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Employee Stock Purchase Plan




     Employee Stock Purchase Plan
             P R O S P E C T U S                A N D          P L A N      D O C U M E N T


                                    JANUARY 2011 ENROLLMENT




          W H I C H H A V E B E E N R E G I S T E R E D U N D E R T H E S E C U R I T I E S A C T O F 1 9 3 3.

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P
 R o S P E C T U S                                   I
                                                                                                                                          P R OS P E C T U S

     July, 2010

Employee Stock Purchase Plan 
This prospectus relates to shares of common stock of PetSmart Inc., offered to our employees pursuant to our 2002 Employee  
Stock Purchase Plan. The terms and conditions of the Purchase Plan, including the prices of the shares of our common stock, are 
governed by the provisions of the Purchase Plan and the agreements issued under the Purchase Plan. PetSmart, Inc., is referred  
to in this prospectus as the “Company” as well as “we,” “us,” or “our.”

THIS DoCUMENT CoNSTITUTES                               The following information is intended as a summary         as “10-Ks,” and quarterly reports, commonly 
PART oF A PRoSPECTUS CoVERING                           and may not answer all the questions you have              known as “10-Qs.” These reports are filed 
SECURITIES THAT HAVE BEEN                               about the Purchase Plan and is not intended to             with the Securities and Exchange Commission. 
REGISTERED UNDER THE SECURITIES                         go into every detail of the Purchase Plan. A copy          In addition, if certain important corporate events 
ACT oF 1933, AS AMENDED.                                of the Purchase Plan is found on page 15. The              occur during the year, the Company may file 
                                                        Benefits Line (1-866-263-8411) will be happy to            current reports commonly known as “8-Ks.” 
our principal offices are located at 19601 
                                                        answer further questions about your rights and             The Company will also be preparing and filing 
North 27th Avenue, Phoenix, Arizona  
                                                        benefits under the Plan. Questions relating to             with the Securities and Exchange Commission 
85027 and our telephone number at that 
                                                        the tax consequences of your participation in the          proxy statements in connection with its annual 
location is 1-623-580-6100.
                                                        Purchase Plan should be referred to your personal          meetings of stockholders. The proxy statements 
                                                        tax advisor. If you wish to participate in the Purchase    will provide further information about the 
To our Associates                                       Plan, you will need to enroll online or by phone.          Company and its officers, directors and major 
                                                                                                                   stockholders. From time to time the Company 
We are pleased to provide you with information 
                                                                                                                   may also file other documents with the Securities 
regarding our Employee Stock Purchase Plan, 
                                                        Information about PetSmart, Inc.
                                                                                                                   and Exchange Commission as required by 
referred to in these materials as the “Purchase 
                                                        An important part of your participation in the             Sections 13(a), 13(c), 14 and 15(d) of the 
Plan” or the “Plan.” PetSmart, Inc. adopted the 
                                                        Purchase Plan is understanding the Company,                Securities Exchange Act of 1934.
Purchase Plan in order to provide you with an 
                                                        its products, operations and financial condition. 
opportunity to participate in the Company’s                                                                        All of these documents constitute part of the 
                                                        Like any stockholder of the Company, you can 
potential growth. We believe the Purchase Plan                                                                     information required by the securities laws to be 
                                                        keep yourself informed about the Company by 
is an important part of the benefits provided to                                                                   provided or made available to you in connection 
                                                        reviewing reports and other documents that 
our employees and we hope you will take the                                                                        with your purchase of stock under the Purchase 
                                                        the Company prepares for stockholders and the 
time to review this information carefully.                                                                         Plan; and, these documents are incorporated by 
                                                        general public. If you become a stockholder of 
                                                                                                                   reference into these materials, which constitute 
                                                        the Company, you will be entitled to receive all 
We have divided our discussion of the Purchase 
                                                                                                                   the prospectus for the Purchase Plan.
                                                        stockholder communications, attend stockholder 
Plan into two parts. The first part of this document 
                                                        meetings, and vote in the election of members 
describes the terms of the Purchase Plan, which                                                                    For a copy of these documents, all of which are
                                                        of the Board and other matters brought before 
provides for the purchase of common stock at a                                                                     available without charge and upon written or
                                                        the stockholders.
discount and on tax advantaged terms. The second                                                                   oral request, please contact PetSmart Investor
part of this document describes the potential tax                                                                  Relations, 19601 N. 27th Avenue, Phoenix, AZ
                                                        The federal securities laws require the Company to 
consequences relating to your participation in the                                                                 85027, or at 1-623-587-2025.
                                                        provide information about its business and financial 
Purchase Plan.
                                                        status in annual reports, commonly known 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                                           1

The information in this prospectus is not           the closing price of the stock as of            Company will use your deductions 
intended to provide you with investment             the purchase date. Note that the                to purchase common stock for you 
guidance regarding your purchase rights.            extent to which you decide to make              at a price equal to 95 percent of the 
You should consult your personal tax and            contributions to the plan (i.e., up to 15       “Fair Market Value” of the stock on the 
financial advisers for guidance regarding           percent of your earnings) is calculated         stock on the Purchase Date. The Fair 
your purchase rights.                               based on your gross dollars earned,             Market Value of the common stock 
                                                    up to a max $25,000. However, the               is the closing price on the Purchase 
Please note that the Purchase Plan, and the
                                                    payroll deductions come out of your             date in question, as reported on the 
purchase rights you receive thereunder is
                                                    net (i.e., after-tax) pay.                      NASDAQ Stock Market exchange.
not a retirement plan, and the Purchase
Plan and your purchase rights are not a             The Purchase Plan authorizes the Board          The Board has authorized an offering 
substitute for a retirement plan.                   of Directors of the Company to specify:         to commence on Feb. 1, and Aug. 1, 
                                                                                                    of each calendar year. Each offering 
Neither the delivery of this prospectus nor             a
                                                    (a)    date (“offering Date”) or dates 
                                                                                                    will begin on the offering Date and 
any sale made hereunder shall under any                (“offering Dates”) on which rights to 
                                                                                                    end six months after the offering 
circumstances create any implication that              purchase the Company’s common 
                                                                                                    Date, unless otherwise adjusted by 
there has been no change in the affairs of             stock will be offered to employees 
                                                                                                    the Administrator. offerings beginning 
the Company since the date hereof.                     (an “offering”);
                                                                                                    on Feb. 1, and Aug. 1, shall have one 
                                                                                                    six-month offering Period, and end on 
                                                    (b)  he period of time (an “offering 
Part I                                                 Period”), which will commence 
                                                                                                    July 31 and Jan. 31, respectively.

Terms of the Purchase Plan                             on each offering Date and cannot 
Part I of this document provides general               exceed 27 months, during which 
                                                                                                 2.  Am I eligible to buy  
information about participation in the                 rights will be offered and the dates 
                                                                                                     common stock as part  
Purchase Plan. Part II of this document                (“Purchase Dates”) on which the 
                                                                                                     of the Purchase Plan?
describes various potential U.S. tax                   rights become exercisable; and
                                                                                                    Because the Purchase Plan is a tax- 
consequences related to your participation 
                                                                                                    advantaged plan, Internal Revenue 
                                                    (c)  he terms under which employees 
in the Purchase Plan, and Part III describes 
                                                                                                    Service (“IRS”) regulations require 
                                                       may contribute money for exercising 
the various Canadian tax consequences.
                                                                                                    certain minimal standards for 
                                                       the rights.
                                                                                                    participation in the Purchase Plan. 
Questions & Answers                                 If you decide to participate in the             The Board of Directors of the 
                                                    Purchase Plan (become a “Participant”),         Company has the discretion to specify 
1.  How does the                                    you will authorize the Company to               other standards for participation.These 
    Purchase Plan work?                             automatically deduct after-tax dollars          standards, together with the 
                                                    from each of your paychecks until you           IRS standards, are set forth in the 
     Basically, the Purchase Plan enables 
                                                    instruct the Company to stop these              Purchase Plan.
     you to purchase, through payroll 
                                                    deductions or until you terminate your 
     deductions, shares of the Company’s                                                            Under upcoming offerings, you are 
                                                    employment. See Question 7. on 
     common stock at 95 percent of                                                                  eligible to participate if, on an offering 
                                                    each designated Purchase Date, the 

2                                               E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
   Date, you have been employed by the             purchased under such right shall again            individual director may be removed 
   Company, or by a Designated Affiliate           become available for issuance. There              from office, prior to the expiration of a 
   of the Company, for at least six months         are approximately 1,850,000 shares                Board member’s term of office, only in 
   on such offering Date and you worked            available for sale remaining in the Plan.         the manner and within the limitations 
   at least 20 hours per week and at                                                                 provided by our Bylaws and the law 
   least five months per calendar year.         4.  Who has the right to                             of Delaware. Information about the 
   Consultants and advisors are not entitled        determine what benefits                          current members of the Board and 
   to participate in the Purchase Plan.             I receive under the                              the Committee is provided in our final 
                                                    Purchase Plan?                                   prospectus by which shares of our 
   Even if you are otherwise eligible, you 
                                                                                                     common stock were sold to the public, 
   may not accrue the right to purchase            The Board of Directors of the 
                                                                                                     or if later, the proxy statement for our 
   more than $25,000 worth of stock, as            Company (the “Board”) administers 
                                                                                                     last Annual Meeting of Stockholders. 
   valued at the beginning of an offering,         and interprets the provisions of 
                                                                                                     Additional information about the 
   pursuant to all stock purchase plans            the Purchase Plan. The Board has 
                                                                                                     administration of the Purchase Plan can 
   of the Company or its affiliates during         delegated authority to administer the 
                                                                                                     be obtained by calling the Benefits Line 
   any calendar year (as of the date of this       Purchase Plan to the Compensation 
                                                                                                     at 1-866-263-8411.
   Prospectus, the Company does not                Committee (the “Committee”). The 
   have any other stock purchase plans).           Committee is currently composed 
                                                                                                  5.  How do I enroll in the  
                                                   of four members of the Board. Each 
   Employees who own, or who are 
                                                                                                      Purchase Plan?
                                                   member of the Committee serves 
   entitled to purchase under certain 
                                                   for so long as the Board deems                    Generally, in order to participate 
   options, 5 percent or more of the stock 
                                                   appropriate and may be removed                    in an offering under the Purchase 
   of the Company or any subsidiary or 
                                                   by the Board at any time. The                     Plan, you must enroll online at 
   parent of the Company, are not eligible 
                                                   Committee also has the power to          or by phone 
   to participate in the Purchase Plan.
                                                   administer and interpret the provisions           at 1-877-367-6552 on or before the 
                                                   of the Purchase Plan. References to               last day of the enrollment period 
3.  How many shares are                            the Board in this document should                 for the offering in which your 
    reserved under the                             be construed as references to the                 participation will begin.
    Purchase Plan?                                 Committee, as applicable.
                                                                                                     The Enrollment process authorizes 
   The Purchase Plan currently authorizes 
                                                   Members of the Board normally are                 the Company to deduct automatically 
   the sale of up to 4,000,000 shares 
                                                   nominated by the Board and elected                a percentage of each gross paycheck 
   of our common stock. The common 
                                                   by the stockholders of the Company                specified by you. The money deducted 
   stock subject to the Purchase Plan 
                                                   for three year terms. All directors hold          is used to purchase the Company’s 
   may be unissued shares or reacquired 
                                                   office until the expiration of the term for       stock for you.
   shares, purchased on the open market 
                                                   which elected and until their successors 
   or otherwise. To the extent a right 
                                                   are elected and qualified or until their 
   under the Purchase Plan terminates 
                                                   earlier death, resignation, or removal 
   for any reason, any shares not 
                                                   from office. The entire Board or any 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                 3

                                                      (e)  he Board of Directors of the               arising under any Company group 
6.  When can I enroll?
                                                         Company discontinues the                     insurance or benefit program, traveling 
     Subject to the eligibility requirements             program, which it has the right              expenses, business and moving 
     set forth in Question 2 at the time                 to do at anytime.                            expense reimbursements, income 
     of enrollment, you can enroll in an                                                              received in connection with stock 
     offering during the open en  ollment 
                                r                 8.  How much of my earnings                         options, contributions made by the 
     period. If you meet the eligibility              can I have withheld to                          Company under any employee benefit 
     requirements and you would like                  purchase common stock                           plan and similar items.
     to enroll in this offering beginning             under the Purchase Plan?
                                                                                                      If your earnings increase or decrease, 
     February 1, 2011, you must enroll 
                                                      If you are eligible to participate in the       the amount (but not the percentage) 
     online at or 
                                                      Purchase Plan, you can authorize                deducted will be adjusted accordingly.
     by phone at 1-877-367-6552 on or 
                                                      the Company to withhold up to 15 
     before the enrollment deadline.
                                                      percent of your gross earnings, up           9.  When is common  
7.  How long is my                                    to a max of $25,000, for each pay                stock purchased?
                                                      period by enrolling either online at 
    enrollment effective?                                                                             Shares are purchased for you under the 
                                             or by phone 
                                                                                                      Purchase Plan on the Purchase Dates, 
     once you complete the enrollment                 at 1-877-367-6552. You may choose 
                                                                                                      which are each July 31 and January 31.
     process, deductions will be made                 any whole percentage of deductions 
     continually during the first offering            but cannot choose a fraction of a 
     Period for which your enrollment was             percentage. For example, you may 
                                                                                                   10. At what price are the  
     effective and during each subsequent             choose to have 2 percent or 3 percent 
                                                                                                       shares purchased?
     offering Period until:                           of your earnings deducted during each 
                                                                                                      The shares are purchased at a price 
                                                      pay period but not 2.5 percent. The 
                                                                                                      which is 95 percent of the Fair Market 
     (a)   ou choose to continue in the next 
                                                      amount you choose to have deducted 
                                                                                                      Value of the Company’s common stock 
        offering but change your contribution 
                                                      is up to you.
                                                                                                      on the Purchase Date (See Question 1 
        level during open enrollment;
                                                                                                      for a definition of Fair Market Value).
                                                      For purposes of the Purchase Plan, 
     (b)   ou instruct the Company to 
                                                      your “earnings” includes all salary, 
        terminate your deductions  
                                                      wages (including any amounts you may 
        (see Question 14, 16);
                                                      elect to defer under the Company’s 
                                                      401(k) plan or other cash or deferred 
     (c)   ou are no longer eligible  
                                                      arrangements), overtime pay, 
        (see Question 2);
                                                      commissions, incentives, bonuses and 
     (d)   o further shares are authorized for        other remuneration paid directly to 
        purchase under the Plan; or                   you, but excludes profit sharing, the 
                                                      cost of employee benefits paid for by 
                                                      the Company, education or tuition 
                                                      reimbursements, imputed income 

4                                                 E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
                                                                                                        months in the offering Period. If 
 The following chart illustrates the calculation of shares purchased                                    the maximum limit on the aggregate 
                                                                                                        number of shares that can be 
 Assume that:                                                                                           purchased by all employees would 
                                                                                                        be exceeded, the Board will allocate 
 Your total payroll deductions were                     $1,000.00
                                                                                                        a prorated portion of the shares 
 offering Date (at which time you are eligible)         February 1, 2011
                                                                                                        available for purchase for you and 
 Purchase Date                                          July 31, 2011                                   other employees in as nearly a 
 Fair Market Value of stock on Purchase Date            $30.00                                          uniform manner as practicable and 
 95 percent of stock value on Purchase Date             $28.50                                          as it deems equitable.
 Your shares are purchased at                           $28.50
                                                                                                  12. What happens to my 
 Number of shares purchased for you                     $1,000 ÷ $$28.50 = 35
                                                                                                      money during the period 
  You would receive 35 shares, and $2.50 (the excess of $1,000 over the purchase price of             before stock is purchased?
  35 shares) would be retained in your account to be used to purchase shares in the future.
                                                                                                     Your payroll deductions are maintained 
  If you sold one of the 35 shares, the tax consequences of that sale can be determined in 
  accordance with the chart on the page 10.                                                          with the general funds of the Company 
                                                                                                     and do not earn interest for you.

11. How many shares can                                  as valued at the beginning of the 
                                                                                                  13. What happens to my money 
    I purchase under the                                 offering Period, worth of stock in 
                                                                                                      (carry forward amount) 
    Purchase Plan?                                       any calendar year;
                                                                                                      at the end of an offering 
                                                                                                      Period if it is not used to 
    The maximum number of shares that                (c) No fractional shares will be issued;         purchase common stock?
    you can purchase on any Purchase 
                                                     (d)   n any single Purchase Date, all           Unless one of the limitations described 
    Date will be determined by dividing 
                                                         employees in the aggregate can              in Question 11 applies to you, the only 
    the balance of your payroll deductions 
                                                         purchase no more than the lesser            funds in your account at the end of an 
    on the Purchase Date by the 
                                                         of: 300,000 shares; the number of           offering Period will be the remaining 
    applicable purchase price. However, 
                                                         shares remaining in the Purchase            amount withheld for you that cannot 
    purchases will be subject to the 
                                                         Plan; or the number of shares that          be used to purchase a whole share on 
    following limitations:
                                                         were remaining in the Purchase Plan         the final Purchase Date. This amount 
    (a)   ou may purchase a maximum of                   as of the beginning of the applicable       will remain in your account for use on 
       3,750 shares of Common Stock on                   offering Period; and                        the next Purchase Date. If one of the 
       any Purchase Date;                                                                            limitations described in Question 11 
                                                     (e)  f any offering Period is less than 
                                                                                                     does apply to you, the amount left in 
    (b)   ou may not accrue the right to                six months, each participant may 
                                                                                                     your account because of such limitation, 
       purchase more than $25,000,                      purchase no more than 625 
                                                                                                     as required by IRS regulations, will be 
                                                        shares multiplied by the number of 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                   5

     returned to you, without interest, as           reduction in your deductions generally          You cannot re-enroll during any 
     soon as reasonably practicable after the        will begin with the next full pay period        offering if you had previously 
     end of the offering Period.                     after the Company receives your notice.         withdrawn from the Purchase Plan in 
                                                                                                     that offering. However, you can enroll 
     For example, assume that the purchase           You can stop your payroll deduction 
                                                                                                     in the Purchase Plan for any subsequent 
     price of the stock is $28.50 and that           at any time by logging on to 
                                                                                                     offerings, assuming you are otherwise 
     you had payroll deductions equal to    or call  
                                                                                                     eligible, if you complete the enrollment 
     $1,000. The Company will be able                E*Trade at 1-877-367-6552.
                                                                                                     process. See Questions 5 and 6.
     to purchase 35 shares of common 
                                                     You can withdraw the money deducted 
     stock for you with $2.50 remaining. 
                                                     for you during most times in an 
                                                                                                  17. What happens if I leave  
     Since $2.50 is less than $28.50 (the 
                                                     offering Period. See Question 16.
                                                                                                      the Company?
     purchase price of the stock), the $2.50 
     will remain in your account and will be                                                         Whether you leave the Company 
     used to purchase stock on the next 
                                                 15. Can I contribute additional                     voluntarily or your employment is 
     Purchase Date. Assume, however, that 
                                                     amounts if I want to buy                        terminated for any reason (including 
     for reasons discussed in Question 11, 
                                                     additional shares of stock?                     death or disability), your rights to 
     the Company can buy only 20 shares                                                              purchase stock under the Purchase 
                                                     No. only amounts withheld through 
     of common stock for you with $570.00                                                            Plan terminate immediately and your 
                                                     payroll deductions can be used toward 
     remaining. In this case, $430.00 will be                                                        payroll deductions and any carry 
                                                     the purchase of shares under the 
     returned to you.                                                                                forward amount not already used to 
                                                     Purchase Plan.
                                                                                                     purchase stock under the Purchase 
14. Can I reduce or increase                     16. Can I withdraw the money                        Plan will be returned to you (or your 
    the percentage of my payroll                     deducted for me, and                            estate) without interest as soon as 
    deductions at any time?                          thereby cease to participate,                   reasonably practicable.

     You can increase your payroll 
                                                     at any time? Can I later 
                                                     recommence my deductions                     18. What happens if I take  
     deductions only during open 
                                                     in that same offering?                           a leave of absence?
     enrollment for the next offering. To 
     increase your payroll deductions,                                                               During an approved leave of absence, 
                                                     You can withdraw your money, and 
     you must either log on to                                                                       you can continue to participate in the 
                                                     thereby cease to participate at any or call                                                                   Purchase Plan. If you cannot return 
                                                     time prior to the last month of the 
     E*Trade at 1-877-367-6552 before the                                                            to your job and your employment is 
                                                     offering Period by logging on to 
     enrollment deadline.                                                                            terminated you will receive a refund 
                                            or call E*Trade 
                                                                                                     of all deductions accumulated to date 
                                                     at 1-877-367-6552. Payroll will stop 
     You can reduce your payroll deductions 
                                                                                                     (reduced for prior stock purchases) 
                                                     deducting money and your deductions 
     during open enrollment and also once 
                                                                                                     without interest.
                                                     will be returned to you without interest, 
     during any offering Period by logging 
                                                     as soon as reasonably practicable.
     on to or call 
     E*Trade at 1-877-367-6552. The 

6                                                E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
   You will not be permitted to participate        otherwise to the public). Whether 
                                                                                                  21. Do I pay commissions on 
   in any future offerings until such time         information is material will depend on 
                                                                                                      the purchase of stock under 
   as you become eligible again under the          the specific circumstances.
                                                                                                      the Purchase Plan or on the 
   Purchase Plan.
                                                   A general test is whether dissemination 
                                                                                                      sale of that stock?
                                                   of the information to the public would 
19. When can I sell stock                                                                            You pay no commissions when stock 
                                                   be likely to affect  the market price of 
    purchased under the                                                                              is purchased for you under the Plan. 
                                                   the Company’s stock or would be likely 
    Purchase Plan?                                                                                   Generally, to sell your stock, you 
                                                   to be considered important by people 
                                                                                                     will need to activate your E*Trade 
   Subject to the Insider Trading Policy,          who are considering whether to buy 
                                                                                                     account, if you haven’t already done 
   you can sell stock purchased under the          or sell the Company’s stock. Certainly 
                                                                                                     so. You can then sell your stock 
   Purchase Plan as soon as it is deposited        if the information makes you want to 
                                                                                                     through E*Trade either online or via 
   into your E*Trade account, or you can           buy or sell, it would probably have 
                                                                                                     the telephone. You can expect to be 
   retain the shares and enjoy your rights         the same effect on others. Material 
                                                                                                     charged a fee or commission when 
   as a stockholder of the Company.                information may include financial results 
                                                                                                     you sell your stock. The Company 
   See Question 4 in Part II for the tax           or forecasts, real estate strategy, major 
                                                                                                     will not buy from you or sell on your 
   consequences of an immediate sale.              contract awards or cancellations and 
                                                                                                     behalf, or assist you in selling stock 
   For Canadian Associates see question 4          top management or control changes. 
                                                                                                     purchased for you under the Purchase 
   in Part III. officers are subject to special    If you have questions regarding what 
                                                                                                     Plan. officers are subject to special 
   limitations on the sale of their stock.         constitutes inside information, please 
                                                                                                     limitations on the sale of their stock.
                                                   refer to the Company’s Insider Trading 
20. If I am aware of material                      Policy or contact the office of the 
                                                                                                  22. Can I request that the stock 
    non-public information, can                    General Counsel at 1-800-738-1385.
                                                                                                      be issued in the name  
    I sell my stock before this                                                                       of my child, or a family  
                                                   If you are contemplating selling your 
    news is disclosed to the                                                                          trust, or in “street name”  
                                                   stock and you think you might have 
    public?                                                                                           for my broker?
                                                   “inside information” you should discuss 
   No. If you are aware of material                your possible sale with the General 
                                                                                                     No. However, after shares are 
   inside information, you should not              Counsel of the Company.
                                                                                                     purchased under the Purchase Plan 
   sell shares of the Company’s stock, 
                                                                                                     and deposited into your E*Trade 
                                                   If, after such discussion, it is determined 
   whether purchased through the “Plan” 
                                                                                                     account, you may transfer the shares to 
                                                   that such information is, in fact, inside 
   or otherwise, before dissemination of 
                                                                                                     any party you designate by contacting 
                                                   information, you must wait to sell your 
   the information to the public. “Inside 
                                                                                                     E*Trade at 1-800-838-0908.
                                                   stock until after such information has 
   information” is information that is 
                                                   been made public.
   both very important (material) and 
   non–public (not disclosed through 
   press releases, newspaper articles or 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                  7

                                                          Date, including an offering                   purchase of common stock for each 
23. Can the Company change 
                                                          underway at the time of the                   Participant properly correspond 
    the terms and conditions of 
                                                          Company’s action; and                         with amounts withheld from the 
    the Plan?
                                                                                                        Participant’s Earnings;
                                                       (3)   llocating shares.
     Except as provided below in the 
                                                                                                     (5)  o amend the Purchase Plan and/or 
     following two paragraphs, the 
                                                       Such modifications or amendments 
                                                                                                        any outstanding rights to enable the 
     Company will not change the terms 
                                                       shall not require stockholder approval 
                                                                                                        Purchase Plan and/or outstanding 
     and conditions during an ongoing 
                                                       or the consent of any participants.
                                                                                                        rights to qualify under Section 423 
     offering without your consent. The 
                                                                                                        of the Internal Revenue Code;
     Company can prospectively change                  These actions by the Company may be 
     the terms and conditions under                    made regardless of whether they alter 
                                                                                                     (6)  o establish multiple Purchase Dates 
     the Purchase Plan at any time by                  or impair the rights granted under the 
                                                                                                        within an offering Period;
     amending the Purchase Plan or the                 Purchase Plan.
     terms applicable in future offerings.                                                               t
                                                                                                     (7)  o provide for automatic withdrawal 
                                                       The Board may authorize the 
     Furthermore, certain changes in rights                                                             or enrollment provisions; and
                                                       Company to make any of the  
     will require stockholder approval. 
                                                       following changes without consent                 t
                                                                                                     (8)  o establish such other limitations 
     Stockholder approval must be obtained 
                                                       of any participants:                             or procedures as the Company 
     if the amendment increases the 
                                                                                                        determines in its sole discretion 
     number of shares authorized under 
                                                       (1)  o change the offerings, limit 
                                                                                                        advisable which are consistent with 
     the Purchase Plan or tax, securities or 
                                                          the frequency and/or number of 
                                                                                                        the Purchase Plan.
     other laws require stockholder approval 
                                                          changes in the amount withheld 
     for the amendment. In the event the 
                                                          during an offering;
     Company determines that the ongoing 
                                                                                                  24. Does the Company  
     operation of the Purchase Plan may                (2)  o establish the exchange ratio 
                                                                                                      pay dividends on its 
     result in unfavorable financial accounting           applicable to amounts withheld in a 
                                                                                                      common stock?
     consequences, the Company may                        currency other than U.S. dollars;
                                                                                                     The Company currently pays dividends 
     modify or amend the Purchase Plan  
                                                                                                     on its common stock. Dividends 
                                                       (3)  o permit payroll withholding in 
     to reduce or eliminate such accounting 
                                                                                                     will be paid to the stockholder who 
                                                          excess of the amount designated by 
     consequence including, but not  
                                                                                                     owns the stock on the record date 
                                                          a Participant in order to adjust for 
     limited to:
                                                                                                     (date Board of Directors determines). 
                                                          delays or mistakes in the Company’s 
                                                                                                     The Board of Directors decides each 
     (1)   ltering the purchase price for                 processing of properly completed 
                                                                                                     quarter whether a dividend will be paid 
        any offering including an offering                withholding elections;
                                                                                                     and if so, the amount. Contributions 
        underway at the time of the change 
                                                       (4)  o establish Purchase Plan                (payroll deductions) made by you from 
        in purchase price;
                                                          reasonable waiting and adjustment          February 1, 2011 to July 31, 2011, are 
     (2)   hortening any offering so that                 periods and/or accounting and              not eligible for dividends, because 
        offering ends on a new Purchase                   crediting procedures to ensure 
                                                          that amounts applied toward the 

8                                                  E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
   the purchase of the shares for this              A corporate transaction will be 
                                                                                                 Part II
   purchase period does not occur until             deemed to occur in the event of: 
   July 31, 2011.                                   (1) a dissolution or liquidation of 
                                                    the Company; (2) a merger or 
                                                                                                 U.S. Tax Issues Relating to Your 
25. What happens if there is a                      consolidation in which the Company 
                                                                                                 Participation in the Purchase 
    change in the Company’s                         is not the surviving corporation; (3) a 
    capital structure?                              merger in which the Company is the 
                                                                                                 The information contained in Part II is 
                                                    surviving corporation but the shares 
                                                                                                 designed to respond to questions you 
   If certain changes occur to the 
                                                    of the Company’s Common Stock 
                                                                                                 may have about the United States federal 
   Company’s capitalization (e.g., a 
                                                    are converted into other property; or 
                                                                                                 tax consequences of participating in the 
   stock split or reverse stock split of 
                                                    (4) any capital reorganization in which 
                                                                                                 Purchase Plan.
   our common stock), the Board will 
                                                    the stockholders of the Company 
   appropriately adjust the purchase price 
                                                    immediately before the reorganization        You should understand, however, that 
   and number of shares under each 
                                                    cease to own more than fifty percent         this tax information is not complete. For 
   outstanding purchase right.
                                                    (50%) of the shares of the Company           example, it does not address state or local 
                                                    entitled to vote.                            tax laws or the application of laws if you 
26. What happens to my                                                                           are subject to tax laws in Canada or other 
    purchase rights in the event                 27. Is the Purchase Plan                        countries besides the U.S.
    of a corporate transaction?                      subject to ERISA?
                                                                                                 Furthermore, because tax laws and 
   In the event of a corporate transaction 
                                                    The Purchase Plan is not subject to the      regulations may change, and interpretations 
   any surviving or acquiring corporation 
                                                    provisions of the Employee Retirement        of these laws and regulations can change the 
   may either continue or assume 
                                                    Income Security Act of 1974 (“ERISA”).       way the laws and regulations apply to you, 
   purchase rights outstanding under the 
                                                                                                 we recommend that you consult with a tax 
   Purchase Plan or may substitute similar          The Purchase Plan does not enjoy 
                                                                                                 advisor if you have questions relating to the 
   rights for those outstanding under the           the tax deferral benefits of a qualified 
                                                                                                 tax consequences of any specific transaction.
   Purchase Plan. If a surviving or acquiring       retirement plan. Your participation 
   corporation does not continue or                 in the Purchase Plan does not affect 
                                                                                                 1.  Am I taxed on the money 
   assume such purchase rights or does              your ability to participate in any 401(k) 
                                                                                                     withheld to purchase stock?
   not substitute similar rights for those          plan or other qualified retirement plan 
   outstanding purchase rights, then                maintained by the Company.                        Yes. The money withheld from your 
   accumulated contributions will be                                                                  earnings to purchase common stock 
   used to purchase stock within five (5)                                                             under the Purchase Plan is taxable 
   business days prior to the corporate                                                               income to you just as if you had actually 
   transaction and your purchase rights                                                               received the money. The amount 
   under the ongoing offering will                                                                    withheld under the Purchase Plan is 
   terminate immediately thereafter.                                                                  subject to all payroll taxes such as Social 
                                                                                                      Security, Medicare, and state, local and 
                                                                                                      federal income taxes.

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                   9

  Tax Treatment for ESPP Shares
                                          Fair Market Value                    Purchase Price (95%)                          Discount 
  Purchase Date
                                               $30.00  (d)                           $28.50  (a)                               $1.50
  January 31, 2011
                                   Basis (Based on            Selling Price       Then the Total         Income Included          Capital Gain
                                  Purchase Price): (a)       Per Share: (b)      Gain (Loss) is: (c)      on Your W2: (e)      (Loss) Per Share: (f)
  Disqualifying Disposition
      Example 1                          $28.50                 $20.00                -$8.50                   $1.50                   -$10.00
      Example 2                          $28.50                 $35.00                 $6.50                   $1.50                   $5.00

  Qualifying Disposition
      Example 1                          $28.50                 $20.00                -$8.50                   $0.00                   -$8.50
      Example 2                          $28.50                 $35.00                 $6.50                   $1.00                   $5.00

  (a) The purchase price is 95% of the Fair Market Value on the Purchase Date.
  (b) The selling price per share.
  (c) The Total Gain (Loss) is calculated by subtracting the Purchase Price (a) from the Selling Price (b).
  (d) The Fair Market Value on the Purchase Date.
  (e) For a disqualifying disposition the Income Included on Your W2 is calculated by taking the Fair Market Value on the date of 
      purchase (d) and subtracting the Purchase Price (a). For a qualifying disposition the Income Included on Your W2 is calculated  
      by taking the Fair Market Value on the purchase date (d) and subtracting the Purchase Price (a).
  (f) The Capital Gain (Loss) Per Share is calculated by subtracting column (e) from column (c).
  Whether your share is sold in a disqualifying disposition or a qualifying disposition will depend on how long you hold that share.  
  Be sure to consult with your personal tax advisor.

                                                         time of purchase, you do not have to                 Generally, you will include in income 
2.  Do I have to pay tax when  
                                                         pay federal income tax on this benefit               and pay tax on the difference between 
    stock is purchased by me  
                                                         at the time of purchase.                             what you paid for the common stock 
    under the Purchase Plan?
                                                                                                              and the higher of what you sold it for 
      Even though you are buying the stock          3.  What is my tax when I sell                            or the Fair Market Value at the time of 
      at a price which is 95 percent of the             the stock purchased by me                             the purchase. The amount of tax will 
      Fair Market Value of the stock at the             under the Purchase Plan?                              depend on your personal tax situation 
                                                                                                              and the characterization of any 
                                                                                                              profit or loss on the sale as ordinary 

10                                                  E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
   income or capital gain or loss, or a             stock in a disqualifying disposition for        common stock purchased by you under 
   combination of ordinary income and               an amount less than the Purchase                the Purchase Plan will be long-term 
   capital gain or loss.                            Date Value, you generally will be               capital gain or loss if the common stock 
                                                    deemed to have received ordinary                was held by you for more than one 
4.  Will my profit or loss be                       income equal to the difference                  year from the date of purchase.
    ordinary income or capital                      between the Purchase Date Value 
    gain or loss?                                   and the Purchase Price. However,             5.  What is the difference 
                                                    you generally will be able to report             between ordinary income 
   The characterization of the income you 
                                                    a capital loss equal to the difference           and capital gain income 
   recognize varies and depends upon 
                                                    between the sales price and the                  for federal income tax 
   how long you hold the common stock 
                                                    Purchase Date Value. Thus you will               purposes?
   before you dispose of it.
                                                    have ordinary income and a capital 
                                                                                                    As of the date of this document, 
                                                    loss in the same year, and you may 
   Disqualifying Disposition
                                                                                                    the maximum tax rate applicable to 
                                                    not be able to fully offset the income 
   Generally, if you transfer your stock in a 
                                                                                                    long-term capital gain is 15 percent  
                                                    with the loss.
   “disposition” within:
                                                                                                    while the maximum effective rate 
                                                 Qualifying Disposition                             applicable to ordinary income and 
   (a)   wo years after the first date 
                                                 Normally, if you transfer your stock in a          short-term capital gain is 35 percent. 
      on which you were eligible to 
                                                 qualifying disposition (a disposition other        Additionally, capital gains and losses 
      participate in the offering in which 
                                                 than a disqualifying disposition), or if you       are subject to certain other provisions 
      you purchased the stock; or
                                                 die while owning the stock, then any               of the Internal Revenue Code not 
   (b)   ne year after the issuance of the       gain will be characterized as ordinary             applicable to ordinary income.
      stock to you (generally the Purchase       income to the extent of the lesser of 
      Date). In either case, a “disqualifying    the gain recognized or an amount equal          6.  Is there any withholding at 
      disposition” – the difference between      to 5 percent of the Fair Market Value of            the time common stock is 
                                                 the stock on the first date on which you            purchased by me or when I 
   (1)  he Fair Market Value of the stock 
                                                 were eligible to enroll in the offering             sell the stock?
      on the date it was purchased by you 
                                                 in which you purchased the stock. Any 
      (the “Purchase Date Value”) and                                                               There currently is no income tax 
                                                 recognized gain in excess of the amount 
                                                                                                    withholding required when common 
                                                 characterized as ordinary income will 
   (2)  he price at which the stock was 
                                                                                                    stock is purchased or sold by you. The 
                                                 be treated as capital gain.
      purchased (the “Purchase Price”) 
                                                                                                    Company is required to report to the 
      will be characterized as ordinary 
                                                 If you make a qualifying disposition               IRS any ordinary income recognized by 
      income, and the balance of the 
                                                 that results in a loss, there will be no           you as a result of a disposition if such 
      profit (if any) – the difference 
                                                 recognition of ordinary income and                 information is available to the Company.
      between the sale price and the 
                                                 you will have a capital loss equal to the 
      Purchase Date Value – will be 
                                                 difference between the sale price and 
      characterized as capital gain. If you 
                                                 the Purchase Price. Any capital gain or 
      sell or otherwise dispose of your 
                                                 loss recognized on a sale or transfer of 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                   11

                                                        Resources no person has been                         A
                                                                                                         (3)   ll documents we have filed 
7.  What constitutes a 
                                                        authorized to give any information or               pursuant to Sections 13(a), 13(c), 
    disposition of stock for tax 
                                                        make any representations, other than                14 and 15(d) of the Exchange Act 
                                                        those contained in this prospectus, in              of 1934, as amended, after the 
      A disposition usually includes any sale,          connection with the Purchase Plan,                  date of this prospectus and prior 
      exchange, gift or transfer of legal title.        and, if given or made, such information             to the filing of a post-effective 
      Certain transactions are excluded,                or representations must not be relied               amendment which indicates that all 
      including a pledge or a transfer by               upon as having been authorized by us.               securities offered have been sold or 
      bequest or inheritance, or certain                This prospectus does not constitute                 which deregisters all securities then 
      transfers to a spouse or former spouse            an offering in any state in which such              remaining unsold, will be deemed 
      incident to a divorce. As this is a               offering may not lawfully be made.                  to be incorporated by reference in 
      complicated area, you should consult                                                                  this prospectus and to be part of this 
      your tax advisor for the consequences                                                                 prospectus from the date of filing 
                                                    Information Incorporated  
      of any disposition of plan stock.                                                                     such documents.
                                                    by Reference
      This prospectus contains information 
      concerning PetSmart, Inc. and the 
                                                        The following documents and                 Part III
                                                        information we previously filed with the 
      Purchase Plan, but does not contain 
                                                        Securities and Exchange Commission 
      all the information set forth in the 
                                                        are incorporated into this prospectus 
                                                                                                    Canadian Tax Issues Relating  
      Form S-8 registration statement for 
                                                        by reference:
                                                                                                    To Your Participation In The 
      the Purchase Plan which we have                                                               Purchase Plan
      filed with the Securities and Exchange                o
                                                        (1)   ur latest annual report on Form 
                                                                                                    The following is a general discussion of the 
      Commission, referred to as the                       10K filed pursuant to Sections 13(a) 
                                                                                                    Canadian federal income tax consequences 
      Commission, under the Securities                     or 15(d) of the Securities Exchange 
                                                                                                    of participation in the Plan and any 
      Act of 1933, as amended, referred to                 Act of 1934, as amended, or our 
                                                                                                    disposition of stock acquired under the Plan.
      as the Securities Act. The Form S-8                  latest prospectus filed pursuant to 
      registration statement, including the                Rule 424(b) under the Securities Act 
                                                                                                    This discussion is based on current Canadian 
      exhibits to the registration a statement,            of 1933, as amended, that contains 
                                                                                                    federal tax laws and regulations (as of  
      may be inspected at the Commission’s                 audited financial statements for 
                                                                                                    April 28, 2009) and is not a complete 
      office in Washington, D.C. In addition,              our latest fiscal year for which such 
                                                                                                    description of those Canadian federal tax 
      the Commission maintains a web                       statements have been filed.
                                                                                                    laws. In addition, you should understand 
      site that contains reports, proxy and 
                                                                                                    that this tax information does not address 
                                                        (2)   he description of our common 
      information statements and other 
                                                                                                    all taxes that may be applicable to you. For 
                                                           stock which is contained in our 
      information regarding registrants that 
                                                                                                    example, it does not address provincial tax 
                                                           registration statement on Form 
      file electronically with the Commission. 
                                                                                                    laws or the application of laws if you are 
                                                           8-A filed on 9/10/96 (SEC File No. 
      The address of the Commission’s web 
                                                                                                    subject to tax laws in the United States or 
                                                           021888) pursuant to Section 12(g) of 
      site is http:\\ Except for 
                                                                                                    other countries besides Canada.
                                                           the Securities Exchange Act of 1934, 
      the Senior Vice President, Human 
                                                           as amended.

12                                                  E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
Furthermore, because tax laws and                    stock) is included in your employment          In the most straightforward case, the ACB 
regulations may change, and interpretations          income and is subject to income tax            of the shares acquired under the Plan 
of these laws and regulations can change the         at the applicable graduated rates. See         will equal the amount you paid for the 
way the laws and regulations apply to you,           paragraph 4 for an example that shows          shares plus the amount of the discount 
we recommend that you consult with a tax             the tax treatment on both purchase             which was included in your income 
advisor if you have questions relating to the        and sale of shares. Where the purchase         upon acquisition of the shares. However, 
tax consequences of any specific transaction.        price of the shares is at least equal to       where you have acquired shares of 
                                                     the market price of the shares when            Common Stock at different times and 
1.  Is the grant of a purchase                       you were granted the right to purchase         prices (including shares acquired outside 
    right under the Purchase                         the shares, you may be able to deduct          the Purchase Plan), you may be required 
    Plan taxable to me?                              50% of the discount in calculating your        to average the cost of some or all of those 
                                                     taxable income for the year in which           shares in order to determine the ACB of 
     No. The grant of a purchase right 
                                                     you purchased the shares. You may              each share you sell.
     under the Plan does not result in 
                                                     also be eligible to defer some or all of 
     taxable income to you.
                                                                                                    You are generally required to include 
                                                     the tax on the discount until you sell 
                                                                                                    50% of any capital gain in income for 
2.  Am I taxed on the money                          the shares. You should consult with 
                                                                                                    tax purposes for the year in which 
    withheld to purchase stock?                      a professional tax advisor prior to the 
                                                                                                    the capital gain arises. Net taxable 
                                                     end of the year in which you purchase 
     Yes. The money withheld from your                                                              capital gain in any year will be subject 
                                                     shares under the plan for more 
     earnings to purchase common stock                                                              to income tax for that year at the 
                                                     details about the requirements for this 
     under the Purchase Plan is taxable                                                             applicable rates. Your tax advisor 
                                                     deduction and/or tax deferral.
     income to you just as if you had actually                                                      can assist you in determining the tax 
                                                     The amount of the discount will be 
     received the money. The amount                                                                 treatment of capital gains or losses 
                                                     reported on your T-4 form for the 
     withheld under the Purchase Plan                                                               arising from the disposition of stock 
                                                     year in which you acquire the stock. 
     is subject to all payroll taxes such as                                                        acquired under the Purchase Plan.
                                                     It is your responsibility to report the 
     Canada Pension Plan and Employment 
                                                     income on your annual income tax               For Example: Assume that the Fair 
     Insurance contributions and provincial 
                                                     return and pay any applicable taxes            Market Value of a share of Common 
     and federal income taxes.
                                                     when you file your tax return.                 Stock on the Purchase Date was $20. 
3.  Do I have to pay tax when                                                                       Further assume that you acquired 50 
    stock is purchased by me                      4.  What is my tax when I sell                    shares under the Plan for that offering 
    under the Purchase Plan?                          the stock purchased by me                     Period at a Purchase Price of $19 (95% 
                                                      under the Purchase Plan?                      of $20). Assume that you sell the 50 
     Yes. When you purchase stock under 
                                                     If you sell your shares, you will have a       shares for $25 per share six months 
     the Plan, the discount on those shares 
                                                     capital gain (or loss, as applicable) equal    later and do not own any other shares 
     (i.e., the difference between the Fair 
                                                     to the difference between the amount           of Common Stock.
     Market Value of the stock on the date 
                                                     received from the sale (less reasonable 
     of purchase and the amount of your 
                                                                                                    You will recognize $50 of income from 
                                                     selling expenses) and the adjusted cost 
     payroll deductions used to purchase the 
                                                                                                    employment for the year in which you 
                                                     base (“ACB”) of the shares.

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                 13

      acquire the shares (which represents              (These examples have been prepared              year of receipt and will be subject 
      the $20 Fair Market Value of the shares           on the assumption that no deduction             to tax on those dividends at normal 
      on the last day of the offering Period            or deferral in respect of the tax on            graduated rates. No special dividend 
      less the $19 Purchase Price, multiplied           the discount (see paragraph 3 above)            tax treatment will apply as the dividends 
      by the 50 shares which were acquired).            applies as it will be a question of fact,       are not payable by a Canadian resident 
      You will also recognize $250 of capital           based, among other things, on the price         corporation. You will also be subject 
      gain income (which represents the                 of the shares at the start of an offering       to U.S. non-resident withholding tax 
      sale price of $25 less the $20 ACB of             period and the purchase price you               on your dividends, but may be able 
      the shares multiplied by the 50 shares            actually pay, whether such deduction or         to claim a foreign tax credit when 
      which were sold). The ACB in this case            deferral is available.)                         calculating your Canadian income tax 
      is equal to the $19 Purchase Price plus                                                           payable in respect of the dividends. 
      the $1.00 discount included in your 
                                                    5.  Will taxes be withheld when                     Your tax advisor can assist you in 
      income upon acquisition of the shares. 
                                                        I acquire stock under the                       determining the tax treatment of any 
      50% of that capital gain, or $125, will 
                                                        Purchase Plan or when I sell                    dividends you receive on your stock 
      have to be included in your income for 
                                                        stock that I acquire under                      acquired under the Purchase Plan and 
      the year in which you sell the shares.
                                                        the Purchase Plan?                              the availability of any foreign tax credit.

                                                        Your employer is required to withhold 
      Another Example: Assume the same                                                               7.  Do I need to convert share 
                                                        federal and provincial income taxes, 
      facts as in the last example, except that                                                          values and dividends into 
                                                        as well as Canada Pension Plan 
      you sell the stock six months after the                                                            Canadian currency?
                                                        contributions, in respect to the discount 
      end of the offering Period at a price 
                                                        on the stock you purchase under the             Yes. Generally, the Income Tax Act 
      of $15 instead of $25. In this case, you 
                                                        Purchase Plan at the time you acquire           (Canada) (the “ITA”) provides that 
      will still recognize $50 of income from 
                                                        it. These withholdings will be deducted         Canadian tax results as defined by 
      employment for the year in which you 
                                                        from your regular salary and will reduce        the ITA must be determined using 
      acquire the shares (which represents 
                                                        the amount of tax you could otherwise           Canadian currency and the amount 
      the $20 Fair Market Value of the shares 
                                                        be required to pay in respect to the            of such Canadian currency is to be 
      on the last day of the offering Period 
                                                        purchase of shares under the Plan when          determined in the manner provided 
      less the $19 Purchase Price, multiplied 
                                                        you file your return (see question 3).          under the ITA. As the shares are 
      by the 50 shares which were acquired). 
                                                                                                        denominated in U.S. dollars and any 
      Instead of a capital gain, you will have a 
                                                        Capital gain on the sale of stock is not 
                                                                                                        dividends will be paid to you in U.S. 
      capital loss of $250 (which represents 
                                                        subject to withholding..
                                                                                                        dollars, you will need to convert share 
      the $20 ACB of the shares (determined 
                                                                                                        prices and dividends to Canadian 
      as in the last example) less the $15 sales    6.  Are dividends I receive on 
                                                                                                        dollars in accordance with the 
      price of the shares, multiplied by the 50         stock acquired under the 
                                                                                                        requirements of the ITA.
      shares which were sold). 50% of that              Purchase Plan taxable?
      capital loss, or $125, may be used to 
                                                        Yes. You will be required to include 
      offset the taxable portion of your capital 
                                                        the gross amount of any dividends 
      gains (if any).
                                                        in income for tax purposes in the 

14                                                  E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
2002 Employee Stock Purchase Plan 
  Amended and Restated, Plan Document Effective August 1, 2008
                                                                                          (h)   Designated Affiliate” means any 
1.  Purpose                                  2.  Definitions
                                                                                             Affiliate that has adopted the Plan, as 
   (a)   he purpose of the 2002 Employee        The capitalized terms set forth below        set forth in Appendix A.
      Stock Purchase Plan is to provide         shall have the meaning stated herein, 
                                                                                          (i)   Earnings” means the total 
      a means by which employees                unless context requires otherwise.
                                                                                            compensation paid to an Employee, 
      of PetSmart, Inc., a Delaware 
                                                (a)  Administrator” means either the        including all salary, wages (including 
      corporation, and employees of its 
                                                   Board or any Committee designated        amounts elected to be deferred by 
      Designated Affiliates, as defined 
                                                   by the Board in accordance with          the Employee, that would otherwise 
      below, may be given an opportunity 
                                                   paragraph 3(a).                          have been paid, under any cash or 
      to purchase stock of PetSmart, Inc. 
                                                                                            deferred arrangement established 
                                                (b)  Affiliate” means any “parent 
   (b) PetSmart, Inc., by means of the                                                      by the Company), overtime pay, 
                                                   corporation” or “subsidiary 
     2002 Employee Stock Purchase Plan,                                                     commissions, bonuses, and other 
                                                   corporation” of the Company, as 
     seeks to retain the services of its                                                    remuneration paid directly to the 
                                                   those terms are defined in Sections 
     employees, to secure and retain the                                                    Employee, but excluding profit 
                                                   424(e) and (f), respectively, of 
     services of new employees, and to                                                      sharing, the cost of Employee 
                                                   the Code.
     provide incentives for such persons                                                    benefits paid for by the Company, 
     to exert maximum efforts for the                                                       education or tuition reimbursements, 
                                                (c)   Board” means the Board of 
     success of PetSmart, Inc.                                                              imputed income arising under any 
                                                   Directors of the Company.
                                                                                            Company group insurance  
   (c)   etSmart, Inc. intends that the 
                                                (d)   Code” means the Internal Revenue      or benefit program, traveling 
      rights to purchase its common stock 
                                                   Code of 1986, as amended.                expenses, business and moving 
      granted under the 2002 Employee 
                                                                                            expense reimbursements, signing, 
      Stock Purchase Plan be considered             “
                                                (e)   Committee” means a committee 
                                                                                            relocation and other bonuses not 
      options issued under an “employee            of the Board which is delegated 
                                                                                            paid in cash such as through loan 
      stock purchase plan” as that term            authority to administer the Plan as 
                                                                                            forgiveness or cancellation, loans 
      is defined in Section 423(b) of the          provided in paragraph 3(a).
                                                                                            treated as income for income tax 
      Internal Revenue Code of 1986, 
                                                                                            purposes, income received in 
                                                (f)   Common Stock” means shares of 
      as amended.
                                                                                            connection with stock options, 
                                                  common stock of the Company.
                                                                                            contributions made by the Company 
                                                (g)   Company” means PetSmart, Inc., a      under any Employee benefit plan, 
                                                   Delaware corporation.                    and similar items of compensation.

                                                                                          (j)   Eligible Employee” means, as of the 
                                                                                             relevant offering Date, an Employee 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                      15

        (i) who has been continuously                     Administrator. If the Common Stock            otherwise provided by the 
        employed by the Company or by                     is listed on any established stock            Administrator in connection with  
        a Designated Affiliate for at least six           exchange including the NASDAQ                 an offering.
        (6) months, (ii) whose customary                  Global Market or the NASDAQ 
                                                                                                     (o)   offering Period” means a period of 
        employment with the Company or a                  Capital Market, the Fair Market 
                                                                                                        time during which the Administrator 
        Designated Affiliate is at least twenty           Value of a share of Common Stock, 
                                                                                                        grants rights to Eligible Employees 
        (20) hours per week and at least five             unless otherwise determined by the 
                                                                                                        to purchase Common Stock under 
        (5) months per calendar year, (iii)               Administrator, shall be the closing 
                                                                                                        this Plan.
        who will not, if allowed to participate           sales price (rounded up where 
        in the offering commencing on such                necessary to the nearest whole 
                                                                                                     (p)   Participant” means with respect 
        offering Date, be deemed to own,                  cent) for such security (or the closing 
                                                                                                        to an offering an Eligible Employee 
        as set forth in Section 423(b)(3) of              bid, if no sales were reported) as 
                                                                                                        who is participating in such offering.
        the Code, five percent (5%) or more               quoted on such exchange (or the 
        of the total combined voting power                exchange or market with the greatest           “
                                                                                                     (q)   Plan” means this 2002 Employee 
        of all classes of stock of the Company            volume of trading in the Common               Stock Purchase Plan.
        or of any Affiliate, and (iv) who is not          Stock) on the date of determination, 
                                                                                                     (r)   Purchase Date” means the date on 
        a member of a highly compensated                  as reported in The Wall Street 
                                                                                                       which each Participant’s accumulated 
        class of employees within the                     Journal or such other source as 
                                                                                                       payroll deductions and other 
        meaning of Section 423(b)(4)(D) of                the Administrator deems reliable. 
                                                                                                       additional payments specifically 
        the Code that has been designated                 Unless otherwise determined by the 
                                                                                                       provided for in the offering are 
        by the Administrator as not eligible              Administrator, if there is no closing 
                                                                                                       applied to the purchase of shares of 
        to participate in the offering. To                sales price (or closing bid if no sales 
                                                                                                       Common Stock as further described 
        the extent determined by the                      were reported) for the Common 
                                                                                                       in paragraph 8(a). 
        Administrator, in its sole discretion,            Stock on the date of determination, 
        service with an Affiliate prior to such           then the Fair Market Value shall be 
                                                                                                     (s)   Purchase Period” means the time 
        corporation becoming an Affiliate of              the closing sales price (or closing bid 
                                                                                                       designated by the Administrator or 
        the Company may be considered                     if no sales were reported) on the 
                                                                                                       by the Plan for Eligible Employees 
        as continuous employment with the                 last preceding date for which such 
                                                                                                       to accumulate payroll deductions in 
        Company or a Designated Affiliate                 quotation exists.
                                                                                                       order to purchase Common Stock 
        for purposes of the requirement in (i) 
                                                                                                       at the end of such Purchase Period 
                                                        (m)   offering” means the grant of rights 
        above of this paragraph.
                                                                                                       under the Plan.
                                                            from time to time to purchase 
      (k)   Employee” means an employee                     Common Stock of the Company 
                                                                                                     (t)   Purchase Price” has the meaning 
         of the Company or of a                             made during an offering Period 
                                                                                                       described in paragraph 10.
         Designated Affiliate.                              under paragraph 6 of the Plan.

      (l)   Fair Market Value” means the                    “
                                                        (n)   offering Date” has the meaning 
        value of the Common Stock, as                      defined in paragraph 6(b) unless 
        determined in good faith by the 

16                                                  E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
                                                            “employee stock purchase                   shares. The number of shares 
3.  Administration
                                                            plan” as defined in Section 423            available under the Plan shall be 
   (a)   he Plan shall be administered                      of the Code.                               subject to adjustment as provided 
       by the Board unless and until the                                                               under paragraph 14(a) of this Plan. 
                                                          (ii)   o construe and interpret the 
       Board delegates administration to                                                               If any rights granted under the Plan 
                                                             Plan and rights granted under 
       a Committee. Whether or not the                                                                 terminate for any reason without 
                                                             it, and to establish, amend and 
       Board has delegated administration,                                                             having been exercised, the shares 
                                                             revoke rules and regulations 
       the Board shall have the final                                                                  of Common Stock not purchased 
                                                             for its administration. The 
       power to determine all questions                                                                under such rights shall again become 
                                                             Administrator, in the exercise 
       of policy and expediency that may                                                               available for issuance under the Plan.
                                                             of this power, may correct 
       arise in the administration of the 
                                                             any defect, omission or                    T
                                                                                                    (b)   he Common Stock subject to the 
       Plan. If administration is delegated 
                                                             inconsistency in the Plan, in             Plan may be unissued shares or 
       to a Committee, the Committee 
                                                             a manner and to the extent                reacquired shares, bought on the 
       shall have, in connection with 
                                                             it shall deem necessary or                market or otherwise.
       the administration of the Plan, 
                                                             expedient to make the Plan  
       the powers possessed by the 
                                                             fully effective.
       Board, subject, however, to such                                                          5.  Eligible Employees
       resolutions as may be adopted  
                                                          (iii)   o amend or terminate the 
                                                                                                    (a)   ll Eligible Employees of the 
       from time to time by the Board. The 
                                                              Plan as provided in paragraphs 
                                                                                                       Company and each of its Designated 
       Board may abolish the Committee 
                                                              15 and 16.
                                                                                                       Affiliates on the offering Date of 
       or revoke the authority of the 
                                                                                                       each offering shall receive grants of 
       Committee at any time and revest                        T
                                                          (iv)   o decide from time to time 
                                                                                                       rights to purchase Common Stock 
       in the Board the administration of                     which Designated Affiliates of 
                                                                                                       on such offering Date pursuant to 
       the Plan.                                              the Company shall be eligible 
                                                                                                       such offering.
                                                              to participate in the Plan. 
   (b)   he Administrator shall have the 
                                                                                                    (b)   ights may be granted only to 
       power, subject to, and within the                      G
                                                          (v)   enerally, to exercise such 
                                                                                                       Eligible Employees of the Company 
       limitations of, the express provisions                powers and to perform such 
                                                                                                       or Designated Affiliates.
       of the Plan:                                          acts as the Administrator deems 
                                                             necessary or expedient to 
         (i)   o determine when and how 
                                                             promote the best interests of       6.  Grant of Rights; offering
           rights to purchase Common 
                                                             the Company.
           Stock of the Company shall                                                                   T
                                                                                                    (a)   he Administrator may from time 
           be granted and the provisions                                                               to time initiate an offering, by which 
           of each offering of such rights; 
                                                 4.  Shares Subject to the Plan                        it provides for the grant of rights to 
           provided, however, that such                                                                purchase Common Stock of the 
                                                    (a)   he number of shares of Common 
           rights shall qualify as options                                                             Company under the Plan to Eligible 
                                                        Stock initially reserved for issuance 
           granted pursuant to an                                                                      Employees on the offering Date of 
                                                        under the Plan shall be 4,000,000 
                                                                                                       such offering. Each offering shall 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                                17

         be made only during the offering                                                              Company may provide for any offering 
                                                   7.  Participation
         Period and shall be in such form                                                              that a Participant may more frequently 
         and shall contain such terms and              Each Eligible Employee as of an                 increase such Participant’s participation 
         conditions as the Administrator               offering Date for an offering shall             percentage. A Participant may reduce 
         shall deem appropriate. In no event           be a Participant in such offering. A            his or her participation percentage 
         will an offering Period exceed                Participant may purchase shares in an           only once during any Purchase Period; 
         twenty-seven (27) months.                     offering by delivering an agreement             provided, however, that a Participant 
                                                       authorizing payroll deductions for the          may withdraw from an offering after 
      (b)   nless the Administrator acts 
                                                       period for which such authorization             having previously decreased his or 
         otherwise as provided in paragraph 
                                                       is effective, and for each offering             her participation percentage during 
         6(a), the adoption of this Plan by 
                                                       thereafter the Eligible Employee’s              any Purchase Period. A reduction of a 
         the Board and the stockholders 
                                                       deductions shall continue as originally         Participant’s participation percentage 
         of the Company authorizes the 
                                                       elected, unless otherwise modified              to zero shall not be treated as a 
         Administrator to grant rights to 
                                                       or terminated. Such deductions from             withdrawal from the offering except to 
         purchase shares of the Common 
                                                       Earnings may be in whole percentages            the extent otherwise provided by the 
         Stock to all Eligible Employees. 
                                                       only, with a maximum percentage                 Company or specifically requested by 
         offerings beginning on February 1 
                                                       specified by the Administrator (but no          the Participant. Any such reduction in 
         and August 1 (the “offering Date”), 
                                                       more than the percentage provided               a Participant’s participation percentage 
         will each consist of an offering 
                                                       for in paragraph 9(c). The payroll              shall be effectuated by delivering a 
         Period with only one Purchase 
                                                       deductions made for each Participant            written notice to the Company in such 
         Period of 6 months. Prior to the 
                                                       shall be credited to an account for such        form as the Company provides and 
         commencement of any offering, 
                                                       Participant under the Plan and shall            such reduction shall take effect as soon 
         the Administrator may change any 
                                                       be deposited with the general funds             as administratively practicable.
         or all terms of such offering and any 
                                                       of the Company. A Participant may 
         subsequent offerings. The granting 
                                                       not make additional payments into 
         of rights pursuant to each offering 
                                                                                                    8.  Purchase
                                                       his or her account unless specifically 
         hereunder shall occur on each 
                                                       provided for in the offering and only               o
                                                                                                       (a)   n each Purchase Date, during the 
         respective offering Date unless, prior 
                                                       if the Participant has not had the                 relevant offering, each Participant’s 
         to such date (i) the Administrator 
                                                       maximum amount withheld during the                 accumulated payroll deductions and 
         determines that such offering shall 
                                                       Purchase Period. The payroll deduction             other additional payments specifically 
         not occur, or (ii) no shares remain 
                                                       agreement shall be in such form as                 provided for in the offering (without 
         available for issuance under the Plan 
                                                       the Company approves. A Participant                any increase for interest) will be 
         in connection with the offering. The 
                                                       may increase his or her participation              applied to the purchase of whole 
         shares will be purchased as provided 
                                                       percentage during the course of an                 shares of Common Stock of the 
         in paragraph 8.
                                                       offering only once and such increase               Company, up to the maximum 
                                                       will only take effect at the beginning of          number of shares permitted 
                                                       the next Purchase Period under such                pursuant to the terms of the Plan 
                                                       offering; provided, however, that the              and the applicable offering, at the 

18                                                 E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
      Purchase Price specified in the                registered, no rights granted under          to adjustment as provided under 
      offering. Unless the Administrator             the Plan or any offering shall be            paragraph 14(a), no Participant  
      otherwise provides, the Purchase               exercised on said Purchase Date and          may purchase more than three 
      Dates shall be each January 31st               the Purchase Date shall be delayed           thousand seven hundred fifty 
      and July 31st. No fractional shares            until the Plan is subject to such an         (3,750) shares of Common Stock on 
      shall be issued upon the exercise              effective registration statement,            any Purchase Date.
      of rights granted under the Plan.              except that the Purchase Date shall 
                                                                                               (c)   he maximum number of shares of 
      The amount, if any, of accumulated             not be delayed more than two (2) 
                                                                                                  Common Stock that a Participant 
      payroll deductions remaining in                months. If on the Purchase Date of 
                                                                                                  may purchase on any Purchase  
      each Participant’s account after the           any offering hereunder, as delayed 
                                                                                                  Date is that number of shares 
      purchase of shares which is less than          to the maximum extent permissible, 
                                                                                                  that can be purchased with fifteen 
      the amount required to purchase                the Plan is not registered, no rights 
                                                                                                  percent (15%) of the Earnings 
      one share of Common Stock on the               granted under the Plan or any 
                                                                                                  received by the Participant during 
      Purchase Date of an offering shall             offering shall be exercised and all 
                                                                                                  the Purchase Period.
      be held in each such Participant’s             payroll deductions accumulated 
      account for the purchase of shares             during the Purchase Period (reduced 
                                                                                               (d)  n no event may a Participant’s right 
      under the next Purchase Date under             to the extent, if any, such deductions 
                                                                                                  to purchase shares of Common 
      the offering or, if applicable, the            have been used to acquire 
                                                                                                  Stock exceed the limitation set 
      next offering.                                 stock) shall be distributed to the 
                                                                                                  forth in Section 423(b)(8) of the 
                                                     Participants, without interest.
                                                                                                  Code (commonly referred to as the 
   (b)  f a Participant withdraws from an 
                                                                                                  “$25,000 limitation”).
      offering during a Purchase Period, 
      as provided in paragraph 11(a), or 
                                               9.  Limitation on Participation 
                                                                                               (e)   ubject to adjustment as provided 
      ceases to be an Eligible Employee, 
                                                   Rights; Maximum Number 
                                                                                                  under paragraph 14(a), the 
      no shares of Common Stock will 
                                                   of Shares Purchasable
                                                                                                  maximum aggregate number of 
      be purchased and the amount of 
                                                  (a)   ubject to the limitations contained       shares available to be purchased 
      accumulated payroll deductions shall 
                                                     in this paragraph 9 and adjustment           by all Participants on any Purchase 
      be refunded to the Participant within 
                                                     as provided under paragraph                  Date shall be the least of (i) three 
      a reasonable time, without interest.
                                                     14(a), on each offering Date each            hundred thousand (300,000) shares 
                                                     Participant shall be granted the right       of Common Stock, (ii) the number 
   (c)   o rights granted under the Plan 
                                                     to purchase a number of shares               of shares remaining available  
      may be exercised to any extent 
                                                     of Common Stock equal to the                 under the Plan as of the relevant 
      unless the Plan (including rights 
                                                     product of six hundred twenty-five           offering Date, or (iii) the number  
      granted thereunder) is covered by 
                                                     (625) multiplied by the number of            of shares remaining available under 
      a registration statement filed and 
                                                     months in the offering Period.               the Plan as of such Purchase Date. If, 
      effective pursuant to the Securities 
                                                                                                  on any Purchase Date, the aggregate 
      Act of 1933, as amended. If on 
                                                  (b)   otwithstanding anything contained 
                                                                                                  purchase of shares of Common 
      a Purchase Date of any offering 
                                                     herein to the contrary but subject 
                                                                                                  Stock upon exercise of rights granted 
      hereunder the Plan is not so 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                             19

         under the offering would exceed                                                               of his or her accumulated payroll 
                                                  11. Withdrawal; Termination
         the maximum aggregate number of                                                               deductions (reduced to the extent, 
         shares available, the Administrator              D
                                                      (a)   uring an offering, a Participant           if any, such deductions have been 
         shall make a pro rata allocation of             may withdraw from an offering                 used to acquire Common Stock 
         the shares available in a uniform and           by delivering to the Company a                for him or her), without interest, 
         equitable manner. For the purposes              notice of withdrawal in such form             within a reasonable amount of time 
         of clarifying, but not limiting, the            as the Company may provide.                   after he or she ceases to be an 
         authority of the Administrator in               Such withdrawal may be elected                Eligible Employee.
         the preceding sentence, an equal                at any time prior to the end of 
                                                                                                    A Participant’s rights under the Plan 
         allocation to each Participant or               the offering, except as provided 
                                                                                                    shall not be transferable, and shall be 
         an allocation based on the relative             otherwise by the Company. Upon 
                                                                                                    exercisable only by the Participant to 
         amounts withheld would each                     such withdrawal from the offering 
                                                                                                    whom such rights are granted.
         result in a uniform and equitable               by a Participant, the Company shall 
         pro rata allocation.                            distribute to such Participant all 
                                                         of his or her accumulated payroll       12. Use of Proceeds  
10. Purchase Price                                       deductions (reduced to the extent,          From Stock
                                                         if any, such deductions have been 
                                                                                                    Proceeds received by the Company 
      The purchase price (the “Purchase                  used to acquire shares of Common 
                                                                                                    from the sale of Common Stock 
      Price”) for the Common Stock acquired              Stock for the Participant) under 
                                                                                                    pursuant to rights granted under the 
      pursuant to rights granted under the               the offering, and such Participant’s 
                                                                                                    Plan shall constitute general funds of 
      Plan shall be determined in the manner             purchase right in that offering 
                                                                                                    the Company, and may be applied for 
      established by the Administrator.                  shall thereupon terminate. A 
                                                                                                    general corporate purposes.
      Unless otherwise established by the                Participant’s withdrawal from an 
      Administrator, the Purchase Price for              offering shall have no effect upon 
      rights granted pursuant to an offering             such Participant’s eligibility to       13. Rights as a Stockholder
      shall be equal to the lesser of:                   participate in any other offerings 
                                                                                                    A Participant shall not be deemed to 
                                                         under the Plan, but such Participant 
      (a)   n amount equal to eighty-five                                                           be the holder of, or to have any of 
                                                         shall be required to deliver a 
         percent (85%) of the Fair Market                                                           the rights of a holder with respect to, 
                                                         new enrollment form in order to 
         Value of the Common Stock on the                                                           any shares subject to rights granted 
                                                         participate in any other offerings.
         offering Date rounded up to the                                                            under the Plan unless and until the 
         nearest cent per share; or                       R
                                                      (b)   ights granted to a Participant          Participant’s share holdings acquired 
                                                         pursuant to any offering under the         upon exercise of rights hereunder are 
      (b)   n amount equal to eighty-five 
                                                         Plan shall terminate immediately           recorded in the books of the Company.
         percent (85%) of the Fair Market 
                                                         upon the Participant ceasing, 
         Value of the Common Stock on the 
                                                         for any reason, to be an Eligible 
         Purchase Date rounded up to the 
                                                         Employee, and the Company 
         nearest cent per share.
                                                         shall distribute to such person all 

20                                                E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
                                                     Company shall not be treated as a               preceding sentence, the Participants’ 
14. Adjustments Upon  
                                                     “transaction not involving the receipt          accumulated payroll deductions 
    Changes in Stock
                                                     of consideration by the Company.”               shall be used to purchase Common 
   (a)  f any change is made in the shares                                                           Stock on such special Purchase 
                                                  (b)  n the event of: (1) a dissolution 
      of Common Stock subject to the                                                                 Date, and the Participants’ rights 
                                                     or liquidation of the Company; 
      Plan or subject to any right granted                                                           under the ongoing offering shall 
                                                     (2) a merger or consolidation 
      under the Plan, without the receipt                                                            thereafter be terminated.
                                                     in which the Company is not 
      of consideration by the Company 
                                                     the surviving corporation; (3) a 
      (through merger; consolidation; 
                                                     merger in which the Company 
                                                                                               15. Amendment of the Plan
      reorganization; recapitalization; 
                                                     is the surviving corporation but 
      reincorporation; stock dividend;                                                                T
                                                                                                  (a)   he Administrator at any time, and 
                                                     the shares of the Company’s 
      dividend in property other than                                                                from time to time, may amend the 
                                                     Common Stock outstanding 
      cash; stock split; liquidating dividend;                                                       Plan. To the extent determined 
                                                     immediately preceding the merger 
      combination of shares; exchange                                                                necessary and desirable by the 
                                                     are converted by virtue of the 
      of shares; change in corporate                                                                 Administrator, amendments to  
                                                     merger into property other than 
      structure or other transaction not                                                             the Plan shall be submitted to  
                                                     Common Stock of the Company; 
      involving the receipt of consideration                                                         the stockholders of the Company 
                                                     or (4) any capital reorganization 
      by the Company), the Board shall                                                               for approval.
                                                     in which the stockholders of the 
      appropriately and proportionately 
                                                     Company immediately before the                   R
                                                                                                  (b)   ights and obligations under any 
      adjust: (i) the class(es) and maximum 
                                                     reorganization cease to own more                rights granted before amendment 
      number of securities subject to the 
                                                     than fifty percent (50%) of the                 of the Plan shall not be adversely 
      Plan pursuant to paragraph 4(a); (ii) 
                                                     shares of the Company entitled to               altered or impaired by any 
      the class(es) and number of securities 
                                                     vote, then, as determined by the                amendment of the Plan, except 
      subject to, and the purchase price 
                                                     Administrator in its sole discretion,           with the consent of the person to 
      in effect for, outstanding offerings 
                                                     (i) any surviving corporation may               whom such rights were granted 
      and rights granted under the Plan; 
                                                     assume outstanding rights or                    or except as necessary to comply 
      and (iii) the class(es) and number 
                                                     substitute similar rights for those             with any laws or governmental 
      of securities imposed by purchase 
                                                     under the Plan, (ii) such rights may            regulation or as otherwise 
      limits of such outstanding offerings 
                                                     continue in full force and effect,              specifically provided in the Plan 
      and rights granted under the Plan 
                                                     or (iii) the Administrator may                  (such as in paragraph 15(c)).
      pursuant to paragraphs 9(a), 9(b), 
                                                     establish a special Purchase Date 
      and 9(e). The Administrator shall 
                                                                                                  (c)   ithout stockholder consent, the 
                                                     that, if established, shall occur 
      make such adjustments, and its 
                                                                                                     Administrator shall be entitled (i) 
                                                     within five (5) business days prior 
      determination shall be final, binding 
                                                                                                     to change the offering Periods; 
                                                     to the transaction described in 
      and conclusive. The conversion of 
                                                                                                     (ii) to limit the frequency of 
                                                     clauses (1) through (4) above. If a 
      any convertible securities of the 
                                                                                                     Purchase Dates; (iii) to establish 
                                                     special Purchase Date is established 
                                                                                                     multiple Purchase Dates within an 
                                                     pursuant to clause (iii) of the 
                                                                                                     offering Period; (iv) to provide for 

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                                               21

         automatic withdrawal or enrollment               on the earlier of July 31, 2012, or the       proceeding requests that the arbitration 
         provisions; (v) to limit the number              date on which the shares available            be heard by a panel of three arbitrators. 
         of changes permitted in the amount               under the Plan, as adjusted from              If a panel of three arbitrators is 
         withheld during an offering Period;              time to time, are exhausted. No               used, the arbitration decision shall 
         (vi) to establish the exchange ratio             rights may be granted under the Plan          be made by a majority of the three 
         applicable to amounts withheld in                while the Plan is suspended or after it       arbitrators. By electing to participate 
         a currency other than U.S. dollars;              is terminated.                                in the Plan, the Company and each 
         (vii) to permit payroll withholding                                                            Participant EXPRESSLY AGREE
                                                       (b)   ights and obligations under any 
         in excess of the amount designated                                                             TO ARBITRATION AND WAIVE
                                                          rights granted while the Plan 
         by a Participant in order to adjust                                                            ANY RIGHT TO TRIAL BY JURY,
                                                          is in effect shall not be altered 
         for delays or mistakes in the                                                                  JUDGE, OR ADMINISTRATIVE
                                                          or impaired by suspension or 
         Company’s processing of properly                                                               PROCEEDING. An arbitrator shall 
                                                          termination of the Plan, except with 
         completed withholding elections;                                                               have the same powers that a judge for 
                                                          the consent of the person to whom 
         (viii) to establish reasonable waiting                                                         a United States District Court located 
                                                          such rights were granted or except 
         and adjustment periods and/or                                                                  in the State of Arizona may exercise in 
                                                          as necessary to comply with any 
         accounting and crediting procedures                                                            comparable circumstances. Nothing in 
                                                          laws or governmental regulation or 
         to ensure that amounts applied                                                                 this Plan shall limit or restrict any right 
                                                          as provided in paragraph 15.
         toward the purchase of Common                                                                  of offset a party may have.
         Stock for each Participant properly 
         correspond with amounts withheld          17. Arbitration of Disputes                       18. Effective Date of Plan
         from the Participant’s Earnings; 
                                                       The Federal Arbitration Act shall apply 
         (ix) to amend the Plan and/or any                                                              The Plan shall become effective as 
                                                       to and govern all disputes arising under 
         outstanding rights to enable the                                                               determined by the Administrator, but 
                                                       the Plan or an offering made pursuant 
         Plan and/or outstanding rights to                                                              no rights granted under the Plan shall 
                                                       to the Plan. Any disputes with respect 
         qualify under Section 423 of the                                                               be exercised unless and until the Plan 
                                                       to the terms of this Plan or any rights 
         Code; and (x) to establish such                                                                has been approved by the stockholders 
                                                       granted hereunder, including, without 
         other limitations or procedures as                                                             of the Company.
                                                       limitation, the scope of this arbitration, 
         the Administrator determines in its 
                                                       shall be subject to arbitration pursuant 
         sole discretion advisable which are 
                                                       to the rules of the American Arbitration 
                                                                                                     19. Notices and Agreements
         consistent with the Plan.
                                                       Association governing commercial 
                                                                                                        Any notices or agreements provided 
                                                       disputes. Arbitration shall occur in 
                                                                                                        for in an offering or the Plan shall 
16. Termination or                                     Phoenix, Arizona. Judgment on any 
                                                                                                        be in writing, in a form provided by 
    Suspension of the Plan                             arbitration award may be entered 
                                                                                                        the Company, and unless specifically 
                                                       in any court having jurisdiction. A 
      (a)   he Administrator, in its sole                                                               provided for in the Plan or this offering 
                                                       single arbitrator shall be used unless 
         discretion, may suspend or terminate                                                           shall be deemed effectively given upon 
                                                       the amount in dispute exceeds 
         the Plan at any time. Unless sooner                                                            receipt or, in the case of notices and 
                                                       $200,000 and a party to the arbitration 
         terminated, the Plan shall terminate 

22                                                 E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S
   agreements delivered by the Company, 
                                                 22.  egistration of Shares
   five (5) days after deposit in the United 
   States mail, postage prepaid.                       The shares offered pursuant to the 
                                                       Plan will initially be registered with the 
                                                       Securities and Exchange Commission 
20. Exercise Contingent on 
                                                       on Form S-8.
    Stockholder Approval
                                                       PetSmart, Inc., a Delaware corporation
   The exercise of rights granted under 
   an offering prior to receiving any 
   required approval of the Plan by the 
                                                 By:  / S /                                                   
   stockholders of the Company shall be 
                                                 Name: Philip L. Francis
   subject to receiving such approval.
                                                 Its:   hairman and Chief Executive officer

21. offering Subject to Plan
                                                 By:  / S /                                                   
   Each offering is subject to all the 
                                                 Name: Scott A. Crozier
   provisions of the Plan, and its provisions 
                                                 Its:   enior Vice President,  
   are hereby made a part of the 
                                                     General Counsel and Secretary
   offering, and is further subject to all 
   interpretations, amendments, rules 
   and regulations which may from time 
   to time be promulgated and adopted            Appendix A
   pursuant to the Plan. In the event of any 
   conflict between the provisions of an 
                                                 Designated Affiliates (none)
   offering and those of the Plan (including 
   interpretations, amendments, rules 
   and regulations which may from time 
   to time be promulgated and adopted 
   pursuant to the Plan), the provisions of 
   the Plan shall control.

E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                                    23


                                        19601 North 27th Ave. • Phoenix, Arizona 85027       T3-MC1262



E M P L o Y E E   S T o C K   P U R C H A S E   P L A N   P R o S P E C T U S                   24

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