Document:

Exhibit

Exhibit 10.4
TOYS “R” US
Retention Bonus Agreement
Personal and Confidential
September [##], 2017

First Name Last Name

Re:     Retention Bonus

Dear First Name:

On behalf of Toys “R” Us (the “Company”), I am pleased to offer you the opportunity to receive a retention bonus, if you agree to the terms and conditions contained in this Retention     Bonus Agreement (this “Agreement”), which shall be effective as of the date set forth below in Section 6 (the “Effective Date”).    

1.    Retention Bonus.  Subject to the terms and conditions set forth herein, you will receive a cash payment in the gross amount of [$l] (the “Retention Bonus”), subject to the Company’s receipt of your countersignature on this Agreement.  

Notwithstanding the foregoing, in the event you voluntarily terminate your employment with the Company without Good Reason (defined below), or the Company terminates your employment for Cause (defined below), in either case, before the first anniversary of the Effective Date (the “Retention Date”), you will be required to promptly repay to the Company (and in any event no later than ten (10) days of such termination), an amount equal to the After-Tax Value of the Retention Bonus.  The “After-Tax Value of the Retention Bonus” is equal to the Retention Bonus, reduced by all taxes the Company actually withholds therefrom.  For the avoidance of     doubt, in the event of your death or termination due to your disability, termination by the Company without Cause or by you for Good Reason prior to the Retention Date, you (or your estate, as applicable), shall not be subject to the repayment obligations of this Agreement.    
For purposes of this Agreement, “Cause” means your (a) willful failure to substantially perform your duties (other than any such failure resulting from your physical or mental incapacity); (b) willful misconduct, gross negligence, breach of fiduciary duty, fraud, theft or embezzlement, in each case, that results in demonstrable harm to the Company or any of its Affiliates (defined below); (c) material breach of this Agreement that results in demonstrable harm to the Company or any of its Affiliates; (d) conviction of, or plea of nolo contendere to, any felony (or state law equivalent) or any crime involving moral turpitude; (e) commission of an act of fraud, embezzlement, or misappropriation, in each case, against the Company or any of its Affiliates; or (f) material breach of any material policy or code of conduct established by the Company or any of its Affiliates (including policies relating to anti-corruption or trade and economic sanctions), as such policies   may be amended from time to time, that results in material economic harm.  Notwithstanding the foregoing, except for a failure, breach or refusal that, by its nature, cannot reasonably be expected 

to be cured, you shall have thirty (30) days following the delivery of written notice by the Company or one of its Affiliates within which to cure any actions or omissions described in clauses (a), (b), (c) or (f) constituting Cause; provided, however, that, if the Company reasonably expects      irreparable injury from a delay of thirty (30) days, the Company or one of its Affiliates may give you notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the termination of your employment without notice and with immediate effect. 
For purposes of this Agreement, “Good Reason” means any of the following, in each case, without your consent: (a) a reduction of 20% or more of your annual base salary as in effect on the Effective Date or as the same may be increased from time to time, or (b) a relocation of the   geographic location of your principal place of employment by more than 75 miles.

The occurrence of an event that would otherwise constitute Good Reason will cease to be an event constituting Good Reason, if you do not timely provide notice to the Company within thirty (30) days of the date on which you first become aware of the occurrence of that event.  The Company shall have fifteen (15) days following receipt of your written notice in which to correct in all material respects the circumstances constituting Good Reason, and you must terminate employment within thirty (30) days following expiration of the Company’s fifteen (15)-day cure period.  Otherwise, any claim of such circumstances constituting “Good Reason” shall be deemed irrevocably waived by you.  
 For purposes of this Agreement, “Affiliate” means with respect to any person, any other person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise.
2.    Taxes.  The Company may withhold from any and all amounts payable to you hereunder such federal, state and local taxes as the Company determines in its sole discretion may be required to be withheld pursuant to any applicable law or regulation.

3.    No Right to Continued Employment.  Nothing in this Agreement will confer upon you any right to continued employment with the Company (or its subsidiaries or their respective successors) or to interfere in any way with the right of the Company (or its subsidiaries or their respective successors) to terminate your employment at any time.
4.    Other Benefits.  The Retention Bonus is a special payment to you and will not be taken into account in computing the amount of salary or compensation for purposes of determining any bonus, incentive, pension, retirement, death or other benefit under any other bonus, incentive, pension, retirement, insurance or other employee benefit plan of the Company, unless such plan    or agreement expressly provides otherwise.

5.    No Assignments; Successors.  This Agreement is personal to each of the parties hereto.  Except as provided in this paragraph, no party may assign or delegate any right or        obligation hereunder without first obtaining the written consent of the other party hereto.  The Company may assign this Agreement to any successor to all or substantially all of the business    and/or assets of the Company; provided that the Company will require such successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. 

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6.    Effectiveness.  This Agreement shall be effective September 14, 2017.
7.    Governing Law.  This Agreement will be governed by, and construed under and    in accordance with, the internal laws of the State of New Jersey, without reference to rules relating to conflicts of laws.

8.    Costs of Enforcement. In the event a party commences any legal action (regardless of whether or not a lawsuit is actually brought) to protect any rights under, or to enforce any provisions of this Agreement (including, but not limited to, the collection the After-Tax Value of the Retention Bonus), the prevailing party shall be entitled to recover from the losing party all reasonable costs, expenses, and attorneys' fees incurred by the party in connection with such proceedings, including, attorneys' fees incurred for consultation and other legal services performed prior to the filing of such proceeding.

9.    No Unauthorized Use or Disclosure.  For purposes of this Section 9, “Company” shall include the Company and each of its Affiliates. The term “Confidential Information” shall mean any and all confidential or proprietary information and materials, as well as all trade secrets, belonging to the Company. Confidential Information includes, regardless of whether such information or materials are expressly identified or marked as confidential or proprietary, and whether or not patentable: (1) technical information and materials of the Company; (2) business information and materials of the Company; (3) any information or material that gives the Company an advantage with respect to its competitors by virtue of not being known by those competitors; and (4) other valuable, confidential information and materials and/or trade secrets of the Company. All Confidential Information shall be the sole and exclusive property of the Company. Upon termination of your employment with the Company, for any reason, you shall promptly deliver all documents and materials (including electronically stored information) containing or reflecting Confidential Information, and all copies thereof, to the Company. Notwithstanding the preceding provisions of this Section 9, the term Confidential Information does not include (i) any information that, at the time of disclosure by the Company, is available to the public other than as a result of any unauthorized act by you, or (ii) any information that becomes available to you on a non-confidential basis from a source other than the Company or any of its respective directors, officers, employees, agents or advisors; provided, that such source is not known by you to be bound by a confidentiality agreement with or other obligation of secrecy to the Company regarding the information.  

You agree to preserve and protect the confidentiality of all Confidential Information. You agree that you will not, at any time during your term of employment or thereafter, make any unauthorized disclosure of Confidential Information, or make any use thereof, except, in each case, in the carrying out your responsibilities to the Company. You further agree to preserve and protect the confidentiality of all confidential information of third parties provided to the Company by such third parties with an expectation of confidentiality. You shall use commercially reasonable efforts to cause all persons or entities to whom any Confidential Information shall be disclosed by you hereunder to preserve and protect the confidentiality of such Confidential Information. You shall have no obligation hereunder to keep confidential any Confidential Information if and to the extent disclosure thereof is specifically required by applicable laws; provided, however, that in the event disclosure is required by applicable laws and you are making such disclosure, you shall provide  

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the Company with prompt notice of such requirement prior to making any such disclosure, so that the Company may seek an appropriate protective order.  
You understand that this program is being offered to a select group of key executives at the Company and it is important that both the existence of this program and your participation be kept strictly confidential.  You hereby acknowledge and agree that you will keep the terms and      conditions of this letter agreement and the subject matter hereof strictly confidential, and will not, except as required by law, disclose such terms and such subject matter to any person other than your immediate family or legal or financial advisers (who also must keep the terms of this letter agreement and the subject matter hereof confidential). 

Nothing in this Agreement will prevent you from: (a) making a good faith report of possible violations of applicable law to any governmental agency or entity; or (b) making disclosures that are protected under the whistleblower provisions of applicable law.

10.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

11.    Entire Agreement; Amendment.  This Agreement constitutes the entire      agreement between you and the Company with respect to the Retention Bonus and supersedes any and all prior agreements or understandings between you and the Company with respect to the Retention Bonus, whether written or oral.  This Agreement may be amended or modified only by a written instrument executed by you and the Company.

12.    Section 409A Compliance.  Although the Company does not guarantee the tax treatment of the Retention Bonus, the intent of the parties is that the Retention Bonus be exempt from the requirements of Section 409A of the Internal Revenue Code and the regulations and guidance promulgated thereunder, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted in a manner consistent therewith.

[Signature Page Follows]

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This Agreement is intended to be a binding obligation on you and the Company.  If this Agreement accurately reflects your understanding as to the terms and conditions of the Retention Bonus, please sign and date one copy of this Agreement and return the same to me for the    Company’s records.  You should make a copy of the executed Retention Bonus Agreement for  your records.

Very truly yours,

                            

Timothy Grace
EVP, Global Chief Talent Officer    
TOYS “R” US

    
    

The above terms and conditions accurately reflect our understanding regarding the terms and conditions of the Retention Bonus, and I hereby confirm my agreement to the same.

	
		
	___________________________
	Dated:

	Signature
	 

	 
	 

	___________________________
	__________________________

	Print Name
	Print Title

                            

        
                                        
                

Signature Page to Retention Bonus AgreementExhibit

Execution

Exhibit 10.5
AMENDMENT NO. 3 TO THE 
STOCKHOLDERS AGREEMENT
September 13, 2017
This Amendment No. 3 (this "Amendment") to the Stockholders Agreement among Toys "R" Us, Inc. (as successor to Toys "R" Us Holdings, Inc.), Funds managed by Bain Capital Partners, LLC or its Affiliates, Toybox Holdings, LLC, Vornado Truck LLC and certain other Persons, dated as of July 21, 2005, as amended by Amendment No. 1, dated as of June 10, 2008 as amended by Amendment No. 2, dated as of October 14, 2015 (as amended, the "Agreement") shall become effective as of the date first set forth above. Capitalized terms used but not otherwise defined in this Amendment have the meaning given to such terms in the Agreement.
1.Section 2.1. Section 2.1 of the Agreement is hereby deleted and replaced with the following:
2.1 Board of Directors.

2.1.1 Board Size. As of the date of Amendment No. 3, the number of members of the Board shall be fixed at ten (10), or such other number as is determined from time to time pursuant to Section 2.5 and 2.6.1.

2.1.2 Designation of Directors. As of the date of Amendment No. 3, the Board shall be composed of the following, unless otherwise determined by the Board, in accordance with Section 2.6.1:

(a) two (2) persons designated by Bain (subject to Section 11.1), (the "Bain Designees");
(b) two (2) persons designated by KKR (the "KKR Designees");
(c) two (2) persons designated by Vornado (the "Vornado Designees" and together with the Bain Designees and the KKR Designees, the "Sponsor Designees");
(d) the chief executive officer of the Company; and
(e) three (3) Independent Directors, to be selected by the Board.

2.1.3 Sell-Down Provisions. In the event that any Sponsor ceases to own at least 30% of such Sponsor's Initial Shares but continues to own at least 15% of such Sponsor's Initial Shares, such Sponsor shall no longer have the right to designate two (2) Sponsor Designees and shall have the right to designate only one (1) Sponsor Designee. In the event that any Sponsor ceases to own at least 15% of such Sponsor's Initial Shares, such Sponsor shall no longer have the right to designate any Sponsor Designee.

2.    Section 2.4.1. Section 2.4.1 of the Agreement is hereby deleted and replaced with the following:
"The Board may from time to time designate one or more committees, each of which may be at least a three (3) member committee and shall not be more than a six (6) member committee. Bain shall have the right, but not the obligation, to designate to each committee one (1) Bain Designee, KKR shall have the right, but not the obligation, to designate to each committee one (1) KKR Designee, and Vornado shall have the right, but not the obligation, to designate to each committee one (1) Vornado Designee; and each committee may also include up to three (3) Independent Directors; provided that in the event that any Sponsor ceases to own at least 30% of such Sponsor's Initial Shares, such Sponsor shall no longer have the right to have any Sponsor Designees serve as members of the Board's committees. To the extent that any Sponsor, under this Section 2.4.1, is not entitled to designate any Sponsor Designees as members of the Board's committees, such Sponsor shall send a written notice to the Secretary of the Company stating the names of the Sponsor Designees to be removed from the Board's committees and, upon receipt of such notice by the Secretary of the Company, such Sponsor Designees shall be deemed to have resigned from such committees. Any vacancies on the Board's committees may be filled by the remaining committee members acting in accordance with the Company's nomination and governance procedures and this Agreement so long as two (but not three) Sponsors own at least 30% of such Sponsor's Initial Shares, the size of the committees shall be at least two (2) member committees."

3.    Continuing Force and Effect. The Agreement, as modified by the terms of this Amendment, shall continue in full force and effect from and after the date of the adoption of this Amendment set forth above.
4.    Counterparts. This Amendment may be executed by the parties hereto in any number of separate counterparts (including facsimiled counterparts), each of which shall be deemed to be an original, and all of which taken together shall be deemed to constitute one and the same instrument.
5.    Consent to Amendment. The execution of this Amendment, by each of the parties thereto shall be deemed to constitute "Unanimous Sponsor Approval" of this Amendment and the matters contained therein pursuant to Section 2.6.1 and other applicable sections of the Agreement.
6.    GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED WITH, THE LAWS OF THE STATE OF NEW YORK.
[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties have executed this Amendment to the Stockholders Agreement on the day and year first written above.

TOYS "R" US, INC.

By: /s/ Cornelius Boggs, III                          
Name: Cornelius Boggs, III                     
Title: Executive Vice President - General Counsel                    

BAIN CAPITAL (TRU) VIII, L.P.

By: Bain Capital Partners VIII, L.P. 
Its: General Partner

By: Bain Capital Investors, LLC 
Its: General Partner

By: /s/ Joshua Bekenstein                       
Name: Joshua Bekenstein                      
Its: Managing Director                     

BAIN CAPITAL (TRU) VIII-E, L.P.

By: Bain Capital Partners VIII-E, L.P. 
Its: General Partner

By: Bain Capital Investors, LLC 
Its: General Partner

By: /s/ Joshua Bekenstein                       
Name: Joshua Bekenstein                      
Its: Managing Director                    

[Signature page to Amendment No. 3 to Stockholders Agreement]

BAIN CAPITAL (TRU) VIII COINVESTMENT, L.P.

By: Bain Capital Partners VIII, L.P. 
Its: General Partner

By: Bain Capital Investors, LLC 
Its: General Partner

By: /s/ Joshua Bekenstein                       
Name: Joshua Bekenstein                      
Its: Managing Director                    

BAIN CAPITAL INTEGRAL INVESTORS, LLC.
By: Bain Capital Investors, LLC 
Its: Administrative Member

By: /s/ Joshua Bekenstein                       
Name: Joshua Bekenstein                      
Its: Managing Director                    

BCIP TCV, LLC
By: Bain Capital Investors, LLC 
Its: Administrative Member

By: /s/ Joshua Bekenstein                       
Name: Joshua Bekenstein                      
Its: Authorized Signatory                       

     [Signature page to Amendment No. 3 to Stockholders Agreement]

TOYBOX HOLDINGS, LLC

By: /s/ Nathaniel Taylor                            
Name: Nathaniel Taylor                            
Its:    Member                                                  

VORNADO TRUCK, LLC

By: Vornado Realty L.P. 
Its: Sole Member

By: Vornado Realty Trust 
Its: Sole Member

By: /s/ Wendy Silverstein                          
Name: Wendy Silverstein                             
Its:                                                               

     [Signature page to Amendment No. 3 to Stockholders Agreement]

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