Document:

Exhibit
10.3

 

	
  Restricted Stock Award Agreement

  	
  Staples,
  Inc.

  
	
   

  	
  Employer ID:
  04-2896127

  
	
   

  	
  500 Staples
  Drive

  
	
   

  	
  Framingham, MA
  01702

  

 

	
   

  	
   

  	
  ACCOUNT ID:

  	
   

  	
  «AccountID»

  
	
  «FirstName» «MiddleName» «LastName»

  	
   

  	
  LOCATION:

  	
   

  	
  «ExtraField2»

  
	
  «Address1»

  	
   

  	
   

  	
   

  	
   

  
	
  «Address2»

  	
   

  	
   

  	
   

  	
   

  
	
  «Address3»

  	
   

  	
   

  	
   

  	
   

  
	
  «City», «State»  «Zip»

  	
   

  	
   

  	
   

  	
   

  
	
  «Country»

  	
   

  	
   

  	
   

  	
   

  

 

In consideration
of services rendered to Staples, Inc., you have been awarded restricted shares
of Staples’ Common Stock under Staples, Inc.’s 2004 Stock Incentive Plan, as
follows:

 

	
  Award No.:

  	
  «GrantNumber»

  
	
  Stock Option
  Plan:

  	
  2004RS

  
	
  Date of Grant:

  	
  «GrantDate»

  
	
  Total Number of
  Shares:

  	
  «SharesGranted»

  
	
  Fair Market
  Value per Share:

  	
  $«OptionPrice»

  
	
  Total Value of
  Shares Granted:

  	
  $«TotalOptionPrice»

  

 

	
  Vesting Date

  	
   

  	
  Number of Shares

  Vesting on Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

By your acceptance
of this Restricted Stock Award Agreement, you acknowledge that this award is
granted under and governed by the terms and conditions of Staples, Inc.’s 2004
Stock Incentive Plan (as amended) and by
the terms and conditions of Staples, Inc.’s Restricted
Stock Award Agreement as attached.

 

You understand and
agree that this award is being granted to you in exchange for your execution of
a Non-Compete and Non-Solicitation Agreement in a form approved by Staples.

 

	
  Staples, Inc.

  	
  Signed by:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Ronald L.
  Sargent

  	
   

  
	
  President and
  Chief Executive Officer

  	
  «FirstName» «MiddleName» «LastName»

  

 

Attachment:  Staples, Inc. Restricted Stock Award
Agreement

 

 

STAPLES,
INC.

RESTRICTED STOCK AWARD AGREEMENT

 

1.              Award.  In consideration of services rendered,
Staples, Inc., a Delaware corporation (“Staples”), hereby awards to the
Executive named in the accompanying Notice of Award of Restricted Stock (the
“Notice”), pursuant to Staples’  2004
Stock Incentive Plan (the “Plan”), the Total Number of Shares of Common Stock
of Staples stated in the Notice (the “Shares”) subject to the terms and
conditions of this Restricted Stock Award Agreement and the Plan.  Except where the context otherwise requires,
the term “Staples” shall include any parent and all present and future
subsidiaries of Staples as defined in Sections 424(e) and 424(f) of the
Internal Revenue Code of 1986, as amended or replaced from time to time (the
“Code”).

 

2.              Transferability
of Shares.  Until the Vesting
Date described below, the Shares may not be sold, assigned, transferred,
pledged, hypothecated or otherwise disposed of (whether by operation of law or
otherwise) nor shall the Shares be subject to execution, attachment or similar
process, except that the Shares may be transferred by will or the laws of
descent and distribution or, upon notice to Staples, for estate planning
purposes to entities that are beneficially owned entirely by family
members.  All transferees of the Shares
must agree to be governed by all of the terms and conditions of this
Agreement.  Upon any sale, transfer,
assignment, pledge, hypothecation or other disposition, or any attempt to sell,
assign, transfer, pledge, hypothecate or otherwise dispose, of the Shares
contrary to the provisions hereof, or upon the levy of any execution,
attachment or similar process upon the Shares or such rights, the Shares shall,
at the election of Staples, be deemed repurchased by Staples at a repurchase
price of zero and all rights with respect to the Shares shall be forfeited to
Staples.  In addition, Staples may seek
any other legal or equitable remedies available to it, including rights of
specific performance.  Staples may refuse
to recognize as a shareholder of Staples any purported transferee of or holder
of any rights with respect to the Shares and may retain and/or recover all
dividends payable or paid with respect to such Shares.

 

3.              Vesting
of Shares.  Except as otherwise
provided in this Agreement, the transfer restrictions on the Shares shall
lapse, and the Shares shall be considered to “vest”, on the Vesting Date set
forth in the Notice.  

 

4.              Vesting
Date.

 

(a)  Continuous Relationship with
Staples Required. 
Except as otherwise provided in this Section 4, the Shares shall
not vest unless the Executive is, and has been at all times since the Date of
Award set forth in the Notice, an employee of, or a consultant to, Staples (an
“Eligible Executive”).

 

(b)  Termination of Relationship
with Staples.  If
the Executive ceases to be an Eligible Executive for any reason prior to the
Vesting Date, then, except as provided in paragraph (c) and (d) below, the
Shares shall be deemed repurchased by Staples at a repurchase price of zero and
ownership of all right, title and interest in and to the Shares shall be forfeited
and revert to Staples on the date such Executive ceases to be an Eligible
Executive.  If the Executive is an
employee on an approved leave of absence, then the Shares shall not be
forfeited as a result of such leave of absence unless and until the Executive’s
employment relationship is ultimately terminated

 

(c)  Vesting Upon Death or
Disability or Retirement. 
If the Executive (i) dies; (ii) becomes disabled (within the meaning of
Section 22(e)(3) of the Code); or (iii) terminates employment after
attaining age 55 and at the time of such termination of employment the sum of
the years of service (as determined by the Board of Directors of Staples)
completed by the Executive plus the Executive’s age is greater than or equal to
65, in each case prior to the Vesting Date while he or she is an Eligible
Executive, then the Shares shall vest fully in accordance with this
Section 4(c).

 

(d)  Termination for Cause.  If (a) the Executive’s relationship with
Staples is terminated by Staples for “cause” (as defined below), or (b) if the
Executive retires or resigns and Staples determines within six months
thereafter that the Executive’s conduct prior to his or her retirement or
resignation warranted a discharge for “cause,” or (c) Staples determines that
the Executive’s conduct after termination of the employment or consulting
relationship fails to comply with the terms of any non-competition,
non-solicitation or confidentiality provision contained in any employment,
consulting, advisory, proprietary information, non-disclosure, non-competition,
non-solicitation or other similar agreement between the Executive and Staples,
then, without limiting any other remedy available to Staples, the Shares shall
be deemed repurchased by Staples at a repurchase price of zero and ownership of
all right, title and interest in and to the Shares shall be forfeited and
revert to Staples as of the date of such determination; or, if the Executive at
such time no longer owns such Shares, Staples shall be entitled to recover from
the Executive the gross profit earned by the Executive upon the disposition
(whether by sale, gift, donation or otherwise) of such Shares.

 

“Cause,” as determined by Staples (which determination shall be
conclusive), shall mean:

 

(i) willful failure by the Executive to
substantially perform his or her duties with Staples (other than any failure
resulting from incapacity due to physical or mental illness); provided,
however, that Staples has given the Executive a written demand for substantial
performance, which specifically identifies the areas in which the Executive’s
performance is substandard, and the Executive has not cured such failure within
30 days after delivery of the demand.  No
act or failure to act on the Executive’s part will be deemed “willful” unless
the Executive acted or failed to act without a good faith or reasonable belief
that his or her conduct was in Staples’ best interest; or

 

1

 

(ii) breach by the Executive of any provision of
any employment, consulting, advisory, proprietary information, non-disclosure,
non-competition, non-solicitation or other similar agreement between the
Executive and Staples, including, without limitation, the Proprietary and
Confidential Information Agreement and/or the Non-Compete and Non-Solicitation
Agreement; or

 

(iii) violation by the Executive of the Code of
Ethics or an attempt by the Executive to secure any improper personal profit in
connection with the business of Staples; or

 

(iv) failure by the Executive to devote his or
her full working time to the affairs of Staples except as may be authorized in
writing by Staples’ CEO or other authorized Company official; or

 

(v) the Executive’s engagement in business other
than the business of Staples except as may be authorized in writing by Staples’
CEO or other authorized Company official; or

 

(vi) the Executive’s engagement in misconduct
which is demonstrably and materially injurious to Staples.

 

(e)  Repurchase/Forfeiture.   Upon
repurchase/forfeiture of the Shares for any reason hereunder, the Executive
shall cease to have any rights or privileges as a stockholder of Staples with
respect to the Shares repurchased/forfeited and such Shares shall again be
available for subsequent option grants or awards under the Plan.

 

5.              Delivery
of Shares.  Staples
shall, upon the Date of Award, effect issuance of the Shares by registering the
Shares in book entry form with Staples’ transfer agent in the name of the
Executive.  No certificate(s)
representing all or a part of the Shares shall be issued until vesting.

 

6.              No
Special Employment or Similar Rights. 
Nothing contained in the Plan or this Agreement shall be construed or
deemed by any person under any circumstances to bind Staples to continue the
employment or other relationship of the Executive with Staples for the period
prior to or after vesting.

 

7.              Rights
as a Shareholder.  Except as
otherwise provided herein, the Executive shall have all rights as a shareholder
with respect to the Shares including, without limitation, any rights to receive
dividends or non-cash distributions with respect to the Shares and to vote the
Shares and act in respect of the Shares at any meeting of shareholders.

 

8.              Adjustment
Provisions.

 

(a)  General.   In the event of any recapitalization, reclassification
of shares, combination of shares, stock dividend, stock split, reverse stock
split, spin-off or other similar change in capitalization or event or any
distribution to holders of Common Stock other than an ordinary cash dividend,
the Executive shall, with respect to the Shares, be entitled to the rights and
benefits, and be subject to the limitations, set forth in Section 9(a) of
the Plan.

 

(b)  Board Authority to Make
Adjustments.  Any
adjustments under this Section 8 will be made by the Board of Directors,
whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. 
No fractional shares will be issued with respect to Shares on account of
any such adjustments.

 

9.              Mergers,
Consolidations, Distributions, Liquidations, Etc.  In the event of a merger or consolidation or
any share exchange transaction in which outstanding shares of Common Stock are
exchanged for securities, cash or other property of any other corporation or
business entity, or in the event of a liquidation of Staples, the Executive
shall, with respect to this Agreement, be entitled to the rights and benefits,
and be subject to the limitations, set forth in Section 9 of the
Plan.  

 

10.       Vesting
Following a Change in Control.

 

(a)  Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

 

(i)  A “Change in Control” shall
be deemed to have occurred if (A) any “person”, as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange
Act”) (other than Staples, any trustee or other fiduciary holding securities under an employee benefit plan of Staples,
or any corporation owned directly or indirectly by the stockholders of Staples
in substantially the same proportion as their ownership of stock of Staples),
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of Staples representing
30% or more of the combined voting power of Staples’ then outstanding
securities (other than pursuant to a merger or consolidation described in
clause (1) or (2) of subsection (C) below); (B) individuals who, as of the
date hereof, constitute the Board of Directors of Staples (as of the date hereof,
the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board of Directors, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by
Staples’ stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
directors of Staples, as such terms are used in Rule 14a-11 of Regulation 14A
under the Exchange Act) shall be, for purposes of this Agreement, considered as
though such person were a member of the Incumbent Board; (C) the stockholders
of Staples

 

2

 

approve a merger
or consolidation of Staples with any other corporation, other than (1) a merger
or consolidation which would result in the voting securities of Staples
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 75% of the combined voting power of the voting securities
of Staples or such surviving entity outstanding immediately after such merger
or consolidation, or (2) a merger or consolidation effected to implement a
recapitalization of Staples (or similar transaction) in which no “person” (as
defined above) acquires more than 30% of the combined voting power of Staples’
then outstanding securities; or (D) the stockholders of Staples approve an
agreement for the sale or disposition by Staples of all or substantially all of
Staples’ assets.

 

(ii) “Surviving Corporation” shall mean (x) in the case of a Change in
Control pursuant to clause (A) or clause (B) of Section 10(a)(i), Staples;
(y) in the case of a Change in Control pursuant to clause (C) of
Section 10(a)(i), the surviving or resulting corporation in such merger or
consolidation; and (z) in the case of a Change in Control pursuant to Clause
(D) of Section 10(a)(i), the entity acquiring the majority of the assets
being sold or disposed of by Staples.

 

(b)  Effect of Change in Control.
Notwithstanding the provisions of Section 3(a), if a Change in Control of
Staples occurs, the Shares shall become vested as follows:

 

(i)  If, upon the Change in
Control, the Executive

 

(A) is not offered employment with the Surviving
Corporation (or is not allowed to continue his or her employment, if the
Surviving Corporation is Staples) in a position (1) in which the title,
employment duties and responsibilities, conditions of employment, and the level
of compensation and benefits are at least equivalent to those in effect during
the 90-day period immediately preceding the Change in Control and (2) that does
not involve a relocation of the Executive’s principal place of employment of
more than 30 miles, and

 

(B) does not accept (or continue) employment with the
Surviving Corporation (regardless of position, compensation or location), or

 

(ii) If, within one year following the date of the Change in Control,
the Executive either

 

(A) is discharged without cause (as defined in
Section 4(d)) or

 

(B) resigns because his or her title or employment
duties and responsibilities are diminished, his or her conditions of employment
are adversely changed, the level of his or her compensation and benefits are
reduced, or his or her principal place of employment is relocated by more than
50 miles, then the vesting of Shares shall be accelerated such that all of
Shares shall vest effective upon the date of such discharge or resignation
(which shall be considered a Vesting Date hereunder).

 

11.       Withholding
Taxes.  Staples’ obligation to
vest the Shares shall be subject to the Executive’s satisfaction of all
applicable federal, state and local income and employment tax withholding
requirements.

 

12.       Miscellaneous.

 

(a)  Except as provided herein,
this Agreement may not be amended or otherwise modified unless evidenced in
writing and signed by Staples and the Executive unless the Board of Directors
determines that the amendment or modification, taking into account any related
action, would not materially and adversely affect the Executive.

 

(b)  All notices under this
Agreement shall be mailed or delivered by hand to Staples at its main office,
Attn: Secretary, and to the Executive to his or her last known address on the
employment records of Staples or at such other address as may be designated in
writing by either of the parties to one another.

 

(c)  This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware.Exhibit
10.4

 

	
  Notice of Award of Performance Accelerated

  Restricted Stock

  	
  Staples,
  Inc.

  Employer ID: 04-2896127

  500 Staples Drive

  Framingham, MA 01702

  
	
   

  
	
   

  

 

	
  «FirstName» «LastName»

  	
   

  	
  ACCOUNT ID:

  	
  «AccountID»

  
	
  «Address1»

  	
   

  	
  LOCATION:

  	
  «ExtraField2»

  
	
  «Address2»

  	
   

  	
   

  	
   

  
	
  «City», «State»  «Zip»

  	
   

  	
   

  	
   

  
	
  «Country»

  	
   

  	
   

  	
   

  

 

In consideration of services rendered to Staples, Inc., you have been
awarded shares of Staples Common Stock under Staples, Inc.’s Performance
Accelerated Restricted Stock (“PARS”) program as follows:

 

	
  PARS Award No.:

  	
   

  	
  «GrantNumber»

  
	
  Stock Plan:

  	
   

  	
  2004RS

  
	
  Date of Award:

  	
   

  	
  «Grant Date»

  
	
  Total Number of
  Shares:

  	
   

  	
  «SharesGranted»

  
	
  Fair Market
  Value per Share:

  	
   

  	
  «FairValue»

  
	
  Total Value of
  Shares Granted:

  	
   

  	
  «TotalOptionPrice»

  
	
  Vesting Date:

  	
   

  	
  «Date»

  

 

PARS ACCELERATION
SCHEDULE

 

	
  Staples, Inc.

  Fiscal Year

  	
   

  	
  Minimum

  EPS Required

  	
   

  	
  Accelerated

  Vesting Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

By your acceptance of this Performance Accelerated Restricted Stock
Award, you agree that this award is granted under and governed by the terms and
conditions of Staples, Inc.’s  2004  Stock Incentive Plan (as amended from time to
time) and by the terms and conditions of Staples, Inc.’s Performance
Accelerated Restricted Stock Award Agreement (PARS42004), which is attached
hereto.

 

You understand and agree that this Performance Accelerated Restricted
Stock Award is being awarded to you in exchange for your execution of a
Non-Compete and Non-Solicitation Agreement in a form approved by Staples.

 

	
  Accepted
  by:

  	
   

  	
  Staples, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Ronald L.
  Sargent

  
	
  «FirstName» «LastName»

  	
   

  	
  President and
  Chief Executive Officer

  
				

 

Attachment:  Staples, Inc. Performance Accelerated
Restricted Stock Award Agreement

 

 

STAPLES,
INC.

PERFORMANCE
ACCELERATED RESTRICTED STOCK AWARD AGREEMENT

 

1.              Award.  In consideration of services rendered,
Staples, Inc., a Delaware corporation (“Staples”), hereby awards to the
Executive named in the accompanying Notice of Award of Performance Accelerated
Restricted Stock (the “Notice”), pursuant to Staples’  2004 Stock Incentive Plan (the “Plan”), the
Total Number of Shares of Common Stock of Staples stated in the Notice (the
“Shares”) subject to the terms and conditions of this Performance Accelerated
Restricted Stock Award Agreement and the Plan. 
Except where the context otherwise requires, the term “Staples” shall
include any parent and all present and future subsidiaries of Staples as
defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as
amended or replaced from time to time (the “Code”).

 

2.              Transferability
of Shares.  Until the Vesting
Date described below, the Shares may not be sold, assigned, transferred,
pledged, hypothecated or otherwise disposed of (whether by operation of law or
otherwise) nor shall the Shares be subject to execution, attachment or similar
process, except that the Shares may be transferred by will or the laws of
descent and distribution or, upon notice to Staples, for estate planning
purposes to entities that are beneficially owned entirely by family
members.  All transferees of the Shares
must agree to be governed by all of the terms and conditions of this
Agreement.  Upon any sale, transfer,
assignment, pledge, hypothecation or other disposition, or any attempt to sell,
assign, transfer, pledge, hypothecate or otherwise dispose, of the Shares
contrary to the provisions hereof, or upon the levy of any execution,
attachment or similar process upon the Shares or such rights, the Shares shall,
at the election of Staples, be deemed repurchased by Staples at a repurchase
price of zero and all rights with respect to the Shares shall be forfeited to
Staples.  In addition, Staples may seek
any other legal or equitable remedies available to it, including rights of
specific performance.  Staples may refuse
to recognize as a shareholder of Staples any purported transferee of or holder
of any rights with respect to the Shares and may retain and/or recover all
dividends payable or paid with respect to such Shares.

 

3.              Vesting
of Shares.

 

(a)  Vesting Schedule.  Except as otherwise provided in this
Agreement, the transfer restrictions on the Shares shall lapse, and the Shares
shall be considered to “vest”, on the Vesting Date set forth in the
Notice.  The Vesting Date shall be
accelerated in accordance with the Performance Acceleration Schedule on
the reverse such that if Staples’ EPS (as defined below) for the applicable
Fiscal Year is equal to or greater than that specified, all of the Shares shall
vest thereafter as of the applicable accelerated Vesting Date.

 

(b)  EPS.  For purposes of this Agreement, EPS shall
mean Staples’ earnings per share as set forth in financial statements contained
in Staples’ Form 10-K filed with the Securities and Exchange Commission for the
applicable Fiscal Year adjusted in the sole discretion of the Compensation
Committee (i) to reflect the aggregate effect of any accelerated vesting of
shares under the PARS program or similar program(s) and/or (ii) to exclude any
special, one-time or extraordinary charges or items included in calculation of
the earnings per share amount set forth in such financial statements.

 

4.              Vesting
Date.

 

(a)  Continuous Relationship with
Staples Required. 
Except as otherwise provided in this Section 4, the Shares shall
not vest unless the Executive is, and has been at all times since the Date of
Award set forth in the Notice, an employee of, or a consultant to, Staples (an
“Eligible Executive”).

 

(b)  Termination of Relationship
with Staples.  If
the Executive ceases to be an Eligible Executive for any reason prior to the
Vesting Date, then, except as provided in paragraph (c) and (d) below, the
Shares shall be deemed repurchased by Staples at a repurchase price of zero and
ownership of all right, title and interest in and to the Shares shall be
forfeited and revert to Staples on the date such Executive ceases to be an
Eligible Executive.  If the Executive is
an employee on an approved leave of absence, then the Shares shall not be
forfeited as a result of such leave of absence unless and until the Executive’s
employment relationship is ultimately terminated

 

(c)  Vesting Upon Death or
Disability or Retirement. 
If the Executive (i) dies; (ii) becomes disabled (within the meaning of
Section 22(e)(3) of the Code); or (iii) terminates employment after
attaining age 55 and at the time of such termination of employment the sum of
the years of service (as determined by the Board of Directors of Staples)
completed by the Executive plus the Executive’s age is greater than or equal to
65, in each case prior to the Vesting Date while he or she is an Eligible
Executive, then the Shares shall vest fully in accordance with this
Section 4(c).

 

(d)  Termination for Cause.  If (a) the Executive’s relationship with
Staples is terminated by Staples for “cause” (as defined below), or (b) if the
Executive retires or resigns and Staples determines  within six months thereafter that the
Executive’s conduct prior to his or her retirement or resignation warranted a
discharge for “cause,” or (c) Staples determines that the Executive’s conduct
after termination of the employment or consulting relationship fails to comply
with the terms of any non-competition, non-solicitation or confidentiality
provision contained in any employment, consulting, advisory, proprietary
information, non-disclosure, non-competition, non-solicitation or other similar
agreement between the Executive and Staples, then, without limiting any other
remedy available to Staples, the Shares shall be deemed repurchased by Staples
at a repurchase price of zero and ownership of all right, title and interest in
and to the Shares shall be forfeited and revert to Staples as of the date of
such determination; or, if the Executive at such time no longer owns such
Shares, Staples

 

1

 

shall be entitled
to recover from the Executive the gross profit earned by the Executive upon the
disposition (whether by sale, gift, donation or otherwise) of such Shares.

 

“Cause,” as determined by Staples (which determination shall be
conclusive), shall mean:

 

(i) willful failure by the Executive to
substantially perform his or her duties with Staples (other than any failure
resulting from incapacity due to physical or mental illness); provided,
however, that Staples has given the Executive a written demand for substantial
performance, which specifically identifies the areas in which the Executive’s
performance is substandard, and the Executive has not cured such failure within
30 days after delivery of the demand.  No
act or failure to act on the Executive’s part will be deemed “willful” unless
the Executive acted or failed to act without a good faith or reasonable belief
that his or her conduct was in Staples’ best interest; or

 

(ii) breach by the Executive of any provision of
any employment, consulting, advisory, proprietary information, non-disclosure,
non-competition, non-solicitation or other similar agreement between the
Executive and Staples, including, without limitation, the Proprietary and
Confidential Information Agreement and/or the Non-Compete and Non-Solicitation
Agreement; or

 

(iii) violation by the Executive of the Code of
Ethics or an attempt by the Executive to secure any improper personal profit in
connection with the business of Staples; or

 

(iv) failure by the Executive to devote his or
her full working time to the affairs of Staples except as may be authorized in
writing by Staples’ CEO or other authorized Company official; or

 

(v) the Executive’s engagement in business other
than the business of Staples except as may be authorized in writing by Staples’
CEO or other authorized Company official; or

 

(vi) the Executive’s engagement in misconduct
which is demonstrably and materially injurious to Staples.

 

(e)  Repurchase/Forfeiture.   Upon
repurchase/forfeiture of the Shares for any reason hereunder, the Executive
shall cease to have any rights or privileges as a stockholder of Staples with
respect to the Shares repurchased/forfeited and such Shares shall again be
available for subsequent option grants or awards under the Plan.

 

5.              Delivery
of Shares.  Staples
shall, upon the Date of Award, effect issuance of the Shares by registering the
Shares in book entry form with Staples’ transfer agent in the name of the
Executive.  No certificate(s)
representing all or a part of the Shares shall be issued until vesting.

 

6.              No
Special Employment or Similar Rights. 
Nothing contained in the Plan or this Agreement shall be construed or
deemed by any person under any circumstances to bind Staples to continue the
employment or other relationship of the Executive with Staples for the period
prior to or after vesting.

 

7.              Rights
as a Shareholder.  Except as
otherwise provided herein, the Executive shall have all rights as a shareholder
with respect to the Shares including, without limitation, any rights to receive
dividends or non-cash distributions with respect to the Shares and to vote the
Shares and act in respect of the Shares at any meeting of shareholders.

 

8.              Adjustment
Provisions.

 

(a)  General.   In the event of any recapitalization,
reclassification of shares, combination of shares, stock dividend, stock split,
reverse stock split, spin-off or other similar change in capitalization or
event or any distribution to holders of Common Stock other than an ordinary
cash dividend, the Executive shall, with respect to the Shares, be entitled to
the rights and benefits, and be subject to the limitations, set forth in
Section 9(a) of the Plan.

 

(b)  Board Authority to Make
Adjustments.  Any
adjustments under this Section 8 will be made by the Board of Directors,
whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. 
No fractional shares will be issued with respect to Shares on account of
any such adjustments.

 

9.              Mergers,
Consolidations, Distributions, Liquidations, Etc.  In the event of a merger or consolidation or
any share exchange transaction in which outstanding shares of Common Stock are
exchanged for securities, cash or other property of any other corporation or
business entity, or in the event of a liquidation of Staples, the Executive
shall, with respect to this Agreement, be entitled to the rights and benefits,
and be subject to the limitations, set forth in Section 9 of the Plan.

 

10.       Vesting
Following a Change in Control.

 

(a)  Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

 

(i)  A “Change in Control” shall
be deemed to have occurred if (A) any “person”, as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange
Act”) (other than Staples, any trustee or other

 

2

 

fiduciary holding
securities under an employee benefit plan of Staples, or any corporation owned
directly or indirectly by the stockholders of Staples in substantially the same
proportion as their ownership of stock of Staples), is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
Staples representing 30% or more of the combined voting power of Staples’ then
outstanding securities (other than pursuant to a merger or consolidation
described in clause (1) or (2) of subsection (C) below); (B) individuals
who, as of the date hereof, constitute the Board of Directors of Staples (as of
the date hereof, the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board of Directors, provided that any person becoming a
director subsequent to the date hereof whose election, or nomination for
election by Staples’ stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is
in connection with an actual or threatened election contest relating to the
election of the directors of Staples, as such terms are used in Rule 14a-11 of
Regulation 14A under the Exchange Act) shall be, for purposes of this
Agreement, considered as though such person were a member of the Incumbent
Board; (C) the stockholders of Staples approve a merger or consolidation of
Staples with any other corporation, other than (1) a merger or consolidation
which would result in the voting securities of Staples outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than 75%
of the combined voting power of the voting securities of Staples or such
surviving entity outstanding immediately after such merger or consolidation, or
(2) a merger or consolidation effected to implement a recapitalization of
Staples (or similar transaction) in which no “person” (as defined above)
acquires more than 30% of the combined voting power of Staples’ then
outstanding securities; or (D) the stockholders of Staples approve an agreement
for the sale or disposition by Staples of all or substantially all of Staples’
assets.

 

(ii) “Surviving Corporation” shall mean (x) in the case of a Change in
Control pursuant to clause (A) or clause (B) of Section 10(a)(i), Staples;
(y) in the case of a Change in Control pursuant to clause (C) of
Section 10(a)(i), the surviving or resulting corporation in such merger or
consolidation; and (z) in the case of a Change in Control pursuant to Clause
(D) of Section 10(a)(i), the entity acquiring the majority of the assets
being sold or disposed of by Staples.

 

(b)  Effect of Change in Control.
Notwithstanding the provisions of Section 3(a), if a Change in Control of
Staples occurs, the Shares shall become vested as follows:

 

(i)  If, upon the Change in
Control, the Executive

 

(A) is not offered employment with the Surviving
Corporation (or is not allowed to continue his or her employment, if the
Surviving Corporation is Staples) in a position (1) in which the title,
employment duties and responsibilities, conditions of employment, and the level
of compensation and benefits are at least equivalent to those in effect during
the 90-day period immediately preceding the Change in Control and (2) that does
not involve a relocation of the Executive’s principal place of employment of
more than 30 miles, and

 

(B) does not accept (or continue) employment with the
Surviving Corporation (regardless of position, compensation or location), or

 

(ii) If, within one year following the date of the Change in Control,
the Executive either

 

(A) is discharged without cause (as defined in
Section 4(d)) or

 

(B) resigns because his or her title or employment
duties and responsibilities are diminished, his or her conditions of employment
are adversely changed, the level of his or her compensation and benefits are
reduced, or his or her principal place of employment is relocated by more than
50 miles, then the vesting of Shares shall be accelerated such that all of
Shares shall vest effective upon the date of such discharge or resignation
(which shall be considered a Vesting Date hereunder).

 

11.       Withholding
Taxes.  Staples’ obligation to
vest the Shares shall be subject to the Executive’s satisfaction of all
applicable federal, state and local income and employment tax withholding
requirements.

 

12.       Miscellaneous.

 

(a)  Except as provided herein,
this Agreement may not be amended or otherwise modified unless evidenced in
writing and signed by Staples and the Executive unless the Board of Directors
determines that the amendment or modification, taking into account any related
action, would not materially and adversely affect the Executive.

 

(b)  All notices under this
Agreement shall be mailed or delivered by hand to Staples at its main office,
Attn: Secretary, and to the Executive to his or her last known address on the
employment records of Staples or at such other address as may be designated in
writing by either of the parties to one another.

 

(c)  This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware.

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]