Document:

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                                                            Exhibit 10.11

                                  STAPLES, INC.

                            STAPLES.COM COMMON STOCK
                               PURCHASE AGREEMENT

                          Dated as of November 9, 1999

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                                  STAPLES, INC.

                   STAPLES.COM COMMON STOCK PURCHASE AGREEMENT

         This Agreement dated as of November 9, 1999 is entered into by and
between Staples, Inc., a Delaware corporation (the "Company"), General Atlantic
Partners 59, L.P., a Delaware limited partnership ("GAP LP"), GAP Coinvestment
Partners II, L.P., a Delaware limited partnership ("GAPCO II") and, together
with GAP LP, the "General Atlantic Entities") and the other investors listed on
SCHEDULE I hereto (each (including the GAP Entities), a "Purchaser and
collectively the "Purchasers").

         In consideration of the mutual promises and covenants contained in this
Agreement, the parties hereto agree as follows:

         1.       AUTHORIZATION AND SALE OF SHARES.

                  1.1 AUTHORIZATION. The Company has duly authorized (subject to
the stockholder approval referenced in Section 5.3) the sale and issuance,
pursuant to the terms of this Agreement, of 12,138,462 shares of its Staples.com
Common Stock, $0.0006 par value per share (the "Staples.com Stock"), having the
rights, restrictions, privileges and preferences set forth in the Certificate of
Amendment attached hereto as EXHIBIT A (the "Certificate of Amendment"). The
Company has adopted (subject to the stockholder approval referenced in Section
5.3) and before the Closing (as defined in Section 2) will have filed the
Certificate of Amendment with the Secretary of State of the State of Delaware.

                  1.2 SALE OF SHARES. Subject to the terms and conditions of
this Agreement, at the Closing the Company will sell and issue to each
Purchaser, and each Purchaser will purchase, the number of shares of Staples.com
Stock set forth next to such Purchaser's name on SCHEDULE I hereto for the
purchase price of $1.625 per share (the "Purchase Price"). The shares of
Staples.com Stock sold under this Agreement are referred to as the "Shares." The
Company's agreement with each of the Purchasers is a separate agreement, and the
sale of Shares to each Purchaser is a separate sale.

         2.       THE CLOSING.

                  (a) Subject to the satisfaction or waiver of the conditions
set forth in Sections 5 and 6, the closing (the "Closing") of the sale and
purchase of the Shares under this Agreement shall take place at the offices of
Hale and Dorr LLP, 60 State Street, Boston, Massachusetts at 3:00 p.m. on
Tuesday, November 9, 1999, or at such other time, date and place as are mutually
agreeable to the Company and the Purchasers. At the Closing, the Company shall
deliver to each of the Purchasers a certificate for the number of Shares being
purchased by such Purchaser, registered in the name of such Purchaser, against
payment to the Company of the Purchase Price, by wire transfer or other method
acceptable to the Company. The date of the Closing is hereinafter referred to as
the "Closing Date." If the Closing does not occur on or before November 19, 1999
(the "Termination Date"), this Agreement shall automatically terminate,

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unless the Termination Date is extended by the written consent of the Company
and the Purchasers.

                  (b) The Company may sell, at any time prior to 60 days after
the Closing, in one or more closings (each, a "Subsequent Closing"), up to
500,000 additional Shares at the Purchase Price, to such purchasers (each, an
"Additional Purchaser") as may be approved by the Board of Directors of the
Company. At each Subsequent Closing, (i) the Company and each Additional
Purchaser shall execute and deliver a counterpart signature page hereto,
whereupon such Additional Purchaser shall become a "Purchaser" hereunder and the
Shares purchased by such Additional Purchaser shall be deemed to be "Shares" for
purposes of this Agreement, and (ii) the Company shall cause SCHEDULE I hereto
be amended to reflect the purchases made by the Additional Purchasers at each
Subsequent Closing. At each Subsequent Closing, the Company shall deliver to
each Additional Purchaser a certificate for the number of Shares being purchased
at the Subsequent Closing by such Additional Purchaser, registered in the name
of such Additional Purchaser, against payment to the Company of the Purchase
Price in the manner specified above.

         3. REPRESENTATIONS OF THE COMPANY. The Company hereby represents and
warrants to the Purchasers that the statements contained in this Section 3 are
true, complete and correct.

                  3.1 ORGANIZATION AND STANDING. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has full corporate power and authority to conduct its
business as presently conducted and as proposed to be conducted by it and to
enter into and perform this Agreement and to carry out the transactions
contemplated by this Agreement. The Company is duly qualified to do business as
a foreign corporation and is in good standing in every jurisdiction in which the
failure so to qualify would have a material adverse effect on the business,
prospects, assets or condition (financial or otherwise) of the Company (a
"Company Material Adverse Effect").

                  3.2 CAPITALIZATION. The authorized capital stock of the
Company (immediately prior to the Closing and after giving effect to the filing
of the Certificate of Amendment) consists of (i) 2,100,000,000 shares of common
stock, $0.0006 par value per share (the "Common Stock"), of which 1,500,000,000
shares are designated as Staples Retail and Delivery Common Stock and
600,000,000 shares are designated as Staples.com Common Stock and (ii) 5,000,000
shares of preferred stock, $0.01 par value per share (the "Preferred Stock"). As
of October 31, 1999, (a) 459,529,480 shares of Staples Retail and Delivery
Common Stock were issued and outstanding and (b) an aggregate of 59,631,363
shares of Common Stock (regardless of series) were reserved for future issuance
under the 1992 Equity Incentive Plan, 1990 Director Stock Option Plan, 1998
Employee Stock Purchase Plan and 1999 United Kingdom Company Share Option Scheme
of the Company. Immediately prior to the Closing, no shares of Staples.com Stock
or Preferred Stock were issued or outstanding. The Company has designated
200,000,000 shares of Staples.com Stock as the Number of Shares Issuable with
Respect to Staples Retail and Delivery's Retained Interest in Staples.com (as
defined in the Certificate of Amendment). All of the issued and outstanding
shares of Staples Retail and Delivery Common Stock have been duly authorized and
validly issued and are fully paid and nonassessable.

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                  3.3 ISSUANCE OF SHARES. The issuance, sale and delivery of the
Shares in accordance with this Agreement, have been duly authorized by the Board
of Directors of the Company and will be, on or prior to the Closing, duly
authorized by the stockholders of the Company, and all such Shares have been, or
will be on or prior to the Closing, duly reserved for issuance. The Shares when
so issued, sold and delivered against payment therefor in accordance with the
provisions of this Agreement, will be duly and validly issued, fully paid and
nonassessable and will have been issued in compliance with the registration and
qualification requirements of all applicable federal and state securities laws.

                  3.4 AUTHORITY FOR AGREEMENT; NO CONFLICT. The execution,
delivery and performance by the Company of this Agreement and the consummation
by the Company of the transactions contemplated hereby, have been duly
authorized by all necessary corporate action (subject to the stockholder
approval referenced in Section 5.3). This Agreement has been duly executed and
delivered by the Company and constitutes a valid and binding obligation of the
Company enforceable in accordance with its terms, subject as to enforcement of
remedies to applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting generally the enforcement of creditors' rights and
subject to a court's discretionary authority with respect to the granting of a
decree ordering specific performance or other equitable remedies. The execution
of and performance of the transactions contemplated by this Agreement by the
Company will not (a) conflict with or violate any provision of the Certificate
of Incorporation or By-laws of the Company, (b) require on the part of the
Company any filing with, or any permit, authorization, consent or approval of,
any court, arbitrational tribunal, administrative agency or commission or other
governmental or regulatory authority or agency (other than the filing of a Form
D with the Securities and Exchange Commission), (c) conflict with, result in a
breach of, constitute (with or without due notice or lapse of time or both) a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify or cancel, or require any notice, consent or
waiver under, any contract, lease, sublease, license, sublicense, franchise,
permit, indenture, agreement or mortgage for borrowed money, instrument of
indebtedness, Security Interest (as defined below) or other arrangement to which
the Company is a party or by which the Company is bound or to which its assets
are subject, other than any of the foregoing events listed in this clause (c)
which do not and will not, individually or in the aggregate, have a Company
Material Adverse Effect, (d) result in the imposition of any Security Interest
upon any assets of the Company or (e) violate any order, writ, injunction,
decree, statute, rule or regulation applicable to the Company or any of its
properties or assets. For purposes of this Agreement, "Security Interest" means
any mortgage, pledge, security interest, encumbrance, charge, or other lien
(whether arising by contract or by operation of law).

                  3.5      REPORTS AND FINANCIAL STATEMENTS.

                  (a) The Company has filed all forms, reports and documents
required to be filed by it with the Securities and Exchange Commission ("SEC")
since January 30, 1997 (collectively, the "Company Reports"). Except as
disclosed in any amendment to any Company Report filed with the SEC, as of the
respective dates on which they were filed, (i) the Company Reports complied in
all material respects with the requirements of the Securities Act of 1933, as
amended (together with the rules and regulations promulgated thereunder, the
"Securities Act"), and the Securities Exchange Act of 1934, as amended ( the
"Exchange Act"), as the case may be,

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and (ii) none of the Company Reports contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading.

                  (b) Except as disclosed in any amendment to any Company Report
filed with the SEC, each of the consolidated financial statements (including, in
each case, any notes thereto) contained in the Company Reports was prepared in
accordance with generally accepted accounting principles applied on a consistent
basis throughout the periods indicated ("GAAP") (except as may be indicated in
the notes thereto or, in the case of unaudited statements, as permitted by Form
10-Q and Regulation S-X of the SEC), and each presented fairly, in all material
respects, the consolidated financial position, results of operations and cash
flows of the Company as at the respective dates thereof and for the respective
periods indicated therein, except as otherwise noted therein (subject, in the
case of unaudited statements, to normal and recurring year-end adjustments that
would not, individually or in the aggregate, be reasonably expected to have a
Company Material Adverse Effect).

                  3.6 ABSENCE OF MATERIAL ADVERSE CHANGE. Since January 30,
1999, there has occurred no event or development (other than any event or
development disclosed in a Company Report) which has had, or could reasonably be
expected to have in the future, a Company Material Adverse Effect.

                  3.7 ADVISORY BOARD. The Company agrees that within 45 days
following the Closing Date, it will establish a Business Advisory Board to
provide advice and guidance to the management and Board of Directors of the
Company with respect to Staples.com (as defined in the Certificate of
Amendment). The Business Advisory Board's members will be appointed by the Board
of Directors or the Chairman of the Company and will serve as consultants to
Staples.com with respect to its business and not as a governing body. The
Company agrees that William O. Grabe and Marc McMorris shall be members of the
Business Advisory Board for so long as the GAP Entities, together with their
Affiliates (as defined below), hold at least 2,307,692 shares of Staples.com
Stock (as equitably adjusted to give effect to any stock split, reverse stock
split or similar recapitalization event affecting the Staples.com Stock). The
Company agrees that two persons designated by Highland Capital Partners IV
Limited Partnership and Highland Entrepeneurs' IV Limited Partnership (the
"Highland Entities") shall be members of the Business Advisory Board for so long
as the Highland Entities, together with their Affiliates, hold at least
2,307,692 shares of Staples.com Stock (as equitably adjusted to give effect to
any stock split, reverse stock split or similar recapitalization event affecting
the Staples.com Stock). For purposes of this Agreement (other than Section 8.1
hereof), "Affiliate" shall mean any person who is an "affiliate" as defined in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act . The
following shall be deemed to be Affiliates of GAP LP: (a) General Atlantic
Partners, LLC, a Delaware limited liability company ("GAP LLC"), the members of
GAP LLC and the limited partners of GAP LP; (b) any Affiliate of the limited
partners of GAP LP; and (c) any limited liability company or partnership a
majority of whose members or partners, as the case may be, are members, former
members, consultants or key employees of GAP LLC. GAP LP and GAPCO II shall be
deemed to be Affiliates of one another. The following shall be deemed to be
Affiliates of Summit Accelerator Partners, LLC:

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(a) Summit Accelerator Fund L.P.; (b) Summit Accelerator Founders Fund, L.P.;
and (c) Summit (SAF) Investors IV, L.P.

         4. REPRESENTATIONS OF THE PURCHASERS. Each of the Purchaser severally
represents and warrants to the Company as follows:

                  4.1 INVESTMENT. Such Purchaser is acquiring the Shares for
his, her or its own account for investment and not with a view to, or for sale
in connection with, any distribution thereof, nor with any present intention of
distributing or selling the same, except for possible sales to Affiliates of
such Purchaser; and, except as contemplated by this Agreement such Purchaser has
no present or contemplated agreement, undertaking, arrangement, obligation,
indebtedness or commitment providing for the disposition thereof. Such Purchaser
is an "accredited investor" as defined in Rule 501(a) under the Securities Act
or 1933, as amended (the "Securities Act").

                  4.2 AUTHORITY. Such Purchaser has full power and authority to
enter into and to perform this Agreement in accordance with its terms. No
Purchaser which is not a natural person has been organized, reorganized or
recapitalized specifically for the purpose of investing in the Company.

                  4.3 EXPERIENCE. Such Purchaser has carefully reviewed the
representations concerning the Company contained in this Agreement, and has made
detailed inquiry concerning the Company, its business and its personnel; the
officers of the Company have made available to such Purchaser any and all
written information which he, she or it has requested and have answered to such
Purchaser's satisfaction all inquiries made by such Purchaser; and such
Purchaser has sufficient knowledge and experience in finance and business that
it is capable of evaluating the risks and merits of its investment in the
Company and such Purchaser is able financially to bear the risks thereof.

                  4.4 HART-SCOTT-RODINO MATTERS. The Shares to be acquired by
such Purchaser will be acquired and held "solely for the purpose of investment",
as defined by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules promulgated thereunder. Such Purchaser has no intention
of participating in the formulation, determination or direction of the basic
business decisions of the Company or its subsidiaries, including as a director
or officer of the Company or its subsidiaries. Such Purchaser is not presently a
competitor of the Company or its subsidiaries, and as a result of this
transaction will hold less than 10% of the outstanding voting securities of the
Company.

         5. CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER. The obligation of
each of the Purchasers to purchase the Shares at the Closing is subject to the
fulfillment, or the waiver by such Purchaser, of each of the following
conditions on or before the Closing:

                  5.1 ACCURACY OF REPRESENTATIONS AND WARRANTIES. Each
representation and warranty contained in Section 3 shall be true on and as of
the Closing Date with the same effect as though such representation and warranty
had been made on and as of that date.

                  5.2 CERTIFICATES AND DOCUMENTS. The Company shall have
delivered to the Purchasers:

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                  (a) The Certificate of Incorporation of the Company, as
amended and in effect as of the Closing Date (including the Certificate of
Amendment), certified by the Secretary of State of the State of Delaware;

                  (b) A certificate, as of the most recent practicable date, as
to the corporate good standing of the Company issued by the Secretary of State
of the State of Delaware;

                  (c) A certificate of the Secretary or Assistant Secretary of
the Company as of the Closing Date certifying that:

                      (i) the By-laws of the Company are true and complete and
in full force and effect;

                      (ii) the resolutions of the Board of Directors and
stockholders of the Company, authorizing and approving all matters in connection
with this Agreement and the transactions contemplated hereby, are true and
complete and in full force and effect; and

                      (iii) the Certificate of Amendment has been filed with the
Delaware Secretary of State and representing that the Certificate of Amendment
constitutes the only amendment to the Certificate of Incorporation since the
date on which it was certified pursuant to Section 5.2(a).

                  (d) If the Closing Date is after the date of this Agreement, a
certificate of the Chief Executive Officer or Chief Financial Officer of the
Company as to the continued truth and accuracy of the representations and
warranties contained in Section 3 on and as of the Closing Date.

                  5.3 STOCKHOLDER APPROVAL. The Certificate of Amendment shall
have been approved by the affirmative vote of the holders of a majority of the
outstanding shares of Staples Common Stock.

         6. CONDITION TO THE OBLIGATIONS OF THE COMPANY. The obligations of the
Company under Section 1.2 of this Agreement are subject to fulfillment, or the
waiver, of the following conditions on or before the Closing:

                  6.1 ACCURACY OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties of the Purchasers contained in Section 4 shall be
true on and as of the Closing Date with the same effect as though such
representations and warranties had been made on and as of that date. Each
Purchaser agrees to notify the Company in writing prior to the Closing if any of
the representations and warranties of such Purchaser contained in Section 4
shall no longer be true on and as of the Closing Date with the same effect as
though such representation and warranty had been made on and as of that date.

                  6.2 STOCKHOLDER APPROVAL. The Certificate of Amendment shall
have been approved by the affirmative vote of the holders of a majority of the
outstanding shares of Staples Common Stock.

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         7.       TRANSFER RESTRICTIONS.

                  7.1 SECURITIES RESTRICTIONS. Each Purchaser acknowledges that
the Shares have not been registered under the Securities Act and shall not be
sold or transferred unless either (i) they first shall have been registered
under the Securities Act, or (ii) the Company first shall have been furnished
with an opinion of legal counsel to such Purchaser, reasonably satisfactory to
the Company, to the effect that such sale or transfer is exempt from the
registration requirements of the Securities Act.

                  7.2 LEGEND. Each Purchaser acknowledges that, until such time
as the Shares become eligible for resale pursuant to Rule 144(k) under the
Securities Act, each certificate representing the Shares shall bear a legend
substantially in the following form:

                  "The shares represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended, and
                  may not be offered, sold or otherwise transferred, pledged or
                  hypothecated unless and until such shares are registered under
                  such Act or an opinion of counsel satisfactory to the Company
                  is obtained to the effect that such registration is not
                  required."

                  7.3 NO RIGHTS TO TRANSFER. No Purchaser shall sell, assign,
pledge or otherwise transfer (collectively, "transfer") any of the Shares or any
right or interest therein, whether voluntarily, by gift or otherwise on or prior
to December 31, 2000, except to an Affiliate of such Purchaser who agrees in a
writing addressed to the Company to be bound by the terms of this Agreement (a
"Permitted Transferee").

                  7.4 RIGHT OF FIRST OFFER. After December 31, 2000, no
Purchaser may transfer the Shares, except to a Permitted Transferee, other than
in accordance with the following requirements:

                  (a) OFFERING NOTICE. If any Purchaser (a "Selling Purchaser")
wishes to transfer all or any portion of its Shares to any person (a "Third
Party Purchaser"), such Selling Purchaser shall offer such Shares first to the
Company, by sending written notice (an "Offering Notice") to the Company, which
shall state (i) the number of Shares proposed to be transferred (the "Offered
Securities"); (ii) the proposed purchase price per Share for the Offered
Securities (the "Offer Price"); and (iii) the terms and conditions of such sale.
Upon delivery of the Offering Notice, such offer shall be irrevocable unless and
until the rights of first offer provided for herein shall have been waived or
shall have expired. The Company shall promptly deliver a copy of the Offering
Notice to each of the Venture Purchasers (as designated on SCHEDULE I hereto).

                  (b) COMPANY OPTION; EXERCISE. For a period of 15 days after
the giving of the Offering Notice pursuant to Section 7.4(a) (the "Company
Option Period"), the Company shall have the right (the "Company Option") but not
the obligation to purchase any or all of the Offered Securities at a purchase
price equal to the Offer Price and upon the terms and conditions set forth in
the Offering Notice. The right of the Company to purchase any or all of the
Offered Securities under this Section 7.4(b) shall be exercisable by delivering
written notice of the exercise thereof, prior to the expiration of the 15-day
period referred to above, to the Selling Purchaser, with a copy to the Venture
Purchasers, which notice shall state the number of Offered

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Securities proposed to be purchased by the Company. The failure of the Company
to respond within such 15-day period shall be deemed to be a waiver of the
Company Option, PROVIDED that the Company may waive its rights under this
Section 7.4(b) prior to the expiration of such 15-day period by giving written
notice to the Selling Purchaser, with a copy to the Venture Purchasers.

                  (c)      RIGHTHOLDER OPTION; EXERCISE.

                           (i) If the Company does not elect to purchase all of
the Offered Securities pursuant to Section 7.4(b), then for a period of 10 days
after the earlier to occur of (a) the expiration of the Company Option Period
pursuant to Section 7.4(b) and (b) the date upon which the Selling Purchaser
shall have received written notice from the Company of its exercise the Company
Option pursuant to Section 7.4(b) (or its desire to exercise such option for
only a portion of the Offered Securities) or its waiver thereof (the
"Rightholder Option Period"), each of the Venture Purchasers, other than the
Selling Purchaser (for the purpose of Section 7.4, each, a "Rightholder" and
collectively, the "Rightholders") shall have the right to purchase all, but not
less than all, of the remaining Offered Securities at a purchase price equal to
the Offer Price and upon the terms and conditions set forth in the Offering
Notice. Each such Rightholder shall have the right to purchase that percentage
of the Offered Securities determined by dividing (i) the total number of shares
of Staples.com Stock then owned by such Rightholder by (ii) the total number of
shares of Staples.com Stock then owned by all such Rightholders. If any
Rightholder fails to fully subscribe for the number of Offered Securities it is
entitled to purchase, then the other participating Rightholders shall have the
right to purchase the remaining Offered Securities not so subscribed for (for
the purposes of this Section 7.4(c), the "Excess Offered Securities"). If the
Company and/or the Rightholders do not purchase all of the Offered Securities
pursuant to Section 7.4(b) and/or Section 7.4(c), then the Selling Purchaser may
sell the Offered Securities to a Third Party Purchaser in accordance with
Section 7.4(e).

                           (ii) The right of each Rightholder to purchase the
remaining Offered Securities under subsection (i)
above shall be exercisable by delivering written notice of the exercise thereof,
prior to the expiration of the Rightholder Option Period, to the Selling
Purchaser with a copy to the Company and the other Rightholders. Each such
notice shall state (a) the number of shares of Staples.com Stock held by such
Rightholder and (b) the number of Offered Securities that such Rightholder is
willing to purchase pursuant to this Section 7.4(c). The failure of a
Rightholder to respond within the Rightholder Option Period to the Selling
Purchaser shall be deemed to be a waiver of such Rightholder's rights under
subsection (i) above, PROVIDED that each Rightholder may waive its rights under
subsection (i) above prior to the expiration of the Rightholder Option Period by
giving written notice to the Selling Purchaser, with a copy to the Company. The
right of a Rightholder to purchase the Excess Offered Securities under
subsection (i) above shall be exercisable by delivering written notice of the
exercise thereof, within five days following the expiration of the Rightholder
Option Period, to the Selling Purchaser with a copy to the Company and the other
Rightholders, stating the number of Excess Offered Securities that such
Rightholder is willing to purchase pursuant to this Section 7.4(c); provided
that if two or more Rightholders choose to exercise such right with respect to
the Excess Offered Securities for a total number of Excess Offered Securities
greater than the aggregate number of Excess Offered Securities, the Excess
Offered Securities shall be allocated

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among such exercising Rightholders pro rata based on the number of shares of
Staples.com Stock owned by each.

                  (d) CLOSING. The closing of the purchases of Offered
Securities subscribed for by the Company under Section 7.4(b) and/or the
Rightholders under Section 7.4(c) shall be held at the executive office of the
Company at 11:00 a.m., local time, on the 60th day after the giving of the
Offering Notice pursuant to Section 7.4(a) or at such other time and place as
the parties to the transaction may agree. At such closing, the Selling Purchaser
shall deliver certificates representing the Offered Securities, duly endorsed
for transfer and accompanied by all requisite transfer taxes, if any. The
Company and/or each Rightholder, as the case may be, purchasing Offered
Securities shall deliver at the closing payment in full in immediately available
funds for the Offered Securities purchased by it. At such closing, all of the
parties to the transaction shall execute such additional documents as are
otherwise necessary or appropriate.

                  (e) SALE TO A THIRD PARTY PURCHASER. Unless the Company and/or
the Rightholders elect to purchase all, but not less than all, of the Offered
Securities under Sections 7.4(b) and 7.4(c), the Selling Purchaser may sell all,
but not less than all, the Offered Securities to a Third Party Purchaser on the
terms and conditions set forth in the Offering Notice; PROVIDED, HOWEVER, that
such sale is bona fide and made pursuant to a contract entered into within 60
days after the earlier to occur of (i) the waiver by the Company and all of the
Rightholders of their options to purchase the Offered Securities and (ii) the
expiration of the Rightholder Option Period (the "Contract Date"); and PROVIDED
FURTHER, that such sale shall not be consummated unless and until prior to the
purchase by such Third Party Purchaser of any of such Offered Securities, such
Third Party Purchaser shall become a party to this Agreement and shall agree to
be bound by the terms and conditions hereof. If a contract for such sale is not
executed by the Contract Date or such sale is not consummated within 30 days
after the Contract Date for any reason, then the restrictions provided for
herein shall again become effective, and no transfer of such Offered Securities
may be made thereafter by the Selling Purchaser without again offering the same
to the Company and the Rightholders in accordance with this Section 7.4.

                  (f)      EXEMPT TRANSACTIONS.  The following transactions
shall be exempt from the provisions of this Section 7.4

                           (1) in the case of any Purchaser that is not a
natural person, the transfer of any or all of the Shares pursuant to and in
accordance with the terms of any merger, consolidation, reclassification of
shares or capital reorganization of such Purchaser, or pursuant to a sale of
substantially all of the stock or assets of such Purchaser, provided, however,
that in any such case, the transferee shall receive and hold such Shares subject
to the provisions of this Section 7 and there shall be no further transfer of
such stock except in accordance with this Section 7; and

                           (2) any transfer pursuant to an effective
registration statement filed by the Company with the
Securities and Exchange Commission.

                  (g) NON-COMPLYING TRANSFERS. Any sale or transfer, or
purported sale or transfer, of Shares shall be null and void unless the terms,
conditions and provisions of this Section 7 are strictly observed and followed.

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                  (h) TERMINATION. The terms of this Section 7.4 shall terminate
upon (i) the closing of the first public offering of shares of Staples.com Stock
which is effected pursuant to a registration statement filed with, and declared
effective by, the Securities and Exchange Commission under the Securities Act of
1933, as amended (other than an offering registered on Form S-4, Form S-8 or any
successor forms) (an "IPO") , (ii) the sale of all or substantially all of the
assets or business of the Company, whether by merger, sale of assets or
otherwise (except a merger or consolidation in which the holders of capital
stock of the Company immediately prior to such merger or consolidation continue
to hold immediately following such merger or consolidation at least 75% by
voting power of the capital stock of the surviving corporation in approximately
the same relative proportions) or (iii) at such time as all of the outstanding
shares of Staples.com Stock are exchanged for shares of Staples Retail and
Delivery Common Stock, or all of the outstanding shares of Staples Retail and
Delivery Common Stock are exchanged for shares of Staples.com Stock, pursuant to
the terms of the Certificate of Incorporation of the Company, as amended by the
Certificate of Amendment.

                  (i) LEGEND. The certificates representing the Shares shall
bear a legend that indicates that the Shares are subject to a right of first
refusal in favor of the Company as set forth in this Section 7.4 (in addition
to, or in combination with, any legend required by applicable federal and state
securities laws).

         8. RESTRICTIONS. In order to induce the Company to issue and sell the
Shares to the Purchasers, each of the Purchasers agrees as follows:

                  8.1      NON-COMPETITION AND NON-SOLICITATION.

                  (a) Until the first anniversary of the date upon which a
Purchaser owns less than 25% of the Shares purchased hereunder by such Purchaser
(the "Restricted Period"), such Purchaser will not, and will cause its
Affiliates (excluding its Portfolio Companies) not to, directly or indirectly,
engage in (whether as owner, partner, director, employee, consultant, investor,
lender or otherwise, except as the holder of not more than 5% of the outstanding
stock of a publicly-held company), or invest in, any business or enterprise,
similar to and in competition with the Company's business as currently
conducted, that is engaged primarily in the sale of a broad array of office
product offerings offered directly to small business customers, provided that
(i) any Purchaser or its Affiliate may invest in a business or enterprise that
is engaged in selling products exclusively in a single category of office
products, (ii) the foregoing shall in no way restrict any Purchaser or its
Affiliates from purchasing the securities of any company in connection with such
Purchaser's or Affiliate's investment advisory and asset management business,
(iii) the foregoing shall not prevent any Purchaser or its Affiliates from
remaining a stockholder or a director of or continuing to hold its investment
(but not to make any new investment) in any Portfolio Company that, on or after
the time of such Purchaser's or Affiliate's initial investment, began engaging
in the activity prohibited by this Section 8.1 and (iv) the foregoing shall in
no way restrict any Purchaser or its Affiliates from investing in less than 5%
of the outstanding stock of a publicly-held company.

                  (b) During its Restricted Period, each Purchaser will not, and
will cause its Affiliates (excluding Portfolio Companies) not to, directly or
indirectly, either alone or in association with others (i) solicit any employee
of the Company to leave the employ of the

                                       11
<PAGE>

Company or (ii) solicit for employment, hire or engage as an independent
contractor (on its own behalf or on the behalf of any other party) any person
who was employed by the Company at any time during the Restricted Period, except
for any person whose employment or other affiliation with the Company has been
terminated for at least three months and except that the foregoing shall not
prohibit general solicitations to the public.

                  (c) For purposes of this Section 8.1, (i) the term "Affiliate"
shall include the sponsor and/or general partner of a Purchaser, and all
entities or persons controlled by, in control of or in common control with, the
sponsor and/or general partner (in the case of Essex Private Placement Fund II
Limited Partnership ("Essex"), other than Affiliated Managers Group, Inc. and
those of its affiliates that are not also affiliates controlled by Essex
Investment Management Company, LLC or its members who are individuals),
including without limitation any affiliated partnerships or funds, but excluding
any Portfolio Company and (ii) the term "Portfolio Company" shall include all
companies in which a Purchaser or any other Affiliate partnership or fund is a
stockholder.

                  (d) Notwithstanding the foregoing, the following companies and
individuals and employees, officers and directors thereof are excluded from the
non-competition and non-solicitation provisions of this Section 8.1:
Greenberg-Summit Management, L.L.C., Greenberg-Summit Partners, L.L. C., Summit
Retained Earnings, L.P., Mt. Everest Fund, L.P., Mt Everest QP Fund, L.P., Mt.
Everest Fund Limited and Lawrence D. Greenberg (including any family member of
Lawrence D. Greenberg and any trust set up for the benefit of Lawrence D.
Greenberg and any such family member). In addition, an indirect investment
through a hedge fund, registered investment company or other investment fund
will be deemed not to violate the non-competition and non-solicitation
provisions of this Section 8.1.

                  (e) CONFIDENTIALITY. Each Purchaser agrees that it will keep
confidential and will not disclose, divulge or use for any purpose other than to
monitor its investment in the Company any confidential, proprietary or secret
information which such Purchaser may obtain from the Company pursuant to
information disclosed to such Purchaser by virtue of its position as an investor
in the Company ("Confidential Information"), unless such Confidential
Information is known, or until such Confidential Information becomes known, to
the public (other than as a result of a breach of this Section 8.2 by such
Purchaser); PROVIDED, however, that a Purchaser may disclose Confidential
Information (i) to its employees, members, attorneys, accountants, consultants,
and other professionals to the extent reasonably necessary to obtain their
services in connection with monitoring its investment in the Company, (ii) to
any Affiliate or stockholder of such Purchaser (but not to a Portfolio Company)
of such Purchaser, provided that such Affiliate or stockholder agrees in writing
to be bound by the provisions of this Section 8.2, (iii) to a partner, including
a limited partner, of such Purchaser pursuant to such Purchaser's periodic
review and reporting obligations to its partners, provided that such partner
agrees in writing to be bound by the provisions of this Section 8.2 or (iv) as
may otherwise be required by law, regulation or legal process, provided that the
Purchaser takes reasonable steps to minimize the extent of any such required
disclosure. In addition, each Purchaser may disclose (including on its World
Wide Web site) the name of the Company, the name of its Chief Executive Officer,
the amount of such Purchaser's investment in the Company and a brief description
of the business of the Company.

                                       12
<PAGE>

         9.       FUTURE ISSUANCE OF SHARES; PREEMPTIVE RIGHTS.

                  9.1 OFFERING NOTICE. Except for Exempt Issuances (as defined
below), if the Company wishes at any time to issue to any person any Staples.com
Stock or any other securities convertible into or exchangeable for Staples.com
Stock (collectively, "New Securities") to any person (the "Subject Purchaser"),
then the Company shall offer such New Securities first to each of the Venture
Purchasers (each, a "Preemptive Rightholder" and collectively, the "Preemptive
Rightholders") by sending written notice (the "New Issuance Notice") to the
Preemptive Rightholders, which New Issuance Notice shall state (a) the number of
New Securities proposed to be issued and (b) the proposed purchase price per
share of the New Securities (the "Proposed Price"). Upon delivery of the New
Issuance Notice, such offer shall be irrevocable unless and until the rights
provided for in Section 9.2 shall have been waived or shall have expired. For
purposes of this Agreement, "Exempt Issuances" shall mean (i) the sale of shares
of Staples.com Stock under this Agreement; (ii) the issuance of shares of
Staples.com Stock as a stock dividend to holders of Common Stock or pursuant to
any subdivision or combination of shares of Common Stock; (iii) the issuance of
shares of Staples.com Stock in exchange for outstanding shares of Staples Retail
and Delivery Common Stock in accordance with the terms of the Certificate of
Incorporation of the Company; (iv) the issuance of shares of Staples.com Stock,
or the grant of options or other rights therefor, to officers, directors,
consultants and employees of the Company or a subsidiary pursuant to any plan or
agreement approved by the Board of Directors of the Company; (v) the issuance of
shares of Staples.com Stock solely in consideration for the acquisition (whether
by merger or otherwise) by the Company or a subsidiary of all or substantially
all of the stock or assets of any other entity, approved by the Board of
Directors of the Company; (vi) the sale of shares of Staples.com Stock in an
IPO; or (vii) the sale of up to 1,500,000 shares of Staples.com Stock to
directors of the Company within 60 days after the Closing Date at a price not
less than $1.625 per share.

                  9.2      PREEMPTIVE RIGHTS; EXERCISE.

                           (i) For a period of 20 days after the giving of the
New Issuance Notice pursuant to Section 9.1, each of the Preemptive Rightholders
shall have the right to purchase its Proportionate Percentage (as hereinafter
defined) of the New Securities at a purchase price equal to the Proposed Price
and upon the terms and conditions set forth in the New Issuance Notice. Each
such Preemptive Rightholder shall have the right to purchase that percentage of
the New Securities determined by dividing (a) the total number of shares of
Staples.com Stock then owned by such Preemptive Rightholder exercising its
rights under this Section 9.2 by (b) the total number of shares of Staples.com
Stock then outstanding, including any shares of Staples.com Stock subject to
outstanding options, warrants or other rights to purchase (the "Proportionate
Percentage"). If any Preemptive Rightholder does not fully subscribe for the
number of New Securities that it is entitled to purchase pursuant to the
preceding sentence, then the Preemptive Rightholders which elected to purchase
New Securities shall have the right to purchase the remaining New Securities not
so subscribed for (for the purposes of this Section 9.2(i), the "Excess New
Securities").

                           (ii) The right of each Preemptive Rightholder to
purchase the New Securities under subsection (i) above
shall be exercisable by delivering written notice of the exercise thereof, prior
to the expiration of the 20-day period referred to in subsection (i) above,

                                       13
<PAGE>

to the Company, which notice shall state the number of New Securities that such
Preemptive Rightholder elects to purchase pursuant to Section 9.2(i) (including,
if applicable, such number of Excess New Securities that such Preemptive
Rightholder elects to purchase, to the extent any are available). The failure of
a Preemptive Rightholder to respond within such 20-day period shall be deemed to
be a waiver of such Preemptive Rightholder's rights under Section 9.2(i),
PROVIDED that each Preemptive Rightholder may waive its rights under Section
9.2(i) prior to the expiration of such 20-day period by giving written notice to
the Company.

                  9.3 CLOSING. The closing of the purchase of New Securities
subscribed for by the Preemptive Rightholders under Section 9.2 shall be held at
the executive office of the Company at 10:00 a.m., local time, on (a) the 45th
day after the giving of the New Issuance Notice pursuant to Section 9.1, if the
Preemptive Rightholders elect to purchase all of the New Securities under
Section 9.2, (b) the date of the closing of the sale to the Subject Purchaser
made pursuant to Section 9.4 if the Preemptive Rightholders elect to purchase
some, but not all, of the New Securities under Section 9.2 or (c) at such other
time and place as the parties to the transaction may agree. At such closing, the
Company shall deliver certificates representing the New Securities, and such New
Securities shall be issued free and clear of all liens and encumbrances and the
Company shall so represent and warrant, and further represent and warrant that
such New Securities shall be, upon issuance thereof to the Preemptive
Rightholders and after payment therefor, duly authorized, validly issued, fully
paid and non-assessable. Each Preemptive Rightholder purchasing the New
Securities shall deliver at the closing payment in full in immediately available
funds for the New Securities purchased by it. At such closing, all of the
parties to the transaction shall execute such additional documents as are
otherwise necessary or appropriate.

                  9.4 SALE TO SUBJECT PURCHASER. The Company may sell to the
Subject Purchaser all of the New Securities not purchased by the Preemptive
Rightholders pursuant to Section 9.2 on terms and conditions that are no more
favorable to the Subject Purchaser than those set forth in the New Issuance
Notice; PROVIDED, HOWEVER, that such sale is bona fide and made pursuant to a
contract entered into within three months following the earlier to occur of (i)
the waiver by the Preemptive Rightholders of their option to purchase New
Securities pursuant to Section 9.2, and (ii) the expiration of the 20-day period
referred to in Section 9.2. If such sale is not consummated within such three
month period for any reason, then the restrictions provided for herein shall
again become effective, and no issuance and sale of New Securities may be made
thereafter by the Company without again offering the same in accordance with
this Section 9. The closing of any issuance and purchase pursuant to this
Section 9.4 shall be held at a time and place as the Company and the Subject
Purchaser may agree, subject to the consent of the participating Preemptive
Rightholders, which consent shall not be unreasonably withheld or delayed.

                  9.5 TERMINATION. The terms of this Section 9 shall terminate
upon (i) the closing of the IPO, (ii) the sale of all or substantially all of
the assets or business of the Company, whether by merger, sale of assets or
otherwise (except a merger or consolidation in which the holders of capital
stock of the Company immediately prior to such merger or consolidation continue
to hold immediately following such merger or consolidation at least 60% by
voting power of the capital stock of the surviving corporation in approximately
the same relative proportions) or (iii) at such time as all of the outstanding
shares of Staples.com Stock are

                                       14
<PAGE>

exchanged for shares of Staples Retail and Delivery Common Stock, or all of the
outstanding shares of Staples Retail and Delivery Common Stock are exchanged for
shares of Staples.com Stock, pursuant to the terms of the Certificate of
Incorporation of the Company.

         10.      REGISTRATION RIGHTS.

                  10.1 REQUEST FOR REGISTRATION At any time after 180 days
following the effectiveness of the IPO, the General Atlantic Entities (the
"INITIATING HOLDERS") may request in a written notice (which notice shall state
the number of Registrable Securities (as defined below) to be so registered)
that the Company file a registration statement under the Securities Act (or a
similar document pursuant to any other statute then in effect corresponding to
the Securities Act) covering the registration of any or all Registrable
Securities held by such Initiating Holders; PROVIDED, HOWEVER, that the
Initiating Holders may not so request more than once in any 12-month period and
more than three times in the aggregate. The Company shall notify in writing all
other Purchasers of such request within 10 days following receipt of any notice
under this Section 10.1. The Company shall file with the SEC, within 30 days
following the receipt by the Company of the notice under this Section 10.1, a
registration statement covering the resale to the public by the Initiating
Holders and the other Purchasers of all Registrable Securities requested by
them, within 15 days after the Company has delivered the notice referred to in
the preceding sentence, to be included in such registration. The Company shall
use its reasonable best efforts to cause the such registration statement to be
declared effective by the SEC as soon as practicable, and to cause such
registration statement to remain effective until the date nine months after its
effective date or such earlier time as all of the Registrable Securities covered
by such registration statement have been sold pursuant thereto. "Registrable
Securities" shall mean the Shares purchased by the Purchasers under this
Agreement and any and all additional shares of Staples.com Stock purchased by
the Purchasers pursuant to Sections 7.4 or 9 of this Agreement.

                  10.2     INCIDENTAL REGISTRATION.

                  (a) Whenever the Company proposes to file a registration
statement registering shares of Staples.com Stock under the Securities Act
(other than pursuant to Section 10.1 or a registration statement on Form S-4,
Form S-8 or any successor forms) at any time and from time to time, it will,
prior to such filing, give written notice to all Purchasers of its intention to
do so. Upon the written request of a Purchaser or Purchasers given within 20
days after the Company provides such notice (which request shall state the
intended method of disposition of such Registrable Securities), the Company
shall use its best efforts to cause all Registrable Securities which the Company
has been requested by such Purchaser or Purchasers to register to be registered
under the Securities Act to the extent necessary to permit their sale or other
disposition in accordance with the intended methods of distribution specified in
the request of such Purchaser or Purchasers; provided that the Company shall
have the right to postpone or withdraw any registration effected pursuant to
this Section 10.2(a) without obligation to any Purchaser.

                  (b) If the registration for which the Company gives notice
pursuant to Section 10.2 (a) is a registered public offering involving an
underwriting, the Company shall so advise the Purchasers as a part of the
written notice given pursuant to Section 10.2(a). In such event,

                                       15
<PAGE>

the right of any Purchaser to include its Registrable Securities in such
registration shall be conditioned upon such Purchaser's participation in such
underwriting on the terms set forth herein. All Purchasers proposing to
distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for the underwriting by the Company. Notwithstanding any other
provision of this Agreement, if the managing underwriter determines that the
inclusion of all Registrable Securities requested to be registered would
materially adversely affect the offering, the Company may limit the number of
Registrable Securities to be included in the registration and underwriting. The
Company shall so advise all holders of Registrable Securities requesting
registration, and the number of Registrable Securities that are entitled to be
included in the registration and underwriting by any Purchaser shall be
allocated among all Purchasers in proportion, as nearly as practicable, to the
respective number of shares of Staples.com Stock which they held at the time the
Company gives the notice specified in Section 10.2(a). If any Purchaser
disapproves of the terms of any such underwriting, such Purchaser may elect to
withdraw therefrom, within 15 days following receipt of a copy of the proposed
underwriting agreement and related documents, by written notice to the Company,
and any Registrable Securities or other securities excluded or withdrawn from
such underwriting shall be withdrawn from such registration.

                  10.3     REGISTRATION PROCEDURES.

                  (a) If and whenever the Company is required by Section 10.1 to
file a registration, or elects to file a registration statement in which
Registrable Securities are included pursuant to Section 10.2, the Company shall:

                           (i)      as expeditiously as practicable prepare
and file with the SEC any amendments and supplements to the registration
statement and the prospectus included in the registration statement as may be
necessary to comply with the provisions of the Securities Act (including the
anti-fraud provisions thereof);

                           (ii) as expeditiously as possible furnish to each
Purchaser whose Registrable Securities are included
in such registration statement (each, a "Selling Stockholder") such reasonable
numbers of copies of the prospectus, including any preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other documents
as such Selling Stockholder may reasonably request in order to facilitate the
public sale or other disposition of the Registrable Securities included in the
registration statement that are owned by such Selling Stockholder;

                           (iii) as expeditiously as possible use its best
efforts to register or qualify the Registrable
Securities included in the registration statement under the securities or Blue
Sky laws of such states as the Selling Stockholders shall reasonably request,
and do any and all other acts and things that may be necessary or desirable to
enable the Selling Stockholders to consummate the public sale or other
disposition in such states of such Registrable Securities that are included in
the registration statement; provided, however, that the Company shall not be
required in connection with this paragraph (ii) to qualify as a foreign
corporation or execute a general consent to service of process in any
jurisdiction;

                                       16
<PAGE>

                           (iv) as expeditiously as possible, cause all
Registrable Securities included in the registration statement to be listed on
each securities exchange or automated quotation system on which Staples.com
Stock then listed;

                           (v) promptly provide a transfer agent and registrar
for all Registrable Securities included in the registration statement not later
than the effective date of such registration statement;

                           (vi) promptly make available for inspection by the
Selling Stockholder, any managing underwriter
participating in any disposition pursuant to such registration statement, and
any attorney or accountant retained by any such underwriter or selected by the
Selling Stockholder, all financial and other records and pertinent corporate
documents reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such registration statement;

                           (vii) as expeditiously as possible, notify each
Selling Stockholder, promptly after it shall receive
notice thereof, of the time when such registration statement has become
effective or a supplement to any prospectus forming a part of such registration
statement has been filed; and

                           (viii) as expeditiously as possible following the
effectiveness of such registration statement, notify
each Selling Stockholder of any request by the SEC for the amending or
supplementing of such registration statement or prospectus.

                  (b) If the Company has delivered a prospectus to the Selling
Stockholders and after having done so the prospectus is amended to comply with
the requirements of the Securities Act, the Company shall promptly notify the
Selling Stockholders and, if requested, the Selling Stockholders shall
immediately cease making offers of Registrable Securities pursuant to such
prospectus and return all prospectuses to the Company. The Company shall
promptly provide the Selling Stockholders with revised prospectuses and,
following receipt of the revised prospectuses, the Selling Stockholders shall be
free to resume making offers of the Registrable Securities pursuant to such
revised prospectus.

                  (c) In the event that, in the judgment of the Company, it is
advisable to suspend use of a prospectus included in a registration statement
filed under this Section 10 due to pending material developments or other events
that have not yet been publicly disclosed and as to which the Company reasonably
believes public disclosure would be detrimental to the Company, the Company
shall notify all Selling Stockholders to such effect, and, upon receipt of such
notice, each such Selling Stockholder shall immediately discontinue any sales of
Registrable Securities pursuant to such registration statement until such
Selling Stockholder has received copies of a supplemented or amended prospectus
or until such Selling Stockholder is advised in writing by the Company that the
then current prospectus may be used and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such prospectus. Notwithstanding anything to the contrary herein, the Company
shall not exercise its rights under this Section 10.3(c) to suspend sales of
Registrable Securities pursuant to any prospectus more than two times (and in
each case, for a period not in excess of 60 days) in any 365-day period.

                                       17
<PAGE>

                  10.4 ALLOCATION OF EXPENSES. The Company will pay all
Registration Expenses for all registrations under this Section 10. For purposes
of this Section 10.4, the term "Registration Expenses" shall mean all expenses
incurred by the Company in complying with this Section 10, including, without
limitation, all registration and filing fees, exchange listing fees, printing
expenses, fees and expenses of counsel for the Company, the reasonable fees and
expenses of one counsel for the Selling Stockholders, state Blue Sky fees and
expenses, and the expense of any special audits incident to or required by any
such registration, but excluding underwriting discounts and selling commissions.

                  10.5     INDEMNIFICATION AND CONTRIBUTION.

                  (a) In the event of any registration of any of the Registrable
Securities under the Securities Act pursuant to this Agreement, the Company will
indemnify and hold harmless each Selling Stockholder, each underwriter of such
Registrable Securities, and each other person, if any, who controls such Selling
Stockholder or underwriter within the meaning of the Securities Act or the
Exchange Act against any losses, claims, damages or liabilities, joint or
several, to which such Selling Stockholder, underwriter or controlling person
may become subject under the Securities Act, the Exchange Act, state securities
or Blue Sky laws or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement under which such Registrable Securities were
registered under the Securities Act, any preliminary prospectus or final
prospectus contained in the registration statement, or any amendment or
supplement to such registration statement, or arise out of or are based upon the
omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; and the
Company will reimburse such Selling Stockholder, underwriter and each such
controlling person for any legal or any other expenses reasonably incurred by
such Selling Stockholder, underwriter or controlling person in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon any untrue statement or omission made in such registration statement,
preliminary prospectus or prospectus, or any such amendment or supplement, in
reliance upon and in conformity with information furnished to the Company, in
writing, by or on behalf of such Selling Stockholder, underwriter or controlling
person specifically for use in the preparation thereof.

                  (b) In the event of any registration of any of the Registrable
Securities under the Securities Act pursuant to this Agreement, each Selling
Stockholder, severally and not jointly, will indemnify and hold harmless the
Company, each of its directors and officers and each underwriter (if any) and
each person, if any, who controls the Company or any such underwriter within the
meaning of the Securities Act or the Exchange Act, against any losses, claims,
damages or liabilities, joint or several, to which the Company, such directors
and officers, underwriter or controlling person may become subject under the
Securities Act, Exchange Act, state securities or Blue Sky laws or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in any registration statement under which
such Registrable Securities were registered under the Securities Act, any
preliminary prospectus or final prospectus contained in the registration
statement, or any

                                       18
<PAGE>

amendment or supplement to the registration statement, or arise out of or are
based upon any omission or alleged omission to state a material fact required to
be stated therein or necessary to make the statements therein not misleading, if
the statement or omission was made in reliance upon and in conformity with
information relating to such Selling Stockholder furnished in writing to the
Company by or on behalf of such Selling Stockholder specifically for use in
connection with the preparation of such registration statement, prospectus,
amendment or supplement; provided, however, that the obligations of a Selling
Stockholder hereunder shall be limited to an amount equal to the net cash
proceeds to such Selling Stockholder of Registrable Securities sold in
connection with such registration.

                  (c) Each party entitled to indemnification under this Section
10.5 (the "Indemnified Party") shall give notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom; provided, that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld); and, provided, further, that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 10.5 except to the
extent that the Indemnifying Party is adversely affected by such failure. The
Indemnified Party may participate in such defense at such party's expense;
provided, however, that the Indemnifying Party shall pay such expense if
representation of such Indemnified Party by the counsel retained by the
Indemnifying Party would be inappropriate due to actual or potential differing
interests between the Indemnified Party and any other party represented by such
counsel in such proceeding; provided further that in no event shall the
Indemnifying Party be required to pay the expenses of more than one law firm per
jurisdiction as counsel for the Indemnified Party. The Indemnifying Party also
shall be responsible for the expenses of such defense if the Indemnifying Party
does not elect to assume such defense. No Indemnifying Party, in the defense of
any such claim or litigation shall, except with the consent of each Indemnified
Party (such consent not to be unreasonably withheld), consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect of such claim or litigation, and no
Indemnified Party shall consent to entry of any judgment or settle such claim or
litigation without the prior written consent of the Indemnifying Party, which
consent shall not be unreasonably withheld.

                  (d) In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in this Section 10.5 is
due in accordance with its terms but for any reason is held to be unavailable to
an Indemnified Party in respect to any losses, claims, damages and liabilities
referred to herein, then the Indemnifying Party shall, in lieu of indemnifying
such Indemnified Party, contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages or liabilities to
which such party may be subject in such proportion as is appropriate to reflect
the relative fault of the Company on the one hand and the Selling Stockholder on
the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Company and the Selling Stockholders
shall be determined by reference to, among other things, whether the untrue or

                                       19
<PAGE>

alleged untrue statement of material fact related to information supplied by the
Company or the Selling Stockholders and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The Company and the Selling Stockholders agree that it would not be
just and equitable if contribution pursuant to this Section 10.5 were determined
by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above. Notwithstanding the
provisions of this paragraph of Section 10.5, (i) in no case shall any one
Selling Stockholder be liable or responsible for any amount in excess of the net
cash proceeds received by such Selling Stockholder from the offering of
Registrable Securities and (ii) the Company shall be liable and responsible for
any amount in excess of such proceeds; provided, however, that no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. Any party entitled to contribution
will, promptly after receipt of notice of commencement of any action, suit or
proceeding against such party in respect of which a claim for contribution may
be made against another party or parties under this Section 10.5, notify such
party or parties from whom contribution may be sought, but the omission so to
notify such party or parties from whom contribution may be sought shall not
relieve such party from any other obligation it or they may have thereunder or
otherwise under this Section 10.5. No party shall be liable for contribution
with respect to any action, suit, proceeding or claim settled without its prior
written consent, which consent shall not be unreasonably withheld.

                  10.6 INFORMATION BY HOLDER. Each holder of Registrable
Securities included in any registration shall furnish to the Company such
information regarding such holder and the distribution proposed by such holder
as the Company may reasonably request in writing and as shall be required in
connection with any registration, qualification or compliance referred to in
this Agreement.

                  10.7 "STAND-OFF" AGREEMENT; CONFIDENTIALITY OF NOTICES. Each
Purchaser, if requested by the Company and the managing underwriter of an
underwritten public offering by the Company of Staples.com Stock, shall not sell
or otherwise transfer or dispose of any Registrable Securities or other
securities of the Company held by such Purchaser (except pursuant to such
offering) (i) for a period of 180 days (in the case of the IPO) and 90 days (in
the case of any subsequent offering) following the effective date of the
registration statement or such shorter period as may be requested by the
managing underwriter; provided that, in the case of any offering other than the
IPO, this restriction shall not apply to any Purchaser that owns (together with
its Affiliates), at the time of the filing of the registration statement for
such offering, less than 1% of the then outstanding shares of Staples.com Stock.
The Company may impose stop-transfer instructions with respect to the
Registrable Securities or other securities subject to the foregoing restriction
until the end of such restricted period. Any Purchaser receiving any written
notice from the Company regarding the Company's plans to file a registration
statement shall treat such notice confidentially and shall not disclose such
information to any person other than as necessary to exercise its rights under
this Section 10.

                  10.8 TERMINATION. All of the Company's obligations to register
the Registrable Securities held by any particular Purchaser under this Agreement
shall terminate upon the earlier of (a) three years after the IPO or (b) at such
time as such Registrable Securities may be sold by such Purchaser pursuant to
Rule 144(k) under the Securities Act and such Registrable Securities

                                       20
<PAGE>

(together with any other shares of Staples.com Stock held by Affiliates of such
Purchaser) represent less than 1% of the then outstanding shares of Staples.com
Stock.

         11.      MISCELLANEOUS.

                  11.1 SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties and their respective successors and
permitted assigns. This Agreement, and any rights and obligations of a Purchaser
hereunder, may be assigned by such Purchaser to any person or entity to which
Shares are transferred by such Purchaser in accordance with the terms of this
Agreement, provided that such transferee agrees in writing with the Company to
be bound by the terms of this Agreement.

                  11.2 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
agreements, representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the closing of the transactions
contemplated hereby.

                  11.3 EXPENSES. Except as provided in Section 10, the Company
and each Purchaser shall each pay their respective costs and expenses in
connection with the preparation of this Agreement and the closing of the
transactions contemplated hereby.

                  11.4 BROKERS. Each of the Company and the Purchasers,
severally and not jointly, (i) represents and warrants to the other that it has
not retained a finder or broker in connection with the transactions contemplated
by this Agreement, other than Wit Capital Corporation, which has been retained
by the Company, and (ii) will indemnify and save the other party harmless from
and against any and all claims, liabilities or obligations with respect to
brokerage or finders' fees or commissions, or consulting fees in connection with
the transactions contemplated by this Agreement asserted by any person on the
basis of any statement or representation alleged to have been made by such
indemnifying party.

                  11.5 SEVERABILITY. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

                  11.6 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the Commonwealth of
Massachusetts (without reference to the conflicts of law provisions thereof).

                  11.7 NOTICES. All notices, requests, consents, and other
communications under this Agreement shall be in writing and shall be deemed
delivered (i) two business days after being sent by registered or certified
mail, return receipt requested, postage prepaid or (ii) one business day after
being sent via a reputable nationwide overnight courier service guaranteeing
next business day delivery, in each case to the intended recipient as set forth
below:

         If to the Company, at 500 Staples Drive, Framingham, Massachusetts
01702, Attention: Jack A. VanWoerkom or at such other address or addresses as
may have been furnished in writing by the Company to the Purchaser; or

                                       21
<PAGE>

         If to a Purchaser, at such Purchaser's address set forth below such
Purchaser's name on SCHEDULE I hereto, or at such other address or addresses as
may have been furnished to the Company in writing by such Purchaser.

         Any party may give any notice, request, consent or other communication
under this Agreement using any other means (including, without limitation,
personal delivery, messenger service, telecopy, first class mail or electronic
mail), but no such notice, request, consent or other communication shall be
deemed to have been duly given unless and until it is actually received by the
party for whom it is intended. Any party may change the address to which
notices, requests, consents or other communications hereunder are to be
delivered by giving the other parties notice in the manner set forth in this
Section 11.7.

                  11.8 COMPLETE AGREEMENT. This Agreement constitutes the entire
agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings relating to
such subject matter.

                  11.9 AMENDMENTS AND WAIVERS. Except as otherwise expressly set
forth in this Agreement, any term of this Agreement may be amended or terminated
and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), with the
written consent of the Company and the holders of at least 65% of the Shares.
Notwithstanding the foregoing, this Agreement may be amended with the consent of
the holders of less than all of the Shares only in a manner which applies to all
such holders in the same fashion, and if any amendment or waiver adversely
affects any particular Purchaser in a manner different than the other
Purchasers, such Purchaser's written consent to such amendment or waiver shall
be required. Any amendment, termination or waiver effected in accordance with
this Section 11.9 shall be binding upon each holder of any Shares even if they
do not execute such consent, each future holder of all such securities and the
Company. No waivers of or exceptions to any term, condition or provision of this
Agreement, in any one or more instances, shall be deemed to be, or construed as,
a further or continuing waiver of any such term, condition or provision.

                  11.10 COUNTERPARTS; FACSIMILE SIGNATURES. This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original, and all of which shall constitute one and the same document. This
Agreement may be executed by facsimile signatures.

                  11.11 SECTION HEADINGS. The section headings are for the
convenience of the parties and in no way alter, modify, amend, limit, or
restrict the contractual obligations of the parties.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       22
<PAGE>

         Executed as of the date first written above.

                         COMPANY:

                         STAPLES, INC.

                         By:_______________________________

                         PURCHASERS:

                         GENERAL ATLANTIC PARTNERS 59, L.P.

                         By: General Atlantic Partners, LLC,
                             its general partner

                         By:_______________________________
                         Name:_____________________________
                         Title:____________________________

                         GAP COINVESTMENT PARTNERS II, L.P.

                         By:_______________________________
                         Name:_____________________________
                         Title:____________________________

                         HIGHLAND CAPITAL PARTNERS IV LIMITED
                         PARTNERSHIP

                         By:_______________________________
                         Name:_____________________________
                         Title:____________________________

                         HIGHLAND ENTREPENEURS' IV LIMITED
                         PARTNERSHIP

                         By:_______________________________
                         Name:_____________________________
                         Title:____________________________

                                       23
<PAGE>

                         GREYLOCK IX LIMITED PARTNERSHIP

                         By:_______________________________
                         Name:_____________________________
                         Title:____________________________

                         ESSEX PRIVATE PLACEMENT FUND II
                         LIMITED PARTNERSHIP

                         By:_______________________________
                         Name:_____________________________
                         Title:____________________________

                         SUMMIT ACCELERATOR PARTNERS LLC
                         (SAP LLC)

                        By:_______________________________
                        Name:_____________________________
                        Title:____________________________

                        PH INVESTMENTS, LLC

                        By:_______________________________
                        Name:_____________________________
                        Title:____________________________

                        -----------------------------------
                        Benjamin M. Rosen

                        -----------------------------------
                        Bill Sahlman

                                       24<PAGE>

                                                                Exhibit 10.12

                      LINE OF CREDIT AND GUARANTY AGREEMENT

                                                              December 6, 1999

Boston Safe Deposit & Trust Company
One Boston Place
Boston, Massachusetts  02108

Ladies and Gentlemen:

     Staples, Inc., with a mailing address at 500 Staples Drive, Framingham,
Massachusetts 01702 ("Customer") hereby agrees with your bank ("Bank") as
follows regarding a line of credit for demand loans to be made by your Bank from
time to time to employees of Customer ("Loans"):

     1. Line of Credit. Subject to the terms and conditions hereof, Bank shall
make available a line of credit (the "Line of Credit") for demand loans of U.S.
dollars to Eligible Employees (as defined herein) during the period from the
date hereof through the earlier of: (i) November 30, 2000 or (ii) the date on
which the Tracking Stock (as hereinafter defined) becomes publicly-traded. The
maximum principal amount of Loans outstanding at any one time under the Line of
Credit shall at no time exceed $30,000,000.

     2. Loans. (a) Each Loan shall be in a minimum amount of $100,000 and a
maximum amount of $3,500,000. Each Loan shall be evidenced by a demand
promissory note of the Eligible Employee obligated thereon in the form of
Exhibit A hereto (a "Note") and shall be secured by such Eligible Employee's
Staples.com common stock and, prior to the issuance of such stock, all of such
Eligible Employee's rights or options with respect to the same (the "Tracking
Stock") pursuant to a Pledge Agreement in the form of Exhibit B hereto (a
"Pledge Agreement"). As used herein, the term "Eligible Employee" shall mean an
employee of Customer designated by the Customer as eligible to obtain Loans who:
(i) is not a debtor in any pending case under the federal Bankruptcy Code or any
state insolvency or receivership law and whose assets are not subject to any
receivership, assignee or trust mortgage for the benefit of creditors, (ii) has
delivered to the bank a short-form personal financial statement on a form
supplied by the Bank, and (iii) has a prior credit history acceptable to Bank in
its sole discretion. Each Loan shall be issued by the Bank subject to the terms
and conditions of this Agreement.

<PAGE>

     (b) The proceeds of the Loans shall be used by Eligible Employees to
finance the cost to exercise their respective rights to purchase Tracking Stock,
which shall be delivered to Bank by Customer's transfer agent within ten
Business Days of the disbursement of the proceeds of the related Loan. Upon sale
of any Tracking Stock by an Eligible Employee, the proceeds of such sale shall
be applied first to the repayment of the Loan used by such Eligible Employee to
finance the exercise of his or her right to purchase the same, plus accrued
interest and late fees thereon and costs of collection with respect thereto,
with any proceeds of sale in excess of such amount to be paid: (i) so long as an
Employee Default by such Eligible Employee shall not have occurred and be
continuing, to the Eligible Employee obligated on such Loan, or (ii) if an
Employee Default by such Eligible Employee shall have occurred and be continuing
and (A) the Customer shall have purchased the Note of such Eligible Employee
pursuant to Section 4(c), to the Customer, and (B) if the Customer shall not
have purchased the Note of such Eligible Employee pursuant to Section 4(c), to
all other obligations of such Eligible Employee to the Bank incurred on or after
the date of this Agreement in such order as Bank may determine in its sole
discretion.

     (c) Prior to the disbursement of any proceeds of a Loan, the Customer shall
provide to the Bank a certificate as to the eligibility of the employee for
whose account such proceeds shall be disbursed to purchase Tracking Stock and as
to whether or not such employee is an "affiliate" of the Customer for purposes
of Rule 144 of the Securities and Exchange Commission ("Affiliate Status"), and
a statement as to the number of shares of Tracking Stock to be issued to such
employee.

     3. Interest. (a) As used herein, the following terms shall have the
following meanings:

     i.   "Call Rate" shall mean the rate quoted from time to time in the "Money
          Rates" section of The Wall Street Journal as "Call Money," or if no
          such rate is quoted or The Wall Street Journal is not available, the
          generally prevailing rate for loans to members of the New York Stock
          Exchange secured by stock exchange collateral provided by Reuters or a
          similar source of recognized standing selected by the Bank. In the
          event Bank determines that for any reason no rate comparable to Call
          Money is available on a given day, the Loans shall bear interest on
          such date at the Prime Rate (as hereinafter defined) minus 1% per
          annum unless a penalty rate is applicable to such Loan pursuant to the
          Note evidencing the same.

     ii.  "Standard Notice" shall mean an irrevocable notice provided to the
          Bank in writing (including by facsimile) or by telephone confirmed in
          writing on a Business Day which is at least one Business Day in
          advance in case of

                                       2

<PAGE>

notification of request for a Loan. Standard Notice must be provided no later
than 1:00 p.m., Eastern Standard Time on the last day permitted for such notice.

     (b) Interest on the Loans shall be payable monthly in arrears on the first
day of each month commencing on the first day of the month succeeding that in
which the proceeds of a Loan are disbursed. Interest on the Loans shall be
calculated on the basis of the actual number of days elapsed and a year of 360
days. Each change in the Call Rate shall be reflected by a simultaneous change
in the rate of interest payable on the Loans. In the event any payment of
interest required to be made under a Note is not made within 15 calendar days of
the date when due, the Eligible Employee obligated thereon shall pay a late
charge to the Bank of 5% of the amount due or $25, whichever is greater. Such
charge must be paid within 30 days of the date it is assessed and will be
charged only once on each late payment. If any payment due under the Guaranty is
not made on or within five Business Days of the date when due, such amount shall
thereafter bear interest payable on demand at a fluctuating rate per annum equal
to the greater of: (a) two percent (2%) above the Call Rate (or one percent (1%)
above the Prime Rate, if the Call Rate is unavailable) in effect on such due
date, or (b) two percent (2%) above the Call Rate (or one percent (1%) above the
Prime Rate, if the Call Rate is unavailable) in effect from time to time
thereafter. As used in this Agreement, "Prime Rate" shall mean the rate quoted
as the "Prime Rate" in the "Money Rates" section of The Wall Street Journal. In
the event the Call Rate or the Prime Rate is reported as a range of rates, the
rate used to calculate the interest rates under this Agreement shall be the
highest such rate reported. Each change in the Call Rate or the Prime Rate shall
be reflected in a corresponding change in the fluctuating rate payable pursuant
to this subsection 3(b).

     (c) If due to either (i) the introduction of or any change in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other governmental authority
(whether or not having the force of law), in each case after the date of this
Agreement, there shall be any increase in the cost to the Bank of agreeing to
make or making, funding or maintaining any Loan (excluding for purposes of this
subsection 3(c) any such increased costs resulting from changes in the basis of
taxation of overall net income or overall gross income of the Bank by the United
States or any political subdivision thereof), then the Eligible Employee
obligated on a Note shall, from time to time, within 5 Business Days after
demand by the Bank, pay to the Bank additional amounts sufficient to compensate
the Bank for such increased costs.

     (d) If the Bank determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) introduced or changed after the date of
this Agreement affects the amount of capital required to be maintained by the
Bank and that the

                                       3

<PAGE>

amount of such capital is increased by or based upon the existence of the Bank's
commitment to lend hereunder, then, within 5 Business Days after demand by the
Bank, each Eligible Employee shall pay to the Bank additional amounts sufficient
to compensate the Bank in the light of such circumstances.

     (e) Bank shall notify Eligible Employees and the Customer promptly after
the occurrence of any event described in subsections (c) and (d) above, and
Customer's liability to Bank pursuant to such subsections shall be limited to
amounts accruing after the date of such notice. Demand by the Bank pursuant to
subsections 3(c) or (d) shall be accompanied by a certificate as to the amount
of such increased cost or required capital, respectively, showing calculations
of the amount claimed in reasonable detail. Bank's determination of any such
increased cost (using any reasonable method of averaging, attribution or
allocation), as set forth in such a certificate shall, if correctly calculated,
be deemed prima facie evidence of such amount.

     4. Guaranty. (a) The Customer hereby unconditionally guarantees full and
punctual payment, performance and fulfillment to the Bank of all liabilities,
obligations and undertakings of Eligible Employees to the Bank pursuant to the
Loans, whether direct or indirect, absolute or contingent, due or to become due,
now existing or hereafter arising or acquired (the "Obligations") on November
30, 2004 or earlier upon the occurrence of an Employee Default or a Customer
Default as provided herein or under the circumstances described in subsection
9(b).

     (b) The Customer's agreement contained in this Section 4 ("the Guaranty")
shall operate as a continuing, absolute and unconditional guaranty of the full
and punctual payment and performance of the Obligations, and not of their
collectibility only, and the Bank shall be entitled to enforce the Guaranty
against all assets of the Customer for the full amount of the Obligations
notwithstanding limitations on the Bank's recourse against assets of Eligible
Employees contained in the Notes. If an Employee Default shall occur, the
liability of the Customer with respect to the Obligations of the defaulting
Eligible Employee shall become immediately due and payable, and if a Customer
Default shall occur, the liability of the Customer with respect to all
Obligations of all Eligible Employee shall become immediately due and payable to
the Bank upon written notice to Customer. The Customer waives any right that the
Customer may have to require the Bank first to proceed against an Eligible
Employee or any other person. The Customer also waives any right that the
Customer may have to require the Bank to realize on any security held by the
Bank before proceeding against the Customer for the enforcement of the Guaranty.

     (c) Bank agrees to consider joint requests by Customer and particular
Eligible Employees to sell such Eligible Employees' Tracking Stock prior to
enforcing its rights under the Guaranty with respect to such Tracking Stock, but
shall be under no obligation to do so. Bank agrees that, prior to making demand
upon an Eligible

                                       4

<PAGE>

Employee for payment of a Loan following an Employee Default, it will provide
Customer with notice of such Employee Default and, except when stayed from
enforcing the Guaranty against the Customer as a result of proceedings under the
federal Bankruptcy Code or any state insolvency or receivership law or by court
order, or under circumstances in which the prospects for obtaining repayment of
such Loan from the defaulting Eligible Employee would be impaired by delay, to
permit Customer to promptly purchase the Note of such Eligible Employee at a
purchase price equal to the outstanding principal balance thereof, accrued
interest and late fees thereon, and costs of collection with respect thereto,
prior to making demand upon such Eligible Employee, without waiving its right to
proceed first against such Eligible Employee for the enforcement of such Note.

     (d) Upon purchase by the Customer of the Note of any Eligible Employee, the
Bank shall endorse and transfer to the Customer the Note of such Eligible
Employee and (unless the Tracking Stock of such Eligible Employee has been sold
by Bank) shall deliver to the Customer the Pledge Agreement of such Eligible
Employee and the Tracking Stock of such Eligible Employee, in each case without
recourse, warranty or representation. The Customer waives any other right that
it may have against the Bank as a result of any such payment by the Customer
under the Guaranty, whether arising by way of subrogation, contribution,
reimbursement or otherwise.

     (e) The liability of the Customer under the Guaranty shall be unlimited.
The Customer agrees, as a principal and not as a surety only, to pay to the
Bank, on demand, all costs and expenses paid or incurred by the Bank (including
court costs and attorneys' fees) in connection with the Obligations or the
Guaranty and the enforcement of either of them, including without limitation
costs and expenses paid or incurred by the Bank in connection with any
proceedings under the federal Bankruptcy Code or any other law relating to
insolvency.

     (f) The Customer waives presentment, demand, protest, notice of acceptance,
notice of the Obligations incurred and all other notices of any kind and all
defenses which may be available to the Customer except for notices expressly
provided for herein. The Customer warrants to the Bank that it has adequate
means to obtain from Eligible Employees, on a continuing basis, information
concerning the financial condition of the Eligible Employees, and that it is not
relying on the Bank to provide such information, now or in the future. The
Customer agrees to the provisions of any instrument, security or other writing
evidencing or securing any of the Obligations and agrees that the obligations of
the Customer hereunder shall not be released or discharged, in whole or in part,
by: (i) any renewals, extensions or postponements of the time of payment of any
of the Obligations or any other forbearance or indulgence with respect thereto;
(ii) any rescissions, waivers, amendments or modifications of any of the terms
of any agreement evidencing, securing or otherwise executed in connection with
the Obligations; or (iii) the substitution or release of any security for the

                                       5

<PAGE>

Obligations or of any other person primarily or secondarily liable on any of the
Obligations, whether or not notice thereof shall be given to the Customer. The
enforcement of the Guaranty shall not be affected by the delay, neglect or
failure of the Bank to take any action with respect to any security, right,
obligation, endorsement, guaranty or other means of collecting the Obligations
which it may at any time hold, including perfection or enforcement thereof. The
Customer agrees that the Customer shall be and remain bound upon the Guaranty
irrespective of any action, delay or omission by the Bank in dealing with any
Eligible Employee, any of the Obligations, any Tracking Stock or other
collateral therefor, or any person at any time liable with respect to the
Obligations, and irrespective of any defense which any Eligible Employee may
assert to the underlying debt, including but not limited to failure of
consideration, breach of warranty, fraud, payment, statute of frauds,
bankruptcy, lack of legal capacity, statute of limitations, lender liability,
accord and satisfaction or usury.

     (g) If for any reason an Eligible Employee is under no legal obligation to
discharge any of the Obligations, or if any of the Obligations shall have become
irrecoverable from an Eligible Employee by operation of law or for any other
reason, or if any security for or other guaranty of the Obligations shall be
found invalid, the Customer shall nonetheless be and remain bound on the
Guaranty. The Guaranty shall continue to be effective or be reinstated,
notwithstanding any prior termination, if at any time any payment made or value
received with respect to any of the Obligations is rescinded or must otherwise
be returned by the Bank due to the insolvency or bankruptcy of an Eligible
Employee or otherwise, all as though such payment had not been made or value
received.

     5.   Representations, Warranties and Covenants.

     (a) To induce Bank to make the Loans, the Customer makes the following
representations and warranties:

     (i) That the Customer is a duly organized and validly existing corporation
in good standing under the laws of the State of Delaware, with corporate powers
adequate for the making and performing of this Agreement, for the issuance of
the Guaranty and the other agreements of the Customer referred to herein, and
for the carrying on of the business now conducted by it. The Customer is duly
qualified as a foreign corporation to do business wherever necessary to carry on
its present operations and is in good standing in every jurisdiction where such
qualification is necessary.

     (ii) That Customer has good and marketable title in fee to such of its
fixed assets as are real property and good and marketable title to its other
properties and assets, subject to no mortgage, pledge, lien, charge, security
interest, title retention agreement or other encumbrance except for encumbrances
permitted by the Senior Credit Agreement (as hereinafter defined), and that the
obligations of the Customer

                                       6

<PAGE>

pursuant to the Senior Credit Agreement (as hereinafter defined) are unsecured
except for rights of setoff of the Banks referred to therein.

     (iii) That the financial statements of the Customer contained in the
Customer's Annual Report on Form 10-K for the fiscal year ended January 31,
1999, and the Customer's Quarterly Report on Form 10-Q for the quarter ended
October 31, 1999, in each case filed with the Securities and Exchange
Commission, are complete and correct and present fairly the financial position
of the Customer as of the dates thereof and for the periods included therein,
and have been prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods involved, subject, as to
interim statements, to audit and year-end adjustments. There are no material
contingent liabilities or liabilities for taxes of the Customer as at the date
of the aforementioned Quarterly Report on Form 10-Q which are not reflected in
said statements of financial condition.

     (iv) That there has been no material adverse change in the condition,
financial or otherwise, of the Customer since the date as of the aforementioned
Quarterly Report on Form 10-Q other than normal seasonal variations occurring in
the ordinary course of business.

     (v) That the Customer has filed or caused to be filed all federal, state
and local tax returns which are required to be filed, and has paid or caused to
be paid all taxes as shown on said returns or any assessment received by it, to
the extent that such taxes have become due, except as otherwise permitted by the
provisions of this Agreement.

     (vi) That there are no actions, suits or proceedings pending or, to the
knowledge of the Customer, threatened against the Customer at law or in equity
or before or by any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, which in the reasonable
opinion of Customer is likely to result in a material adverse change to the
business, properties or assets or in the condition, financial or otherwise, of
the Customer.

    (vii) That the Customer is not a party to any contract or agreement or
subject to any restrictions which materially and adversely affects its business
or assets or financial condition. Neither the execution nor delivery nor
compliance with the terms and provisions of this Agreement or the Guaranty will
be contrary to the provisions of, or constitute a default under, the charter or
by-laws of the Customer or any agreement to which the Customer is a party.

                                       7

<PAGE>

     (viii) That the making and performance of this Agreement and the Guaranty
are within the Customer's corporate powers and have been duly authorized by all
necessary corporate action, and that this Agreement and the Guaranty are legal
and binding obligations of the Customer enforceable in accordance with their
respective terms (subject to bankruptcy and similar laws of general application
affecting the rights and remedies of creditors).

     (ix) That no approval or authorization of, or registration, qualification
or filing with, any governmental authority is required in connection with the
execution, delivery or performance by the Customer of this Agreement or the
Guaranty or the consummation of the transactions contemplated hereby or thereby.

     (x) That the Customer possesses all patents, patent rights or licenses,
trademarks, trademark rights, trade names, trade name rights and copyrights
which are required to conduct its businesses as now conducted without known
conflict with the rights of others.

     (xi) That Company is not engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System), and no part of the proceeds of any
extension of credit under this Agreement will be used to purchase or carry any
such margin stock or to extend credit to others for the purpose of purchasing or
carrying any such margin stock.

     (xii) That the most recent annual report filed by the Customer pursuant to
Section 104 of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), including without limitation, all related financial and actuarial
statements, is complete and correct, and no event has occurred and is continuing
which would permit the Pension Benefit Guaranty Corporation ("PBGC") established
under ERISA to institute proceedings to terminate any pension plan or other type
of employee benefit which the PBGC has elected to insure, established or
maintained by the Customer.

     (b) The Customer hereby covenants and agrees with the Bank as follows:

     (i) To comply with the covenants contained in the Revolving Credit
Agreement dated as of November 13, 1997 among the Customer, BankBoston, N.A. as
Administrative Agent, The Chase Manhattan Bank as Syndication Agent, Fleet
National Bank as Documentation Agent and the Co-Agents named therein, or any
agreement pursuant to which the loans contemplated thereby are refinanced or the
Commitments of the Banks (as those terms are defined therein) are replaced
(together, the "Senior Credit Agreement"), as the same may be amended from time
to time.

                                       8

<PAGE>

     (ii) At any time that Mellon Bank, N.A. shall cease to be a lender pursuant
to the Senior Credit Agreement, to provide to the Bank: (A) notice of the
amendment of any provision of the Senior Credit Agreement promptly after the
same is executed, (B) copies of the financial statements, certificates and
the same are provided to the Agent thereunder, and (C) copies of the notices
referred to in (167)6.5 of the Senior Credit Agreement, at the time the same are
provided to the Agent thereunder, or in the event that the Senior Credit
Agreement in effect on the date hereof is replaced, comparable notices,
financial statements, certificates and information required to be provided to
the Agent under such replacement Senior Credit Agreement.

     (iii) In the event that the Customer grants to the Agent under the Senior
Credit Agreement any collateral or rights in property of the Customer for the
benefit of the Banks referred to therein, the Customer shall grant to the Bank
an equal and ratable security interest or mortgage on such property to secure
the Customer's obligations under the Guaranty.

     (iv) That the Customer shall provide to the Bank quarterly, within 30 days
after the end of each fiscal quarter of the Customer, a list of Eligible
Employees including a statement as to any change in the Affiliate Status of any
such Eligible Employee or any individual previously identified to the Bank as an
Eligible Employee.

     (v) That the Tracking Stock is fully paid and non-assessable and is not
subject to any lien, security interest, right or claim on the part of Customer
except for: (A) the Customer's right to purchase non-vested Tracking Stock from
Eligible Employees and (B) a junior security interest therein to secure such
right. Bank acknowledges that it holds, and will cause its agents (including the
Fiduciary under any Pledge Agreement) to hold, each Eligible Employee's Tracking
Stock to perfect the Customer's junior security interest therein, and that, upon
prior payment in full of all Obligations (as defined in each Eligible Employee's
Pledge Agreement), it will deliver the Collateral described in such Pledge
Agreement to the Customer.

     (vi) The security interest of the Customer in the Collateral described in
the Pledge Agreement shall be fully subordinate and junior to Bank's security
interest in such assets, regardless of the time Bank's security interest with
regard to such assets attaches, and regardless of the future granting of loans
or credits to Eligible Employees by Bank. Customer agrees that it will do
nothing to interfere with Bank's prior security interest in such Collateral
whether by undertaking to collect or enforce its rights in such Collateral or
otherwise until all indebtedness of the Eligible Employee who owns the same to
the Bank shall be paid in full.

                                       9

<PAGE>

     6. Conditions Precedent. (a) The Bank's agreement to extend the Line of
Credit is subject to the conditions that:

     i. On or before the date hereof the Customer shall have delivered to the
Bank the documents, instruments and certificates listed on Exhibit C hereto and
such other documents and materials as the Bank may reasonably require.

     ii. On or before the date of each Loan, the Eligible Employee to be
obligated thereon shall have executed and delivered to the Bank: (i) the Note
evidencing such Loan, (ii) the Pledge Agreement securing such Note, (iii) the
document or instrument evidencing such Eligible Employee's rights with respect
to the Tracking Stock, accompanied by five stock powers or other instrument of
transfer executed in blank, and (iv) such other documents, instruments and
materials as Bank may reasonably require.

     (b) The Bank's agreement to make each Loan to an employee of the Customer
is subject to the further conditions precedent that: (i) no Customer Default
shall have occurred and be outstanding hereunder, (ii) the employee to be
obligated thereon is at the time an Eligible Employee, and (iii) no Employee
Default with respect to such employee shall have occurred and be outstanding as
to any prior Loan to such employee.

     7.   Employee Defaults.

     (a) The following shall constitute Employee Defaults with respect to a
Note:

          (i) Default in the payment or performance of any Obligation by the
Eligible Employee obligated thereon.

          (ii) Death of the Eligible Employee obligated thereon.

          (iii) Such employee shall cease to be an employee of Customer or shall
cease to be an Eligible Employee.

          (iv) Customer shall notify Bank that the employee obligated thereon is
no longer eligible to participate in Customer's program of obtaining Loans for
Eligible Employees from the Bank.

          (v) The employee obligated thereon shall become subject to any
injunction or temporary restraining order restricting the sale of the Tracking
Stock or any order prohibiting the Bank from selling such employee's Tracking
Stock shall be entered by any court, or such employee shall become the subject
of any investigative or administrative proceeding or any civil or criminal
action alleging violation of state or

                                       10

<PAGE>

federal securities laws.

          (vi) The employee obligated thereon shall sell or transfer all or
substantially all of his or her assets, or become insolvent, or fail generally
to pay his or her debts as they become due, or if a receiver is appointed for
such employee or any part of the property of such employee or if such employee
shall make an assignment or grant a trust mortgage for the benefit of (or
composition with) the creditors of such employee, or if a material adverse
change shall occur in the financial condition of such employee.

          (vii) The filing of a petition in bankruptcy by or against the
employee obligated thereon or the commencement of any proceedings by or against
such employee under any insolvency or other laws relating to the relief of
debtors; or the taking of any action by such employee to accomplish any of the
foregoing.

     (b) Upon the occurrence of an Employee Default all of the Obligations
of the defaulting employee shall become immediately due and payable, and the
liability of the Customer pursuant to the Guaranty with respect to such
Obligations shall (unless Bank otherwise elects) become immediately due and
payable without demand, presentment or notice, notwithstanding any prior
acceptance by Bank of periodic payments of interest on such employee's Note or
other Obligations.

     8.   Customer Defaults. (a) The following shall constitute Customer
Defaults:

          (i) The Customer shall default in the payment or performance of any
obligation contained in the Senior Credit Agreement, as the same may be amended
from time to time, and such default shall continue beyond any applicable grace
period, whether or not such default is waived.

          (ii) The Customer shall default in the payment or performance of any
obligation contained in this Agreement, including default in the payment of any
sums due pursuant to the Guaranty continuing for five Business Days following
demand by Bank.

     (b) Upon the occurrence of a Customer Default, all Obligations shall
become immediately due and payable, and the liability of the Customer pursuant
to the Guaranty shall (unless Bank otherwise elects) become immediately due and
payable without demand, presentment or notice.

     9. Bank's Rights and Remedies. (a) Upon the occurrence of an Employee
Default, Bank shall have the rights and remedies of a secured party under the
UCC with respect to the Tracking Stock pledged by the defaulting employee of
Customer.

                                       11

<PAGE>

Notwithstanding the enumeration of Employee Defaults, all Loans shall at all
times be payable on demand. Upon the occurrence of a Customer Default, Bank
shall have the rights and remedies of a secured party under the UCC with respect
to all Tracking Stock pledged as security for the Obligations. The Customer
hereby agrees that five Business Days' notice of the time and place of any
public sale of Tracking Stock, or the time after which a private sale or other
disposition of Tracking Stock shall take place, sent by telefacsimile to the
Customer at 508/___-____, attention: Chief Financial Officer, shall constitute
reasonable notification. The term "Business Day" shall mean a day on which the
Bank's offices in Boston, Massachusetts are open for business.

     (b) Upon the occurrence of an Employee Default or a Customer Default,
Bank may take control of any proceeds of Tracking Stock. Any deposits or other
sums at any time credited by or due from the Bank to the Customer shall at all
times constitute collateral for the Obligations and the Guaranty. Bank may apply
or set-off deposits against the Obligations and the Guaranty regardless of the
adequacy of any other collateral at any time after the occurrence and during the
continuance of a Customer Default. Upon the occurrence and during the
continuance of a Customer Default, Bank may apply the net proceeds of any sale
of Tracking Stock to the Obligations of the owner of such Tracking Stock, and
may apply the proceeds of any set-off to the Customer's obligations under the
Guaranty, in each case in such order as it may determine.

     (c) Bank shall have the option at any time within 90 days after the
date on which Mellon Bank, N.A. ceases to be a lender to the Customer pursuant
to the Senior Credit Agreement to require the Customer to refinance all
outstanding Loans or to repay all outstanding Loans pursuant to the Guaranty.

     (d) In the event that: (i) the Commitments of the Banks under the
Senior Credit Agreement are reduced or (ii) the principal balance of the Loans
outstanding thereunder is repaid following an Event of Default thereunder, the
Customer shall upon demand by Bank deliver to Bank cash collateral (and a pledge
agreement covering the same) in an amount computed by multiplying: (A) the
amount of such reduction of Commitments or repayment of Loans, by a fraction,
(B) the numerator of which shall be $30,000,000 and (C) the denominator of which
shall be the maximum amount of the Commitments, or the principal balance of the
Loans outstanding under the Senior Credit Agreement, as the case may be, prior
to such reduction or repayment.

     10. Customer's Agreement to Indemnify Bank. Customer agrees to
indemnify Bank and hold it harmless from any loss, cost (including legal costs
and reasonable attorneys' fees) or damage it may suffer as a result of: (i) any
failure of the Customer or an employee of Customer to comply with the terms of
this Agreement or a Note, (ii) obligations and responsibilities imposed by state
or federal securities laws, (iii) Bank's

                                       12

<PAGE>

foreclosure upon any Tracking Stock to satisfy an Employee Default or
enforcement of any Note, or (iv) all other claims, demands, suits, liabilities
or obligations arising out of Bank's agreement to make the Loans as provided
herein.

     11. Miscellaneous. (a) The Customer shall from time to time designate,
and shall at all times maintain, a management employee authorized to certify as
to the eligibility of employees to obtain Loans hereunder, and shall promptly
notify Bank in the event that: (i) an employee to whom a Loan is outstanding
shall cease to be so eligible or (ii) any change shall occur in the Affiliate
Status of any such employee.

     (b) This Agreement and the Guaranty represent the entire understanding
between the Bank and the Customer with regard to the Loans, and their respective
provisions may not be modified, waived or amended except by a writing signed by
the Bank and the Customer. This Agreement is entered into solely for the benefit
of the Customer and the Bank, and no other party, including Eligible Employees
designated by the Customer from time to time, shall have any rights hereunder.
THE CUSTOMER WAIVES TRIAL BY JURY IN ANY ACTION ARISING OUT OF THIS AGREEMENT OR
THE GUARANTY.

     (c) Except as provided in subsection 9(a), all notices provided for
hereunder shall be in writing to the parties at their respective addresses set
forth on page one, or to such other address as any party may designate in
writing to the other. Notices shall be deemed effective upon receipt if
delivered by hand or telephone or given by facsimile, one (1) Business Day after
delivery to a reputable overnight courier service and three (3) Business Days
after being deposited in the mails.

     (d) This Agreement and the Guaranty shall be binding upon and inure to
the benefit of the Customer and the Bank and their respective successors and
assigns. The invalidity or unenforceability of any one or more phrases, clauses
or sections of this Agreement or the Guaranty shall not affect the validity or
enforceability of the remaining portions of this Agreement or the Guaranty. This
Agreement and the Guaranty are intended to take effect as a sealed instrument
and shall be construed in accordance with and governed by the laws (other than
the conflict of laws rules) of Massachusetts.

     Please indicate below your concurrence in the terms of this Agreement and
your acceptance of the Guaranty.

                                            STAPLES, INC.

                                            By____________________________

                                       13

<PAGE>

Agreed and accepted:

BOSTON SAFE DEPOSIT & TRUST COMPANY

By_____________________________________

                                       14

<PAGE>

                                    EXHIBIT A

                                DEMAND LOAN NOTE

Maximum Principal Amount:                            Date:_______________
$_____________________                               Boston, Massachusetts

     ON DEMAND, for value received, the undersigned, jointly and severally if
more than one ("Borrower"), promise to pay to the order of BOSTON SAFE DEPOSIT
AND TRUST COMPANY (the "Bank") at such place as the Bank may from time to time
designate, the aggregate principal amount outstanding when demand is made, with
interest thereon and any fees, expenses and charges, as provided below. At no
time shall the outstanding principal amount borrowed exceed the maximum
principal amount described above. The entries on the records of the Bank,
including any appearing on this Demand Loan Note ("this Note"), will be prima
facie evidence of the aggregate principal amount outstanding under this Note,
the interest accrued on such amount and other fees and charges due.

     All payments hereunder including any prepayments of principal shall be
applied first to unpaid accrued interest, then to other fees, expenses and
charges due, including collection costs, and the balance, if any, to principal.
Principal repaid may not be reborrowed.

INTEREST

     Interest shall accrue at a floating annual rate equal to the rate quoted as
"Call Money" from time to time in the "Money Rates" section of The Wall Street
Journal, or if no such rate is quoted or The Wall Street Journal is not
available, the generally prevailing rate for loans to members of the New York
Stock Exchange secured by stock exchange collateral provided by Reuters or a
similar source of recognized standing selected by the Bank. In the event Bank
determines that for any reason no rate comparable to Call Money is available on
a given day, the Loans shall bear interest on such date at the Prime Rate (as
hereinafter defined) minus 1% per annum. "Prime Rate" shall mean the rate quoted
as the "Prime Rate" in the "Money Rates" section of The Wall Street Journal. In
the event "Call Money" or the "Prime Rate" is reported as a range of rates, the
rate used to calculate the interest rates under this Note will be the highest
such rate reported. The interest rate of this Note will change on the date
reported in The Wall Street Journal as the effective date of the change in Call
Money or the Prime Rate.

     In the event the interest rate indices stated above cease to be available,
the Bank may substitute any similar index, whether reported in The Wall Street
Journal or

<PAGE>

any other newspaper, and the Bank's selection shall be conclusive and binding on
the Borrower. In such event, and until the Bank selects a substitute index,
interest shall accrue at the rate in effect at the time the index in question
was determined by the Bank to be unavailable.

     Interest will begin to accrue on the day any proceeds of loans made under
this Note are disbursed. Interest will continue to accrue at the rate described
above, both before and after demand for payment, on the outstanding principal
until all principal amounts have been paid in full. The rate of interest shall
never exceed the maximum rate allowable under applicable law.

     Interest will be calculated on the basis of actual days elapsed in a 360
day year and will be payable in arrears. The first interest payment will be due
on the first day of the month immediately following any advance hereunder.
Subsequent interest payments will be due on the same day of every month
thereafter.

INTEREST PAYMENT OPTIONS

Borrower chooses to make monthly interest payments as indicated below:

     Payment Method #1: Borrower authorizes Lender to take payments out of
     Borrower's Checking Account maintained with Boston Safe Deposit and Trust
     Company, number ----------, titled --------------------------, on or after
     the first business day of each month. Borrower will keep a large enough
     balance in this account to cover the full amount of the required payments.

     Payment Method #2: Lender will send Borrower a bill each month, and
     Borrower will mail or deliver the required payment so that Lender will
     receive it no later than the first day of each month.

     Payment Method #3: Borrower authorizes Lender to take payments out of
     either the principal or income or both of Borrower's Investment Account,
     number ----------, titled ----------------------------, on or after the
     first business day of each month. Borrower will maintain this Investment
     Account, in order to ensure that there are sufficient funds or assets in
     the Investment Account in order to meet Borrower's monthly payments.

     Borrower may request in writing a change in the Payment Option at any time.

                                       ii

<PAGE>

LATE CHARGES AND OTHER CHARGES

     In the event any payment of interest required to be made hereunder is not
made within 15 calendar days of the first day of each month, the date it is due,
the Borrower shall pay a late charge to the Bank of 5% of the amount due or $25,
whichever is greater. This charge must be paid within 30 days of the date it is
assessed and will be charged only once on each late payment.

     If any amount due as the principal of this Note is not paid in full on or
within five business days of the date of demand, such amount shall thereafter
bear interest payable on demand at a fluctuating rate per annum equal to the
greater of: (a) two percent (2%) above the Call Money rate (or one percent (1%)
above the Prime Rate, if the Call Money rate is unavailable) in effect on such
due date, or (b) two percent (2%) above the Call Money rate (or one percent (1%)
above the Prime Rate, if the Call Money rate is unavailable) in effect from time
to time thereafter.

     If due to either (i) the introduction of or any change in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other governmental authority
(whether or not having the force of law), in each case after the date of this
Note, there shall be any increase in the cost to the Bank of agreeing to make or
making, funding or maintaining any loan under this Note (excluding any such
increased costs resulting from changes in the basis of taxation of overall net
income or overall gross income of the Bank by the United States or any political
subdivision thereof), then the Borrower shall, from time to time, within 5
business days after demand by the Bank, pay to the Bank additional amounts
sufficient to compensate the Bank for such increased costs.

     If the Bank determines that compliance with any law or regulation or any
guideline or request from any central bank or other governmental authority
(whether or not having the force of law) introduced or changed after the date of
this Note affects the amount of capital required to be maintained by the Bank
and that the amount of such capital is increased by or based upon the existence
of the Bank's loans hereunder, then, within 5 business days after demand by the
Bank, the Borrower shall pay to the Bank additional amounts sufficient to
compensate the Bank in the light of such circumstances.

     Bank shall notify the Borrower promptly after the occurrence of any event
described in the two immediately preceding paragraphs, and Borrower's liability
to Bank pursuant to such subsections shall be limited to amounts accruing after
the date of such notice. Demand by the Bank pursuant to such paragraphs shall be
accompanied by a certificate as to the amount of such increased cost or required
capital, respectively, showing calculations of the amount claimed in reasonable
detail. Bank's determination of any such increased cost (using any reasonable
method of averaging, attribution or

                                       iii

<PAGE>

allocation), as set forth in such a certificate shall, if correctly calculated,
be deemed prima facie evidence of such amount.

WIRE TRANSFER AUTHORIZATION

     Borrower hereby authorizes the Bank to wire transfer funds upon Borrower's
telephone, oral or written request, and agrees to hold the Bank harmless from
any and all claims, liabilities or damages, including reasonable attorney's fees
arising directly or indirectly from this authorization. The Bank shall be under
no obligation to verify the authenticity of any transfer request purporting or
which the Bank reasonably believes to be made by Borrower.

PREPAYMENT

     At any time or times before the Bank has exercised its demand right under
this Note, Borrower may make partial payments of principal without penalty. All
payments shall be made to the Bank's loan servicing center in Pittsburgh,
Pennsylvania, or at such other place as the Bank may from time to time designate
in writing.

SECURITY INTEREST DISCLOSURE

     As security for payment of this note and the obligations provided for
herein, Borrower gives Lender a security interest in all the assets more fully
described in a Pledge Agreement of even date, and any modifications thereof (the
"Pledge Agreement").

     To the extent permitted by law, the Bank has the right to apply funds from
any deposit account(s) of borrower or cosigner with the Bank to pay all or any
portion of any amount outstanding under this Note or otherwise to the Bank,
subject to the limitations on recourse set forth below.

     In addition to any right of setoff given to the Bank by law against any
property of Borrower, the Bank shall have a lien on and security interest in all
property of Borrower now or hereafter on deposit with the Bank, subject to the
limitations on recourse set forth below. Such lien and security interest may be
enforced without demand upon or notice to Borrower, shall continue in full force
unless specifically waived or released by the Bank in writing, and shall not be
deemed waived by any delay of the Bank in enforcing the lien or security
interest.

     Recourse of the holder of this note against the property of the Borrower
other than the Collateral described in the Pledge Agreement above is limited to
50% of the original principal amount hereof, less any principal paid from time
to time by the Borrower (other than from such Collateral or proceeds thereof),
plus all accrued interest

                                       iv

<PAGE>

and costs of collection, as provided below.

COLLECTION COSTS

     Borrower promises to pay on demand, to the extent permitted under
applicable law, all costs and expenses, including reasonable attorneys' fees,
incurred or paid by the Bank in enforcing this Note, whether or not litigation
is commenced, and in selling or otherwise disposing of all or any part of any
property pledged to secure this Note. All such costs and expenses shall be
secured by such collateral.

JOINT LIABILITY

     If more than one person has signed this Note, their obligations shall be
joint and several, and the liability of each shall be absolute and unconditional
and without regard to the liability of any other party hereto.

WAIVER

     Unless prohibited by applicable law, Borrower, all co-Borrowers, any
endorser and any other party hereto, and each of them (1) waives presentment,
demand, notice, protest, and all other demands and notices in connection with
the delivery, acceptance, performance, default or enforcement of this Note or of
any document or instrument evidencing any security for the payment of this Note,
except for demand for payment hereunder and any notices provided for in the
Pledge Agreement; (2) assents to any one or more extensions or postponements of
the time of payment or any other indulgences, to any additions or substitutions,
exchanges or releases of collateral and/or the addition, substitution or release
of any one or more parties or persons primarily or secondarily liable hereunder,
and (3) agrees that no such action, failure to act or failure to exercise any
right or remedy, on the part of the Bank shall in any way affect or impair the
obligations of any of them or be construed as a waiver by Bank of, or otherwise
affect, any of Bank's rights under this Note, under any endorsement or guaranty
of this Note or under any document or instrument evidencing any security for
payment of this Note. No delay or omission by the Bank in exercising in whole or
in part any right or remedy hereunder shall operate as a waiver thereof or of
any other right or remedy. A waiver of any right or remedy, in whole or in part,
on any one occasion shall not be construed as a bar to enforcing or as a waiver
of that or any other right or remedy on any future occasion.

ADDRESS CHANGE

     Borrower shall notify the Bank of any change in the Borrwer's address of
record. Any such notice shall be directed to the Bank at the address for
payments, or to such other address as the Bank may direct. In the event such
notice is not given by the

                                        v

<PAGE>

Borrower, Borrower shall be deemed to have waived the right to receive any
notice which otherwise would be required under this Note or by applicable law,
unless such waiver is specifically prohibited by applicable law or regulation.

ENTIRE AGREEMENT

     The terms and conditions of the Pledge Agreement are deemed to be
incorporated herein by reference. Such terms and conditions, together with the
terms and conditions of this Note, constitute the entire agreement of the
parties and supersede all prior agreements and understandings, both written and
oral, of the parties hereto with respect to the subject matter of this Note or
of any such agreement. The captions and headings of the various sections of this
Note are for convenience only and are not to be considered as defining or
limiting, in any way the scope or intent of the provisions hereof. Neither this
Note nor such Pledge Agreement may be modified or amended except by a writing
signed by the Bank.

FINANCIAL INFORMATION/FURTHER DOCUMENTS

     At Lender's request, Borrower will give Lender a completed and signed
personal financial statement in such form as Lender may require. Borrower will
execute any documents or instruments required by Lender to perfect its security
interest or as otherwise may be required by Lender, as Lender may request from
time to time.

GENERAL PROVISIONS

     This Note inures to the benefit of the Bank and to the benefit of its
successors and assigns. This Note is binding on each Borrower and on any
executor, administrator or legal representative of any Borrower.

     No security interest granted to the Bank by Borrower in any dwelling of
any Borrower shall secure payment of this Note unless specific reference is
made to this Note. Other collateral securing other obligations of Borrower to
the Bank may also secure this Note.

GOVERNING LAW

     This Note will take effect as a sealed instrument and will be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts.
If any provision of this Note is deemed to be in conflict with applicable law,
it will considered to be modified to comply with the law or, if not capable of
such modification, such provision will be deemed to be deleted from this Note.
Notwithstanding any such modification or deletion, the remaining provisions will
remain valid and enforceable.

                                       vi

<PAGE>

By signing below, Borrower agrees to the terms of this agreement.

__________________________________________
Borrower                            (Seal)

__________________________________________
Borrower                            (Seal)

__________________________________________
Borrower                            (Seal)

__________________________________________
Borrower                            (Seal)

Borrower's Address of Record:

__________________________________________
Name

__________________________________________
Address

__________________________________________
City                 State                Zip Code

                                       vii

<PAGE>

                                    EXHIBIT B

                                PLEDGE AGREEMENT

                          (Staples.com Tracking Stock)

     This Pledge Agreement is entered into between the Borrower named below and
Boston Safe Deposit & Trust Company, a Massachusetts trust company with a
principal place of business located at One Boston Place, Boston, Massachusetts
02108 ("Bank") on the date indicated below.

     1. Collateral. The undersigned (the "Borrower"), whose place of business is
located at ___________________, Massachusetts _______ and whose residence is
located at _________________________________________ hereby grants to the Bank a
security interest in the following collateral, whether now owned or existing or
hereafter acquired or arising:

     ___ shares of Staples.com stock ("Tracking Stock"); all proceeds of the
     foregoing, including personal property purchased with cash proceeds
     (together the "Collateral").

     2. Obligations. A security interest in the Collateral is granted to Bank to
secure all obligations of the Borrower to the Bank incurred on or after the date
of this Agreement, whether direct or indirect, including without limitation: (i)
obligations arising out of loans or extensions of credit by Bank to Borrower,
including without limitation a loan evidenced by the promissory note of the
Borrower dated the date hereof in the principal amount of $____________ (the
"Note"), (ii) obligations of the Borrower hereunder, and (iii) all other fees,
costs, taxes and charges that may be assessed, advanced or incurred by Bank
hereunder or by Fiduciary under the Fiduciary Agreement (as those terms are
hereinafter defined), including legal fees and other costs of collection, plus
interest thereon, whether now existing or hereafter arising, direct or indirect,
primary or secondary, absolute or contingent, due or to become due, and whether
arising under the Note, this Agreement or otherwise (all such obligations being
referred to together herein as the "Obligations").

     3. Perfection of Security Interest. Borrower agrees to promptly deliver to
Bank all payments and distributions with respect to the Collateral in the form
received and bearing any necessary endorsements. Bank may at any time notify
Staples, Inc. to make payments and distributions on the Collateral directly to
the Bank. Borrower agrees to deliver to Bank promptly upon receipt any notices
under or amendments relating to the Collateral. Borrower agrees to execute such
financing statements under the Uniform Commercial Code as Bank may from time to
time require, and to pay the cost of filing the

<PAGE>

same. Bank may file as a financing statement a photocopy of a financing
statement or of this Agreement.

     4. Deposit Account. Bank may charge any deposit account of Borrower with
Bank for the payment of any amount due hereunder, under the Note or with respect
to any other Obligation.

     5. Representations and Warranties.

          (a) Borrower hereby represents and warrants that Borrower is the true
owner of the Collateral and the custody account referred to in the Fiduciary
Agreement (the "Custody Account") and that Borrower has good and marketable
title to the Collateral, free and clear of any option, security interest, lien
or other charge or encumbrance except the security interest created hereby, a
security interest junior to that created hereby in favor of Staples, Inc., and
the right of Staples, Inc. to repurchase unvested Tracking Stock. Borrower also
represents and warrants, if there is more than one Borrower, that, subject to
the terms of the Fiduciary Agreement, one or all of such Borrowers are the sole
and joint beneficial owners of the Custody Account and the Collateral and that
no person who is not a party to this Agreement has any ownership rights of any
nature whatsoever in the Custody Account or the Collateral. Borrower will defend
such title against the claims and demands of all persons at its own expense.

          (b) Borrower hereby represents and warrants that all of the Collateral
is and shall be genuine, has and shall have been duly and validly authorized and
issued, and is free and clear of any restriction on transfer, except for
compliance with applicable provisions of state and federal securities laws.
Borrower hereby represents and warrants to Bank that: to the extent that any
portion of the Collateral is or may be subject to Rule 144 of the Securities and
Exchange Commission ("Rule 144"), Borrower is [___] is not [___] an "affiliate"
of Staples, Inc. and the Collateral does not include any "restricted securities"
as defined in Rule 144.

     6. Bank as Borrower's Attorney. Borrower hereby makes, constitutes and
appoints the Bank as Borrower's true and lawful attorney-in-fact for Borrower
and in Borrower's name, place and stead, and on Borrower's behalf, to take any
action deemed necessary by the Bank to perfect and maintain perfection of the
security interests granted hereby or to otherwise fulfill the purposes of this
Agreement, and acknowledges that such appointment is coupled with an interest.
As Borrower's attorney-in-fact, Bank is hereby authorized, at any time after the
occurrence of an Event of Default: (i) to receive, endorse and collect all
checks and other orders or instruments for the payment of money made payable to
Borrower representing any dividend or interest payment or other distribution
payable in respect of any or all Collateral and to give full discharge for the
same, (ii) to execute endorsements, assignments or other instruments of
conveyance or transfer with

                                       ii

<PAGE>

respect to any or all of the Collateral, (iii) to demand, sue for, collect,
receive and give acquittances for any moneys due with respect to any or all of
the Collateral, (iv) to file any claims or take any action or institute any
proceedings that Bank may deem necessary or advisable for the collection of any
or all of the Collateral or otherwise to enforce the rights of Bank with respect
thereto, and (v) to complete, execute and file with the Securities and Exchange
Commission and any stock exchange on which the Tracking Stock is listed one or
more notices of sale of securities pursuant to Rule 144 or other filings deemed
necessary or desirable to comply with state and federal securities laws, hereby
granting to Bank full power and authority as such attorney to do, take and
perform all and every act and thing whatsoever requisite, proper or necessary to
be done in the exercise of the rights and powers herein granted, as fully to all
intents and purposes as Borrower might or could do if personally present.

     7. Indemnification. Borrower hereby indemnifies and holds harmless the Bank
from and against all liabilities and costs (including without limitation
attorneys' fees) arising out of any sale of securities constituting Collateral
or by reason of any breach of any representation, warranty or covenant of
Borrower contained herein, whether express or implied, and all other reasonable
expenses incurred by the Bank in enforcing the payment of any Obligations,
including without limitation expenses incurred in satisfying any applicable
securities laws or regulations and any liabilities arising under any such
securities laws.

     8. Default. If Borrower shall default in the payment of any Obligation when
due, or in the performance of any covenant contained herein, or if any
representation made by the Borrower herein shall be determined by Bank to be
false in any material respect when made, or if an event of default as defined in
any agreement between Borrower and Bank shall occur, Bank shall have the rights
and remedies of a secured party under the Uniform Commercial Code as well as the
rights and remedies provided for herein. Upon any such default, Bank may: (i)
transfer or direct the Fiduciary to transfer into Bank's name, or into the name
of its nominee, all or any part of the Collateral, (ii) subject to the Uniform
Commercial Code, retain the Collateral for its own account, and (iii) sell all
or any part of the Collateral. Whenever notice of sale or other disposition of
the Collateral is required by law, such notice shall be deemed sufficient if
given by regular mail at least 5 business days before the date of any public
sale or 5 days before the date after which a private sale or other disposition
shall be made. Expenses of retaking, holding, and preparing the Collateral for
sale or other disposition, and expenses of sale or other disposition of
Collateral, shall include reasonable attorneys' fees, and all such expenses
shall constitute an Obligation secured by the Collateral. Upon transfer of any
Collateral into the name of Bank or its nominee, Bank shall be entitled to
receive all dividends and other distributions on the Collateral, and shall hold
all the rights and privileges of ownership of the Collateral.

                                       iii

<PAGE>

     9. Restrictions on Resale. Borrower hereby confirms his or her
understanding that Bank's right to resell the Collateral or securities or
instruments issued pursuant thereto may be restricted. Borrower hereby agrees
that any sale of the Collateral in accordance with such restrictions shall be
deemed commercially reasonable notwithstanding that a better price could have
been obtained by another method or to a buyer other than those permitted by the
terms of such restrictions.

     10. Custody of Collateral. (a) Bank shall give to Collateral the same
degree of care and protection that it gives to its own property, provided,
however, that Bank shall have no liability to Borrower for any losses, costs,
expenses or damages due to any acts or omissions of brokers or other third
parties, or due to any acts of God or other causes beyond its control. Bank
shall have no duty to preserve any rights with respect to any Collateral,
including, without limitation, rights against prior parties, or to take or to
notify Borrower of the need to take, any action respecting any rights,
privileges or options relating to any Collateral. If Borrower shall request
Lender to sell or otherwise dispose of or refrain from selling or otherwise
disposing of the Collateral or any part thereof, Bank may, at its option and in
its sole discretion, proceed in accordance with such request; provided, however,
that neither Bank nor Fiduciary shall have any responsibility or liability for
any loss to Borrower that may result from their compliance or refusal to comply
with such request.

     (b) So long as this Agreement continues in effect, Borrower authorizes and
directs the Mellon Bank Corporation subsidiary identified on the signature page
hereto ("Fiduciary") that serves as custodian under the Collateral Custody
Agreement between Borrower and Fiduciary dated the date hereof, as the same may
be amended from time to time (the "Fiduciary Agreement") to hold the Collateral
in its possession as agent for the benefit of the Bank in accordance with the
provisions of this Agreement and under and subject to the exclusive direction
and control of Bank and forthwith to turn over the Collateral, or any part
thereof, to Bank upon Bank's demand. If Borrower has not already done so,
Borrower shall deliver all Collateral to Fiduciary immediately upon receipt of
the same.

     (c) Fiduciary represents and warrants that it has not consented to, and has
no knowledge of, any financing statement or notice against the Collateral or the
Custody Account or any of the assets to be placed in the Custody Account as of
the date of this Agreement, and will not consent to any such statement or notice
subsequent to this date. Fiduciary agrees, by signing where indicated below,
that it has no lien or other interest in the Collateral except to the extent
described herein, and will not request, claim or assert any such lien or
interest until Bank has notified the Fiduciary that there remain no outstanding
Obligations; provided, however, that Fiduciary will retain its prior lien on the
Collateral to secure the Borrower's obligations to

                                       iv

<PAGE>

pay for property purchased by Fiduciary for deposit or credit to the account of
the Borrower, and customary commissions and fees assessed by the Fiduciary.

     (d) Borrower hereby acknowledges that if a loan is obtained from Bank by
Borrower, and such Obligation is collaterally secured by assets in the Custody
Account, there may arise a conflict between the obligations of Bank or its
affiliate as Fiduciary under the Fiduciary Agreement and the Bank's rights as
lender and secured party. In such event, Borrower expressly agrees that Bank's
rights as lender and secured party shall take precedence over its obligations as
Fiduciary, or those of its affiliate.

     (e) This Agreement shall operate as an amendment to the Fiduciary Agreement
to the extent necessary to effect the intents and purposes hereof; provided,
however, that the Fiduciary Agreement defines the extent of the Fiduciary's
liability to Borrower in connection with the Collateral and the Custody Account,
and the Fiduciary assumes no additional liabilities to Borrower under this
Agreement. In the event that the Fiduciary Agreement is terminated, Fiduciary
shall immediately notify Bank and transfer all Collateral in its possession to
the custody of Bank.

     11. Miscellaneous. This agreement shall be governed by Massachusetts law
and shall benefit the Bank and its successors and assigns. This agreement is
executed as an instrument under seal.

                                    Borrower:

Dated:________________________      ______________________________
                                              Signature

                                    ______________________________
                                              Print name

                                    ______________________________
                                              Address

                                    ______________________________
                                              City/State/Zip

Fiduciary:

BOSTON SAFE DEPOSIT & TRUST COMPANY

By_____________________________________

                                        v

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