Document:

Exhibit 10.2

 

GUARANTY AGREEMENT

 

THIS
GUARANTY AGREEMENT (this “Guaranty”),
dated as of August 22, 2008, made by FLEETWOOD
ENTERPRISES, INC., a Delaware corporation (“Fleetwood Enterprises”)(“Guarantor”) whose address is 3125 Myers
Street, Riverside, California 92513, in favor of ISIS LENDING, LLC, a Delaware
limited liability company, having an office at c/o Dwyer-Curlett and Company,
1880 Century Park East, Suite 400, Los Angeles, California 90067, Attn:
Shelley Hasskamp (“Lender”).

 

ARTICLE
1.  GUARANTEED OBLIGATIONS

 

This
Guaranty is issued by Guarantor in order to induce Lender to extend a Twenty
Seven Million Two Hundred Fifty Thousand Dollars ($27,250,000) loan (the “Loan”) to (i) FLEETWOOD MOTOR HOMES OF CALIFORNIA, INC.,
a California corporation (“Riverside
Borrower”) and (ii) FLEETWOOD
HOMES OF CALIFORNIA, INC., a California corporation (“Woodland Borrower”, together with the
Riverside Borrower, collectively and in the singular and jointly and severally,
“FLE Borrower”), which Loan
is evidenced by a Promissory Note, dated the date hereof, in the principal
amount of the Loan, from FLE Borrower to the order Lender (as the same may be
modified, amended or supplemented from time to time the “Note”). 
The Note, each Deed of Trust (as such term is defined in the Note) and
all other documents securing or otherwise executed in connection with the Loan,
as each may be modified, amended or supplemented from time to time, are herein
collectively referred to as the “Loan
Documents”.  Any and all
obligations of FLE Borrower under and/or in connection with the Loan Documents,
whether now or hereafter made, incurred or created, voluntary or involuntary,
due or not due, absolute or contingent, liquidated or unliquidated, determined
or undetermined, are herein collectively referred to as the “Guaranteed Obligations.”  Guarantor acknowledges receipt and approval
of copies of the Loan Documents, that it owns a direct or indirect beneficial
ownership interest in FLE Borrower, and that it will receive substantial
economic and other benefits from Lender making the Loan to FLE Borrower.

 

ARTICLE
2.  THE GUARANTY

 

2.1                               Agreement of Guaranty.

 

(a)                                  Scope of Guaranty. 
Guarantor hereby irrevocably and unconditionally guarantees to Lender,
its successors and/or assigns, the payment when due (whether by acceleration or
otherwise) of all Guaranteed Obligations, regardless of whether recovery
against FLE Borrower or any partner or member of FLE Borrower is
prevented by Bankruptcy, the operation of California Code of Civil Procedure
Section 580d, or otherwise.  In
addition, if Lender is prevented by law from accelerating any of the Guaranteed
Obligations in accordance with the terms of the Loan Documents by the operation
of any Bankruptcy or insolvency law or rule arising from the Bankruptcy or
insolvency of any FLE Borrower, Lender shall be entitled to receive
hereunder from Guarantor, upon demand therefor, the sums which would have
otherwise been due had such acceleration occurred.

 

(b)                                 Payment of Guaranteed Obligations.  If
Guarantor fails to make when due any payment required to be made by it under
this Guaranty (a “Guaranty Payment”), then such Guaranty Payment shall
bear interest from such due date until paid at the Default Rate (as such term
is defined in the Note) from time to time in effect.  Interest accrued hereunder with respect to
any Guaranty Payment shall be payable on demand and shall be calculated on the
basis of the actual number of days elapsed on a three hundred sixty (360) day
year, which results in higher interest than if a three hundred sixty five (365)
day year were used.

 

(c)                                  Continuing
Guaranty.  It is
expressly understood and agreed that this is a continuing guaranty and that the
obligations of Guarantor hereunder are and shall be absolute under any and all
circumstances, without regard to the validity, regularity or enforceability of
the Note, the Deed of Trust or the other Loan Documents, a true copy of each of
said documents Guarantor hereby acknowledges having received and reviewed.

 

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2.2                               Joint and Several
Obligations.  Guarantor’s obligations under this Agreement
constitute an absolute, joint and several, unconditional, present and
continuing irrevocable guarantee of payment of the Guaranteed Amount and not of
collectability, and if FLE Borrower, for any or no reason, shall fail to pay
all or any portion of the Guaranteed Obligations when due, whether at maturity
or earlier by acceleration or otherwise, under the Note, Guarantor shall upon
demand by Lender, and without presentment, protest, notice of protest, notice
of non-payment, notice of intent to accelerate, notice of acceleration or any
other notice whatsoever, pay to Lender the unpaid portion of the Guaranteed
Obligations in lawful money of the United States of America at such place as
Lender may hereafter designate to Guarantor. 
Guarantor’s obligations hereunder are joint and several, and are primary
obligations concerning which Guarantor shall for all purposes be deemed a
primary obligor.

 

2.3                               Nature of Obligations.  This
Guaranty is a guaranty of payment rather than a guaranty of collection, and the
obligations of Guarantor hereunder are primary obligations and such obligations
shall be absolute and unconditional, irrespective of any illegality, invalidity
or unenforceability of or defect in any provision of the Loan Documents, or of
any obligation of FLE Borrower thereunder, the absence of any action to enforce
the same, the recovery of any judgment against FLE Borrower or any action to
seek execution thereof (or the lack thereof), or any other circumstance
affecting FLE Borrower (whether or not within the control of FLE Borrower or
Guarantor) which might otherwise constitute a defense available to, or
discharge of, a guarantor or surety of any type.  Without limiting the foregoing, no discharge,
modification, impairment or limitation of the Loan Documents or FLE Borrower’s
obligations thereunder or to its creditors generally under or in connection
with any Bankruptcy, insolvency or similar proceeding or arrangements with
creditors or corporate reorganizations shall in any way affect or discharge
Guarantor’s obligations under this Guaranty. 
This Guaranty is a continuing one and all liabilities that apply or may
apply under the terms hereof shall be conclusively presumed to have been
created in reliance hereon.  Guarantor’s
obligations hereunder shall remain in effect until, and terminate upon, the
indefeasible payment in full of all the obligations of FLE Borrower under the
Note and the other Loan Documents.

 

2.4                               Independence of Guaranty.  This
Guaranty and the obligations of Guarantor hereunder are independent of, and may
be enforced in full irrespective of the existence of, the obligations (direct
or contingent) of Guarantor or any other person (including without limitation
FLE Borrower or any other guarantor or surety of the Guaranteed Obligations or
any portion thereof) under any other instrument or agreement in favor of Lender
with respect to the Guaranteed Obligations. 
No payment by Guarantor or any other person under any other agreement
shall under any circumstance diminish, or constitute a defense to, Guarantor’s
obligations hereunder until all Guaranteed Obligations have been indefeasibly
paid in full.  The release of, or the
failure to obtain the signature of, any Guarantor, by operation of law or
otherwise, shall not affect the liability hereunder of any other Guarantor.

 

ARTICLE
3.  SPECIAL AGREEMENTS OF GUARANTOR

 

3.1                               Payments.  All
payments provided for hereunder shall be effectively made to Lender at c/o
Dwyer-Curlett and Company, 1880 Century Park East, Suite 400, Los Angeles,
CA 90067, Attn:  Shelley Hasskamp, or
such other location as Lender may from time to time designate in writing, in
lawful money of the United States of America (in freely transferable United
States dollars and in funds immediately available to Lender as Lender may
direct), without setoff or counterclaim of any nature.

 

3.2                               Subrogation. 
Guarantor hereby agrees that, until all of the Guaranteed Obligations
shall have been indefeasibly paid, performed and satisfied in full, it shall
not exercise any right or remedy, and specifically waives any claim or other
rights which it may now or hereafter acquire against FLE Borrower, that arise
from the existence, payment, performance or enforcement of Guarantor’s
obligations under this Guaranty, including without limitation any right of
subrogation, reimbursement, exoneration, contribution, indemnification, any
right to participate in any claim or remedy of Lender against FLE Borrower or any
collateral which Lender now has or hereafter acquires, whether or not such
claim, remedy or right arises in equity, or under contract, statute or common
law, including without limitation the right to take or receive from FLE
Borrower directly or indirectly, in cash or other property or by set-off or in
any other manner, payment or security on account of such claim or other
rights.  If any amount shall be paid to
Guarantor in violation of the preceding sentence and the Guaranteed Obligations
shall not have been indefeasibly paid in full, such amount shall be deemed to
have been paid to Guarantor for the benefit of, and held in trust for the
benefit of, Lender and shall forthwith be paid to Lender to be credited and
applied upon the Guaranteed Obligations, whether matured or unmatured.

 

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3.3                               Guaranty Made with Full
Knowledge.  Guarantor has had the opportunity to review
the matters discussed and contemplated by the Loan Documents, including the
remedies Lender may pursue against FLE Borrower upon an event of a default
under the Loan Documents, the value of the security or collateral for the Note,
and FLE Borrower’s financial condition and ability to perform under the Loan
Documents.  Guarantor represents and warrants
to Lender that:  (a) Guarantor has
received copies of the Loan Documents; (b) Lender has not made any
representations or warranties to Guarantor regarding the credit worthiness of
FLE Borrower or the prospects of repayment from sources other than FLE
Borrower; and (c) this Guaranty is executed at the request of FLE
Borrower.

 

Guarantor
further agrees to keep fully informed on all aspects of FLE Borrower’s
financial condition and the performance of FLE Borrower’s obligations to
Lender, and that Lender has no duty to disclose to Guarantor any information
pertaining to FLE Borrower or any security or collateral.  Lender shall no duty to inquire into the
authority or powers of FLE Borrower or any officer, employee or agent of FLE
Borrower with regard to any Guaranteed Obligations, and all Guaranteed
Obligations made or created in good faith reliance upon the exercise of any
such authority or powers shall be guaranteed under this Guaranty.

 

3.4                               Guarantor’s Acknowledgments.  Guarantor acknowledges that:  (a) Lender
may have examined, among other things, FLE Borrower’s creditworthiness and
ability to repay the amount owing under the Note, and Guarantor’s
creditworthiness and ability to pay FLE Borrower’s obligations under the Loan
Documents; (b) Guarantor has benefited by Lender agreeing to execute the
Note.  Guarantor hereby further
acknowledges receipt of good, adequate and valuable consideration for entering
into this Guaranty.

 

3.5                               Waivers.

 

(a)                                  Waiver of Notice, Presentment, etc. 
Except to the extent required by law which cannot be waived, Guarantor
waives notice of acceptance of this Guaranty and notice of any liability to
which it may apply, and waives diligence, presentment, demand of payment,
protest, notice of dishonor or nonpayment of any such liabilities, suit or
taking other action or making any demand by Lender against, and any other
notice to, any party liable thereon (including Guarantor).  Guarantor agrees that Lender may at any time
and from time to time without the consent of, or notice to, Guarantor, without
incurring responsibility to Guarantor, without impairing or releasing the
obligations of Guarantor hereunder, upon or without any terms or conditions and
in whole or in part:

 

(1)                                  change the manner, place or terms of, and/or
change or extend the time of payment or performance of, renew or alter, any of
the Guaranteed Obligations, any security therefor, or any liability incurred
directly or indirectly in respect thereof, and this Guaranty shall apply to the
Guaranteed Obligations so changed, extended, renewed or altered;

 

(2)                                  fail to record, perfect or protect, sell,
exchange, release, surrender, realize upon or otherwise deal with in any manner
and in any order any property by whomsoever at any time pledged or mortgaged to
secure or howsoever securing the Guaranteed Obligations or any liabilities
(including any of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and/or any offset there against;

 

(3)                                  exercise or refrain from exercising any
rights against FLE Borrower or any other person or entity (including Guarantor)
or otherwise act or refrain from acting;  settle or compromise any of the
Guaranteed Obligations, any security therefor or any liability (including any
of those hereunder) incurred directly or indirectly in respect thereof or
hereof, and may subordinate the payment of all or any part thereof to the
payment of any liability (whether due or not) of FLE Borrower to the creditors
of FLE Borrower (including Lender);

 

(4)                                  apply any sums by whomsoever paid or
howsoever realized to any liability or liabilities of FLE Borrower to Lender
regardless of what liability or liabilities of FLE Borrower remain unpaid;
and/or

 

(5)                                  consent to or waive any breach of, or any
act, omission or default under, or modify or amend any provisions of, the Loan
Documents.

 

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(b)                                 Waiver of Defenses. 
Except to the extent required by law which cannot be waived, Guarantor
further hereby waives and agrees not to assert or take advantage of any defense
based upon:

 

(1)                                  The incapacity, lack of authority, death or
disability of FLE Borrower or any other person or entity;

 

(2)                                  The failure of Lender to commence an action
against FLE Borrower or to proceed against or exhaust any security held by
Lender at any time, or to pursue any other remedy whatsoever at anytime;

 

(3)                                  Any duty on the part of Lender to disclose to
Guarantor any facts Lender may now or hereafter know regarding FLE Borrower,
regardless of whether Lender has reason to believe (A) that any such facts
materially increase the risk beyond that which Guarantor intends to assume, or
(B) that such facts are unknown to Guarantor, Guarantor acknowledging that
he, she or it is fully responsible for being and keeping informed of the
financial condition and affairs of FLE Borrower;

 

(4)                                  Lack of notice of default, demand of
performance or notice of acceleration to FLE Borrower or any other party with
respect to the Loan or FLE Borrower’s obligations guarantied hereby;

 

(5)                                  The consideration for this Guaranty;

 

(6)                                  The revocation or repudiation hereof by
Guarantor or the revocation or repudiation of any of the Loan Documents by FLE
Borrower or any other person;

 

(7)                                  the unenforceability in whole or in part of
the Loan Documents;

 

(8)                                  Any acts or omissions of Lender which vary,
increase or decrease the risk on Guarantor;

 

(9)                                  Any rights or defenses based upon an offset
by Guarantor against any obligation now or hereafter owed to Guarantor by FLE
Borrower;

 

(10)                            Any statute of limitations affecting the
liability of Guarantor hereunder, the liability of FLE Borrower or any
guarantor under the Loan Documents or the enforcement hereof, to the extent
permitted by law, including without limitation any rights under
Section 359.5 of the Code of Civil Procedure (“CCP”);

 

(11)                            The application by FLE Borrower of the
proceeds of the Loan for purposes other than the purposes represented by FLE
Borrower to Lender and Guarantor or intended or understood by Lender or
Guarantor;

 

(12)                            An election of remedies by Lender, including
any election to proceed against any collateral by judicial or nonjudicial
foreclosure, whether real property or personal property, or by deed in lieu
thereof, and whether or not every aspect of any foreclosure sale is
commercially reasonable, and whether or not any such election of remedies
destroys or otherwise impairs the subrogation rights of Guarantor or the rights
of Guarantor to proceed against FLE Borrower or any guarantor by way of
subrogation or for reimbursement or contribution, or all such rights;

 

(13)                            Any statute or rule of law which
provides that the obligation of a surety must be neither larger in amount nor
in any other aspects more burdensome than that of the principal obligor;

 

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(14)                            Lender’s election, in any proceeding
instituted under Title 11 of the United States Code (the “Bankruptcy Code”), of the application of Bankruptcy Code
Section 1111(b)(2) or any successor statute;

 

(15)                            Any borrowing or any grant of a security
interest under Bankruptcy Code Section 364; and

 

(16)                            Any other suretyship defense that may be
available to Guarantor.  Without limiting
the generality of the foregoing, Guarantor also waives (A) any defense
based upon Lender’s election to waive its lien as to all or any security for
the Loan pursuant to California Code of Civil Procedure (“CCP”) Section 726.5 or otherwise, and
(B) any and all benefits which might otherwise be available to Guarantor
under California Civil Code (“Civil
Code”) Sections 2809,
2810, 2815, 2819, 2822, 2839, 2845 through 2850, 2899 and 3433.

 

(c)                                  Additional Waivers. 
Guarantor understands and acknowledges that if Lender forecloses
judicially or nonjudicially against any real property security for the Note,
that foreclosure could impair or destroy any ability that Guarantor may have to
seek reimbursement, contribution or indemnification from FLE Borrower or others
based on any right Guarantor may have of subrogation, reimbursement,
contribution or indemnification for any amounts paid by Guarantor under this
Guaranty.  Guarantor further understands
and acknowledges that in the absence of this provision, the potential
impairment or destruction of Guarantor’s rights, if any, may entitle Guarantor
to assert a defense to this Guaranty based on CCP Section 580d as
interpreted in Union Lender vs. Gradsky. 
By executing this Guaranty, except to the extent prohibited by
applicable law, Guarantor freely, irrevocably and unconditionally:  (1) waives and relinquishes that
defense, and agrees that Guarantor will be fully liable under this Guaranty,
even though Lender may foreclose judicially or nonjudicially against any real
property security for the Note; (2) agrees that Guarantor will not assert
that defense in any action or proceeding that Lender may commence to enforce
this Guaranty; (3) acknowledges and agrees that the rights and defenses
waived by Guarantor under this Guaranty include any right or defense that
Guarantor may have or be entitled to assert based upon or arising out of any
one or more of the following: 
(A) CCP Sections 580a (which if Guarantor had not given this
waiver, would otherwise limit Guarantor’s liability after any nonjudicial
foreclosure sale to the difference between the obligations for which Guarantor
is liable and the fair market value of the property or interests sold at such
nonjudicial foreclosure sale rather than the actual proceeds of such sale),
580b and 580d (which if Guarantor had not given this waiver, would otherwise
limit Lender’s right to recover a deficiency judgment with respect to purchase
money obligations and after any nonjudicial foreclosure sale, respectively), or
726 (which, if Guarantor had not given this waiver, among other things, would
otherwise require Lender to exhaust all of its security before a personal
judgment may be obtained for a deficiency); or (B) Civil Code
Section 2848; and (4) acknowledges and agrees that Lender is relying
on this waiver in making the Loan, and that this waiver is a material part of
the consideration that Lender is receiving for making the Loan.  WITHOUT LIMITING THE FOREGOING, GUARANTOR
WAIVES ALL RIGHTS AND DEFENSES THAT GUARANTOR MAY HAVE BECAUSE THE
BORROWER’S DEBT AND THE GUARANTEED OBLIGATIONS ARE SECURED BY REAL PROPERTY.  THIS MEANS, AMONG OTHER THINGS:

 

(5)                                  THE LENDER MAY COLLECT FROM GUARANTOR
WITHOUT FIRST FORECLOSING ON ANY REAL OR PERSONAL PROPERTY COLLATERAL PLEDGED
BY THE BORROWER; AND

 

(6)                                  IF THE LENDER FORECLOSES ON ANY REAL PROPERTY
COLLATERAL PLEDGED BY THE BORROWER:

 

(A)                              THE AMOUNT OF THE DEBT MAY BE REDUCED
ONLY BY THE PRICE FOR WHICH THAT COLLATERAL IS SOLD AT THE FORECLOSURE SALE,
EVEN IF THE COLLATERAL IS WORTH MORE THAN THE SALE PRICE; AND

 

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(B)                                THE LENDER MAY COLLECT FROM GUARANTOR
EVEN IF THE LENDER, BY FORECLOSING ON THE REAL PROPERTY COLLATERAL, HAS
DESTROYED ANY RIGHT GUARANTOR MAY HAVE TO COLLECT FROM THE BORROWER. 

 

THIS
IS AN UNCONDITIONAL AND IRREVOCABLE WAIVER OF ANY RIGHTS AND DEFENSES ANY
GUARANTOR HAS BECAUSE THE BORROWER’S DEBT IS, OR MAY HAVE IF THE
BORROWER’S OBLIGATIONS UNDER THE ENVIRONMENTAL INDEMNITY EVER BECOME OR ARE
EVER DEEMED, SECURED BY REAL PROPERTY. 
THESE RIGHTS AND DEFENSES INCLUDE, BUT ARE NOT LIMITED TO, ANY RIGHTS OR
DEFENSES BASED UPON CCP SECTIONS 580a, 580b, 580d, OR 726.

 

3.6                               Reasonableness and Effect of
Waivers.  Guarantor warrants and agrees that each of
the waivers set forth in this Guaranty is made with full knowledge of its
significance and consequences and that, under the circumstances, the waivers
are reasonable and not contrary to public policy or law.  If any of such waivers is determined to be
contrary to any applicable law or public policy, such waiver shall be effective
only to the maximum extent permitted by law.

 

3.7                               Amounts Reclaimed.  If
claim is ever made upon Lender or any subsequent holder of any of the
Guaranteed Obligations for repayment or recovery of any amount or amounts
received in payment or on account of any of the Guaranteed Obligations and any
of the aforesaid payees repays all or part of said amount by reason of any
judgment, decree or order of any court or administrative body having
jurisdiction over such payee or any of its property or any settlement or
compromise of any such claim effected by such payee with any such claimant
(including FLE Borrower), then and in such event Guarantor agrees that any such
judgment, decree, order, settlement or compromise shall be binding upon
Guarantor, notwithstanding any revocation hereof or the cancellation of the
Note or other instrument evidencing any liability of FLE Borrower, and
Guarantor shall be and remain liable to the aforesaid extent as if such amount
had never originally been received by any such payee.

 

3.8                               Financial Information. 
Guarantor will furnish to Lender the financial information set forth
below at the times set forth below:

 

(a)                                  Annual Reporting Requirements.  As
soon as available, but in any event not later than ninety (90) days after the
close of each Fiscal Year (as defined below), consolidated audited balance
sheets, and income statements, cash flow statement and changes in stockholders’
equity for Guarantor and its subsidiaries (including each FLE Borrower) for
such Fiscal Year, and the accompanying notes thereto, setting forth in each
case in comparative form figures for the previous Fiscal Year, all in
reasonable detail, fairly present the financial position and the results of
operations of Guarantor and its subsidiaries (including each FLE Borrower) as
of the date thereof and for the Fiscal Year then ended, and prepared in accordance
with generally accepted accounting principles (“GAAP”).  Such statements shall be examined in
accordance with generally accepted auditing standards by and, in the case of
such statements performed on a consolidated basis, accompanied by a report
therein unqualified in any respect of independent certified public accountants
selected by Guarantor and its subsidiaries (including each FLE Borrower) and
reasonably satisfactory to Lender. 
Guarantor hereby authorizes those accountants to disclose to Lender any
and all financial statements and other supporting financial documents and
schedules related to and Guarantor and its subsidiaries (including each FLE
Borrower) and to discuss directly with Lender, in the presence of Guarantor and
its subsidiaries (including each FLE Borrower), the finances and affairs of
Borrower and its subsidiaries (including each FLE Borrower).  As used herein, “Fiscal Year” means
Guarantor’s and each FLE Borrower’s fiscal year for financial accounting
purposes, which currently ends on the last Sunday in April;

 

(b)                                 Quarterly Reporting Requirements. As soon as available, but in any event not
later than forty-five (45) days after the (a)end of the first three Fiscal
Quarters (as defined below) of any Fiscal Year, consolidated unaudited balance
sheets of and Guarantor and its subsidiaries (including each FLE Borrower) as
at the end of such Fiscal Quarter, and consolidated unaudited income statements
and cash flow statements for Guarantor and its subsidiaries (including each FLE
Borrower) for such Fiscal Quarter and for the period from the beginning of the
Fiscal Year to the end of such Fiscal Quarter, all in reasonable detail, fairly
presenting the financial position and results of operations of and Guarantor
and its subsidiaries (including each FLE Borrower) as at the date thereof and
for such periods, and, in each case, in comparable form, figures for the
corresponding period in the prior Fiscal Year, and prepared in accordance with
GAAP, applied consistently with the audited Financial Statements required to be
delivered pursuant to Section 3.8(a) above.  Guarantor shall
certify by a certificate signed by its chief financial officer or vice
president controller that all such statements have been prepared in accordance
with GAAP and present fairly the financial position of Guarantor and its
subsidiaries (including each FLE Borrower) as at the dates thereof and its
results of operations for the periods then ended, subject to normal year-end
adjustments and to the absence of footnotes required by GAAP;

 

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(c)                                  a copy of such Guarantor’s quarterly and
annual 10-K and 10-Q filings with the Securities and Exchange Commission; and

 

(d)                                 a copy of such Guarantor’s federal income tax
return with all schedules.

 

ARTICLE
4.  REPRESENTATIONS AND WARRANTIES

 

4.1                               In order to induce Lender to make the Loan,
Guarantor hereby represents and warrants that as of the date hereof and at all
times hereafter during the term of the Loan:

 

(a)                                  Guarantor is a corporation duly formed,
validly existing and in good standing under the laws of the State of
California, and has full power and authority to execute and deliver this
Guaranty and all other Loan Documents to which it is a party;

 

(b)                                 the execution, delivery and performance by it
of this Guaranty and the consummation of the transactions contemplated
hereunder and thereunder do not, and will not, contravene any provision of any
existing law, rule or regulation or any judgment, injunction, order,
decree, franchise or permit applicable to it, or any agreement or instrument to
which it or any of its assets is a party or is subject, or any provision of its
by-laws or articles of incorporation;

 

(c)                                  this Guaranty is its legal, valid and binding
obligation, enforceable against Guarantor in accordance with its terms, except
as such enforceability may be limited by applicable laws affecting creditor’s
rights generally and principles of equity, whether considered in a proceeding
at law or in equity;

 

(d)                                 the financial statements heretofore delivered
by Guarantor to Lender have been prepared in accordance with sound accounting
principles consistently applied and fairly present the financial condition of
Guarantor as at the end of (or for) the reporting period covered thereby;

 

(e)                                  there has been no material adverse change in
the financial condition of Guarantor since the date of such financial
statements;

 

(f)                                    there are no actions, suits or proceedings
pending or, to its knowledge, threatened against or adversely affecting it, and
no defaults by it with respect to any agreement or instrument to which it is a
party or to which it or its assets is subject, which might (individually or in
the aggregate) result in such a material adverse change;

 

(g)                                 Guarantor has filed all required tax returns
(federal, state and local) and has paid all taxes shown on them to be due and
all property taxes due, including interest and penalties, if any,

 

(h)                                 the charges, accruals and reserves on the
books of Guarantor for taxes or other governmental charges are adequate,

 

(i)                                     Guarantor has substantially complied in all
material respects with all laws, regulations and requirements applicable to his
business and has obtained all authorizations, consents, approvals, orders,
licenses, exemptions from, and has accomplished all filings or registrations or
qualifications with, any court or governmental department, public body,
authority, commission, board, bureau, agency or instrumentality, that may be
necessary for the transaction of its business. and

 

(j)                                     neither the making of the Loan, nor the
receipt of Loan proceeds by FLE Borrower, violates any of the Terrorism Laws
applicable to any Guarantor or FLE Borrower. 
To the best knowledge of Guarantor, no holder of any direct or indirect
equitable, legal or beneficial interest in Guarantor is the subject of any of
the Terrorism Laws.

 

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ARTICLE
5.  SUBORDINATION

 

Until all of the Guaranteed Obligations have been
paid in full, Guarantor agrees that all existing and future debts, obligations
and liabilities of FLE Borrower to Guarantor (collectively referred to as “Subordinated Debt”) shall be and hereby
are expressly subordinated to the Guaranteed Obligations, and the right of
payment of the Subordinated Debt is expressly deferred to the prior payment in
full of the Guaranteed Obligations.  For
purposes of this Article 5, any Guaranteed Obligation shall not be
deemed paid in full until it has been paid in full in U.S. Dollars.

 

5.1                               Until the Guaranteed Obligations have been paid in
full, without Lender’s prior written consent:

 

(a)                                  Guarantor shall not (i) collect or
receive any cash or non-cash payments on the Subordinated Debt,
(ii) assert rights or declare a default under or enforce payment of the
Subordinated Debt by legal proceedings or otherwise, or (iii) assign or
transfer all or any part of the Subordinated Debt;

 

(b)                                 Guarantor shall not permit FLE Borrower to
(i) pay to Guarantor all or any part of the Subordinated Debt,
(ii) transfer any property to Guarantor in payment of or as security for
the payment of all or any part of the Subordinated Debt, (iii) execute or
deliver any instrument as evidence of all or any part of the Subordinated Debt,
or (iv) establish any sinking fund, reserve, or like set aside of funds or
other property for the redemption, retirement or repayment of all or any part
of the Subordinated Debt; and

 

(c)                                  Without the prior written consent of Lender,
Guarantors shall not file any petition against FLE Borrower under any chapter
or provision of any present or future federal Bankruptcy legislation, or
amendments to such legislation, or any complaint, petition or other pleading
against FLE Borrower calling for its reorganization, liquidation, composition
or receivership, or for other similar relief under federal or state law.

 

5.2                               Upon any distribution of assets of FLE
Borrower upon any dissolution, winding up, liquidation or reorganization of FLE
Borrower, whether in Bankruptcy, insolvency, reorganization or receivership
proceedings, or upon an assignment for the benefit of creditors or any other
marshalling of the assets and liabilities of FLE Borrower, or otherwise:

 

(a)                                  Lender shall be entitled to receive payment
in full of the Guaranteed Obligations before Guarantor is entitled to receive
any payment on account of the Subordinated Debt; and

 

(b)                                 any payment by, or distribution of assets of,
FLE Borrower of any kind or character, whether in cash, property or securities,
to which Guarantor would be entitled except for this subordination shall be
paid or delivered by the Person making such payment or distribution, whether a
trustee in Bankruptcy, a receiver or liquidating trustee, or otherwise,
directly to Lender to be held as additional security for the Guaranteed
Obligations in an interest bearing account until all of the Guaranteed
Obligations have been paid in full.

 

5.3                               Should Guarantor receive any payment or
distribution of any kind in conflict with this Subordination Article 5
such Guarantor shall hold such funds or property as trustee for Lender, and
shall pay or transfer to Lender all such funds or property promptly upon
receipt on account of the Guaranteed Obligations, but without reducing or
affecting in any manner the liability of Guarantor under the other provisions
of this Guaranty.

 

5.4                               Guarantor authorizes and directs FLE Borrower
to take all necessary or appropriate action to effectuate and maintain the
subordination provided in this Guaranty.

 

5.5                               No right of Lender to enforce the
subordination in this Guaranty shall at any time or in any way be prejudiced or
impaired by any act or failure to act by FLE Borrower, Lender or any other
Person or by any noncompliance by the FLE Borrower, Lender or any other Person
with the terms, provisions and covenants of this Guaranty or of the Loan
Documents regardless of any knowledge of such acts, failures to act, or
non-compliance that Lender may have or be otherwise charged with.

 

8

 

5.6                               Nothing express or implied in this Article 5
shall give any Person other than FLE Borrower, Lender and Guarantor any benefit
or any legal or equitable right, remedy or claim under this Article 5.

 

5.7                               If Guarantor institutes or participates in
any suit, action or proceeding against FLE Borrower in violation of the terms
of Guarantor’s subordination FLE Borrower may interpose as a defense or
dilatory plea this subordination, and Lender is irrevocably authorized to
intervene and to interpose such defense or plea in its name or in FLE
Borrower’s name.

 

Notwithstanding
anything to the contrary contained above in this Article 5, Lender
acknowledges that, provided that no Event of Default shall have occurred under
Section 22.A(vii) of either Deed of Trust, and there exists no
circumstance, which, given the passage of time or otherwise would constitute an
Event of Default under Section 22.A(vii) of either Deed of Trust, FLE
Borrower’s positive cash flow from operations net of (i) all current
operating expenses, and (ii) all amounts then due or becoming due to Lender
within 30 days thereafter, may be transferred by FLE Borrower to a treasury
money market account jointly held by Bank of America, N.A. and Guarantor.

 

ARTICLE
6.  MISCELLANEOUS

 

6.1                               Payment of Expenses, etc.. 
Guarantor agrees to pay for all out-of-pocket costs and expenses of
Lender arising in connection with the preparation, entering into, modification
of, administration of, collection of and/or enforcement of this Guaranty
(including without limitation the reasonable fees, costs and expenses of
counsel for Lender).  Without limiting
the generality of the foregoing, Guarantor shall reimburse Lender for all
reasonable attorneys’ fees, costs and expenses incurred by Lender in connection
with the enforcement of Lender’s rights under this Guaranty and each of the
other Loan Documents, including without limitation reasonable attorneys’ fees,
costs and expenses for trial, appellate proceedings, out-of-court negotiations,
workouts and settlements, or for enforcement of rights under any state of
federal statute, including without limitation reasonable attorneys’ fees, costs
and expenses incurred to protect Lender’s security, and reasonable attorneys’
fees, costs and expenses incurred in Bankruptcy and insolvency proceedings,
such as (but not limited to) seeking relief from stay in a Bankruptcy
proceeding.  The term “expenses” means
any expenses incurred by Lender in connection with any of the out-of-court, or
state, federal or Bankruptcy proceedings referred to above, including without
limitation the fees and expenses of any appraisers, consultants and expert
witnesses retained or consulted by Lender in connection with any such
proceeding.  Lender shall also be
entitled to its reasonable attorneys’ fees, costs and expenses incurred in any
post-judgment proceedings to collect and enforce the judgment.  This provision is separate and several, shall
survive the repayment of the Guaranteed Obligations and the termination of this
Guaranty, and shall survive the merger of this Guaranty into any judgment on
this Guaranty.

 

6.2                               Modification, Changes, etc.. 
Guarantor recognizes that, in general, borrowers and guarantors who
experience difficulties in honoring their loan obligations, in an effort to
inhibit or impede lenders from exercising the rights and remedies available to
lenders pursuant to mortgages, notes, loan agreements, guarantors or other
instruments evidencing or affecting loan transactions, frequently present in
court the argument, without merit, that some loan officer or administrator of
Lender made an oral modification or made some statement which could be
interpreted as an extension or modification or amendment of one or more debt
instruments and that FLE Borrower relied to its detriment upon such “oral
modification of the loan document.”  For
that reason, and in order to protect Lender from such allegations in connection
with the transactions contemplated by this Guaranty, Guarantor acknowledges
that this Guaranty and all instruments referred to herein can be extended,
modified or amended only in writing executed by Lender and FLE Borrower or any
Guarantor, as the case may be, and that none of the rights or benefits of
Lender can be waived permanently except in a written document executed by
Lender.  Each Guarantor further
acknowledges Guarantor’s understanding that no officer or administrator of
Lender has the power or the authority from Lender to make an oral extension or
modification or amendment of any such instrument or agreement on behalf of
Lender.

 

9

 

6.3                               Governing Law.  THIS
GUARANTY SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA.

 

6.4                               Jurisdiction, Venue, Service of Process. 
GUARANTOR AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING DIRECTLY OR
OTHERWISE IN CONNECTION WITH, OUT OF, RELATED TO OR FROM THIS GUARANTY SHALL BE
LITIGATED, ONLY IN COURTS HAVING A SITUS WITHIN THE COUNTY OF SAN FRANCISCO,
STATE OF CALIFORNIA.  GUARANTOR HEREBY
WAIVES ALL RIGHTS TO TRANSFER OR CHANGE THE VENUE OF ANY LITIGATION BROUGHT
AGAINST ANY GUARANTOR BY LENDER UNDER THIS AGREEMENT IN ACCORDANCE WITH THIS
PARAGRAPH.

 

6.5                               Notices.  Any notice, report, demand or
other instrument authorized or required to be given or furnished shall be
deemed given or furnished (a) when addressed to the party intended to
receive the same, at the address of such party as set forth below, and
delivered at such address, (b) three days after the same is deposited in
the United States mail as first class certified mail, return receipt requested,
postage paid, (c) when delivered by overnight nationwide commercial courier
service one business day after the date of delivery of such notice to the
courier service or (d) when transmitted by telecopy to the telecopier
number set forth below, to the party intended to receive same, provided, that
the original of such given by transmission is confirmed by duplicate notice in
such other manner as permitted above upon receipt at such telecopier number:

 

	
  “Lender”

  	
   

  	
  ISIS
  Lending, LLC 

  c/o Dwyer-Curlett and Company

  1880 Century Park East, Suite 400

  Los Angeles, California 90067

  Attention: Shelly Hasskamp

  Fax: (310) 226-2726

  
	
   

  	
   

  	
   

  
	
  With a copy to: TDA Investment Group

  
	
   

  	
   

  	
  1214 Donnelly Avenue

  
	
   

  	
   

  	
  Burlingame,
  California 94010

  
	
   

  	
   

  	
  Attn:
  Mr. Robert Perkins

  
	
   

  	
   

  	
  Fax:
  (650) 343-0858

  
	
   

  	
   

  	
   

  
	
  With
  a copy to: Cox, Castle & Nicholson LLP

  
	
   

  	
   

  	
  555
  California Street, 10th Floor

  
	
   

  	
   

  	
  San
  Francisco, California 94104

  
	
   

  	
   

  	
  Attention:
  Bruce E. Prigoff, Esq.

  
	
   

  	
   

  	
  Fax:
  (415) 392-4250

  
	
   

  	
   

  	
   

  
	
  Guarantor:

  	
   

  	
  c/o Fleetwood Enterprises

  
	
   

  	
   

  	
  3125 Myers Street

  
	
   

  	
   

  	
  Riverside, California 92513

  
	
   

  	
   

  	
  Attn:  General Counsel

  Fax:   (951) 351-3776

  
	
   

  	
   

  	
   

  
	
  With a copy to: Thompson and Colgate

  
	
   

  	
   

  	
  P.O. Box 1299

  
	
   

  	
   

  	
  Riverside, California 92501

  
	
   

  	
   

  	
  Attention: John A. Boyd

  
	
   

  	
   

  	
  Fax (951) 781-4012

  

 

Any
party may change the address to which any such notice, report, demand or other
instrument is to be delivered or mailed, by furnishing written notice of such
change to the other parties, but no such notice of change shall be effective
unless and until received by such other parties.  Rejection or refusal to accept or inability
to deliver because of changed address, or because no notice of changed address
was given, shall be deemed to be receipt of any such notice.

 

10

 

6.6                               Waiver.  Lender’s rights, powers,
privileges and remedies under or in connection with this Guaranty and the other
Loan Documents are cumulative and not exclusive and shall not be waived,
precluded or limited by any failure or delay in the exercise thereof or by the
partial exercise thereof or by any course of dealing between Guarantor and
Lender or FLE Borrower and Lender.  No
notice to or demand on Guarantor in any case shall entitle Guarantor to any
other or further notice or demand in similar or other circumstances or
constitute a waiver of the right of Lender to any other or further action in
any circumstances without notice or demand.

 

6.7                               Descriptive Headings, etc.  The
descriptive headings used in this Guaranty are for convenience only and shall
not be deemed to affect the meaning or construction of any provision hereof.

 

6.8                               Benefit of Guaranty.  This
Guaranty shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, executors, administrators, successors and/or
assigns and in particular any holder from time to time of the Note, except that
Guarantor may not transfer or assign any or all of its respective rights or
obligations hereunder without the prior written consent of Lender.

 

6.9                               Jury Trial.  TO THE EXTENT NOT PROHIBITED
UNDER APPLICABLE LAW, GUARANTOR AND LENDER, BY ITS ACCEPTANCE HEREOF, HEREBY
WAIVE THEIR RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS
GUARANTY AND THE RELATIONSHIP THAT IS BEING ESTABLISHED, WHETHER BROUGHT BY
GUARANTOR OR LENDER AGAINST THE OTHER, AND WHETHER WITH RESPECT TO CONTRACT
CLAIMS, TORT CLAIMS OR OTHERWISE. 
GUARANTOR AND LENDER (BY ITS ACCEPTANCE HEREOF) AGREE THAT ANY SUCH
CLAIM SHALL BE TRIED BY A COURT WITHOUT A JURY. 
THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY
GUARANTOR AND LENDER (BY ITS ACCEPTANCE HEREOF), AND GUARANTOR AND LENDER (BY
ITS ACCEPTANCE HEREOF) ACKNOWLEDGE THAT NONE OF GUARANTOR NOR LENDER, NOR ANY
PERSON ACTING ON BEHALF OF EITHER SUCH PERSON, HAS MADE ANY REPRESENTATIONS OF
FACT TO INCLUDE THIS WAIVER OF TRIAL BY JURY OR HAS TAKEN ANY ACTIONS WHICH IN
ANY WAY MODIFY OR NULLIFY ITS EFFECT. 
GUARANTOR AND LENDER (BY ITS ACCEPTANCE HEREOF) ACKNOWLEDGE THAT THIS
WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
GUARANTORS AND LENDER HAVE ALREADY RELIED ON THIS WAIVER IN DELIVERING AND
ACCEPTING THIS GUARANTY, AND THAT GUARANTOR AND LENDER WILL CONTINUE TO RELY ON
THIS WAIVER IN ITS RELATED FUTURE DEALINGS WITH THE OTHER PARTY.  GUARANTOR FURTHER ACKNOWLEDGES THAT IT HAS
BEEN REPRESENTED, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED, IN THE SIGNING
OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL
COUNSEL.  WITHOUT LIMITING THE FOREGOING,
GUARANTOR AND LENDER (BY ITS ACCEPTANCE HEREOF) FURTHER AGREE THAT THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS
SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN
WHOLE OR IN PART, TO CHALLENGE THE VALIDITY, OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE GUARANTY.

 

6.10                        Liability; Confirmation of Termination. 
Anyone signing this Guaranty shall be bound hereby, whether or not any
of the other guarantors sign this Guaranty. 
Upon termination of all the obligations of Guarantor under this
Guaranty, Lender will confirm the termination in writing upon the written
request of FLE Borrower.

 

6.11                        Gender and Number. 
Whenever the singular or plural number, masculine or feminine or neuter
gender is used herein, it shall equally include the other.

 

6.12                        Counterparts.  This
Guaranty may be executed in one or more counterparts, each of which shall
constitute an original of this Guaranty.

 

11

 

6.13                        Severability.  In
the event that any of the covenants, agreements, terms or provisions contained
herein shall be invalid, illegal or unenforceable in any respect, the validity
of the remaining covenants, agreements, terms or provisions contained herein
shall be in no way affected, prejudiced or disturbed thereby.

 

6.14                        Application of Payments.  Each
party comprising a Guarantor hereunder agrees, unless otherwise required by Law
or a specific agreement to the contrary, all payments received by Lender from
FLE Borrower, or any other party other than such Guarantor, with respect to the
Guaranteed Obligations, shall be applied by Lender in such manner and order as
Lender desires, in its sole discretion. 
It is specifically agreed that Lender may apply such funds to obligations
of FLE Borrower which are not guaranteed hereby prior to applying any funds to
the obligations guaranteed hereby.  In
that regard, each party comprising a Guarantor hereby waives any and all rights
it has or may have under Section 2822 of the Civil Code which provides
that if guarantor is “liable upon only a portion of an obligation and the
principal provides partial satisfaction of the obligation, the principal may
designate the portion of the obligation to be satisfied”.  All payments received by Lender from any
Guarantor shall be applied by Lender to the obligations of any Guarantor to
Lender, in such manner and order as Lender desires in its sole discretion.

 

[Remainder of Page Intentionally Left Blank; Signature
Page to Follow]

 

12

 

IN
WITNESS WHEREOF, Guarantor has duly executed and delivered this Guaranty as of
the date first written above.

 

 

	
   

  	
  FLEETWOOD
  ENTERPRISES, INC.,

  	 

	 
	
   

  	
  a Delaware corporation

  
	 
	
   

  	
   

  
	 
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Boyd R. Plowman

  	 

	
   

  	
  Name:

  	
  Boyd R. Plowman

  	 

	
   

  	
  Its:

  	
  Executive Vice President
  and

  	 

	
   

  	
   

  	
  Chief Financial Officer

  	 

						

 

13Exhibit 10.4

 

AMENDED
AND RESTATED

 

COMMERCIAL
PAPER DEALER AGREEMENT

 

(4(2) PROGRAM;
GUARANTEED)

 

among

 

STAPLES,
INC. as Issuer

 

STAPLES THE OFFICE SUPERSTORE, LLC as Guarantor

 

STAPLES THE OFFICE SUPERSTORE EAST, INC. as
Guarantor

 

STAPLES CONTRACT & COMMERCIAL, INC. as
Guarantor

 

STAPLES THE OFFICE SUPERSTORE, LIMITED PARTNERSHIP
as Guarantor

 

and

 

BANC OF
AMERICA SECURITIES LLC, as Dealer

 

Concerning Notes to be issued pursuant to an
Issuing and Paying Agency Agreement dated as of June 9, 2008 and amended
as of August 6, 2008 between the Issuer and LaSalle Bank, as Issuing and
Paying Agent

 

Dated as
of

August 6,
2008

 

 

Amended
and Restated Commercial Paper Dealer Agreement

(4(2) Program; Guaranteed)

 

This
Amended and Restated Commercial Paper Agreement (4(2) Program Guaranteed)
(as amended, supplemented or otherwise modified and in effect from time to
time, the “Agreement”) sets forth the understandings among the Issuer, the
Guarantors and the Dealer, each named on the cover page hereof, in
connection with the issuance and sale by the Issuer of its short-term
promissory notes (the “Notes”) through the Dealer.  The Issuer and the Dealer are parties to that
certain Commercial Paper Dealer Agreement, dated as of June 9, 2008 (the “Original
Agreement”) and the Issuer and the Dealer wish to amend and restate the
Original Agreement solely to add the Guarantors as parties in order to evidence
and reflect their guarantee of the Notes.

 

Pursuant to a guarantee,
dated the date hereof, in the form of Exhibit D hereto (the “Guarantee”)
each Guarantor has agreed jointly and severally to guarantee, subject to the
terms of the Guarantee, payment in full of the principal of and interest (if
any) on all such Notes.

 

Certain
terms used in this Agreement are defined in Section 6 hereof.

 

The
Addendum to this Agreement, and any Annexes or Exhibits described in this
Agreement or such Addendum, are hereby incorporated into this Agreement and
made fully a part hereof.

 

1.     Offers, Sales and Resales of Notes.

 

1.1.       While (i) the Issuer has and shall have no
obligation to sell the Notes to the Dealer or to permit the Dealer to arrange
any sale of the Notes for the account of the Issuer, and (ii) the Dealer
has and shall have no obligation to purchase the Notes from the Issuer or to arrange
any sale of the Notes for the account of the Issuer, the parties hereto agree
that in any case where the Dealer purchases Notes from the Issuer, or arranges
for the sale of Notes by the Issuer, such Notes will be purchased or sold by
the Dealer in reliance on the representations, warranties, covenants and
agreements of the Issuer and, unless such Guarantor shall have been released
from the Guarantee in accordance with its terms, each Guarantor contained
herein or made pursuant hereto and on the terms and conditions and in the
manner provided herein.

 

1.2.       So long as this Agreement shall remain in effect, and
in addition to the limitations contained in Section 1.7 hereof, neither
the Issuer nor, unless such Guarantor shall have been released from the Guarantee
in accordance with its terms, any Guarantor shall, without the consent of the
Dealer, offer, solicit or accept offers to purchase, or sell, any Notes except (a) in
transactions with one or more dealers which may from time to time after the
date hereof become dealers with respect to the Notes by executing with the
Issuer and the Guarantors one or more agreements which contain provisions
substantially identical to those contained in Section 1 of this Agreement,
of which the Issuer and the Guarantors hereby undertakes to provide the Dealer
prompt notice or (b) in transactions with the other dealers listed on the
Addendum hereto, which are executing agreements with the Issuer and the
Guarantors which contain provisions substantially identical to Section 1
of this Agreement contemporaneously herewith. 
In no event shall the Issuer or any Guarantor offer, solicit or accept
offers to purchase, or sell, any Notes directly on its own behalf in
transactions with persons other than broker-dealers as specifically permitted
in this Section 1.2.

 

2

 

1.3.       The Notes shall be in a minimum denomination of
$250,000 or integral multiples of $1,000 in excess thereof, will bear such
interest rates, if interest bearing, or will be sold at such discount from
their face amounts, as shall be agreed upon by the Dealer and the Issuer, shall
have a maturity not exceeding 397 days from the date of issuance and may have
such terms as are specified in Exhibit C hereto or the Private Placement
Memorandum.   The Notes shall not contain any provision for
extension, renewal or automatic “rollover.”

 

1.4.       The authentication and issuance of, and payment for, the Notes shall be
effected in accordance with the Issuing and Paying Agency Agreement, and the
Notes shall be either individual physical certificates or book-entry notes
evidenced by one or more master notes (each, a “Master Note”) registered in the
name of The Depository Trust Company (“DTC”) or its nominee, in the form or
forms annexed to the Issuing and Paying Agency Agreement.

 

1.5.       If the Issuer and the Dealer shall agree on the terms
of the purchase of any Note by the Dealer or the sale of any Note arranged by
the Dealer (including, but not limited to, agreement with respect to the date
of issue, purchase price, principal amount, maturity and interest rate or
interest rate index and margin (in the case of interest-bearing Notes) or
discount thereof (in the case of Notes issued on a discount basis), and
appropriate compensation for the Dealer’s services hereunder) pursuant to this
Agreement, the Issuer shall cause such Note to be issued and delivered in
accordance with the terms of the Issuing and Paying Agency Agreement and
payment for such Note shall be made by the purchaser thereof, either directly
or through the Dealer, to the Issuing and Paying Agent, for the account of the
Issuer.  Except as otherwise agreed, in
the event that the Dealer is acting as an agent and a purchaser shall either fail
to accept delivery of or make payment for a Note on the date fixed for
settlement, the Dealer shall promptly notify the Issuer, and if the Dealer has
theretofore paid the Issuer for the Note, the Issuer will promptly return such
funds to the Dealer against its return of the Note to the Issuer, in the case
of a certificated Note, and upon notice of such failure in the case of a
book-entry Note.  If such failure
occurred for any reason other than default by the Dealer, the Issuer and,
unless such Guarantor shall have been released from the Guarantee in accordance
with its terms, each Guarantor agree, jointly and severally, to reimburse the
Dealer on an equitable basis for the Dealer’s loss of the use of such funds for
the period such funds were credited to the Issuer’s account.

 

1.6.       All offers and sales of the Notes by the Issuer shall
be effected pursuant to the exemption from the registration requirements of the
Securities Act provided by Section 4(2) thereof, which exempts
transactions by an issuer not involving any public offering.  The Dealer, the Issuer and each Guarantor
hereby establish and agree to observe the following procedures in connection
with offers, sales and subsequent resales or other transfers of the Notes:

 

(a)   Offers and sales of the
Notes by or through the Dealer shall be made only to: (i) investors
reasonably believed by the Dealer to be Qualified Institutional Buyers,
Institutional Accredited Investors or Sophisticated Individual Accredited
Investors and (ii) non-bank fiduciaries or agents that will be 

 

3

 

purchasing
Notes for one or more accounts, each of which is reasonably believed by the
Dealer to be an Institutional Accredited Investor or Sophisticated Individual
Accredited Investor.

 

(b)   Resales and other transfers
of the Notes by the holders thereof shall be made only in accordance with the
restrictions in the legend described in clause (e) below.

 

(c)   No general solicitation or
general advertising shall be used in connection with the offering of the
Notes.  Without limiting the generality
of the foregoing, without the prior written approval of the Dealer, neither the
Issuer nor any Guarantor shall issue any press release or place or publish any “tombstone”
or other advertisement relating to the Notes.

 

(d)   No sale of Notes to any one
purchaser shall be for less than $250,000 principal or face amount, and no Note
shall be issued in a smaller principal or face amount.  If the purchaser is a non-bank fiduciary
acting on behalf of others, each person for whom such purchaser is acting must
purchase at least $250,000 principal or face amount of Notes.

 

(e)   Offers and sales of the
Notes by the Issuer through the Dealer acting as agent for the Issuer shall be
made in accordance with Rule 506 under the Securities Act, and shall be subject
to the restrictions described in the legend appearing on Exhibit A
hereto.  A legend substantially to the
effect of such Exhibit A shall appear as part of the Private Placement
Memorandum used in connection with offers and sales of Notes hereunder, as well
as on each individual certificate representing a Note and each Master Note
representing book-entry Notes offered and sold pursuant to this Agreement.

 

(f)    The Dealer shall furnish or
shall have furnished to each purchaser of Notes for which it has acted as the
Dealer a copy of the then-current Private Placement Memorandum unless such
purchaser has previously received a copy of the Private Placement Memorandum as
then in effect.  The Private Placement
Memorandum shall expressly state that any person to whom Notes are offered
shall have an opportunity to ask questions of, and receive information from the
Issuer, each Guarantor, unless such Guarantor shall have been released from the
Guarantee in accordance with its terms, and the Dealer and shall provide the
names, addresses and telephone numbers of the persons from whom information
regarding the Issuer and the Guarantors may be obtained.

 

(g)   The Issuer and, unless such
Guarantor shall have been released from the Guarantee in accordance with its
terms, each Guarantor, jointly and severally, agree for the benefit of the
Dealer and each of the holders and prospective purchasers from time to time of
the Notes that, if at any time the Issuer shall not be subject to Section 13
or 15(d) of the Exchange Act, the Issuer and, unless such Guarantor shall
have been released from the Guarantee in accordance with its terms, each
Guarantor will furnish, upon request and at their expense, to the Dealer and to
holders and prospective purchasers of Notes information required by Rule 144A(d)(4)(i) in
compliance with Rule 144A(d).

 

4

 

(h)   In the event that any Note
offered or to be offered by the Dealer would be ineligible for resale under Rule 144A,
the Issuer shall immediately notify the Dealer (by telephone, confirmed in
writing) of such fact and shall promptly prepare and deliver to the Dealer an
amendment or supplement to the Private Placement Memorandum describing the
Notes that are ineligible, the reason for such ineligibility and any other
relevant information relating thereto.

 

(i)    The Issuer and each
Guarantor represent that neither the Issuer nor any Guarantor is currently
issuing commercial paper in the United States market in reliance upon the
exemption provided by Section 3(a)(3) of the Securities Act.  The Issuer and each Guarantor agree that, if
the Issuer or the Guarantor shall issue commercial paper after the date hereof
in reliance upon such exemption (a) the proceeds from the sale of the
Notes will be segregated from the proceeds of the sale of any such commercial
paper by being placed in a separate account; (b) the Issuer and such
Guarantor will institute appropriate corporate procedures to ensure that the
offers and sales of notes issued by the Issuer or the Guarantor, as the case
may be, pursuant to the Section 3(a)(3) exemption are not integrated
with offerings and sales of Notes hereunder; and (c) the Issuer and such
Guarantor will comply with each of the requirements of Section 3(a)(3) of
the Securities Act in selling commercial paper or other short-term debt
securities other than the Notes in the United States.  The Dealer agrees with the Issuer and the
Guarantors not to offer or sell any Notes in a manner that might call into
question the availability of the private offering exemption contained in Section 4(2) of
the Securities Act and Rule 144A thereunder, it being agreed that the
foregoing procedures do not call into question the availability of such
exemption.

 

1.7.       Each of the Issuer as to itself and each Guarantor as
to itself hereby represents and warrants to the Dealer, in connection with
offers, sales and resales of Notes, as follows:

 

(a)   Except as permitted by Section 1.6(i) or
pursuant to the Original Agreement, within the preceding six months neither the
Issuer nor the Guarantors nor any person other than the Dealer or the other
dealers referred to in Section 1.2 hereof acting on behalf of the Issuer
or the Guarantors has offered or sold any Notes, or any substantially similar
security of the Issuer or the Guarantors (including, without limitation,
medium-term notes issued by the Issuer or the Guarantor), to, or solicited
offers to buy any such security from, any person other than the Dealer or the
other dealers referred to in Section 1.2 hereof.  Except as permitted by Section 1.6(i),
as long as the Notes are being offered for sale by the Dealer and the other
dealers referred to in Section 1.2 hereof as contemplated hereby and until
at least six months after the offer of Notes hereunder has been terminated,
neither the Issuer nor the Guarantor nor any person other than the Dealer or
the other dealers referred to in Section 1.2 hereof (except as
contemplated by Section 1.2 hereof) will offer the Notes or any
substantially similar security of the Issuer for sale to, or solicit offers to
buy any such security from, any person other than the Dealer or the other
dealers referred to in Section 1.2 hereof, it being understood that such
agreement is made with a view to bringing the offer and sale of the Notes
within the exemption provided by Section 4(2) of the Securities Act
and Rule 506 thereunder and shall survive any termination of this
Agreement.  Neither the Issuer nor the
Guarantors has taken or omitted to 

 

5

 

take,
and will not take or omit to take, any action that would cause the offering and
sale of Notes hereunder to be integrated with any other offering of securities,
whether such offering is made by the Issuer or the Guarantors or some other
party or parties, under circumstances that would cause the offering and sale of
the Notes by the Issuer to fail to be exempt under Section 4(2) of
the Securities Act.

 

(b)   The Issuer represents and
agrees that the proceeds of the sale of the Notes are not currently
contemplated to be used for the purpose of buying, carrying or trading
securities within the meaning of Regulation T and the interpretations
thereunder by the Board of Governors of the Federal Reserve System.  In the event that the Issuer determines to
use proceeds from the sale of the Notes for the purpose of buying, carrying or
trading securities, whether in connection with an acquisition of another
company or otherwise, the Issuer shall give the Dealer at least three business
days’ prior written notice to that effect. 
The Issuer shall also give the Dealer prompt notice of the actual date
that it commences to purchase securities with the proceeds of the Notes.  Thereafter, in the event that the Dealer
purchases Notes as principal and does not resell such Notes on the day of such
purchase, to the extent necessary to comply with Regulation T and the
interpretations thereunder, the Dealer will sell such Notes either (i) only
to offerees it reasonably believes to be Qualified Institutional Buyers or to
Qualified Institutional Buyers it reasonably believes are acting for other
Qualified Institutional Buyers, in each case in accordance with Rule 144A
or (ii) in a manner which would not cause a violation of Regulation T and
the interpretations thereunder.

 

2.
Representations and Warranties of the Issuer and the Guarantors.

 

Each of
the Issuer and each Guarantor represents and warrants as to itself that:

 

2.1       The Issuer is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all the requisite power and authority
to execute, deliver and perform its obligations under the Notes, this Agreement
and the Issuing and Paying Agency Agreement.

 

2.2       Each Guarantor is a
corporation, limited liability company or limited partnership, as applicable,
duly organized and validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation and has all the requisite power
and authority to execute, deliver and perform its obligations under the
Guarantee, this Agreement and the Issuing and Paying Agency Agreement.

 

2.3       This Agreement and the Issuing and Paying
Agency Agreement have been duly authorized, executed and delivered by the
Issuer and each Guarantor and constitute legal, valid and binding obligations
of the Issuer and each Guarantor enforceable against the Issuer and each
Guarantor in accordance with their terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights generally, and subject,
as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

 

2.4       The Notes have been duly authorized, and
when issued as provided in the Issuing and Paying Agency Agreement, will be
duly and validly issued and will constitute legal, valid and binding
obligations of the Issuer enforceable against the Issuer in accordance with
their terms, subject 

 

6

 

to applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights generally, and subject,
as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

 

2.5       The Guarantee has been duly authorized,
and when the Notes have been issued as provided in the Issuing and Paying
Agency Agreement, will be duly executed and delivered by each Guarantor and
constitute the legal, valid and binding obligation of each Guarantor
enforceable against each Guarantor in accordance with its terms subject to
applicable bankruptcy, insolvency or similar laws affecting creditors’ rights
generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

 

2.6       Assuming compliance by the Dealer with
the procedures applicable to it set forth in Section 1 hereof, the offer
and sale of the Notes and the Guarantee in the manner contemplated hereby do
not require registration of the Notes or the Guarantee under the Securities
Act, pursuant to the exemption from registration contained in Section 4(2) thereof,
and no indenture in respect of the Notes or the Guarantee is required to be
qualified under the Trust Indenture Act of 1939, as amended.

 

2.7       The Notes and the Guarantee will rank at
least pari passu with all other unsecured and unsubordinated indebtedness of
the Issuer and the Guarantors, respectively.

 

2.8       Assuming compliance by the Dealer with
the procedures applicable to it set forth in Section 1 hereof, no consent
or action of, or filing or registration with, any governmental or public
regulatory body or authority, including the SEC, is required to authorize, or
is otherwise required in connection with the execution, delivery or performance
of, this Agreement, the Notes, the Guarantee or the Issuing and Paying Agency
Agreement, except as may be required by the securities or Blue Sky laws of the
various states in connection with the offer and sale of the Notes.

 

2.9       Neither the execution and delivery of
this Agreement, the Guarantee and the Issuing and Paying Agency Agreement, nor
the issuance of the Notes in accordance with the Issuing and Paying Agency
Agreement, nor the fulfillment of or compliance with the terms and provisions
hereof or thereof by the Issuer or any Guarantor, will (i) result in the
creation or imposition of any mortgage, lien, charge or encumbrance of any
nature whatsoever upon any of the properties or assets of the Issuer or any
Guarantor, or (ii) violate or result in a breach or a default under any of
the terms of the charter documents or by-laws of the Issuer or any Guarantor,
any contract or instrument to which the Issuer or any Guarantor is a party or
by which it or its property is bound, or any law or regulation, or any order,
writ, injunction or decree of any court or government instrumentality, to which
the Issuer or any Guarantor is subject or by which it or its property is bound,
which breach or default might have a material adverse effect on the financial
condition or operations of the Issuer and its subsidiaries taken as a whole or
the ability of the Issuer or any Guarantor to perform its obligations under
this Agreement, the Notes, the Guarantee or the Issuing and Paying Agency
Agreement.

 

2.10     Except as disclosed in the Company
Information, there is no litigation or governmental proceeding pending, or to
the knowledge of the Issuer or any Guarantor threatened, against or 

 

7

 

affecting the Issuer or any
Guarantor or any of its subsidiaries which might reasonably be expected to
result in a material adverse change in the financial condition or operations of
the Issuer and its subsidiaries taken as a whole or the ability of the Issuer
or any Guarantor to perform its obligations under this Agreement, the Notes,
the Guarantee or the Issuing and Paying Agency Agreement.

 

2.11     Neither the Issuer nor any Guarantor is
an “investment company” within the meaning of the Investment Company Act of
1940, as amended.

 

2.12     Neither the Private Placement Memorandum
nor the Company Information contains any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.

 

2.13     Each (a) issuance of Notes by the
Issuer hereunder and (b) amendment or supplement of the Private Placement
Memorandum shall be deemed a representation and warranty by the Issuer and,
unless such Guarantor shall have been released from the Guarantee in accordance
with its terms, each Guarantor to the Dealer, as of the date thereof, that,
both before and after giving effect to such issuance and after giving effect to
such amendment or supplement, (i) the representations and warranties given
by the Issuer and the Guarantor set forth in this Section 2 remain true
and correct in all material respects on and as of such date as if made on and
as of such date, (ii) in the case of an issuance of Notes, the Notes being
issued on such date have been duly and validly issued and constitute legal,
valid and binding obligations of the Issuer, enforceable against the Issuer in
accordance with their terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally and subject, as to
enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law) and, unless the
Guarantors shall have been released from the Guarantee in accordance with its
terms, are guaranteed pursuant to the Guarantee, (iii) in the case of an
issuance of Notes, since the date of the most recent Private Placement
Memorandum, there has been no material adverse change in the financial
condition or operations of the Issuer and its subsidiaries taken as a whole
which has not been disclosed to the Dealer in writing and (iv) neither the
Issuer nor any Guarantor is in default of any of its obligations hereunder or
under the Notes, the Guarantee or the Issuing and Paying Agency Agreement.

 

3. Covenants and
Agreements of the Issuer and the Guarantors.

 

Each
of the Issuer and each of the Guarantors, until and unless such Guarantor shall
have been released from the Guarantee in accordance with its terms, covenants
and agrees as to itself that:

 

3.1       It will give the Dealer prompt notice
(but in any event prior to any subsequent issuance of Notes hereunder) of any
amendment to, modification of or waiver with respect to, the Notes, the
Guarantee or the Issuing and Paying Agency Agreement, including a complete copy
of any such amendment, modification or waiver.

 

3.2       If any change shall occur in the
financial condition or operations of the Issuer and its subsidiaries taken as a
whole or any development or occurrence in relation to the Issuer or the
Guarantors that would have a material adverse effect on holders of the Notes or
potential 

 

8

 

holders of the Notes
(including any downgrading or receipt of any notice of intended downgrading in
the rating accorded any of the securities of the Issuer or the Guarantors by
any nationally recognized statistical rating organization which has published a
rating of the Notes), promptly, and in any event prior to any subsequent
issuance of Notes hereunder, notify the Dealer (by telephone, confirmed in
writing) of such change, development or occurrence.

 

3.3       It shall from time to time furnish to the
Dealer such information as the Dealer may reasonably request, including,
without limitation, any press releases or material provided by the Issuer or
the Guarantors to any national securities exchange or rating agency, regarding (i) the
operations and financial condition of the Issuer or the Guarantors, (ii) the
due authorization and execution of the Notes and the Guarantee, (iii) the
Issuer’s ability to pay the Notes as they mature and (iv) any Guarantor’s
ability to fulfill its obligations under the Guarantee.

 

3.4       It will take all such action as the
Dealer may reasonably request to ensure that each offer and each sale of the
Notes will comply with any applicable state Blue Sky laws; provided, however,
that neither the Issuer nor any Guarantor shall be obligated to file any
general consent to service of process or to qualify as a foreign corporation in
any jurisdiction in which it is not so qualified or subject itself to taxation
in respect of doing business in any jurisdiction in which it is not otherwise
so subject.

 

3.5       It will not be in default of any of its
obligations hereunder or under the Notes, the Guarantee or the Issuing and
Paying Agency Agreement, at any time that any of the Notes are outstanding.

 

3.6       The Issuer shall not issue Notes
hereunder until the Dealer shall have received (a) opinions of counsel to
the Issuer and the Guarantors, addressed to the Dealer, satisfactory in form
and substance to the Dealer, (b) a copy of the executed Issuing and Paying
Agency Agreement as then in effect, (c) a copy of the executed Guarantee, (d) a
copy of the resolutions adopted by the Boards of Directors of the Issuer and
each of the Guarantors, satisfactory in form and substance to the Dealer and
certified by the Secretary or similar officer of the Issuer or the Guarantor,
as the case may be, authorizing execution and delivery by the Issuer and the
Guarantors of this Agreement, the Issuing and Paying Agency Agreement, the
Guarantee and the Notes and consummation by the Issuer and the Guarantors of
the transactions contemplated hereby and thereby, (e) prior to the
issuance of any book-entry Notes represented by a master note registered in the
name of DTC or its nominee, a copy of the executed Letter of Representations
among the Issuer, the Guarantors, the Issuing and Paying Agent and DTC and of
the executed master note, (f) prior to the issuance of any Notes in
physical form, a copy of such form (unless attached to this Agreement or the
Issuing and Paying Agency Agreement), (g) confirmation of the then current
rating assigned to the Notes by each nationally recognized statistical rating
organization then rating the Notes, and (h) such other certificates,
opinions, letters and documents as the Dealer shall have reasonably requested.

 

3.7       The Issuer and each Guarantor, jointly
and severally, agree to reimburse the Dealer for all of the Dealer’s out-of-pocket
expenses related to this Agreement, including expenses incurred in connection
with its preparation and negotiation, and the transactions contemplated hereby
(including, but not limited to, the printing and distribution of the Private
Placement Memorandum), and, if applicable, for the reasonable fees and
out-of-pocket expenses of the Dealer’s counsel.

 

9

 

4. Disclosure.

 

4.1       The Private Placement Memorandum and its
contents (other than the Dealer Information) shall be the sole responsibility
of the Issuer and, unless such Guarantor shall have been released from the
Guarantee in accordance with its terms, the Guarantors.  The Private Placement Memorandum shall
contain a statement expressly offering an opportunity for each prospective
purchaser to ask questions of, and receive answers from, the Issuer and, unless
such Guarantor shall have been released from the Guarantee in accordance with
its terms, any Guarantor concerning the offering of Notes and to obtain relevant
additional information which the Issuer possesses or can acquire without
unreasonable effort or expense.

 

4.2       Each of the Issuer and, unless such
Guarantor shall have been released from the Guarantee in accordance with its
terms, each Guarantor agrees to promptly furnish the Dealer the Company
Information as it becomes available.

 

4.3       (a) Each of the Issuer and, unless
such Guarantor shall have been released from the Guarantee in accordance with
its terms, each Guarantor further agrees to notify the Dealer promptly upon (x) the
occurrence of any event relating to or affecting the Issuer or such Guarantor
that would cause the Company Information then in existence to include an untrue
statement of a material fact or to omit to state a material fact necessary in
order to make the statements contained therein, in light of the circumstances
under which they are made, not misleading or (y) the release of any
Guarantor from the Guarantee in accordance with its terms.  Notwithstanding the foregoing, neither the
Issuer nor any Guarantor shall have any obligation to so notify the Dealer if (i) the
Issuer has temporarily suspended offers and sales of the Notes and has given
the Dealer written notice of such suspension, or (ii) there are no Notes
outstanding.  In the event that the Issuer
wishes to resume
offers and sales of the Notes, it shall (i) give the Dealer notice thereof, and (ii) either
(x) confirm that the then current Private Placement Memorandum and Company
Information do not violate the representation contained in Section 2.13 of
this Agreement, or (y) if the representation contained in Section 2.13
cannot be made, provide to the Dealer an updated Private Placement Memorandum
that will permit the representation to be made. 
The Dealer agrees that, upon such notification, all solicitations and
sales of Notes shall be suspended.

 

(b)       In the event that the Issuer
gives the Dealer notice pursuant to Section 4.3(a) and the Dealer
notifies the Issuer that it then has Notes it is holding in inventory, the Issuer
agrees promptly to supplement or amend the Private Placement Memorandum so that
the Private Placement Memorandum, as amended or supplemented, shall not contain
an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, and the Issuer shall
make such supplement or amendment available to the Dealer or (ii) if the Issuer chooses not
to promptly amend or supplement the Private Placement Memorandum, the Issuer
shall, if required by the Dealer, purchase from the Dealer any such Notes held
in inventory at a price equal to the face amount thereof discounted on a
ratable basis based on the Issuer’s market rate reflecting the remaining period
until maturity in relation to the original term, provided that no commissions
or fees will be paid to such Dealer in connection with any such repurchase
pursuant to this Section 4.3(b)(ii).

 

10

 

(c)       In the event that (i) the
Issuer or any Guarantor gives the Dealer notice pursuant to Section 4.3(a),
(ii) the Dealer does not notify the Issuer or the Guarantors that it is
then holding Notes in inventory and (iii) the Issuer chooses not to
promptly amend or supplement the Private Placement Memorandum in the manner
described in clause (b) above, then all solicitations and sales of Notes
shall be suspended until such time as the Issuer has so amended or supplemented
the Private Placement Memorandum, and made such amendment or supplement
available to the Dealer.

 

(d)       Without
limiting the generality of Section 4.3(a), the Issuer shall review, amend
and supplement the Private Placement Memorandum on a periodic basis, but no
less than at least once annually, to incorporate current
financial information regarding the Issuer  and the
Guarantors to the extent necessary to ensure that the information provided in
the Private Placement Memorandum is accurate and complete, it being
acknowledged that the condensed consolidating financial information regarding
the Guarantors contained in the Notes to the Issuer’s consolidated financial
statements shall be deemed current financial information regarding the
Guarantors.

 

5. Indemnification and
Contribution.

 

5.1       The Issuer and, unless such Guarantor
shall have been released from the Guarantee in accordance with its terms, each
Guarantor, jointly and severally, will indemnify and hold harmless the Dealer,
each individual, corporation, partnership, trust, association or other entity
controlling the Dealer, any affiliate of the Dealer or any such controlling
entity and their respective directors, officers, employees, partners,
incorporators, shareholders, servants, trustees and agents (hereinafter the “Indemnitees”)
against any and all liabilities, penalties, suits, causes of action, losses,
damages, claims, costs and expenses (including, without limitation, fees and
disbursements of counsel) or judgments of whatever kind or nature (each a “Claim”),
imposed upon, incurred by or asserted against the Indemnitees arising out of or
based upon (i) any allegation that the Private Placement Memorandum, the
Company Information or any information provided by the Issuer or the Guarantors
to the Dealer included (as of any relevant time) or includes an untrue
statement of a material fact or omitted (as of any relevant time) or omits to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading or (ii) arising
out of or based upon the breach by the Issuer or the Guarantors of any
agreement, covenant or representation made in or pursuant to this
Agreement.  This indemnification shall
not apply to the extent that the Claim arises out of or is based upon Dealer
Information or that the Claim is determined by a court of
competent jurisdiction to have resulted from an Indemnitee’s gross negligence
or willful misconduct.

 

5.2       Provisions relating to
claims made for indemnification under this Section 5 are set forth on Exhibit B to this
Agreement.

 

5.3       In order
to provide for just and equitable contribution in circumstances in which the
indemnification provided for in this Section 5 is held to be unavailable
or insufficient to hold harmless the Indemnitees, although applicable in accordance with
the terms of this Section 5, the Issuer and, unless such Guarantor shall
have been released from the Guarantee in accordance with its terms, each
Guarantor, jointly and severally, shall contribute to the aggregate costs
incurred by the Dealer in connection with any Claim in the proportion of the 

 

11

 

respective economic
interests of the Issuer, the Guarantors and the Dealer; provided, however, that
such contribution by the Issuer and the Guarantors shall be in an amount such
that the aggregate costs incurred by the Dealer do not exceed the aggregate of
the commissions and fees earned by the Dealer hereunder with respect to the
issue or issues of Notes to which such Claim relates.  The respective economic interests shall be
calculated by reference to the aggregate proceeds to the Issuer of the Notes
issued hereunder and the aggregate commissions and fees earned by the Dealer
hereunder.

 

6. Definitions.

 

6.1       “Claim” shall have the meaning set forth in Section 5.1.

 

6.2       “Company Information” at any given time shall mean the
Private Placement Memorandum (other than the Dealer Information) together with,
to the extent applicable, (i) the Issuer’s most recent report on Form 10-K
filed with the SEC and each report on Form 10-Q or 8-K filed by the Issuer
with the SEC since the most recent Form 10-K, (ii) the Issuer’s most
recent annual audited financial statements and each interim financial statement
or report prepared subsequent thereto, if not included in item (i) above, (iii) the
Issuer’s other publicly available recent reports, including, but not limited
to, any publicly available filings or reports provided to their respective
shareholders, (iv) any other information or disclosure prepared pursuant
to Section 4.3 hereof and (v) any information prepared or approved by
the Issuer or the Guarantors for dissemination to investors or potential
investors in the Notes.

 

6.3       “Dealer Information” shall mean material concerning
the Dealer provided by the Dealer in writing expressly for inclusion in the
Private Placement Memorandum.

 

6.4       “Exchange Act” shall mean the U.S. Securities Exchange
Act of 1934, as amended.

 

6.5       “Indemnitee” shall have the meaning set forth in Section 5.1.

 

6.6       “Institutional Accredited Investor” shall mean an
institutional investor that is an accredited investor within the meaning of Rule 501
under the Securities Act and that has such knowledge and experience in
financial and business matters that it is capable of evaluating and bearing the
economic risk of an investment in the Notes, including, but not limited to, a
bank, as defined in Section 3(a)(2) of the Securities Act, or a
savings and loan association or other institution, as defined in Section 3(a)(5)(A) of
the Securities Act, whether acting in its individual or fiduciary capacity.

 

6.7       “Issuing and Paying Agency Agreement” shall mean the
issuing and paying agency agreement described on the cover page of this
Agreement, as such agreement may be amended or supplemented from time to time.

 

6.8       “Issuing and Paying Agent” shall mean the party
designated as such on the cover page of this Agreement, as issuing and
paying agent under the Issuing and Paying Agency Agreement, or any successor
thereto in accordance with the Issuing and Paying Agency Agreement.

 

6.9       “Non-bank fiduciary or agent” shall mean a fiduciary
or agent other than (a) a bank, as defined in Section 3(a)(2) of
the Securities Act, or (b) a savings and loan association, as defined in Section 3(a)(5)(A) of
the Securities Act.

 

12

 

6.10     “Private Placement Memorandum” shall mean offering
materials prepared in accordance with Section 4 (including materials
referred to therein or incorporated by reference therein, if any) provided to
purchasers and prospective purchasers of the Notes, and shall include
amendments and supplements thereto which may be prepared from time to time in
accordance with this Agreement (other than any amendment or supplement that has
been completely superseded by a later amendment or supplement).

 

6.11     “Qualified Institutional Buyer” shall have the meaning
assigned to that term in Rule 144A under the Securities Act.

 

6.12     “Rule 144A” shall mean Rule 144A under the
Securities Act.

 

6.13     “SEC” shall mean the U.S. Securities and Exchange
Commission.

 

6.14     “Securities Act” shall mean the U.S. Securities Act of
1933, as amended.

 

6.15     “Sophisticated Individual Accredited Investor” shall
mean an individual who (a) is an accredited investor within the meaning of
Regulation D under the Securities Act and (b) based on his or her
pre-existing relationship with the Dealer, is reasonably believed by the Dealer
to be a sophisticated investor (i) possessing such knowledge and
experience (or represented by a fiduciary or agent possessing such knowledge
and experience) in financial and business matters that he or she is capable of
evaluating and bearing the economic risk of an investment in the Notes and (ii) having
not less than $5 million in investments (as defined, for purposes of this
section, in Rule 2a51-1 under the Investment Company Act of 1940, as
amended).

 

7. General

 

7.1       Unless otherwise expressly provided herein, all
notices under this Agreement to parties hereto shall be in writing and shall be
effective when received at the address of the respective party set forth in the
Addendum to this Agreement.

 

7.2       This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
conflict of laws provisions.

 

7.3       (a) Each of the Issuer and each Guarantor agrees
that any suit, action or proceeding brought by the Issuer or any Guarantor
against the Dealer in connection with or arising out of this Agreement or the
Notes or the offer and sale of the Notes shall be brought solely in the United
States federal courts located in the Borough of Manhattan or the courts of the
State of New York located in the Borough of Manhattan.  THE DEALER, THE ISSUER AND EACH GUARANTOR
WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

            (b) Each
of the Issuer and each Guarantor hereby irrevocably accepts and submits to the
non-exclusive jurisdiction of each of the aforesaid courts in personam,
generally and unconditionally, for itself and in respect of its properties,
assets and revenues, with respect to any suit, action or proceeding in
connection with or arising out of this Agreement, the Guarantee or the Notes or
the offer and sale of the Notes.

 

13

 

7.4       This Agreement may be terminated, at any time, by the
Issuer, upon one business day’s prior notice to such effect to the Dealer, or
by the Dealer upon one business day’s prior notice to such effect to the Issuer.  Any such termination, however, shall not
affect the obligations of the Issuer and, subject to terms of the Guarantee,
the Guarantors under Sections 3.7, 4.3(a) and (b), 5 and 7.3 hereof or the
respective representations, warranties, agreements, covenants, rights or
responsibilities of the parties made or arising prior to the termination of
this Agreement.

 

7.5       This Agreement is not assignable by any party hereto
without the written consent of the other parties; provided, however, that the
Dealer may assign its rights and obligations under this Agreement to any
affiliate of the Dealer.

 

7.6       This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

7.7       This Agreement is for the exclusive benefit of the
parties hereto, and their respective permitted successors and assigns
hereunder, and shall not be deemed to give any legal or equitable right, remedy
or claim to any other person whatsoever.

 

7.8       The
Issuer and each Guarantor acknowledges and agrees that in connection with this
purchase and sale of the Notes or any other services the Dealer may be deemed
to be providing hereunder, notwithstanding any preexisting relationship, advisory
or otherwise, between the parties or any oral representations or assurances
previously or subsequently made by the Dealer: (i) no fiduciary or agency
relationship between the Issuer, the Guarantors and any other person, on the
one hand, and the Dealer, on the other, exists; (ii) the Dealer is not
acting as advisor, expert or otherwise, to either the Issuer or any Guarantor,
including, without limitation, with respect to the determination of the offering
price of the Notes, and such relationship between the Issuer and the
Guarantors, on the one hand, and the Dealer, on the other, is entirely and
solely commercial, based on arms-length negotiations; (iii) any duties and
obligations that the Dealer may have to the Issuer or the Guarantors shall be
limited to those duties and obligations specifically stated herein; and (iv) the
Dealer and their respective affiliates may have interests that differ from
those of the Issuer or the Guarantors. 
Each of the Issuer and each Guarantor hereby waives any claims that the
Issuer or such Guarantor may have against the Dealer with respect to any breach
of fiduciary duty in connection with the purchase and sale of the Notes.

 

14

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the date and year first above written.

 

	
  Staples, Inc.,
  as Issuer

  	
   

  	
  Banc
  of America Securities LLC, as Dealer

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Ronald L. Sargent

  	
   

  	
  By:

  	
    /s/
  Robert J. Porter

  
	
   

  	
   

  	
   

  
	
  Name:
  Ronald L. Sargent

  	
   

  	
  Name:
  Robert J. Porter

  
	
   

  	
   

  	
   

  
	
  Title:
  Chairman and Chief Executive Officer

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
  Staples, Inc.,
  as Issuer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :   /s/
  John J. Mahoney

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:
  John J. Mahoney

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:
  Vice Chairman and Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Staples
  the Office Superstore, LLC, as Guarantor

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :    /s/
  Nicholas Hotchkin

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Staples
  the Office Superstore East, Inc., as Guarantor

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :    /s/
  Nicholas Hotchkin

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Staples
  Contract & Commercial, Inc., as Guarantor

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :    /s/
  Nicholas Hotchkin

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Staples
  the Office Superstore, Limited Partnership, as Guarantor

  	
   

  	
   

  	
   

  
	
  By its General Partner, Staples, Inc.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  :    /s/
  Nicholas Hotchkin

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
										

 

15

 

Addendum

 

The following additional clauses shall apply to the
Agreement and be deemed a part thereof.

 

The addresses of the respective parties for purposes
of notices under Section 7.1 are as follows:

 

For
the Issuer:

 

Address:
500 Staples Drive, Framingham, MA 01702

Attention:  MarciJo Lerner

Telephone
number:  508-253-7775

Fax
number:  508-253-5440

 

For
the Guarantor: Staples
the Office Superstore, LLC

 

Address:
500 Staples Drive, Framingham, MA 01702

Attention:  MarciJo Lerner

Telephone
number:  508-253-7775

Fax
number:  508-253-5440

 

For
the Guarantor:
Staples the Office Superstore East, Inc.

 

Address:
500 Staples Drive, Framingham, MA 01702

Attention:  MarciJo Lerner

Telephone
number:  508-253-7775

Fax
number:  508-253-5440

 

For
the Guarantor:
Staples Contract & Commercial, Inc.

 

Address:
500 Staples Drive, Framingham, MA 01702

Attention:  MarciJo Lerner

Telephone
number:  508-253-7775

Fax
number:  508-253-5440

 

For
the Guarantor: Staples
the Office Superstore, Limited Partnership

 

Address:
500 Staples Drive, Framingham, MA 01702

Attention:  MarciJo Lerner

Telephone
number:  508-253-7775

Fax
number:  508-253-5440

 

For the Dealer: Banc of America Securities LLC

 

	
   

  	
  Address:

  	
  600 Montgomery St

  
	
   

  	
   

  	
  Mail Code: CA5-801-15-31

  
	
   

  	
   

  	
  San Francisco, CA 94111

  

 

Attention:
Manager, Money Market Finance

Telephone number:  (415) 913-3689

Fax number: (415)
913-6288

 

16

 

Exhibit A

 

Form of Legend for
Private Placement Memorandum and Notes

 

THE
NOTES AND THE GUARANTEE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY OTHER APPLICABLE SECURITIES LAW,
AND OFFERS AND SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE WITH AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.  BY ITS
ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I) IT
HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER,
THE GUARANTORS, THE NOTES AND THE GUARANTEE, (II) IT IS NOT ACQUIRING SUCH
NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF, (III) IT IS EITHER (A)(1) AN
INSTITUTIONAL INVESTOR OR SOPHISTICATED INDIVIDUAL INVESTOR THAT IS AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF RULE 501(a) UNDER THE ACT AND WHICH, IN
THE CASE OF AN INDIVIDUAL (i) POSSESSES SUCH KNOWLEDGE AND EXPERIENCE IN
FINANCIAL AND BUSINESS MATTERS THAT HE OR SHE IS CAPABLE OF EVALUATING AND
BEARING THE ECONOMIC RISK OF AN INVESTMENT IN THE NOTES AND (ii) HAS NOT
LESS THAN $5 MILLION IN INVESTMENTS (AN “INSTITUTIONAL ACCREDITED INVESTOR” OR “SOPHISTICATED
INDIVIDUAL ACCREDITED INVESTOR”, RESPECTIVELY) AND (2)(i) PURCHASING NOTES
FOR ITS OWN ACCOUNT, (ii) A BANK (AS DEFINED IN SECTION 3(a)(2) OF
THE ACT) OR A SAVINGS AND LOAN ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF
THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR (iii) A
FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION)
PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED
INVESTOR; OR (B) A QUALIFIED INSTITUTIONAL BUYER (“QIB”) WITHIN THE
MEANING OF RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES FOR ITS OWN ACCOUNT
OR FOR ONE OR MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER
ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY RELY UPON THE EXEMPTION
FROM THE REGISTRATION PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY RULE
144A.  BY ITS ACCEPTANCE OF A NOTE, THE
PURCHASER THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR OTHER
TRANSFER THEREOF WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO A PLACEMENT AGENT DESIGNATED
BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE “PLACEMENT
AGENTS”), NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH
A PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR, SOPHISTICATED
INDIVIDUAL ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION
THAT MEETS THE REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF
$250,000.

 

17

 

Exhibit B

 

Further Provisions
Relating to Indemnification

 

(a)          The Issuer and, unless such Guarantor shall have been released
from the Guarantee in accordance with its terms, each Guarantor, jointly and severally, agrees to reimburse each Indemnitee
for all expenses (including reasonable fees and disbursements of internal and
external counsel) as they are incurred by it in connection with investigating
or defending any loss, claim, damage, liability or action in respect of which
indemnification may be sought under Section 5 of the Agreement (whether or
not it is a party to any such proceedings).

 

(b)         Promptly after receipt by an Indemnitee of notice of the existence of a
Claim, such Indemnitee will, if a claim in respect thereof is to be made
against the Issuer or any Guarantor, notify the Issuer and the Guarantor in
writing of the existence thereof; provided that (i) the omission to so
notify the Issuer or any Guarantor will not relieve it from any liability which
it may have hereunder unless and except to the extent it did not otherwise
learn of such Claim and such failure results in the forfeiture by it of
substantial rights and defenses, and (ii) the omission to so notify the
Issuer or the Guarantors will not relieve it from liability which it may have
to an Indemnitee otherwise than on account of this indemnity agreement.  In case any such Claim is made against any
Indemnitee and it notifies the Issuer or any Guarantor of the existence
thereof, the Issuer and the Guarantors will be entitled to participate therein,
and to the extent that it may elect by written notice delivered to the
Indemnitee, to assume the defense thereof, with counsel reasonably satisfactory
to such Indemnitee; provided that if the defendants in any such Claim include
both the Indemnitee and either the Issuer or the Guarantors or both, and the
Indemnitee shall have concluded that there may be legal defenses available to
it which are different from or additional to those available to the Issuer or
the Guarantors, the Issuer shall not have the right to direct the defense of
such Claim on behalf of such Indemnitee, and the Indemnitee shall have the
right to select separate counsel to assert such legal defenses on behalf of
such Indemnitee.  Upon receipt of notice
from the Issuer to such Indemnitee of the election of the Issuer and the
Guarantors to assume the defense of such Claim and approval by the Indemnitee
of counsel, the Issuer and the Guarantors will not be liable to such Indemnitee
for expenses incurred thereafter by the Indemnitee in connection with the
defense thereof (other than reasonable costs of investigation) unless (i) the
Indemnitee shall have employed separate counsel in connection with the
assertion of legal defenses in accordance with the proviso to the next
preceding sentence (it being understood, however, that neither the Issuer nor
any Guarantor shall be liable for the expenses of more than one separate
counsel (in addition to any local counsel in the jurisdiction in which any
Claim is brought), approved by the Dealer, representing the Indemnitee who is
party to such Claim), (ii) the Issuer and the Guarantors shall not have
employed counsel reasonably satisfactory to the Indemnitee to represent the
Indemnitee within a reasonable time after notice of existence of the Claim or (iii) the
Issuer or the Guarantors has authorized in writing the employment of counsel
for the Indemnitee.  The indemnity,
reimbursement and contribution obligations of the Issuer and the Guarantors
hereunder shall be in addition to any other liability the Issuer or the
Guarantors may otherwise have to an Indemnitee and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal
representatives of the Issuer, the Guarantors and any Indemnitee.  Each of the Issuer and each Guarantor agrees
that without the Dealer’s prior written consent, it will not settle, compromise
or consent to the entry of any judgment in any Claim in respect of which
indemnification may be sought under the indemnification provision of the
Agreement (whether or not the Dealer or any other Indemnitee is an actual or
potential party to such Claim), unless such settlement, 

 

18

 

compromise or consent (i) includes an
unconditional release of each Indemnitee from all liability arising out of such
Claim and (ii) does not include a statement as to or an admission of
fault, culpability or failure to act, by or on behalf of any Indemnitee.

 

19

 

Exhibit C

 

Statement of Terms for
Interest – Bearing Commercial Paper Notes of Staples, Inc.

 

THE PROVISIONS SET FORTH
BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC
PRIVATE PLACEMENT MEMORANDUM SUPPLEMENT (THE “SUPPLEMENT”) (IF ANY) SENT TO
EACH PURCHASER AT THE TIME OF THE TRANSACTION.

 

1.  General.  (a)  The obligations of the Issuer to
which these terms apply (each a “Note”) are represented by one or more Master
Notes (each, a “Master Note”) issued in the name of (or of a nominee for) The
Depository Trust Company (“DTC”), which Master Note includes the terms and provisions for the
Issuer’s Interest-Bearing Commercial Paper Notes that are set forth in this
Statement of Terms, since this Statement of Terms constitutes an integral part
of the Underlying Records as defined and referred to in the Master Note.

 

(b)  “Business Day” means any day
other than a Saturday or Sunday that is neither a legal holiday nor a day on
which banking institutions are authorized or required by law, executive order
or regulation to be closed in New York City and, with respect to LIBOR Notes (as defined below)
is also a London Business Day.  “London
Business Day” means a day, other than a Saturday or Sunday, on which dealings
in deposits in U.S. dollars are transacted in the London interbank market.

 

2.  Interest.  (a)  Each Note will bear interest at a
fixed rate (a “Fixed Rate Note”) or at a floating rate (a “Floating Rate Note”).

 

(b)  The Supplement sent to each holder
of such Note will describe the following terms: (i) whether such Note is a
Fixed Rate Note or a Floating Rate Note and whether such Note is an Original
Issue Discount Note (as defined below); (ii) the date on which such Note
will be issued (the “Issue Date”); (iii) the Stated Maturity Date (as
defined below); (iv) if such Note is a Fixed Rate Note, the rate per annum at which such Note will bear
interest, if any, and the Interest Payment Dates; (v) if such Note is a
Floating Rate Note, the Base Rate, the Index Maturity, the Interest Reset
Dates, the Interest Payment Dates and the Spread and/or Spread Multiplier, if any (all as defined below), and any
other terms relating to the particular method of calculating the interest rate
for such Note; and (vi) any other terms applicable specifically to such
Note.  “Original Issue Discount Note”
means a Note which has a stated redemption price at the Stated Maturity Date
that exceeds its Issue Price by more than a specified de minimis amount and which the Supplement indicates
will be an “Original Issue Discount Note”.

 

(c)  Each Fixed Rate Note will bear
interest from its Issue Date at the rate per annum specified in the Supplement
until the principal amount thereof is paid or made available for payment.  Interest on each Fixed Rate Note will be
payable on the dates specified in the Supplement (each an “Interest Payment Date” for a Fixed Rate Note) and on the Maturity Date (as defined
below).  Interest on Fixed Rate Notes
will be computed on the basis of a 360-day year of twelve 30-day months.

 

If any Interest Payment Date or the Maturity
Date of a Fixed Rate Note falls on a day that is not a Business Day, the
required payment of principal, premium, if any, and/or interest will be payable
on the next succeeding Business Day, and no additional interest will accrue in
respect of the payment made on that next succeeding Business Day.

 

20

 

(d)  The interest rate on each Floating
Rate Note for each Interest Reset Period (as defined below) will be determined
by reference to an interest rate basis (a “Base Rate”) plus or minus a number
of basis points (one basis point equals one-hundredth of a percentage point) (the “Spread”), if
any, and/or multiplied by a certain percentage (the “Spread Multiplier”), if
any, until the principal thereof is paid or made available for payment.  The Supplement will designate which of the
following Base Rates is applicable to the related Floating Rate Note: (a) the
CD Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial
Paper Rate Note”), (c) the Federal Funds Rate (a “Federal Funds Rate Note”),
(d) LIBOR (a “LIBOR Note”), (e) the Prime Rate (a “Prime Rate Note”),
(f) the Treasury Rate (a “Treasury Rate Note”) or (g) such other Base
Rate as may be specified in such Supplement.

 

The rate of interest on each Floating Rate Note will be reset daily,
weekly, monthly, quarterly or semi-annually (the “Interest Reset Period”).  The date or dates on which interest will be
reset (each an “Interest Reset Date”) will be, unless otherwise specified in the
Supplement, in the case of Floating Rate Notes which reset daily, each Business
Day, in the case of Floating Rate Notes (other than Treasury Rate Notes) that
reset weekly, the Wednesday of each week; in the case of Treasury Rate Notes
that reset weekly, the Tuesday of each week; in the case of Floating Rate Notes
that reset monthly, the third Wednesday of each month; in the case of Floating
Rate Notes that reset quarterly, the third Wednesday of March, June, September and
December; and in the case of Floating Rate Notes that reset semiannually, the
third Wednesday of the two months specified in the Supplement.  If any Interest Reset Date for any Floating
Rate Note is not a Business Day, such Interest Reset Date will be postponed to
the next day that is a Business Day, except that in the case of a LIBOR Note,
if such Business Day is in the next succeeding calendar month, such Interest
Reset Date shall be the immediately preceding Business Day. Interest on each
Floating Rate Note will be payable monthly, quarterly or semiannually (the “Interest
Payment Period”) and on the Maturity Date. 
Unless otherwise specified in the Supplement, and except as provided
below, the date or dates on which interest will be payable (each an “Interest
Payment Date” for a Floating Rate Note) will be, in the case of Floating Rate
Notes with a monthly Interest Payment Period, on the third Wednesday of each month; in the case of Floating Rate Notes with
a quarterly Interest Payment Period, on the third Wednesday of March, June, September and
December; and in the case of Floating Rate Notes with a semiannual Interest
Payment Period, on the third Wednesday of the two months specified in the
Supplement.  In addition, the Maturity
Date will also be an Interest Payment Date.

 

If any Interest Payment Date for any Floating
Rate Note (other than an Interest Payment Date occurring on the Maturity Date)
would otherwise be a day that is not a Business Day, such Interest Payment Date
shall be postponed to the next day that is a Business Day, except that in the
case of a LIBOR Note, if such Business Day is in the next succeeding calendar
month, such Interest Payment Date shall be the immediately preceding Business
Day.  If the Maturity Date of a Floating
Rate Note falls on a day that is not a Business Day, the payment of principal
and interest will be made on the next succeeding Business Day, and no interest
on such payment shall accrue for the period from and after such maturity.

 

Interest payments on each Interest Payment Date
for Floating Rate Notes will include accrued interest from and including the
Issue Date or from and including the last date in respect of which interest has
been paid, as the case may be, to, but excluding, such Interest Payment
Date.  On the Maturity Date, the interest
payable on a Floating Rate Note will include interest accrued to, but
excluding, the Maturity Date.  Accrued
interest will be calculated by multiplying the principal amount of a Floating 

 

21

 

Rate Note by an accrued interest factor.  This accrued interest factor will be computed
by adding the interest factors calculated for each day in the period for which
accrued interest is being calculated. 
The interest factor (expressed as a decimal) for each such day will be computed
by dividing the interest rate applicable to such day by 360, in the cases where
the Base Rate is the CD Rate, Commercial Paper Rate, Federal Funds Rate, LIBOR
or Prime Rate, or by the actual number of days in the year, in the case where
the Base Rate is the Treasury Rate.  The
interest rate in effect on each day will be (i) if such day is an Interest
Reset Date, the interest rate with respect to the Interest Determination Date
(as defined below) pertaining to such Interest Reset Date, or (ii) if such
day is not an Interest Reset Date, the interest rate with respect to the
Interest Determination Date pertaining to the next preceding Interest Reset
Date, subject in either case to any adjustment by a Spread and/or a Spread
Multiplier.

 

The “Interest Determination Date” where the Base Rate is the CD Rate or
the Commercial Paper Rate will be the second Business Day next preceding an
Interest Reset Date.  The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime
Rate will be the Business Day next preceding an Interest Reset Date.  The Interest Determination Date where the
Base Rate is LIBOR will be the second London Business Day next preceding an
Interest Reset Date.  The Interest
Determination Date where the Base Rate is the Treasury Rate will be the day of
the week in which such Interest Reset Date falls when Treasury Bills are
normally auctioned.  Treasury Bills are
normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the
preceding Friday.  If an auction is so
held on the preceding Friday, such Friday will be the Interest Determination
Date pertaining to the Interest Reset Date occurring in the next succeeding
week.

 

The “Index Maturity” is the period to maturity of the instrument or
obligation from which the applicable Base Rate is calculated.

 

The “Calculation Date,” where applicable, shall be the earlier of (i) the
tenth calendar day following the applicable Interest Determination Date or (ii) the
Business Day preceding the applicable Interest Payment Date or Maturity Date.

 

All times referred to herein reflect New York City time, unless
otherwise specified.

 

The Issuer shall specify in writing to the Issuing and Paying Agent
which party will be the calculation agent (the “Calculation Agent”) with
respect to the Floating Rate Notes.  The
Calculation Agent will provide the interest rate then in effect and, if
determined, the interest rate which will become effective on the next Interest
Reset Date with respect to such Floating Rate Note to the Issuing and Paying
Agent as soon as the interest rate with respect to such Floating Rate Note has
been determined and as soon as practicable after any change in such interest
rate.

 

All percentages resulting from any calculation on Floating Rate Notes
will be rounded to the nearest one hundred-thousandth of a percentage point,
with five-one millionths of a percentage point rounded upwards.  For example, 9.876545% (or .09876545) would
be rounded to 9.87655% (or .0987655). 
All dollar amounts used in or resulting from any calculation on Floating
Rate Notes will be rounded, in the case of U.S. dollars, to the nearest cent
or, in the case of a foreign currency, to the nearest unit (with one-half cent
or unit being rounded upwards).

 

22

 

CD Rate Notes

 

“CD Rate” means the rate on any Interest Determination Date for
negotiable certificates of deposit having the Index Maturity as published by
the Board of Governors of the Federal Reserve System (the “FRB”) in “Statistical
Release H.15(519), Selected Interest Rates” or any successor publication of the
FRB (“H.15(519)”) under the heading “CDs (Secondary Market)”.

 

If the above rate is not published in H.15(519) by 3:00 p.m. on
the Calculation Date, the CD Rate will be the rate on such Interest
Determination Date set forth in the daily update of H.15(519), available
through the world wide website of the FRB at
http://www.federalreserve.gov/releases/h15/Update, or any successor site or
publication or other recognized electronic source used for the purpose of
displaying the applicable rate (“H.15 Daily Update”) under the caption “CDs
(Secondary Market)”.

 

If such rate is not published in either H.15(519) or H.15 Daily Update
by 3:00 p.m. on the Calculation Date, the Calculation Agent will determine
the CD Rate to be the arithmetic mean of the secondary market offered rates as
of 10:00 a.m. on such Interest Determination Date of three leading nonbank
dealers(1) in negotiable U.S. dollar certificates
of deposit in New York City selected by the Calculation Agent for negotiable
U.S. dollar certificates of deposit of major United States money center banks
of the highest credit standing in the market for negotiable certificates of
deposit with a remaining maturity closest to the Index Maturity in the
denomination of $5,000,000.

 

If the dealers selected by the Calculation Agent are not quoting as set
forth above, the CD Rate will remain the CD Rate then in effect on such Interest
Determination Date.

 

Commercial Paper Rate Notes

 

“Commercial Paper Rate” means the Money Market Yield (calculated as
described below) of the rate on any Interest Determination Date for commercial
paper having the Index Maturity, as published in H.15(519) under the heading “Commercial
Paper-Nonfinancial”.

 

If the above rate is not published in H.15(519) by 3:00 p.m. on
the Calculation Date, then the Commercial Paper Rate will be the Money Market
Yield of the rate on such Interest Determination Date for commercial paper of
the Index Maturity as published in H.15 Daily Update under the heading “Commercial
Paper-Nonfinancial”.

 

If by 3:00 p.m. on such Calculation Date such rate is not
published in either H.15(519) or H.15 Daily Update, then the Calculation Agent
will determine the Commercial Paper Rate to be the Money Market Yield of the
arithmetic mean of the offered rates as of 11:00 a.m. on such Interest
Determination Date of three leading dealers of U.S. dollar commercial paper in
New York City selected by the Calculation Agent for commercial paper of the
Index Maturity placed for an industrial issuer whose bond rating is “AA,” or
the equivalent, from a nationally recognized statistical rating organization.

 

If the dealers selected by the Calculation Agent are not quoting as
mentioned above, the Commercial Paper Rate with respect to such Interest
Determination Date will remain the Commercial Paper Rate then in effect on such
Interest Determination Date.

 

“Money Market Yield” will be a yield calculated in accordance with the
following formula:

 

(1)          Such
nonbank dealers referred to in this Statement of Terms may include affiliates
of the Dealer.

 

23

 

	
   

  	
   

  	
  D x 360

  	
   

  	
   

  
	
  Money Market Yield =

  	
   

  	
   

  	
  x 100

  
	
   

  	
   

  	
  360 - (D x M)

  	
   

  	
   

  

 

where “D” refers to the applicable per annum rate for commercial paper
quoted on a bank discount basis and expressed as a decimal and “M” refers to
the actual number of days in the interest period for which interest is being
calculated.

 

Federal Funds Rate Notes

 

“Federal Funds Rate” means
the rate on any Interest Determination Date for Federal Funds as published in
Reuters (or any successor service) on page FEDFUNDS1 under the heading “EFFECT”
(or any other page as may replace the specified page on that service)
(“Reuters Page FEDFUNDS1”).

 

If the above rate does not
appear on Reuters Page FEDFUNDS1 or is not so published by 3:00 p.m.
on the Calculation Date, the Federal Funds Rate will be the rate on such
Interest Determination Date as published in H.15 Daily Update under the heading
“Federal Funds/(Effective)”.

 

If such rate is not published as described above by 3:00 p.m. on
the Calculation Date, the Calculation Agent will determine the Federal Funds
Rate to be the arithmetic mean of the rates for the last transaction in
overnight U.S. dollar federal funds arranged by each of three leading brokers
of Federal Funds transactions in New York City selected by the Calculation
Agent prior to 9:00 a.m. on such Interest Determination Date.

 

If the brokers selected by the Calculation Agent are not quoting as
mentioned above, the Federal Funds Rate will remain the Federal Funds Rate then
in effect on such Interest Determination Date.

 

LIBOR Notes

 

The London Interbank offered rate (“LIBOR”) means, with respect to any
Interest Determination Date, the rate for deposits in U.S. dollars having the
Index Maturity that appears on the Designated LIBOR Page as of 11:00 a.m.
London time, on such Interest Determination Date.

 

If no rate appears, LIBOR will be determined on the basis of the rates
at approximately 11:00 a.m., London time, on such Interest Determination
Date at which deposits in U.S. dollars are offered to prime banks in the London
interbank market by four major banks in such market selected by the Calculation
Agent for a term equal to the Index Maturity and in principal amount equal to
an amount that in the Calculation Agent’s judgment is representative for a
single transaction in U.S. dollars in such market at such time (a “Representative
Amount”).  The Calculation Agent will
request the principal London office of each of such banks to provide a
quotation of its rate.  If at least two
such quotations are provided, LIBOR will be the arithmetic mean of such
quotations.  If fewer than two quotations
are provided, LIBOR for such interest period will be the arithmetic mean of the
rates quoted at approximately 11:00 a.m., in New York City, on such
Interest Determination Date by three major banks in New York City, selected by
the Calculation Agent, for loans in U.S. dollars to leading European banks, for
a term equal to the Index Maturity and in a Representative Amount; provided,
however, that if fewer than three banks so selected by the Calculation Agent
are providing such quotations, the then existing LIBOR rate will remain in
effect for such Interest Payment Period.

 

“Designated LIBOR Page”
means Reuters Screen LIBOR01 Page or any replacement page or pages on
which London interbank rates of major banks for the Index Currency are
displayed.

 

24

 

Prime Rate Notes

 

“Prime Rate” means the rate on any Interest Determination Date as
published in H.15(519) under the heading “Bank Prime Loan”.

 

If the above rate is not published in H.15(519) prior to 3:00 p.m.
on the Calculation Date, then the Prime Rate will be the rate on such Interest
Determination Date as published in H.15 Daily Update opposite the caption “Bank
Prime Loan”.

 

If the rate is not published prior to 3:00 p.m. on the Calculation
Date in either H.15(519) or H.15 Daily Update, then the Calculation Agent will
determine the Prime Rate to be the arithmetic mean of the rates of interest
publicly announced by each bank that appears on the Reuters Screen US PRIME1 Page (as
defined below) as such bank’s prime rate or base lending rate as of 11:00 a.m.
on that Interest Determination Date.

 

If fewer than four such rates referred to above are so published by
3:00 p.m. on the Calculation Date, the Calculation Agent will determine
the Prime Rate to be the arithmetic mean of the prime rates or base lending
rates quoted on the basis of the actual number of days in the year divided by
360 as of the close of business on such Interest Determination Date by three
major banks in New York City selected by the Calculation Agent.

 

If the banks selected are not quoting as mentioned above, the Prime
Rate will remain the Prime Rate in effect on such Interest Determination Date.

 

“Reuters Screen US Prime1
Page” means the display designated as page “USPrime1” of the Reuters
Service, or any successor service, or any replacement page or pages on
that service, for the purpose of displaying prime rates or base lending rates
of major U.S. banks.

 

Treasury Rate Notes

 

“Treasury Rate” means:

 

(1) the rate from the
auction held on the Interest Determination Date (the “Auction”) of direct
obligations of the United States (“Treasury Bills”) having the Index Maturity
specified in the applicable pricing supplement above under the caption “INVESTMENT
RATE”, as that rate appears on Reuters Screen USAUCTION10 or USAUCTION11 Page under
the heading “Investment Rate” (or any other page as may replace the
specified page on that service or a successor service).

 

(2) if the rate referred to in clause (1) is not so published
by 3:00 p.m. on the related Calculation Date, the Bond Equivalent Yield
(as defined below) of the rate for the applicable Treasury Bills as published
in H.15 Daily Update, under the caption “U.S. Government Securities/Treasury
Bills/Auction High”, or

 

(3) if the rate
referred to in clause (2) is not so published by 3:00 p.m. on the
related Calculation Date, the Bond Equivalent Yield of the auction rate of the
applicable Treasury Bills as announced by the United States Department
of the Treasury, or

 

(4) if the rate referred to in clause (3) is not so announced
by the United States Department of the Treasury, or if the Auction is not held,
the Bond Equivalent Yield of the rate on the particular Interest Determination
Date of the applicable Treasury Bills as published in H.15(519) under the
caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

 

25

 

(5) if the rate referred to in clause (4) not so published by
3:00 p.m. on the related Calculation Date, the rate on the particular
Interest Determination Date of the applicable Treasury Bills as published in
H.15 Daily Update, under the caption “U.S. Government Securities/Treasury
Bills/Secondary Market”, or

 

(6) if the rate referred to in clause (5) is not so published
by 3:00 p.m. on the related Calculation Date, the rate on the particular
Interest Determination Date calculated by the Calculation Agent as the Bond
Equivalent Yield of the arithmetic mean of the secondary market bid rates, as
of approximately 3:30 p.m. on that Interest Determination Date, of three
primary United States government securities dealers selected by the Calculation
Agent for the issue of Treasury Bills with a remaining maturity closest to the
Index Maturity specified in the Supplement, or

 

(7) if the dealers so selected by the Calculation Agent are not
quoting as mentioned in clause (6), the Treasury Rate in effect on the
particular Interest Determination Date.

 

“Bond Equivalent Yield” means a yield (expressed as a
percentage) calculated in accordance with the following formula:

 

	
   

  	
   

  	
  D x N

  	
   

  	
   

  
	
  Bond Equivalent Yield =

  	
   

  	
   

  	
  x 100

  
	
   

  	
   

  	
  360 - (D x M)

  	
   

  	
   

  

 

where “D” refers to the applicable per annum rate for
Treasury Bills quoted on a bank discount basis and expressed as a decimal, “N”
refers to 365 or 366, as the case may be, and “M” refers to the actual number
of days in the applicable Interest Reset Period.

 

3.               Final
Maturity.  The Stated Maturity Date for any Note will be
the date so specified in the Supplement, which shall be no later than 397 days
from the date of issuance.  On its Stated
Maturity Date, or any date prior to the Stated Maturity Date on which the
particular Note becomes due and payable by the declaration of acceleration,
each such date being referred to as a Maturity Date, the principal amount of
each Note, together with accrued and unpaid interest thereon, will be
immediately due and payable.

 

4.               Events
of Default.  The occurrence of any of
the following shall constitute an “Event of Default” with respect to a
Note:  (i) default in any payment of
principal of or interest on such Note (including on a redemption thereof); (ii) the
Issuer or any Guarantor makes any compromise arrangement with its creditors
generally including the entering into any form of moratorium with its creditors
generally; (iii) a court having jurisdiction shall enter a decree or order
for relief in respect of the Issuer or any Guarantor in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or there shall be appointed a receiver, administrator,
liquidator, custodian, trustee or sequestrator (or similar officer) with
respect to the whole or substantially the whole of the assets of the Issuer or
such Guarantor and any such decree, order or appointment is not removed,
discharged or withdrawn within 60 days thereafter; or (iv) the Issuer or
any Guarantor shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or
consent to the appointment of or taking possession by a receiver,
administrator, liquidator, assignee, custodian, trustee or sequestrator (or
similar official), with respect to the whole or substantially the whole of the
assets 

 

26

 

of the Issuer or any Guarantor or make any general assignment for the
benefit of creditors.  Upon the
occurrence of an Event of Default, the principal of each obligation evidenced
by such Note (together with interest accrued and unpaid thereon) shall become,
without any notice or demand, immediately due and payable.(2)

 

5.               Obligation
Absolute.  No provision of the
Issuing and Paying Agency Agreement under which the Notes are issued shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on each Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

6.               Supplement.  Any term contained in the Supplement shall supercede
any conflicting term contained herein.

 

(2)          Unlike
single payment notes, where a default arises only at the stated maturity,
interest-bearing notes with multiple payment dates should contain a default
provision permitting acceleration of the maturity if the Issuer defaults on an
interest payment.

 

27

 

Exhibit D

 

Form of
Guarantee

 

GUARANTEE

 

GUARANTEE, dated as of August 6, 2008, of
STAPLES THE OFFICE SUPERSTORE, LLC, a Delaware limited liability company,
STAPLES THE OFFICE SUPERSTORE EAST, INC., a Delaware corporation, STAPLES
CONTRACT AND COMMERCIAL, INC., a Delaware corporation, and STAPLES THE OFFICE
SUPERSTORE, LIMITED PARTNERSHIP, a Massachusetts limited partnership (each a “Guarantor”
and collectively, the “Guarantors”).

 

The Guarantors, for value received, hereby jointly
and severally agree as follows for the benefit of the holders from time to time
of the Notes hereinafter described:

 

1.                                       Each Guarantor irrevocably guarantees payment
in full, as and when the same becomes due and payable, of the principal of and
interest, if any, on the promissory notes (the “Notes”) issued by Staples, Inc.,
a Delaware corporation (the “Issuer”), from time to time pursuant to the
Issuing and Paying Agent Agreement, dated as of June 9, 2008, as the same
may be amended, supplemented or modified from time to time, between the Issuer
and LaSalle Bank (the “Agreement”).

 

2.                                       Each Guarantor’s obligations under this
Guarantee shall be unconditional, irrespective of the validity or
enforceability of any provision of the Agreement or the Notes.

 

3.                                       This Guarantee is a guaranty of the due and
punctual payment (and not merely of collection) of the principal of and
interest, if any, on the Notes by the Issuer and shall remain in full force and
effect until all amounts have been validly, finally and irrevocably paid in
full, and shall not be affected in any way by any circumstance or condition
whatsoever, including without limitation (a) the absence of any action to
obtain such amounts from the Issuer, (b) any variation, extension, waiver,
compromise or release of any or all of the obligations of the Issuer under the
Agreement of the Notes or of any collateral security therefore or (c) any
change in the existence or structure of, or the bankruptcy or insolvency of,
the Issuer or by any other circumstance (other than by complete, irrevocable
payment) that might otherwise constitute a legal or equitable discharge or
defense of a guarantor or surety.  Each
Guarantor waives all requirements as to diligence, presentment, demand for
payment, protest and notice of any kind with respect to the Agreement and the
Notes.

 

4.                                       In the event of a default in payment of
principal of or interest on any Notes, the holders of such Notes, may institute
legal proceedings directly against each Guarantor to enforce this Guarantee
without first proceeding against the Issuer.

 

5.                                       This Guarantee shall remain in full force and
effect or shall be reinstated (as the case may be) if at any time any payment
by the Issuer of the principal of or interest, if any, on the Notes, in whole
or in part, is rescinded or must otherwise be returned by the holder upon the
insolvency, bankruptcy or reorganization of the Issuer or otherwise, all as
though such payment had not been made.

 

6.                                       This Guarantee shall be permanently released
as to any Guarantor party hereto if (a) such Guarantor is not a guarantor
of the Issuer’s publicly issued notes or bonds outstanding from time to time or
any such guarantee of the Issuer’s publicly issued notes or bonds is 

 

 

subject to release
concurrently with the release of this Guarantee, and (b)  if there are no
amounts that are both unpaid and overdue under the Notes or Guarantee and there
is no continuing Event of Default (as defined in the Amended and Restated
Commercial Paper Dealer Agreement, dated as of August 6, 2008, between the
Issuer and Lehman Brothers Inc.) on the date of such release.  Such release shall be immediate and automatic
without any requirement of any notice to or acknowledgment by any holder of the
Notes.

 

7.                                      This Guarantee shall be governed by and
construed in accordance with the laws of the State of New York.

 

 

IN WITNESS WHEREOF, each Guarantor has caused this
Guarantee to be duly executed as of the day and year first above written.

 

	
   

  	
  STAPLES
  THE OFFICE SUPERSTORE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nicholas
  Hotchkin

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President, Finance and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STAPLES
  THE OFFICE SUPERSTORE EAST, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nicholas
  Hotchkin

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President, Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STAPLES
  CONTRACT AND COMMERCIAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nicholas
  Hotchkin

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President, Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STAPLES
  THE OFFICE SUPERSTORE, LIMITED

  PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By
  its General Partner: Staples, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nicholas
  Hotchkin

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President, Finance and Treasurer

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