Document:

Exhibit
10.5

 

 

 

	
  Stock Option Grant

  	
   

  	
  Staples, Inc.

  
	
   

  	
   

  	
  Employer ID: 04-2896-127

  
	
   

  	
   

  	
  500 Staples Drive

  
	
   

  	
   

  	
  Framingham, MA 01702

  

 

 

	
   

  	
   

  	
  ACCOUNT ID:

  	
  <<AccountID>

  
	
   

  	
   

  	
  LOCATION

  	
  <<ExtraField2>>

  
	
  <<FirstName>> <<MiddleName>>
  <<LastName>>

  	
   

  	
   

  	
   

  
	
  <<Address1>>

  	
   

  	
   

  	
   

  
	
  <<Address2>>

  	
   

  	
   

  	
   

  
	
  <<Address3>>

  	
   

  	
   

  	
   

  
	
  <<City>>, <<State>>
  <<Zip>>

  	
   

  	
   

  	
   

  
	
  <<Country>>

  	
   

  	
   

  	
   

  

 

 

You have been granted an option to purchase Staples, Inc. Common Stock
as follows:

 

	
  Type of Option:

  	
   

  	
  Non-Qualified Stock
  Option

  
	
  Grant No.:

  	
   

  	
  <<GrantNumber>>

  
	
  Stock Option Plan:

  	
   

  	
  2004

  
	
  Date of Grant:

  	
   

  	
  <<GrantDate>>

  
	
  Total Number of Option Shares:

  	
   

  	
  <<SharesGranted>>

  
	
  Option Price per Share:

  	
   

  	
  US$<<OptionPrice>>

  
	
  Total Exercise Price of Option Shares:

  	
   

  	
  US$<<TotalOptionPrice>

  

 

	
  Vesting
  Date

  	
   

  	
  Numbers of Shares

  Vesting on Vesting Date

  

 

 

By your acceptance of this Stock Option Grant, you agree that this
option is granted under and governed by the terms and conditions of Staples,
Inc.’s 2004 Stock Incentive Plan (as amended from time to time) and by the
terms and conditions of Staples, Inc.’s Non-Qualified Stock Option Agreement
(NQS42004), which is attached hereto.

 

	
  Staples, Inc.

  
	
   

  
	
  Ronald L. Sargent

  
	
  President and Chief Executive Officer

  

 

Attachment: Staples, Inc. Non-Qualified Stock Option Agreement

 

 

 

STAPLES, INC. DIRECTOR STOCK
OPTION AGREEMENT

 

1. Grant of Option.  Staples, Inc., a Delaware corporation
(“Staples”), hereby grants to the Optionee named on the reverse hereof an
option, pursuant to Staples’ 2004 Stock Incentive Plan (the “Plan”), to
purchase an aggregate of the Total Number of Option Shares of Common Stock of
Staples stated on the reverse hereof at a price per share equal to the Option
Price per Share stated on the reverse hereof, purchasable as set forth in, and
subject to the terms and conditions of, this Option Agreement and the Plan.

 

2. Non-Statutory Stock Option.  This option is not intended to qualify as an
incentive stock option under Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”).

 

3. Exercise of Option and
Provisions for Termination.

 

(a) Vesting Schedule.  Except as otherwise provided in this
Agreement, this option may be exercised up to and including the tenth
anniversary of the Date of Grant set forth on the reverse hereof (hereinafter
the “Expiration Date”) in installments as to not more than the number of shares
commencing on the respective vesting dates set forth in the table on the
reverse hereof.  Notwithstanding the
foregoing: (1) if the Optionee ceases to serve as a director of Staples prior
to the fourth anniversary date of the Date of Grant, no additional shares of
Common Stock shall become exercisable on any of the anniversary dates following
the cessation of his or her service as director; and (2) this option shall
immediately become exercisable in full in the event (i) a Change in Control (as
defined below) of Staples occurs, (ii) the Optionee ceases to serve as a
director of Staples due to his or her death, disability (within the meaning of
Section 22(e)(3) of the Code or any successor provision) or (iii) the Optionee
ceases to serve as a director of Staples after attaining age 55 if at the time
of such cessation of service the sum of the years of service as a director of
Staples (as determined by the Board of Directors of Staples) completed by the
Optionee plus the Optionee’s age is greater than or equal to 65.  

 

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

 

(i)  A “Change
in Control” shall be deemed to have occurred if (A) any “person”, as such term
is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”) (other than Staples, any trustee or other fiduciary holding
securities under an employee benefit plan of Staples, or any corporation owned
directly or indirectly by the stockholders of Staples in substantially the same
proportion as their ownership of stock of Staples), is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of Staples representing 30% or more of the
combined voting power of Staples’ then outstanding securities (other than
pursuant to a merger or consolidation described in clause (1) or (2) of subsection
(C) below); (B) individuals who, as of the date hereof, constitute the Board of
Directors of Staples (as of the date hereof, the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board of Directors,
provided that any person becoming a director subsequent to the date hereof
whose election, or nomination for election by Staples’ stockholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board (other than an election or nomination of an individual whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the directors of Staples, as such
terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) shall
be, for purposes of this Agreement, considered as though such person were a
member of the Incumbent Board; (C) the stockholders of Staples approve a merger
or consolidation of Staples with any other corporation, other than (1) a merger
or consolidation which would result in the voting securities of Staples outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) more than 75% of the combined voting power of the voting securities of
Staples or such surviving entity outstanding immediately after such merger or
consolidation, or (2) a merger or consolidation effected to implement a
recapitalization of Staples (or similar transaction) in which no “person” (as
defined above) acquires more than 30% of the combined voting power of Staples’
then outstanding securities; or (D) the stockholders of Staples approve an
agreement for the sale or disposition by Staples of all or substantially all of
Staples’ assets. 

 

(ii) “Surviving Corporation” shall mean (x) in the
case of a Change in Control pursuant to clause (A) or clause (B) of Section
3(b)(i), Staples; (y) in the case of a Change in Control pursuant to clause (C)
of Section 3(b)(i), the surviving or resulting corporation in such merger or
consolidation; and (z) in the case of a Change in Control pursuant to Clause
(D) of Section 3(b)(i), the entity acquiring the majority of the assets being
sold or disposed of by Staples.  

 

(c) Continuous Service as
Director Required.  Except as
otherwise provided in this Section 3(c), this option shall terminate, and may
no longer be exercised by the Optionee, on the date six months after the
Optionee ceases to serve as a director of Staples.  In the event (1) the Optionee ceases to serve
as a director of Staples due to his or her death or disability (within the
meaning of Section 22(e)(3) of the Code or any successor provision), or (2) the
Optionee dies within six months after he or she ceases to serve as a director
of Staples, then the exercisable portion of this option may be exercised within
the period of one year following the date the Optionee ceases to serve as a
director, by the Optionee or by the person to whom this option is transferred
by will or by the laws of descent and distribution.  In the event the Optionee ceases to serve as
a director of Staples after attaining age 55, if at the time of such cessation
of service the sum of the years of service as a director of Staples (as
determined by the Board of Directors of Staples) completed by the Optionee plus
the Optinee’s age is greater than or equal to 65, then the exercisable portion
of this option may be exercised within three years following the date the
optionee ceases to serve as a director, by the Optionee or by the person to
whom this option is transferred by will or by the laws of descent and
distribution Notwithstanding the foregoing, each option shall terminate, and
may no longer be exercised, on the date 10 years after the Date of Grant.

 

(d) Exercise Procedure.  Subject to the conditions set forth in this
Agreement, this option shall be exercised by the Optionee’s delivery of written
notice of exercise to the Secretary of Staples specifying the number of shares
to be purchased and the purchase price to be paid therefor and accompanied by
payment in full in accordance with Section 4. 
Such exercise shall be effective upon receipt by the Secretary of Staples
of such written notice together with the required payment.  The Optionee may purchase fewer than the
total number of shares covered hereby, provided that no partial exercise of
this option may be for any fractional share.

 

4. Payment of Purchase Price.  

 

(a)  Method of Payment. 
Payment of the purchase price for shares purchased upon exercise of this
option shall be made (i) by delivery to Staples of cash or a check to the order
of Staples in an amount equal to the purchase price of such shares, (ii)
subject to the consent of Staples, by delivery to Staples of shares of Common
Stock of Staples then owned by the Optionee having a fair market value equal in
amount to the purchase price of such shares, (iii) by any other means which the
Board of Directors determines are consistent with the purpose of the Plan and
with applicable laws and regulations (including, without limitation, the
provisions of Rule 16b-3 under the Securities Exchange Act of 1934 and Regulation
T promulgated by the Federal Reserve Board), or (iv) by any combination of such
methods of payment.  Notwithstanding the
prior sentence, under no circumstances may payment for shares be made by a
promissory note.

 

(b)  Valuation of Shares or Other Non-Cash Consideration Tendered in Payment
of Purchase Price.  For the
purposes hereof, the fair market value of any share of Staples’ Common Stock or
other non-cash consideration which may be delivered to Staples in exercise of
this option shall be determined in good faith by the Board of Directors of
Staples.

 

(c)  Delivery of
Shares Tendered in Payment of Purchase Price. 
If the Optionee exercises this option by delivery of shares of Common
Stock of Staples, the certificate or certificates representing the shares of
Common Stock of Staples to be delivered shall be duly executed in blank by the
Optionee or shall be accompanied by a stock power duly executed in blank
suitable for purposes of transferring such shares to Staples, and the Common
Stock delivered may not be subject to any repurchase, forfeiture, unfulfilled
vesting or other similar requirement
and must have been held for at least six months if such Common Stock was
previously issued to the Optionee through a Staples compensation plan.  Fractional shares of Common Stock of Staples
will not be accepted in payment of the purchase price of shares acquired upon
exercise of this option.

 

5. Delivery of Shares;
Compliance With Securities Law, Etc.

 

(a) General.  Staples shall, upon payment of the option
price for the number of shares purchased and paid for, make prompt delivery of
such shares to the Optionee, provided that if any law or regulation requires
Staples to take any action with respect to such shares before the issuance
thereof, then the date of delivery of such shares shall be extended for the
period necessary to complete such action.

 

(b) Listing, Qualification,
Etc.  This option shall
be subject to the requirement that if, at any time, counsel to Staples shall determine
that the listing, registration or qualification of the shares subject hereto
upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental or regulatory body, or that the disclosure of
non-public information or the satisfaction of any other condition is necessary
as a condition of, or in connection with, the issuance or purchase of shares
hereunder, this option may not be exercised, in whole or in part, unless such
listing, registration, qualification, consent or approval, disclosure, or
satisfaction of such other condition shall have been affected or obtained on
terms acceptable to the Board of Directors. 
Nothing herein shall be deemed to require Staples to apply for, effect
or obtain such listing, registration, qualification, or disclosure or satisfy
such other condition.

 

6. Transferability of Option.  This option is personal and may not be
transferred other than by will or the laws of descent and distribution or, upon
notice to Staples, for estate planning purposes to entities that are
beneficially owned entirely by family members, and this option shall be
exercised during the lifetime of the Optionee only by the Optionee or his or
her legal representative.  Other than
pursuant to the prior sentence, no rights granted hereunder may be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) nor shall any such rights be subject to execution, attachment or
similar process.  All transferees of this
Option must agree to be governed by all of the terms and conditions of this
Agreement.  Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this option or of such
rights contrary to the provisions hereof, or upon the levy of any attachment or
similar process upon this option or such rights, this option and such rights
shall, at the election of Staples, become null and void.

 

7. Limitation of Rights

 

(a) No Right to Continue as a
Director.  Neither the Plan,
nor the granting of this option nor any other action taken pursuant to the
Plan, shall constitute or be evidence of any agreement or understanding,
express or implied, that Staples will retain the Optionee as a director for any
period of time.

 

(b) No Stockholders’ Rights
for Options.  The Optionee
shall have no rights as a stockholder with respect to the shares of Common
Stock covered by this option until the date of the issuance to him or her of a
stock certificate therefor, and no adjustment will be made for dividends or
other rights (except as provided in Section 9(a) of the Plan) for which the
record date is prior to the date such certificate is issued.

 

 

8. Adjustment Provisions for
Recapitalizations and Related Transactions.  In the event of any recapitalization,
reclassification of shares, stock dividend, stock split, reverse stock split,
spin-off or other similar change in capitalization or event or any distribution
to holders of Common Stock other than an ordinary cash dividend, the Optionee
shall, with respect to this option or any unexercised portion thereof, be
entitled to the rights and benefits, and be subject to the limitations, set
forth in Section 9(a) of the Plan.

 

9. Mergers, Consolidations,
Asset Sales, Liquidations, Etc. 
In the event of a merger or consolidation or any share exchange transaction
in which outstanding shares of Common Stock are exchanged for securities, cash
or other property of any other corporation or business entity, or in the event
of a liquidation of Staples, prior to the Expiration Date or termination of
this option, the Optionee shall, with respect to this option or any unexercised
portion thereof, be entitled to the rights and benefits, and be subject to the
limitations, set forth in Section 9 of the Plan.

 

10. Withholding Taxes.  Staples’ obligation to deliver shares of Common
Stock upon the exercise of this option shall be subject to the Optionee’s
satisfaction of all applicable federal, state and local income and employment
tax withholding requirements.  

 

11. Miscellaneous.

 

(a) Except as provided herein, this option may not be
amended or otherwise modified unless evidenced in writing and signed by Staples
and the Optionee unless the Board of Directors of Staples determines that the
amendment or modification, taking into account any related action, would not
materially and adversely affect the Optionee. 
However, in no
event may this Option be converted into a stock appreciation right.  This Option Agreement may be executed in
multiple counterparts, each of which shall represent the same option agreement.

 

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

 

(c) This option shall be governed by and construed in
accordance with the laws of the State of Delaware.Exhibit
10.6

 

	
  Notice of Award of Restricted Stock and

  	
   

  	
  Staples, Inc.

  
	
  Restricted Stock Award Agreement

  	
   

  	
  Employer ID: 04-2896127

  
	
   

  	
   

  	
  500 Staples Drive

  
	
   

  	
   

  	
  Framingham, MA 01702

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  «FirstName»«LastName»

  	
   

  	
  ACCOUNT ID:

  	
   

  	
  «AccountID»

  
	
  «Address1»

  	
   

  	
   

  	
   

  	
   

  
	
  «Address2»

  	
   

  	
   

  	
   

  	
   

  
	
  «City»,
  «State» 
  «Zip»

  	
   

  	
   

  	
   

  	
   

  
	
  «Country»

  	
   

  	
   

  	
   

  	
   

  
						

 

In consideration
of services rendered to Staples, Inc., you have been awarded shares of Staples,
Inc. Common Stock under Staples, Inc.’s Restricted Stock program as follows:

 

	
  Restricted Stock Award
  No.:

  	
   

  	
  «GrantNumber»

  
	
  Stock Plan:

  	
   

  	
  2004RS

  
	
  Date of Award:

  	
   

  	
  «Date»

  
	
  Total Number of Shares:

  	
   

  	
  «SharesGranted»

  
	
  Fair Market Value per
  Share:

  	
   

  	
  «FairValue»

  
	
  Total Value of Shares
  Granted:

  	
   

  	
  «Total
  Value»

  
	
  Vesting Date:

  	
   

  	
  «Date»

  

 

By your acceptance
of this Restricted Stock Award, you acknowledge that this award is granted
under and governed by the terms and conditions of Staples, Inc.’s 2004 Stock
Incentive Plan and by the terms and conditions of Staples, Inc.’s Restricted
Stock Award Agreement (RSBOD42004) printed on the reverse side hereof.

 

	
  Accepted by:

  	
  Staples, Inc.

  
	
   

  	
   

  	
   

  
	
  «FirstName»«LastName»

  	
  Ronald L. Sargent

  
	
   

  	
  President and Chief
  Executive Officer

  
			

 

 

STAPLES,
INC.

RESTRICTED
STOCK AWARD AGREEMENT

(DIRECTORS)

 

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

 

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

 

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

 

4.  Vesting Date.

 

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

 

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

 

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

 

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

 

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

 

6.  No Rights to Continue as a
Director.  Nothing contained
in the Plan or this Agreement shall be construed or deemed by any person under
any circumstances to bind Staples to continue the relationship of the Director
with Staples for the period prior to or after vesting.

 

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

 

8.  Adjustment Provisions.

 

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

 

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

 

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

 

10.  Vesting Following a Change
in Control.

 

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

 

(i)  A “Change in Control” shall be deemed to have
occurred if (A) any “person”, as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934 (the “Exchange Act”) (other than
Staples, any trustee or other fiduciary holding securities under an employee
benefit plan of Staples, or any corporation owned directly or indirectly by the
stockholders of Staples in substantially the same proportion as their ownership
of stock of Staples), is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of Staples
representing 30% or more of the combined voting power of Staples’ then
outstanding securities (other than pursuant to a merger or consolidation
described in clause (1) or (2) of subsection (C) below); (B) individuals who,
as of the date hereof, constitute the Board of Directors of Staples (as of the
date hereof, the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board of Directors, provided that any person becoming a
director subsequent to the date hereof whose election, or nomination for
election by Staples’ stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is
in connection with an actual or threatened election contest relating to the
election of the directors of Staples, as such terms are used in Rule 14a-11 of
Regulation 14A under the Exchange Act) shall be, for purposes of this
Agreement, considered as though such person were a member of the Incumbent
Board; (C) the stockholders of Staples approve a merger or consolidation of
Staples with any other corporation, other than (1) a merger or consolidation
which would result in the voting securities of Staples outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than 75%
of the combined voting power of the voting securities of Staples or such surviving
entity outstanding immediately after such merger or consolidation, or (2) a
merger or consolidation effected to implement a recapitalization of Staples (or
similar transaction) in which no “person” (as defined above) acquires more than
30% of the combined voting power of Staples’ then outstanding securities; or
(D) the stockholders of Staples approve an agreement for the sale or
disposition by Staples of all or substantially all of Staples’ assets.

 

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

 

(b)  Effect of Change of
Control. Notwithstanding the provisions of Section 3, if a Change in
Control of Staples occurs, the Shares shall vest fully in accordance with this
Section 10(b).

 

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

 

12.  Miscellaneous.

 

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

 

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

 

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

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