A) for excessive or unreasonable personal use, (B) to view or distribute unlawful material, or material which may be regarded as offensive or inappropriate; or (C) to copy, disclose or use material in breach of this Agreement; and 
(viii)     unlawfully discriminate against or sexually harass another person or otherwise fail to comply with any laws applying to Executive's employment.
d.  Executive must become familiar with and comply with all policies of the Company and Toys Asia in place or as varied or replaced (including policies relating to any Employee Benefits provided to Executive) that are intended to apply to him and have been provided or made available to Executive.  The terms of these policies are not incorporated as terms of this Agreement and are not intended to create any legally enforceable rights on the part of Executive, but Executive must abide by them because they are lawful and reasonable directions of the Company.
3.    Base Salary.  During the Employment Term, the Company shall pay Executive a base salary at the annual rate of AD $449,738, payable in substantially equal periodic payments in accordance with the Company’s practices for other officers of the Company, 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 Company based upon any appropriate and required board of director approvals, 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.  Executive may be eligible to earn an annual bonus award in respect of each fiscal year of the Company (an “Annual Bonus”).  For fiscal year 2014, Executive may be eligible to earn an Annual Bonus in a target amount of up to 80% of Executive’s Base Salary (the “Target Bonus”), payable conditional on the Company’s achievement of certain performance targets established by the Company and based upon any appropriate and required board of director approvals (such criteria not forming part of this 

3

Agreement) and pursuant to the terms of the Company’s incentive plan, in effect from time to time.  Thereafter, Executive may be eligible to earn an Annual Bonus in a target amount as may apply to all similarly situated Senior Vice President executive level employees, payable conditional on the Company’s achievement of certain performance targets established by the Company based upon any appropriate and required board of director approvals (such criteria not forming part of this Agreement) and pursuant to the terms of the Company’s incentive plan, in effect from time to time.  
5.    Employee Benefits; Business Expenses.  
a.    Employee Benefits.
(i)     Assignment Benefits.  Executive shall be entitled to receive the Assignment Benefits detailed in Exhibit A, attached hereto.
(ii)     Health Insurance Benefits.  Executive shall receive a maximum amount of AD $7,500 to be paid towards a health plan of Executive’s choice which has international coverage for Executive, his spouse and dependent child.  The final amount due by the Company must be approved in advance by the Vice President, Total Rewards.  
(iii)     Superannuation Benefits.  Executive shall be entitled to continue to participate in the Company’s Superannuation Plan on the same basis as this benefit is or may be available to other senior executives of the Company.    
b.       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 officers of the Company.
6.    Long Term Incentives.  Executive shall participate in the Toys “R” Us, Inc. 2010 Incentive Plan (the “Incentive Plan”) in accordance with the policies and procedures of the Incentive Plan and any subsequent plans (such plans not forming part of this Agreement).
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 one hundred and twenty (120) 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 Company.
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) without notice or payment in lieu of notice to Executive, or shall terminate automatically upon Executive’s resignation without Good Reason (other than due to Executive’s death or Disability); provided that Executive will be 

4

required to give the Company at least one hundred and twenty (120) days’ advance written notice of such resignation or making payment in lieu of notice to the Company.
(ii)     For purposes of this Agreement, “Cause” shall mean any of the following, as determined by the Company: (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, Toys Asia or any other subsidiaries or affiliates of the Company; (C) the conviction of, or pleading guilty or nolo contendere to, a felony involving moral turpitude (or its substantive equivalent under Australian law), or fails to immediately notify the Company in the event that Executive is charged with or found guilty of any criminal offense which in the opinion of the Company may affect or may bring the Company or its Subsidiaries into disrepute or affects or may affect Executive’s ability to carry out his duties properly; (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, Toys Asia or any other subsidiaries or affiliates of the Company; (E) any material breach of Executive’s fiduciary duties to the Company, Toys Asia or any other subsidiaries or affiliates of the Company 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 policies of the Company, Toys Asia or any other subsidiaries or affiliates of the Company; (G) the failure by the Executive to comply, in any material respect, with the provisions of Sections 8 and 9 of this Agreement;  (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, Toys Asia or any other subsidiaries or affiliates of the Company 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, Toys Asia or any other subsidiaries or affiliates of the Company; or (J) is precluded from working in Hong Kong for any reason.
(iii)     If Executive’s employment is terminated by the Company for Cause, or if Executive resigns without Good Reason (as hereafter defined), 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 seven (7) days following Executive’s termination of employment;
(B)         reimbursement, within thirty (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(b) 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

5

(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, subject to applicable law, may be terminated by the Company upon the Executive’s Disability by giving thirty (30) days’ advance written notice or making payment in lieu  of notice to the Executive.  For purposes of this Agreement, “Disability” of  Executive means that the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company.    In the event of a dispute, the determination of whether Executive is Disabled will be made by the Board and may be supported by the advice of a physician competent in the area to which such Disability relates. 
(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;  and
(B)        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. 

6

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 upon serving a ninety (90) days’ advance written notice or making payment in lieu of notice to Executive (which shall not include Executive’s termination of employment due to his death or Disability) or (B) by Executive for Good Reason without notice or payment in lieu of notice to the Company (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; (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); or (C) notice by the Company pursuant to Section 1 that it is not extending the Employment Term or the Company repatriates the Executive back to his home country and does not offer Executive an equivalent position in title and compensation (base salary and target annual bonus) in Executive’s home country, in each case, that is not cured within thirty (30) days after receipt by the Company of written notice from Executive.  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 forty-five (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. 
(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 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; and
(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 Company, Toys Asia and any other subsidiaries or affiliates of the Company, in a form substantially similar to the Separation and Release Agreement attached hereto as Exhibit 

7

B, an amount equal to one (1) times the annual Base Salary at the rate in effect immediately prior to the date of Executive’s termination of employment; provided, however, that the aggregate amount described in this subsection (C) 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; 
(iv)     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. Furthermore, if the Company provides notice to terminate Executive’s employment, then the Company may:
(A)      direct Executive not to perform any duties, or to perform specified duties, for part or all of the notice period;
(B)     direct Executive to remain away from the Company’s/Toys Asia’s premises;
(C)    direct Executive to have no contact with any employee, director client, customer, or supplier of the Company/Toys Asia or any Subsidiary of the Company;
(D)     appoint another person to perform some or all of Executive’s duties; and
(E)    change the title of the Executive.
d.    Notice of Termination.  Any purported termination of employment by the Company or by Executive (other than due to Executive’s death or Disability) 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 with the Company for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, from all Company or subsidiary/affiliate boards of directors (and any committees thereof), and to execute any documents required by the Company or any subsidiary and take any steps necessary to give effect to such resignations. 
8.    Non-Competition.
a.    Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its affiliates and accordingly agrees as follows:

8

(i)     During the Employment Term and the twelve (12) month period commencing on Executive’s termination of employment (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 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 wholesale 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, the term “Competitive Business” shall in any event include Amazon.com, Tao-Bao, Walmart, Carrefour, Tesco, Lotte, Emart, Spar, Mothercare  / ELC, Hamleys, Good Baby and any of their respective parents, subsidiaries, affiliates or commonly controlled entities.  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 the Company and its affiliates and 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 the Company  or any of its affiliates and customers, clients, suppliers, partners, members or investors of the Company or its affiliates with whom Executive had contact during and in the course of the last twelve (12) months of Executive’s employment.

9

(E)    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 the Company, Toys Asia or any other subsidiaries or affiliates of the Company, with whom Executive had contact during and in the course of the last twelve (12) months of executive’s employment  to leave the employment of, the Company, Toys Asia or any other subsidiaries or affiliates of the Company; or
(b)    hire any such employee (other than clerical or administrative support personnel) who was employed by the Company, Toys Asia or any other subsidiaries or affiliates of the Company as of the date of Executive’s termination of employment with the Company or who left the employment of the Company, Toys Asia or any other subsidiaries or affiliates of the Company coincident with, or within one year prior to, the termination of Executive’s employment with the Company.
(ii)     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, the Company, Toys Asia or any other subsidiaries or affiliates of the Company, any consultant, supplier or service provider, with whom Executive had contact during and in the course of the last twelve (12) months of Executive’s employment, then under contract with the Company, Toys Asia or any other subsidiaries or affiliates of the Company.
(iii)     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.  If a court determines that the Restraint Period of the twelve (12) months is invalid, then the parties agree to substitute nine (9) months; and if a court determines that nine (9) months is invalid, then substitute six (6) months; and if a court determines that six (6) months is invalid, then substitute three (3) months.
b.    Executive further acknowledges and agrees that:
(i)Each restraint specified in clause 8 is reasonable and necessary to protect the Company’s the Subsidiaries and/or Toys Asia’s legitimate interests;
(ii)Executive intends the restraints to operate to the maximum extent; and

10

(iii)Damages may be inadequate to protect the interests of the Company and the Subsidiaries for breach of the obligations contained in this clause and the Company or any Subsidiary is entitled to seek and obtain injunctive relief, or any other remedy, in any court.
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 Company, Toys Asia or any other subsidiaries or affiliates of the Company, (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 Company, Toys Asia or any other subsidiaries or affiliates of the Company (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 the Company and its subsidiaries or affiliates and/or any third party that has disclosed or provided any of same to the Company and its subsidiaries on a confidential basis (“Confidential Information”) without the prior written authorization of the Company.
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 the Company of such requirement, disclose no more information than is so required, and cooperate with any attempts by the Company 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 Company 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 the Company, its subsidiaries or affiliates; (y) immediately destroy, delete, or return to the Company, at the Company’s 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 the Company’s property) that contain Confidential Information or otherwise relate to the business of the Company, its affiliates or 

11

subsidiaries (whether or not the retention or use thereof would reasonably be expected to result in a demonstrable injury to the Company, 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 the Company 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 Company or Toys Asia 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 Company, Toys Asia or any other subsidiaries or affiliates of the Company 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 the Company 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 the Company 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.
f.     The provisions of this Section 9 shall survive the termination of Executive’s employment for any reason.
10.    Arbitration.         
a.    If a Dispute arises, then the parties agree that:
(i)      written notice of the Dispute must be given to the other party, including details of the facts upon which the Dispute is based, the legal basis for the Dispute and the amount disputed.  The notice must include any supporting or background documents;
(ii)     upon receipt of the notice of Dispute by the other party, the parties must endeavor to resolve the Dispute by informal dispute resolution methods;
(iii)         if the Dispute is not resolved within 14 days of the notice of Dispute being received, either party may refer the Dispute to mediation.  The mediation will be conducted in New South Wales under the Australian Commercial Dispute Centre ("ACDC") guidelines for commercial mediation which are operating at the time the Dispute is referred to the ACDC; and
(iv)         if the Dispute is not resolved by mediation within 28 days of the appointment of a mediator or such further period agreed between the parties, the parties agree to refer the Dispute to arbitration administered by the ACDC.  The arbitration will be conducted in 

12

New South Wales under the ACDC rules for domestic arbitration which are operating at the time the Dispute is referred to the ACDC.
b.    Notwithstanding the existence of a Dispute, the parties must continue to perform all of their obligations under this Agreement;
c.    Nothing in this clause prevents either party applying to a court for urgent interlocutory relief.  In this clause, "Dispute" means any dispute arising between the parties in connection with this Agreement, other than a dispute in connection with an alleged or actual breach by Executive of clauses 8 (Non-Competition) or 9 (Confidentiality).
11.    Miscellaneous.
a.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of New South Wales, Australia, without regard to conflicts of laws principles thereof.
b.    Entire Agreement/Amendments.  This Agreement and any incentive plans contain the entire understanding of the parties with respect to the employment of Executive by the Company.  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.
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 

13

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 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,(or comparable mail service in Hong Kong or Australia, as the case may be)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:
Monika Merz
Toys “R” Us-Japan, Ltd.
26th Floor, Muza Kawasaki Central Tower
1310 Omiya-cho, Saiwai-ku, Kawasaki-shi
Kanagawa Pref.   212-8566
JAPAN
 
With a copy to:
Toys “R” Us, Inc.
One Geoffrey Way
Wayne, NJ 07470
USA
Attn: General Counsel

If to Executive:

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APT 3102, Tower A, Queens Garden
9 Old Peak Road, Midlevels, Central
Hong Kong

Or to the most recent home 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 supersedes 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.
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.  
k.    Withholding Taxes.  The Company may withhold from any amounts payable under this Agreement all applicable taxes as may be required to be withheld pursuant to any applicable law or regulation.  Executive shall, at all times both during and after termination of employment, cooperate with the Company in its efforts to ensure compliance with all applicable tax related issues and requirements.
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 and Approvals.  The exercise of or compliance with any discretion, right or obligation under this Agreement is subject to compliance with all applicable laws, listing rules, and constitution or articles of incorporation of the Company and Toys Asia; and any approval which may be required, including the approval of shareholders.  If approval of shareholders is required before a payment may be made or a benefit may be provided to Executive, then the Company may, but is under no obligation to seek the approval of shareholders. If the approval of shareholders is not obtained, Executive's employment will continue in accordance with this Agreement and Executive will not be entitled to any other 

15

payment or benefit in lieu.  To the extent that any amounts payable, or benefits to be provided are prohibited by Part 2D.2 of the Corporations Act 2001 (Cth), then the provision of this Agreement providing for the payment or benefit is of no effect and Executive will not be entitled to any other payment or benefit in lieu.

 [Signatures on next page.]

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

	
							
	TOYS “R” US (AUSTRALIA) PTY LTD:
	 
	EXECUTIVE:
	 

	/s/ Monika Merz
	 
	/s/ Andre Javes
	 

	MONIKA MERZ
	 
	ANDRE JAVES
	 

    

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EXHIBIT A

ASSIGNMENT BENEFITS

		
	1.
	RELOCATION EXPENSES/ALLOWANCES

All reasonable relocation expenses to your new residence in Hong Kong will be paid.  These benefits will be paid in accordance with the Toys”R”Us Expatriate Assignment Policy, a copy of which is provided under separate cover.

a.    Eligible Relocation Expenses.  Such expenses include: shipment of household goods to Hong Kong, destination assistance, house hunting services, visa and immigration fees, three business class outbound airfares (one each for employee and dependents), temporary living costs in Australia (up to a maximum of 7 days, if applicable) and temporary living costs in Hong Kong (to a maximum 60 days, if applicable). 

b.    Moving Allowance.  A disturbance allowance of AD $11,230 will be paid to you upon the Commencement Date of your assignment.  Please be reminded that should you choose to terminate your employment with the Company within twelve (12) months of the Commencement Date, you will be required to repay 100% of this allowance.  Should you choose to terminate your employment with the Company between thirteen (13) and twenty four (24) months of the Commencement Date, you will be required to repay 50% of this allowance.  Should you choose to terminate your employment with the Company after twenty four (24) months, you will no longer be required to repay this allowance. 

c.      Housing Allowance.  The Company, or Toys Asia will arrange to pay your actual housing costs for a furnished 3-bedroom apartment while you are living in Hong Kong, up to a maximum of HKD $150,000 per month, plus the cost of rental furniture.  This payment will be made directly to your landlord on your behalf.  In the event you decide to rent (or sell) your home country housing and are no longer responsible for your home country housing costs, you will be required to share in the cost of your housing (housing offset) equal to an amount equivalent of what you would have paid in your home country.  Additionally, the Company will pay the actual utility costs including water, gas and electricity for the apartment.  Note that while your housing costs will be paid directly by the Company, utility costs will be reimbursed on an actual cost basis as they are incurred and submitted for reimbursement.

d.     Cost Of Living Differential (COLA) / LAFHA.  A cost of living differential will be based on:  (i) the current rate of exchange between the Australian Dollar (AUD) and the Hong Kong Dollar (HKD); and (ii) the difference, if any, in the cost of a market basket of goods and services between a representative Australian metropolitan area (Sydney) and Hong Kong.

		
	•
	The amount of the differential is derived from tables published by Mercer. The differential is referred to as the COLA / LAFHA.

		
	§
	If future Mercer tables indicate that a change in the cost of living differential is warranted, the change amount will be applied on your next payroll. Generally, a 

1

cumulative change of + or – 2% from your previous cost of living differential will trigger an adjustment to your COLA/LAFHA on your payroll. Changes to the cost of living will be evaluated each calendar quarter.

		
	§
	Your initial Post Cola Differential for this assignment is estimated at AD $30,761 annually, based on a family of three on assignment (this includes your spouse and child). Payment will be made on a monthly basis.

		
	§
	Effective July 1, 2014, your COLA/`LAFHA will be based on the Efficient Purchaser Index (“EPI”), which assumes market purchasing efficiency.  In addition, you will receive a one-time supplemental COLA payment in the amount of AUD 4,537 which equals the 6 month differential between the Expatriate Index and the EPI.  

e.     Car Allowance.  An annual Car Allowance of HKD $120,000, payable monthly, which provides for all Company car related business travel.  
     f.     Tax Equalization.  The Company will provide tax equalization between Australia and Hong Kong taxes on all employment–related earnings.  The purpose of tax equalization is to ensure that the total tax liability of the expatriate does not exceed, nor be less than, the tax burden you would incur in the home country on Company derived income.  A summary of how tax equalization will be managed, including a description of hypo-tax, is outlined in the Expatriate Assignment Policy.  An accounting firm designated by the Company will prepare your Hong Kong and Australia tax returns.  The company will pay all fees for tax return preparation in connection with this assignment.  Any further expense, such as personal estate or tax planning will be your responsibility.

g.     Home Visit Travel.  The Company will pay for you and your accompanying family members, to take one non-business related trip per year to Australia.  Expenses covered will include round trip business class airfare and other reasonable expenses, including a rental car or transportation to and from the airport.  If you are on personal time, the company will not cover accommodation. If you are performing business, the Company will pay for accommodation.   
h.     Cultural and Language Training.  Following your acceptance of this assignment, the Company will arrange for you to receive cultural training to assist you in accomplishing your job in Hong Kong.  In addition, the Company will provide Chinese language training of up to 100 hours.  

     i.     Education Expense.  The Company will pay the cost of an International School in Hong Kong for your dependent child, as well as reasonable and required school transportation costs.  In addition, the Company will pay the cost of any one-time entrance or school fees.

j.    Automobile Assistance.  The Company will provide assistance to cover the loss sustained on the forced sale of one car or the costs of canceling a car lease.  Automobile assistance is limited to expenses associated with one car (either owned or leased), but not both.

2

2.    LOCALIZATION

It is intended that you will return to your Home Country or transfer to a new assignment location at the end of this assignment.  The assignment is anticipated to last for four (4) years. After the first 2 years of the assignment, you and the Company will determine whether it is beneficial to continue the current terms and conditions of the expatriate package or to convert the arrangement into an international transfer.  If you are not transferred after the first 2 years, and you remain in location beyond the initial 4 year assignment period, or it is determined the assignment becomes open-ended, you will at that point be localized.  Localization includes the phase-out of allowances as you begin transitioning to local terms and conditions no later than 4 years after the commencement of this assignment.  The phase-out period will be over a three year period.  The phase-out process means that allowances will be decreased to 75% in year 5, 50% in year 6 and 25% in year 7, down to 0%. If applicable, school fees will be reimbursed up to the end of the school year. Further, at the end of the phase-out period, you will be localized to the Host Country payroll and benefits. 

If there is agreement to localize the position sooner, allowances will end at such time as the position is localized. 

The allowances subject to phase-out include: Housing, Cost of Living Differential / LAFHA, Home Visit travel and Education Expenses (if applicable). Tax Equalization benefits will also end after the 7th year, or such time as there is agreement the position is localized. 

3.     LEAVE ENTITLEMENTS
You will continue to be entitled to annual leave, personal (sick and carer's) leave, compassionate leave and parental leave as granted by the Australian employment legislation and as it applies from time to time.  
You will however be only entitled to Hong Kong local Bank or Public legislated holidays and not the New South Wales public holidays as you will not be based in Australia.
4.    REPATRIATION

In accordance with the Company’s Repatriation Policy, the following full repatriation benefits shall be provided to you (i) at the end of your assignment; (ii) in the event that you resign for Good Reason; (iii) if you are terminated by the Company without Cause or (iv) if you become Disabled; or (iv) in the event of Death during the assignment:
		
	•
	return airfare for all family members and final moving expenses;

		
	•
	household goods move (including packing);

		
	•
	repatriation relocation allowance (US $10,000 equivalent);

		
	•
	temporary living expenses:

		
	◦
	up to 7 days prior to departure from host location  (e.g., for when the lease is cancelled but prior to repatriation);

		
	◦
	up to 60 days temporary living expenses when they return to their home country (e.g., if home is unavailable or returning to a different location);

3

		
	•
	car lease cancellation or loss on car sale (if applicable);

		
	•
	apartment / house lease cancellation

 
In the event a comparable new position is not available at the end of the assignment, you will first be repatriated back to your home country before a final employment decision is made. 
 
If your employment is terminated during the assignment due to (i) your resignation without Good Reason; or (ii) by the Company for Cause, you are entitled only to return airfare for yourself and family and a household goods move.  Assignment benefits, such as COLA, housing, etc. cease on the effective date of the termination, unless otherwise agreed by you and the Company.

To be eligible for reimbursement, the repatriation relocation must commence within 90 days from the date of termination.

4

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 (AUSTRALIA) PTY LTD and any successor thereto (collectively with its affiliates, the “Company”) and ANDRE JAVES (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, its parent Company and all of each of their members, parents, affiliates, subsidiaries, divisions, any and all current and former directors, officers, employees, agents, and contractors of all of the foregoing companies, and affiliates and their heirs and assigns, and any and all employee pension benefit or welfare benefit plans of the Company or its affiliates, 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 (but not limited to) a release of any rights or claims the Executive may have under ; any laws prohibiting  employment discrimination; or any other claims , whether statutory, contractual or arising under 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 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.
Additionally, in consideration of the foregoing, the Company agrees to release and forever discharge the Executive and the Executive’s heirs, executors and assigns from any claims, charges or demands, and/or causes of action whatsoever, in law or in equity, whether known or unknown, which may have existed or which may now exist from the beginning of time 

1

to the date of this Agreement, including, but not limited to, any claim, matter or action related to the Executive’s employment and/or affiliation with, or termination and separation from the Company and its subsidiaries and affiliates; provided that such release shall not release the Executive from any loan or advance by the Company or its subsidiaries or affiliates or a breach under Section 8 or 9 of the Executive’s Employment Agreement.
4.    This Agreement is not an admission by either the Executive or the Company 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. The Company further agrees that it will engage in no act which is intended, or may reasonably be expected to harm the reputation, business or prospects of the Executive.
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 Australia, 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.    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 (AUSTRALIA) PTY LTD

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	By:
	 
	 
	 

	 
	Name:
	 
	 

	 
	Title:
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	ANDRE JAVES
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

3

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