Document:

Exhibit 10.1

 

July 30, 2003

 

 

Mr. Mike Miles

3705 Euclid Avenue

Dallas, TX  75205

 

Dear Mike:

 

This letter supersedes
the one previously sent on July 21, 2003. 
We are, again, pleased to extend this invitation for you to join
Staples, Inc. as Chief Operating Officer, beginning September 8, 2003.  As we discussed, you will report to Ronald
Sargent and will receive a monthly salary of 
$41,666.67 ($500,000.00 on an annualized basis).  Additional details about our offer are
included below.  This letter contains
our complete offer of employment and in no way changes your status as an
at-will employee.

 

Bonus

Eligibility:             According
to your job level, you are eligible for a bonus equal to 60% of your salary
subject to the terms of Staples’ Key Management Bonus Plan.  This year’s bonus will be prorated based on
the number of days you are employed during the fiscal year (our fiscal year
ends on the Saturday closest to January 31st each year). Bonus
awards are based on actual results measured against pre-established Corporate
financial performance.

 

Stock

Options:                Your
position makes you eligible to receive an option to purchase 150,000 shares of
Staples’ stock subject to the terms of the Amended and Restated 1992 Equity
Incentive Plan (“Equity Incentive Plan”),* provided you have a signed
Non-Compete and Non-Solicitation Agreement on file as applicable by your job
level. They will vest 25% one year from date of grant, and then monthly at
2.083% per month for the remaining 36 months. 
The option price will be the closing price of Staples’ stock on the day
of grant. Within 60 days of your start date, we will send you a Stock Option
Grant Agreement with additional details about the terms and conditions of your
options. In the future, options are generally issued in July.

 

PARS:                   Your
position makes you eligible for 50,000 shares of Performance Accelerated
Restricted Stock (“PARS”) under the Equity Incentive Plan,* provided you have a
signed Non-Compete and Non-Solicitation Agreement on file as applicable by your
job level. PARS vest 100% after five years unless vesting accelerates based on
the achievement of specific performance targets. You will receive a full year
grant. Each October, Performance Accelerated Restricted Stock Award Agreements
are issued which set forth the terms and conditions of your PARS grant.

 

* The Board of Directors
currently intends to grant the same number of options and PARS to associates at
your level annually, but we cannot guarantee the level or existence of any
future awards. 

 

 

	
  Sign-on

  	
   

  	
  In addition you will
  also receive a one time sign-on grant of 50,000 shares of Performance

  
	
  PARS:

  	
   

  	
  Accelerated Restricted
  Stock (“PARS”) under the Equity Incentive Plan, provided you have a signed
  Non-Compete and Non-Solicitation Agreement on file as applicable by your job
  level. PARS vest 100% after five years unless vesting accelerates based on
  the achievement of specific performance targets.

  
	
   

  	
   

  	
   

  
	
  Vacation:

  	
   

  	
  4 weeks, which is accrued at 13.33 hours of
  vacation time per month in accordance with our Vacation Policy.

  
	
   

  	
   

  	
   

  
	
  Relocation:

  	
   

  	
  You
  may elect to relocate at company expense in accordance with the terms of the
  HR: Staples Relocation
  Policy – Level 35-50 Homeowners policy.  All associates are required to sign a
  Relocation Reimbursement Agreement prior to receiving reimbursements for
  their location expenses.  If you have
  questions regarding your relocation, please contact Michelle Solly at Sirva
  Relocation at 1-800-531-3840 ext 5273.

  

 

New
Hire

Requirements:             Staples
requires associates at your level to sign and/or submit the following
documents, which were attached in your original letter, as a condition of
employment.

•     Code of Ethics

•     Non-Compete and Non-Solicitation Agreement

•     Proprietary & Confidential Agreement

•     Severance Benefits Agreement

•     Employment eligibility documents (the Immigration
Reform and Control Act requires us to verify your employment eligibility.  Please review the information sheet included
with your original letter for a list of appropriate documents)

You must bring
these documents with you on your first day. 
You will not be allowed to begin work unless you submit and/or sign the
required documents.

 

Staples holds an
orientation called “The Road to Success at Staples” each Monday at 8:30 a.m. at
500 Staples Drive in Framingham.  Please
plan to attend the orientation session on your first day or the first Monday
after you start work.  When you arrive
at Staples, please check in at the security desk and ask for Carl Lopes.

 

We are very enthusiastic
about your joining Staples and look forward to a mutually rewarding working
relationship.

 

	
  Sincerely,

  
	
   

  
	
   

  
	
  /s/ Susan S. Hoyt

  	
   

  
	
  Susan S. Hoyt

  
	
  Executive Vice
  President Human Resources

  

 

cc:   Ronald
Sargent

Carl LopesExhibit 10.2

 

EXECUTION COPY

 

AMENDMENT NO. 2

Dated as of October 22, 2003

 

to

 

RECEIVABLES PURCHASE AGREEMENT

Dated as of October 27, 2000

 

THIS AMENDMENT
NO. 2 (the “Amendment”), dated as of October 22, 2003, is entered into
by and among LINCOLNSHIRE FUNDING, LLC, a Delaware limited liability company,
as Seller, STAPLES, INC., a Delaware corporation, as Servicer, CRC FUNDING,
LLC, a Delaware limited liability company formerly known as Corporate
Receivables Corporation, as Conduit Purchaser, CITIBANK, N.A. and LLOYDS TSB
BANK plc, as Committed Purchasers, and CITICORP NORTH AMERICA, INC., a Delaware
corporation, as agent for the Purchasers (the “Agent”). Capitalized
terms not defined herein shall have the meanings ascribed to such terms in the
RPA described below.

 

WHEREAS, the
Seller, the Servicer, the Conduit Purchaser, the Committed Purchasers and the
Agent have entered into that certain Receivables Purchase Agreement dated as of
October 27, 2000 (as previously amended by that certain Amendment No. 1 dated
as of October 24, 2002 and as it may be hereafter amended, restated,
supplemented or otherwise modified from time to time, the “RPA”); and

 

WHEREAS, the
Conduit Purchaser has requested that the termination date under the Asset
Purchase Agreement be extended to April 22, 2004; and

 

WHEREAS, in
connection with such extension, the parties to the RPA would like to amend the
confidentiality provisions of the RPA to take into account certain changes in
laws;

 

NOW THEREFORE,
in consideration of the foregoing and for other good and valuable consideration
receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1. Amendment.  Effective the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 2 hereof, the RPA
shall be amended as follows.

 

1.1           Notwithstanding the prior Commitments
in effect under the RPA, concurrently with the effectiveness of this Amendment,
the “Commitments” of each of the Purchasers named above shall equal $70,000,000
subject to future reduction by reason of assignment pursuant to Section 9.04 of
the RPA or as such amount may be reduced in accordance with Section 2.01(b) of
the RPA.

 

1.2           Section 9.09 of the RPA is hereby
amended to add at the conclusion thereof the following:  “Notwithstanding the foregoing, each party
hereto may disclose to any and all persons, without limitation of any kind, the
U.S. tax treatment and U.S. tax structure of the transactions contemplated by
this Agreement and all

 

 

materials of
any kind (including opinions or other tax analyses) that are provided to such
Person relating to such U.S. tax treatment and U.S. tax structure.”

 

SECTION
2.  Conditions Precedent.  This Amendment shall become effective and be
deemed effective as of the date hereof upon receipt by the Agent of
counterparts of this Amendment executed by each of the parties hereto.

 

SECTION
3.  Representations and Warranties.  Each of the parties hereto hereby represents
and warrants that this Amendment constitutes a legal, valid and binding
obligation of such party, enforceable against such party in accordance with its
terms.

 

SECTION
4.  Reference to and Effect on the
RPA.

 

4.1 Upon the effectiveness of this Amendment, each reference in the RPA
to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
shall mean and be a reference to the RPA, as amended hereby, and each reference
to the RPA in any other document, instrument or agreement executed and/or
delivered in connection with the RPA shall mean and be a reference to the RPA
as amended hereby.

 

4.2  Except as specifically
amended above, the RPA and all other documents, instruments and agreements
executed and/or delivered in connection therewith shall remain in full force
and effect and are hereby ratified and confirmed.

 

4.3  The execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of any Purchaser or the Agent under the RPA or any other
document, instrument or agreement executed in connection therewith, nor constitute
a waiver of any provision contained therein, except as specifically set forth
herein.

 

SECTION
5.  Execution in Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Amendment by telecopier shall be
effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION
6.  Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT GIVING
EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

SECTION
7.  Headings.  Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose.

 

2

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above
written.

 

	
   

  	
  LINCOLNSHIRE
  FUNDING, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Mayerson

  	
   

  
	
   

  	
   

  	
  Name: Robert
  Mayerson

  	
   

  
	
   

  	
   

  	
  Title:
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STAPLES,
  INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John J.
  Mahoney

  	
   

  
	
   

  	
   

  	
  Name: John
  J. Mahoney

  	
   

  
	
   

  	
   

  	
  Title: Executive Vice President and

  Chief Administrative Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LLOYDS TSB
  BANK plc

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Self

  	
   

  
	
   

  	
   

  	
  Name: Tim Self

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President Structured Finance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter
  Hart

  	
   

  
	
   

  	
   

  	
  Name: Peter
  Hart

  	
   

  
	
   

  	
   

  	
  Title:
  Assistant Director Structured Finance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK,
  N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  C. Simons

  	
   

  
	
   

  	
   

  	
  Name:
  Richard C. Simons

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CITICORP
  NORTH AMERICA, INC., as Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  C. Simons

  	
   

  
	
   

  	
   

  	
  Name:
  Richard C. Simons 

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CRC FUNDING,
  LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citicorp
  North America, Inc., as

  	
   

  
	
   

  	
   

  	
  Attorney-in-Fact

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  C. Simons 

  	
   

  
	
   

  	
   

  	
  Name:
  Richard C. Simons 

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  
										

 

Signature Page to
Amendment No. 2 to Receivables Purchase Agreement

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