Document:

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                                                                  EXHIBIT 10.2

                            POWER PURCHASE AGREEMENT

                          DATED AS OF __________, 2001

                                      AMONG

                          COMED GENERATION COMPANY LLC

                         EXELON GENERATION COMPANY, LLC

                                       AND

                           COMMONWEALTH EDISON COMPANY

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                                TABLE OF CONTENTS

                                                                                          PAGE
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1.      Definitions and Interpretation.......................................................1
        (a)    Definitions...................................................................1
        (b)    Interpretation................................................................4
        (c)    Titles and Headings...........................................................4

2.      Term.................................................................................5
        (a)    Term..........................................................................5
        (b)    Provisions Surviving Termination..............................................5

3.      Character of Electric Energy; Scope of Service.......................................5
        (a)    Electric Energy...............................................................5
        (b)    Requirements..................................................................5
        (c)    Ancillary Services............................................................5
        (d)    Black Start Capability........................................................6

4.      Annual Load Plan.....................................................................6
        (a)    Annual Load Plan..............................................................6
        (b)    Genco Response................................................................6
        (c)    Shortfalls....................................................................7
        (d)    Updates.......................................................................7

5.      Transmission.........................................................................7
        (a)    Network Resource Designation..................................................7
        (b)    Genco Responsibility..........................................................7
        (c)    Interface of Control Area with Genco..........................................7

6.      Delivery; Title; Metering............................................................7
        (a)    Delivery and Title............................................................7
        (b)    Measurement...................................................................8

7.      Billing..............................................................................8
        (a)    Billing.......................................................................8
        (b)    Disputes......................................................................8
        (c)    Offsetting Charges............................................................8
        (d)    Records; Inspection...........................................................9

8.      Information; Outrage.................................................................9
        (a)    MAIN..........................................................................9
        (b)    Information...................................................................9
        (c)    Outage Scheduling.............................................................9

9.      Compensation.........................................................................9
        (a)    Energy Charge through December 31, 2002.......................................9
        (b)    Energy Charge from January 1, 2003 through December 31, 2004..................9
        (c)    Energy Charge During Partial Requirements Term................................9
        (d)    Ancillary Services............................................................9
        (e)    Competitive Transition Charge.................................................9

10.     Limitation of Liability.............................................................10

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11.     Assignment..........................................................................10

12.     Default; Termination and Remedies...................................................10
        (a)    Genco's Default..............................................................10
        (b)    ComEd Default................................................................10
        (c)    Remedies and Remedies Cumulative.............................................11

13.     Representations and Warranties......................................................11
        (a)    Representations and Warranties of Genco......................................11
        (b)    Representations and Warranties of ComEd......................................12

14.     Indemnification.....................................................................13

15.     Notices.............................................................................13

16.     Disagreements.......................................................................14
        (a)    Administrative Committee Procedure...........................................14
        (b)    Arbitration..................................................................14
        (c)    Obligations to Pay Charges and Perform.......................................16
        (d)    Preliminary Injunctive Relief................................................16
        (e)    Settlement Discussions.......................................................16

17.     Governing Law.......................................................................16

18.     No Third Party Beneficiaries........................................................16

19.     Partial Invalidity..................................................................16

20.     Waivers.............................................................................17

21.     WAIVER OF JURY TRIAL................................................................17

22.     Entire Agreement and Amendments.....................................................17
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APPENDICES:

Appendix A:  Prices through December 31, 2002
Appendix B:  Prices from January 1, 2003 through December 31, 2004

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                            POWER PURCHASE AGREEMENT

        THIS POWER PURCHASE AGREEMENT (this "AGREEMENT") dated as of January 1,
2001 among (i) COMED GENERATION COMPANY LLC, a Delaware limited liability
company ("COMED GENCO"), (ii) EXELON GENERATION COMPANY, LLC, a Pennsylvania
limited liability company ("EXELON GENCO"), and (iii) COMMONWEALTH EDISON
COMPANY, an Illinois corporation ("COMED");

                              W I T N E S S E T H:

        WHEREAS, ComEd has transferred its interest in the Nuclear Stations to
ComEd Genco pursuant to the provisions of a Contribution Agreement dated as of
January 1, 2001 between ComEd and ComEd Genco; and

        WHEREAS, ComEd desires to receive and purchase, and ComEd Genco desires
to deliver and sell, electric energy to meet ComEd's requirements to serve its
customers; and

        WHEREAS, immediately following the execution and delivery of this
Agreement, ComEd Genco is to be merged into and with Exelon Ventures Company,
LLC, a Delaware limited liability company ("EXELON VENTURES") and the surviving
entity in such merger pursuant to the terms of an Agreement and Plan of Merger
dated as of the date hereof between ComEd Genco and Exelon Ventures; and
immediately thereafter, Exelon Ventures will contribute all of the assets
constituting the Nuclear Stations to Exelon Genco, which will then own and
operate the Nuclear Stations;

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the parties hereto agree as follows:

1.      DEFINITIONS AND INTERPRETATION

        (a)     DEFINITIONS. As used in this Agreement, (i) the ten as set forth
below in this Section 1(a) shall have the respective meanings so set forth and
(ii) the terms defined elsewhere in this Agreement shall have the meanings
therein so specified.

               "ANCILLARY SERVICES" has the meaning specified in Section 3(c).

               "ANNUAL LOAD PLAN" has the meaning specified in Section 4(a).

               "BANKRUPTCY" means any case, action or proceeding, under any
        bankruptcy, reorganization, debt arrangement, insolvency or receivership
        law or any dissolution or liquidation proceeding commenced by or against
        a Person and, if such case, action or proceeding is not commenced by
        such Person, such case or proceeding shall be consented to or acquiesced
        in by such Person or shall result in an order for relief or shall remain
        undismissed for 90 days.

               "BLACK START SERVICE" means the provision and operation of
        equipment that is necessary to reestablish the ability of the
        transmission and distribution systems to deliver

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        electric energy after a large-scale interruption, and includes the
        maintenance and use of the equipment necessary to allow the
        interconnected grid to be restored to operation absent an external
        source of power to the generating units that support the grid.

               "BUSINESS DAY" means each weekday (Monday through Friday) except
        the days on which the following holidays are observed: New Year's Day,
        Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
        Christmas Day.

               "CHANGE OF LAW" means the adoption, promulgation, modification or
        reinterpretation of any law, rule, regulation, ordinance, order or other
        Requirement of Law of any Governmental Authority which occurs subsequent
        to the Effective Date but excluding any change in law relating to
        taxation of net income.

               "COMED EVENT OF DEFAULT" has the meaning specified in Section
        12(b).

               "CONTRACT YEAR" means, in the case of the First Contract Year,
        the period beginning on the Effective Date and ending on December 31 of
        the calendar year in which such Effective Date occurs; and, in the case
        of subsequent Contract Years, means a calendar year beginning on January
        1 and ending on December 31. First Contract Year refers to the first
        such period commencing on the Effective Date; Second Contract Year
        refers to the calendar year immediately following such First Contract
        Year; and so on.

               "CPT" means Central Prevailing Time, being the time then
        prevailing in the Central Time Zone of the United States, whether
        central, standard time or central daylight savings time.

               "DEFAULT RATE" means (i) the "Prime Rate" as published from time
        to time in the "Money Rates" section of THE WALL STREET JOURNAL plus
        (ii) 1.0% (100 basis points) per annum.

               "EFFECTIVE DATE" means January 1, 2001.

               "ELECTRIC ENERGY" has the meaning specified in Section 3(a).

               "FERC" means the Federal Energy Regulatory Commission.

               "FULL REQUIREMENTS TERM" means the period commencing on the
        Effective date through December 31, 2004.

               "GENCO" shall mean (i) upon execution of this Agreement until the
        consummation of the transfer referred to in clause (ii) of this
        definition, ComEd Genco and its successor, Exelon Ventures, and (ii)
        following the consummation of the transfer of the Nuclear Stations to
        Exelon Genco, Exelon Genco and its successors and permitted assigns.

               "GENCO EVENT OF DEFAULT" has the meaning specified in Section
        12(a).

               "GENERATING FACILITIES" has the meaning specified in Section
        4(b).

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               "GOVERNMENTAL AUTHORITY" means any foreign, federal, state, local
        or other governmental authority or regulatory agency, commission,
        department, or other governmental subdivision, court, tribunal or body,
        but excluding Genco and any subsequent owner(s) of the Generating
        Facilities (if otherwise a Governmental Authority under this
        definition).

               "ISO" means any Person that becomes responsible under applicable
        FERC guidelines for the transmission system serving ComEd customers.

               "MAIN" means the Mid-America Interconnected Network.

               "NERC" means the North American Electric Reliability Council.

               "NON-SUMMER MONTH"" means any month other than a Summer Month.

               "NUCLEAR STATION" and "NUCLEAR STATIONS" have the meaning
        specified in Section 3(b)(ii).

               "OFF-PEAK PERIOD" means, with respect to each day of a calendar
        week, the off-peak period as defined in Appendix 1F of NERC Policy 1
        and, in addition, shall include all hours on Saturday.

               "PARTIAL REQUIREMENTS TERM" means the period commencing on
        January 1, 2005 through December 31, 2006.

               "PARTY" shall mean each, and "PARTIES" shall mean all, of (i)
        ComEd Genco and its successor, Exelon Ventures, until such time as the
        Nuclear Stations are transferred to Exelon Genco, at which time ComEd
        Genco and Exelon Ventures shall cease to be parties to this Agreement,
        (ii) Exelon Genco and its successors and permitted assigns and (iii)
        ComEd and its successors and permitted assigns.

               "PEAK PERIOD" means, with respect to each day of a calendar week,
        the on-peak period as defined in Appendix 1F of NERC Policy 1, but shall
        exclude all hours on Saturday.

               "PERMITS" means all licenses, permits, franchises, approvals,
        authorizations, consents, waivers, exemptions, variances or orders of,
        or filings by Genco and required by, or otherwise issued by any
        Governmental Authority.

               "PERSON" means any natural person, corporation, partnership,
        firm, association, trust, unincorporated organization, Governmental
        Authority or any other entity whether acting in an individual, fiduciary
        or other capacity.

               "PRUDENT UTILITY PRACTICES" means any of the practices, methods
        and acts engaged in or approved by a significant portion of the electric
        utility industry in the United States of America during the relevant
        time period, or any of the practices, methods or acts which, in the
        exercise of reasonable judgment in light of the facts known at the time
        the

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        decision was made, could have been expected to accomplish the desired
        result at a reasonable cost consistent with good business practices,
        reliability, safety and expedition. "PRUDENT UTILITY PRACTICES" is
        not intended to be limited to the optimum practice, method or act to
        the exclusion of all others, but rather to be acceptable practices,
        methods or acts generally accepted in the electric utility industry
        in the United States of America.

               "REQUIREMENT OF LAW" means any foreign, federal, state and local
        laws, statutes, regulations, rules, codes or ordinances enacted,
        adopted, issued or promulgated by any federal, state, local or other
        governmental authority or regulatory body (including those pertaining to
        electrical, building, zoning, environmental and occupational safety and
        health requirements) or an applicable tariff filed with any federal,
        state, local or other governmental authority or regulatory body.

               "SUMMER MONTH" means each of June, July, August and September.

               "TAXES" means all federal, state, local, foreign and other net
        income, gross income, gross receipts, sales, use, ad valorem, transfer,
        franchise, profits, withholding, payroll, employment, excise, property,
        customs, duties or other taxes, fees, assessments or charges of any kind
        whatsoever, together with any interest and any penalties, additions to
        tax or additional amount with respect thereto.

               "TERM" has the meaning specified in Section 2.

        (b)     INTERPRETATION. In this Agreement, unless a clear contrary
intention appears:(i) the singular includes the plural and vice versa; (ii)
reference to any Person includes such Person's successors and assigns but, in
the case of a Party, only if such successors and assigns are permitted by this
Agreement, and reference to a Person in a particular capacity excludes such
Person in any other capacity or individually; (iii) reference to any gender
includes each other gender; (iv) reference to any agreement (including this
Agreement), document, instrument or tariff means such agreement, document,
instrument or tariff as amended or modified and in effect from time to time in
accordance with the terms thereof and, if applicable, the terms hereof; (v)
reference to any Requirement of Law means such Requirement of Law as amended,
modified, codified or reenacted, in whole or in part, and in effect from time to
time, including, if applicable, rules and regulations promulgated thereunder;
(vi) reference to any Section means such Section of this Agreement, and
references in any Section or definition to any clause means such clause of such
Section or definition; (vii) "hereunder", "hereof', "hereto" and words of
similar import shall be deemed references to this Agreement as a whole and not
to any particular Section or other provision hereof or thereof; (viii)
"including" (and with correlative meaning "include") means including without
limiting the generality of any description preceding such term; and (ix)
relative to the determination of any period of time, "from" means "from and
including", "to" means "to but excluding" and "through" means "through and
including".

        (c)     TITLES AND HEADINGS. Section and Appendix titles and headings in
this Agreement are inserted for convenience of reference only and are not
intended to be a part of, or to affect the meaning or interpretation of, this
Agreement.

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2.      TERM

        (a)     TERM. This Agreement shall have a term (the "TERM")
commencing on the Effective Date and ending on December 31, 2006 unless
terminated earlier as provided in Section 12(c) or Section 9(c).

        (b)     PROVISIONS SURVIVING TERMINATION. The provisions of Sections
7(d) (Records; Inspection), 10 (Limitation of Liability), 12 (Default,
Termination and Remedies), 14 (Indemnification) and 16 (Disagreements) shall
survive any termination of this Agreement.

3.      CHARACTER OF ELECTRIC ENERGY; SCOPE OF SERVICE.

        (a)     ELECTRIC ENERGY. All electric energy ("ELECTRIC ENERGY")
provided by Genco under this Agreement shall be in the form of three-phase
alternating current having a nominal frequency of sixty cycles per second and a
harmonic content consistent with the requirements of the Institute of Electrical
and Electronic Engineers Standard No. 519.

        (b)     REQUIREMENTS.

                (i)     For the Full Requirements Term, Genco shall provide to
        ComEd, and ComEd shall purchase from Genco, a quantity of Electric
        Energy and capacity equal to the amount required by ComEd to meet its
        service obligations to its retail and wholesale customers and the energy
        imbalance requirements of the ComEd "control area" (after taking into
        account deliveries from other Persons of Electric Energy and capacity
        that ComEd is required to accept under any Requirement of Law).

                (ii)    For the Partial Requirements Term, Genco shall provide
        to ComEd, and ComEd shall purchase from Genco, Electric Energy and
        capacity from the Byron, Braidwood, LaSalle, Quad Cities and Dresden
        nuclear generating stations (individually, a "NUCLEAR STATION" and
        collectively, the "NUCLEAR STATIONS") equal to the amount required by
        ComEd to meet its service obligations to its retail and wholesale
        customer, subject in all events to the available capacity of the Nuclear
        Stations, and in the case of Quad Cities Nuclear Station, to the rights
        of such Station's co-owner. Genco shall have no obligation under this
        Agreement to provide Electric Energy or capacity from any other source
        during the Partial Requirements Term if the amount required by ComEd to
        meet such service obligations exceeds the available capacity of the
        Nuclear Stations. In addition, it is the intent of the Parties that
        during the Partial Requirements Term the Nuclear Stations shall be
        utilized as "base load" facilities to meet such service obligations and
        not as peakers, and that the Annual Load Plan, and the protocols and
        practices developed pursuant to Section 5(c), for each Contract Year
        during the Partial Requirements Term shall reflect such intent.

        (c)     ANCILLARY SERVICES. As directed by ComEd, Genco shall provide
the following additional services (the "ANCILLARY SERVICES") during the Full
Requirements Term:

                (i)     Reactive supply and voltage control from generation
                        sources service;

                (ii)    Regulation and frequency response service.

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                (iii)   Energy imbalance service;

                (iv)    Operating reserve - spinning reserve service;

                (v)     Operating reserve - supplemental reserve service; and

                (vi)    Black Start Service.

The requirements of the services set forth in clauses (i) through (v)
(inclusive) shall be as stated in ComEd's Open Access Transmission Tariff as
filed with FERC, and any other Requirement of Law and any requirements of MAIN,
NERC, any ISO and any successors to the functions thereof.

        (d)     BLACK START CAPABILITY. Genco shall prepare and maintain a
written plan setting forth the procedures that would be used to restart its
generation after a system-wide blackout. Genco shall provide a copy of such plan
to ComEd for its review and approval (which shall not be unreasonably withheld
or delayed) as to its overall feasibility (after such approval, the "BLACK START
PLAN"). ComEd shall provide for system restoration in accordance with the Black
Start Plan. In addition, ComEd may request that Genco implement a test of such
plan from time to time. Genco shall cooperate with ComEd, or any other entity
performing the restoration function, in integrating the Black Start Plan into a
system restoration plan and shall participate in training and restoration
drills. In the event that system restoration is necessary, Genco shall respond
to all directions from the entity performing the restoration.

4.      ANNUAL LOAD PLAN

        (a)     ANNUAL LOAD PLAN. On or before (i) the Effective Date, in the
case of the First Contract Year, and (ii) the October 1 immediately preceding
the commencement of a Contract Year, in the case of each Contract Year after the
First Contract Year, ComEd shall deliver to Genco a written load plan (the
"ANNUAL LOAD PLAN") for such Contract Year, which shall set forth (i) the
maximum peak load expected in each week in each calendar month (or portion of a
calendar month) during such Contract Year, (ii) the expected requirements for
the Ancillary Services in each calendar month (or portion of a calendar month)
during such Contract Year and (iii) the average of maximum load day, average of
average load day and average of minimum load day data for each of the following
time periods in each calendar month (or portion of a calendar month) during such
Contract Year: the weekday peak(16 hours) period, the weekday off-peak (hours)
period and the weekend off-peak period. In the event that the Effective Date
shall occur after September 1 in a year and prior to the immediately following
January 1, then, in addition to an Annual Load Plan for the First Contract Year,
ComEd shall also deliver an Annual Load Plan for the Second Contract Year.

        (b)     GENCO RESPONSE. Following the receipt of an Annual Load Plan,
Genco may request that representatives of ComEd meet with its representatives
for purposes of discussing and reviewing the Annual Load Plan. In any event,
Genco shall, within thirty days of its receipt of an Annual Load Plan, identify
(i) the generating facilities ("GENERATING FACILITIES") that it desires that
ComEd designate as "network resources" for the Contract Year in question and
(ii) the generating facilities from which it will provide Ancillary Services. In
connection with the development of the Annual Load Plan for a Contract Year,
ComEd and Genco may discuss and

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agree upon specific terms and values associated with the implementation of
voluntary curtailment actions for the Contract Year in question. Such terms and
values may be adjusted by agreement of the Parties as appropriate during the
applicable Contract Year.

        (c)     SHORTFALLS. The Parties acknowledge that an Annual Load Plan is
designed to provide a reasonable basis on which to estimate ComEd's service
requirements to its customers for the Contract Year in question, but shall not
relieve Genco from its obligations under Section 3(b)(i) or (ii) to provide
ComEd's actual full or partial requirements, as the case may be, needed to meet
its service obligations to its retail and retained wholesale customers during
such Contract Year.

        (d)     UPDATES. ComEd shall provide monthly updates to Genco regarding
an Annual Load Plan to reflect any changes in expectations or circumstances.

5.      TRANSMISSION

        (a)     NETWORK RESOURCE DESIGNATION. ComEd shall designate as "network
resources" for a Contract Year any Generating Facilities identified by Genco
under Section 4(b) in respect to an Annual Load Plan. Notwithstanding any such
designation, such Generating Facilities may or may not be used by Genco, at
Genco's sole discretion, to meet ComEd's requirements for Electric Energy,
PROVIDED, HOWEVER, any sales of electric energy made by Genco to third parties
from any such Generating Facility designated as a "network resource" shall be
interruptible prior to sales of Electric Energy to ComEd under this Agreement.

        (b)     GENCO RESPONSIBILITY. Except as otherwise provided in Section
5(a), Genco shall be responsible for arranging any transmission service required
in order to deliver Electric Energy to ComEd under this Agreement, including
transmission service on systems not owned by ComEd. With respect to Generating
Facilities designated as "network resources," Genco shall be responsible for
arranging all necessary transmission service on transmission systems not owned
by ComEd in order to ensure that such Generating Facilities qualify as "network
resources" under ComEd's Open Access Transmission Tariff and any other
Requirement of Law applicable thereto.

        (c)     INTERFACE OF CONTROL AREA WITH GENCO. The Parties acknowledge
that certain operating and interface protocols and practices may need to be
developed between ComEd, as the control area operator, and Genco, including with
respect to, among other items, load forecasting, resource commitments, the
sources and availability of Ancillary Services and the ability, pursuant to
terms and conditions agreed to by the Parties, to obtain load reductions through
voluntary customer load curtailments. The Parties agree to establish jointly
from time to time in accordance with Prudent Utility Practices such operating
and interface protocol as may be necessary with respect to control area
operations and dispatch.

6.      DELIVERY; TITLE; METERING

        (a)     DELIVERY AND TITLE. Electric Energy shall be delivered by Genco
to ComEd, and title to such Electric Energy shall pass to ComEd, at its point of
interconnection with ComEd's transmission system.

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        (b)     MEASUREMENT. The amount of Electric Energy delivered by Genco to
ComEd under this Agreement during a given hour shall be determined by:

                (i)     taking the total for such hour of Electric Energy
        delivered by or on behalf of Genco from (x) outside the ComEd control
        area to an interconnection with the ComEd transmission system, as
        established by scheduled deliveries of such Electric Energy at such
        interconnection, for delivery into the ComEd control area, and (y)
        generating facilities in the ComEd control area, as established by
        readings from meters at such facilities; and

                (ii)    subtracting therefrom the total for such hour of
        scheduled deliveries of Electric Energy (grossed-up for line losses, if
        not already so grossed-up) delivered by or on behalf of Genco to (x) an
        interconnection between the ComEd transmission system and the
        transmission system of a third party, for delivery outside of the ComEd
        control area and (y) non-ComEd customers in ComEd's control area.

7.      BILLING

        (a)     BILLING.

                (i)     Within fifteen days after the end of each calendar
        month, Genco shall render an invoice to ComEd setting forth (a) all
        amounts due to Genco pursuant to this Agreement for the immediately
        preceding calendar month and all amounts remaining unpaid from previous
        calendar months and (b) the amount, if any, by which the amount set
        forth in clause (a) has been reduced as a result of any offset
        calculated in accordance with Section 7(c). Failure by Genco to render
        an invoice within such fifteen-day period shall not preclude Genco from
        subsequently rendering an invoice for the relevant calendar month.

                (ii)    ComEd shall pay any balance set forth in any such
        invoice by wire transfer of immediately available funds to the account
        specified in the invoice within fifteen days after receipt of the
        invoice, subject to the provisions of Section 7(b).

        (b)     DISPUTES. Within ten days after receiving an invoice pursuant to
Section 7(a), ComEd may, by written notice to Genco, dispute, in good faith, any
amount set forth in such invoice, PROVIDED that ComEd shall pay all undisputed
amounts pursuant to Section 7(a)(ii). If the dispute relates to any charge
payable by ComEd to Genco hereunder, and such dispute is not resolved by the
Parties within five days of the receipt of written notice by Genco, then the
dispute shall be resolved as provided in Section 16. If the dispute (or any
portion thereof) is resolved against ComEd, ComEd shall within three days of the
date of such resolution pay to Genco amounts corresponding to such portion of
the dispute which has been resolved against ComEd plus interest on such amounts
from the date payable pursuant to Section 7(a) through the date paid at the
Default Rate.

        (c)     OFFSETTING CHARGES. Each Party shall have the right to set-off
against amounts payable to the other Party (i) any amounts paid by such Party
for, or on behalf of, such other Party, (ii) any amounts due such Party from
such other Party, whether under this Agreement or otherwise, and (iii) any
overpayment by such Party to such other Party which is either undisputed

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by such other Party or which has been determined to constitute an overpayment in
accordance with Section 6(b).

        (d)     RECORDS; INSPECTION

                (i)     Each Party shall keep and maintain all records as may be
        necessary or useful in performing or verifying any calculations or
        charges made pursuant to this Agreement, or in verifying such Party's
        performance hereunder. All such records shall be retained by each Party
        for at least three calendar years following the calendar year in which
        such records were created. Each Party shall make such records available
        to the other Party for inspection and copying at the other Party's
        expense, upon reasonable notice during such Party's regular business
        hours. Each Party and its agents, including auditors, shall have the
        right, upon thirty days written notice prior to the end of an applicable
        three calendar year period to request copies of such records. Each Party
        shall provide such copies, at the other Party's expense, within thirty
        days of receipt of such notice or shall make such records available to
        the other Party and its agents, including auditors, in accordance with
        the foregoing provisions of this Section.

                (ii)    Each Party (and its representative(s)) shall have the
        right, at its sole expense, upon reasonable notice and during normal
        working hours, to examine the records of the other Party to the extent
        reasonably necessary to verify the accuracy of any statement, charge
        or computation relating to charges under this Agreement.

8.      INFORMATION; OUTAGE SCHEDULING

        (a)     MAIN. For generating capacity that is located within the MAIN
region and is part of the resources proposed to be used to meet an Annual Load
Plan, Genco shall, to the extent it has the right to do so, require the
operator(s) of such capacity to comply with all MAIN Guides and policies.

        (b)     INFORMATION. Genco shall, upon reasonable request, assist ComEd
in providing information to MAIN, NERC, any ISO or any Governmental Authority as
may be required, or considered by ComEd to be necessary.

        (c)     OUTAGE SCHEDULING. Genco shall undertake to schedule and/or
adjust outages in the sources of generating capacity for a Contract Year in
accordance with Prudent Utility Practice and so as to minimize outages during
the Summer Months.

9.      COMPENSATION

        ComEd shall pay to Genco, in respect of each calendar month during the
Term, the following amounts:

        (a)     ENERGY CHARGE THROUGH DECEMBER 31, 2002. For Electric Energy
sold to ComEd under this Agreement from the Effective Date through December
31, 2002:

                (i)     during Peak Periods in such month, an amount equal to
        the product of the number of megawatt-hours delivered to ComEd during
        such Peak Period (determined as provided in Section 6(b)),
        multiplied by the price per megawatt hour shown for such Peak Period
        on Appendix A and

                (ii)    during Off-Peak Periods in such month, an amount
        equal to the product of the number of megawatt-hours delivered to
        ComEd during such Off-Peak Period (determined as provided in Section
        6(b)), multiplied by the price per megawatt hour shown for such
        Off-Peak Period on Appendix A.

        (b)     ENERGY CHARGE FROM JANUARY 1, 2003 THROUGH DECEMBER 31, 2004.
For Electric Energy sold to ComEd under this Agreement from January 1, 2003
through December 31, 2004:

                (i)     during Peak Periods in such month, an amount equal to
        the product of the number of megawatt-hours delivered to ComEd during
        such Peak Period (determined as provided in Section 6(b)),
        multiplied by the price per megawatt hour shown for such Peak Period
        on Appendix B and

                (ii)    during Off-Peak Periods in such month, an amount
        equal to the product of the number of megawatt-hours delivered to
        ComEd during such Off-Peak Period (determined as provided in Section
        6(b)), multiplied by the price per megawatt hour shown for such
        Off-Peak Period on Appendix B.

        (c)     ENERGY CHARGE DURING PARTIAL REQUIREMENTS TERM. Prior to
December 31, 2004, the Parties shall meet and discuss the energy charge(s)
and any other charges (including charges for any "competitive transitional
charges" (as defined in Illinois Public Act 90-561)) to be applied during the
Partial Requirements Term. Such prices shall be reflective of market prices
for electirc energy delivered in the geographic region served by ComEd in the
quantities contemplated under this Agreement for the Partial Requirements
Term. Such market prices (E.G., market indices or power exchange prices) that
may exist at the time. ComEd may terminate this Agreement as of December 31,
2004 in the event that the Parties are unable to arrive at an agreement by
July 1, 2004 (or such later date as the Parties may determine) as to the
pricing to be applied to Electric Energy to be delivered during the Partial
Requirements Term.

        (d)     ANCILLARY SERVICES. For any Ancillary Services sold to ComEd
for its own use under this Agreement, it is agreed that the price for such
Ancillary Services is the same price as ComEd is entitled to collect for such
Ancillary Serive under the provisions of its Open Access Transmission Tariff
as filed with FERC or, in the case of the Ancillary Service described in
Section 3(c)(vi), ComEd's Rate RCDS, and that the energy charge calculated
under Section 9(a) or (b), as the case may be, includes such prices. For any
Ancillary Services sold to ComEd for the use of a third party transmission
customer of ComEd, Genco shall be entitled to receive the amount which ComEd
receives from such third party in respect of such Anicllary Service under the
provisions of ComEd's Open Access Transmission Tariff or, in the case of the
Ancillary Service described in Section 3(c)(vi), ComEd's Rate RCDS.

        (e)     COMPETITIVE TRANSITION CHARGE. The prices set forth in
Section 9(a) and (b) have been calculated inclusive of an amount for the
"competitive transition charge" (as defined in Illinois Public Act 90-561).

                                       9
<PAGE>

10.     LIMITATION OF LIABILITY

        In no event or under any circumstances shall either Party (including
such Party's affiliates and such Party's and such affiliates' respective
directors, officers, employees and agents) be liable to the other Party
(including such Party's affiliates and such Party's and such affiliate's
respective directors, officers, employees and agents) for any special,
incidental, exemplary, indirect, punitive or consequential damages or damages in
the nature of lost profits, whether such loss is based on contract, warranty or
tort (including intentional acts, errors or omissions, negligence, indemnity,
strict liability or otherwise). A Party's liability under this Agreement shall
be limited to direct, actual damages, and all other damages at law or in equity
are waived.

11.     ASSIGNMENT

        Neither Party may assign its rights or obligations under this Agreement
without the prior written consent of the other Party, which shall not be
unreasonably withheld or delayed. Notwithstanding the foregoing, a Party shall
have the right to assign its rights and obligations hereunder without the
consent of the other Party to any affiliate of such Party.

12.     DEFAULT; TERMINATION AND REMEDIES

        (a)     GENCO'S DEFAULT. The occurrence and continuation of any of the
following events or circumstances at any time during the Term, except to the
extent caused by, or resulting from, an act or omission of ComEd in breach of
this Agreement, shall constitute an event of default by Genco ("GENCO EVENT OF
DEFAULT"):

                (i)     Genco fails to pay any sum due from it hereunder on the
        due date thereof and such failure is not remedied within 10 Business
        Days after receipt of written notice thereof from ComEd;

                (ii)    Genco's Bankruptcy; or

                (iii)   Genco fails in any material respect to perform or comply
        with any other obligation in this Agreement on its part to be observed
        or performed which failure materially and adversely affects ComEd, and
        if reasonably capable of remedy, is not remedied within 60 days after
        ComEd has given written notice to Genco of such failure and requiring
        its remedy; PROVIDED, HOWEVER, that if such remedy cannot reasonably be
        cured within such period of 10 days, such failure shall not constitute a
        Genco Event of Default if Genco has promptly commenced and is diligently
        proceeding to cure such default.

        (b)     COMED DEFAULT. The occurrence and continuation of any of the
following events or circumstances at any time during the Term, except to the
extent caused by, or resulting from, an act or omission of Genco in breach of
this Agreement, shall constitute an event of default by ComEd ("COMED EVENT OF
DEFAULT"):

                                       10
<PAGE>

                (i)     ComEd fails to pay any amount due from it pursuant to
        Section 9 hereof on the due date thereof and such failure is not
        remedied within 10 Business Days after receipt of written notice thereof
        from Genco;

                (ii)    ComEd's Bankruptcy; or

                (iii)   ComEd fails in any material respect to perform or comply
        with any other obligation in this Agreement on its part to be observed
        or performed which failure materially and adversely affects Genco, and
        if reasonably capable of remedy, is not remedied within 60 days after
        Genco has given written notice to ComEd of such failure and requiring
        its remedy; PROVIDED, HOWEVER, that if such remedy cannot reasonably be
        cured within such period of 60 days, such failure shall not constitute a
        ComEd Event of Default if ComEd has promptly commenced and is diligently
        proceeding to cure such default.

        (c)     REMEDIES AND REMEDIES CUMULATIVE. Upon the occurrence and
during the continuation of a Genco Event of Default, ComEd may at its discretion
(i) terminate this Agreement upon 30 days prior written notice to Genco and (ii)
exercise any other rights and remedies available to it at law or in equity. Upon
the occurrence and during the continuation of a ComEd Event of Default, Genco
may seek money damages from ComEd but may not terminate this Agreement.

13.     REPRESENTATIONS AND WARRANTIES

        (a)     REPRESENTATIONS AND WARRANTIES OF GENCO. Genco hereby makes the
following representations and warranties to ComEd:

                (i)     Genco is a limited liability company duly organized and
        validly existing under the laws of the State of Delaware and has the
        legal power and authority to own its properties, to carry on its
        business as now being conducted and to enter into this Agreement and
        carry out transactions contemplated hereby and perform and carry out all
        covenants and obligations on its part to be performed under and pursuant
        to this Agreement.

                (ii)    The execution, delivery and performance by Genco of this
        Agreement have been duly authorized by all necessary corporate action.

                (iii)   The execution and delivery of this Agreement, the
        consummation of the transactions contemplated hereby and the fulfillment
        of and compliance with the provisions of this Agreement, do not and will
        not conflict with or constitute a breach of or a default under, any of
        the terms, conditions or provisions of any legal requirements, or any
        organizational documents, agreement, deed of trust, mortgage, loan
        agreement, other evidence of indebtedness or any other agreement or
        instrument to which Genco is a party or by which it or any of its
        property is bound, or result in a breach of or a default under any of
        the foregoing.

                (iv)    This Agreement constitutes the legal, valid and binding
        obligation of Genco enforceable in accordance with its terms, except as
        such enforceability may be

                                       11
<PAGE>

        limited by bankruptcy, insolvency, reorganization or similar laws
        relating to or affecting the enforcement of creditors' rights generally
        or by general equitable principles, regardless of whether such
        enforceability is considered in a proceeding in equity or at law.

                (v)     There is no pending, or to the knowledge of Genco,
        threatened action or proceeding at or proceeding affecting Genco before
        any Governmental Authority, which purports to affect the legality,
        validity or enforceability of this Agreement.

                (vi)    Genco has all necessary approvals from Governmental
        Authorities for it to perform its obligations under this Agreement.

        (b)     REPRESENTATIONS AND WARRANTIES OF COMED. ComEd hereby makes the
following representations and warranties to Genco:

                (i)     ComEd is a corporation duly organized, validly
        existing and in good standings under the law of the State of
        Illinois and has the legal power and authority to own its
        properties, to carry on its business as now being conducted and to
        enter into this Agreement and carry out the transactions
        contemplated hereby and perform and carry out all covenants and
        obligations on its part to be performed pursuant to this Agreement.

                (ii)    The execution, delivery and performance by ComEd of this
        Agreement have been duly authorized by all necessary corporate action.

                (iii)   The execution and delivery of this Agreement, the
        consummation of the transactions contemplated hereby and the fulfillment
        of and compliance with the provisions of this Agreement do not and will
        not conflict with or constitute a breach of or a default under, any of
        the terms, conditions or provisions of any legal requirements, or its
        articles of incorporation or bylaws, or any deed of trust, mortgage,
        loan agreement, other evidence of indebtedness or any other agreement or
        instrument to which ComEd is a party or by which it or any of its
        property is bound, or result in a breach of or a default under any of
        the foregoing.

                (iv)    This Agreement constitutes the legal, valid and binding
        obligation of ComEd enforceable in accordance with its terms, except as
        such enforceability may be limited by bankruptcy, insolvency,
        reorganization or similar laws relating to or affecting the enforcement
        of creditors' rights generally, or by general equitable principles,
        regardless of whether such enforceability is considered in a proceeding
        in equity or at law.

                (v)     There is no pending, or to the knowledge of ComEd,
        threatened action or proceeding affecting ComEd before any Governmental
        Authority, which purports to affect the legality, validity or
        enforceability of this Agreement.

                (vi)    ComEd has all necessary approvals from Governmental
        Authorities for it to perform its obligations under this Agreement.

                                       12
<PAGE>

14.     INDEMNIFICATION

        Each Party shall indemnify and hold harmless the other Party, and its
officers, directors, agents and employees from and against any and all claims,
demands, actions, losses, liabilities, expenses (including reasonable legal fees
and expenses), suits and proceedings of any nature whatsoever for personal
injury, death or property damage to each other's property or facilities or
personal injury, death or property damage to third parties caused by the
negligence or willful misconduct of the indemnifying Party that arise out of or
are in any manner connected with the performance of this Agreement, except to
the extent such injury or damage is attributable to the negligence or willful
misconduct of, or breach of this Agreement by, the Party seeking indemnification
hereunder. Title, and all risk relating to, all Electric Energy purchased by
ComEd under this Agreement shall pass to ComEd at the Applicable Point of
Delivery. ComEd shall indemnify Genco for liability from Electric Energy once
sold and delivered at the applicable point pf delivery set forth in Section
6(a); and Genco shall indemnify ComEd for liability from Electric Energy prior
to its delivery at delivery at such point of delivery.

15.     NOTICES

        Unless otherwise provided in this Agreement, any notice, consent or
other communication required to be made under this Agreement shall be in writing
and shall be sent by facsimile transmission, delivered or sent to the address
set forth below or such other address as the receiving Party may from time to
time designate by written notice:

        If to ComEd, to:

                Commonwealth Edison Company
                10 South Dearborn Street, 37th Floor
                Chicago, Illinois 60603
                Attention: President, Exelon Energy Delivery
                Facsimile No.: (312) 394-4488
                Confirmation No.: (312) 394-3702

        with a copy to:

                Commonwealth Edison Company
                One Financial Place
                440 South LaSalle Street
                Suite 3300
                Chicago, Illinois 60605
                Attention: General Counsel
                Facsimile: (312) 394-5733
                Confirmation: (312) 394-3517

                                       13
<PAGE>

        If to Genco, to:

                Exelon Generation Company, LLC
                300 Exelon Way
                Kennett Square, PA 19348
                Attention: Chief Executive Officer and President
                Facsimile: (610) 765-5418
                Confirmation: (610) 765-5801

        with a copy to:

                Exelon Generation Company, LLC
                300 Exelon Way
                Kennett Square, PA 19348
                Attention: General Counsel
                Facsimile: (610) 765-5805
                Confirmation: (610) 765-5808

All notices shall be effective when received.

16.     DISAGREEMENTS

        (a)     ADMINISTRATIVE COMMITTEE PROCEDURE. Except to the extent
otherwise provided in Section 7(b), if any disagreement arises on matters
concerning this Agreement, the disagreement shall be referred to one
representative of each Party, who shall attempt to timely resolve the
disagreement. If such representatives can resolve the disagreement, such
resolution shall be reported in writing to and shall be binding upon the
Parties. If such representatives cannot resolve the disagreement, such
resolution shall be reported in writing to and shall be binding upon the
Parties. If such representatives cannot resolve the disagreement within a
reasonable time, or a Party fails to appoint a representative within 10 days of
written notice of the existence of a disagreement, then the matter shall proceed
to arbitration as provided in Section 16(b).

        (b)     ARBITRATION. If pursuant to Section 16(a), the Parties are
unable to resolve a disagreement arising on a matter pertaining to this
Agreement, such disagreement shall be settled by arbitration in Chicago,
Illinois. The arbitration shall be governed by the United States Arbitration Act
(9 U.S.C. ss. 1 ET SEQ.), and any award issued pursuant to such arbitration may
be enforced in any court of competent jurisdiction. This agreement to arbitrate
and any other agreement or consent to arbitrate entered into in accordance
herewith will be specifically enforceable under the prevailing arbitration law
of any court having jurisdiction. Notice of demand for arbitration must be filed
in writing with the other Party to this Agreement. Arbitration shall be
conducted as follows:

                (i)     Either Party may give the other Party written notice in
        sufficient detail of the disagreement and the specific provision of this
        Agreement under which the disagreement arose. The demand for arbitration
        must be made within a reasonable time after the disagreement has arisen.
        In no event may the demand for arbitration be made if the institution of
        legal or equitable proceedings based on such disagreement is barred by

                                       14
<PAGE>

        the applicable statute of limitations. Any arbitration related to this
        Agreement may be consolidated with any other arbitration proceedings
        related to this Agreement.

                (ii)    The Parties shall attempt to agree on a person with
        special knowledge and expertise with respect to the matter at issue to
        serve as arbitrator. If the Parties cannot agree on an arbitrator within
        ten days, each shall then appoint one person to serve as an arbitrator
        and the two thus appointed shall select a third arbitrator with such
        special knowledge and expertise to serve as Chairman of the panel of
        arbitrators; and such three arbitrators shall determine all matters by
        majority vote; PROVIDED, HOWEVER, if the two arbitrators appointed by
        the Parties are unable to agree upon the appointment of the third
        arbitrator within five days after their appointment, both shall give
        written notice of such failure to agree to the Parties, and, if the
        Parties fail to agree upon the selection of such third arbitrator within
        five days thereafter, then either of the Parties upon written notice to
        the other may require appointment from, and pursuant to the rules of,
        the Chicago office of the American Arbitration Association for
        commercial arbitration. Prior to appointment, each arbitrator shall
        agree to conduct such arbitration in accordance with the terms of this
        Agreement.

                (iii)   The Parties shall have sixty days from the appointment
        of the arbitrator(s) to perform discovery and present evidence and
        argument to the arbitrator(s). During that period, the arbitrator(s)
        shall be available to receive and consider all such evidence as is
        relevant and, within reasonable limits due to the restricted time
        period, to hear as much argument as is feasible, giving a fair
        allocation of time to each Party to the arbitration. The arbitrator(s)
        shall use all reasonable means to expedite discovery and to sanction
        noncompliance with reasonable discovery requests or any discovery order.
        The arbitrator(s) shall not consider any evidence or argument not
        presented during such period and shall not extend such period except by
        the written consent of both Parties. At the conclusion of such period,
        the arbitrator(s) shall have forty-five calendar days to reach a
        determination. To the extent not in conflict with the procedures set
        forth herein, which shall govern, such arbitration shall be held in
        accordance with the prevailing rules of the Chicago office of the
        American Arbitration Association for commercial arbitration.

                (iv)    The arbitrator(s) shall have the right only to interpret
        and apply the terms and conditions of this Agreement and to order any
        remedy allowed by this Agreement, but may not change any term or
        condition of this Agreement, deprive either Party of any right or remedy
        expressly provided hereunder, or provide any right or remedy that has
        been expressly excluded hereunder,

                (v)     The arbitrator(s) shall give a written decision, to the
        Parties stating their findings of fact and conclusions of law, and shall
        furnish to each Party a copy thereof signed by him (them) within five
        calendar days from the date of their determination. The arbitrator's(s')
        decision shall be final and binding upon the Parties.

                (vi)    Each Party shall pay the cost of the arbitrator(s) with
        respect to those issues as to which they do not prevail, as determined
        by the arbitrator(s).

                                       15
<PAGE>

        (c)     OBLIGATIONS TO PAY CHARGES AND PERFORM. If a disagreement should
arise on any matter which is not resolved as provided in Section 16(a), then,
pending the resolution of the disagreement by arbitration as provided in Section
16(b), Genco shall continue to provide Electric Energy in a manner consistent
with the applicable provisions of this Agreement and pay all charges and perform
all other obligations required in accordance with the applicable provisions of
this Agreement.

        (d)     PRELIMINARY INJUNCTIVE RELIEF. Nothing in this Section 16 shall
preclude, or be construed to preclude, the resort by either Party to a court of
competent jurisdiction solely for the purposes of securing a temporary or
preliminary injunction to preserve the status quo or avoid irreparable harm
pending arbitration pursuant to this Section 16.

        (e)     SETTLEMENT DISCUSSIONS. The Parties agree that no statements of
position or offers of settlement made in the course of the dispute process
described in this Section 16 will be offered into evidence for any purpose in
any litigation or arbitration between the Parties, nor will any such statements
or offers of settlement be used in any manner against either Party in any such
litigation or arbitration. Further, no such statements or offers of settlement
shall constitute an admission or waiver of rights by either Party in connection
with any such litigation or arbitration. At the request of either Party, any
such statements and offers of settlement, and all copies thereof, shall be
promptly returned to the Party providing the same.

17.     GOVERNING LAW

        Except as provided in Section 16, this Agreement shall be construed in
accordance with, and governed by, the laws of the state of Illinois without
regard to its conflicts of laws provisions.

18.     NO THIRD PARTY BENEFICIARIES

        This Agreement is intended to be solely for the benefit of the Parties
and their successors and permitted assigns and is not intended to and shall not
confer any rights or benefits on any third party not a signatory hereto. The
Parties' successors and permitted transferees shall be bound by the provisions
of this Agreement.

19.     PARTIAL INVALIDITY

        Wherever possible, each provision hereof shall be interpreted in such
manner as to be effective and valid under applicable law, but in case any one or
more of the provisions contained herein shall, for any reason, be held to be
invalid, illegal or unenforceable in any respect, such provision shall be
ineffective to the extent, but only to the extent, of such invalidity, legality
or unenforceability without invalidating the remainder of such invalid, illegal
or unenforceable provision or provisions or any other provisions hereof, unless
such a construction would be unreasonable. In the event that such a construction
would be unreasonable or would deprive a Party of a material benefit under this
Agreement, the Parties shall seek to amend this Agreement to remove the invalid
provision and otherwise provide the benefit unless prohibited by any Requirement
of Law.

                                       16
<PAGE>

20.     WAIVERS

        The failure of either Party hereto to enforce at any time any provision
of this Agreement shall not be construed to be a waiver of such provision, nor
in any way to affect the validity of this Agreement or any part hereof or the
right of a Party thereafter to enforce each and every such provision. A waiver
under this Agreement must be in writing and state that it is a waiver. No waiver
of any breach of this Agreement shall be held to constitute a waiver or
subsequent breach.

21.     WAIVER OF JURY TRIAL

        THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR
ACTIONS OF THE PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH OF THE
PARTIES TO ENTER INTO THIS AGREEMENT.

22.     ENTIRE AGREEMENT AND AMENDMENTS

        This Agreement supersedes all previous representations, understandings,
negotiations and agreements either written or oral between the Parties or their
representatives with respect to the supply and delivery of Electric Energy and
constitutes the entire agreement of the Parties with respect thereto.

        IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date set forth at the beginning of this Agreement.

                                 COMMONWEALTH EDISON COMPANY

                                 By: /s/ Robert E. Berdelle
                                     -------------------------------------
                                     Name:  Robert E. Berdelle
                                     Title: Vice President

                                 COMED GENERATION COMPANY LLC

                                 By: /s/ Robert E. Berdelle
                                     -------------------------------------
                                     Name:  Robert E. Berdelle
                                     Title: Vice President

                                 EXELON GENERATION COMPANY, LLC

                                 By: /s/ Robert E. Berdelle
                                     -------------------------------------
                                     Name:  Robert E. Berdelle
                                     Title: Vice President

                                       17<Page>

                                                                    EXHIBIT 10.1

                                  STAPLES, INC.

              AMENDED AND RESTATED 1990 DIRECTOR STOCK OPTION PLAN

1   PURPOSE.

    The purpose of this Amended and Restated 1990 Director Stock Option Plan
(the "Plan") of Staples, Inc. (the "Company") is to encourage ownership in the
Company by the Company's outside directors, whose continued services the Company
considers essential to its future progress, and to provide these individuals
with a further incentive to remain as directors of the Company.

2.  ADMINISTRATION.

    The Board of Directors shall supervise and administer the Plan. Grants of
stock options ("Options") and awards of performance accelerated restricted stock
("PARS") under the Plan and the amount and nature of the Options and PARS to be
granted shall be made by the Board of Directors in accordance with Section 4.
All questions concerning interpretation of the Plan or any Options or PARS
issued under it shall be resolved by the Board of Directors and such resolution
shall be final and binding upon all persons having an interest in the Plan.

3.  PARTICIPATION IN THE PLAN.

    Directors of the Company who are not employees of the Company or any
subsidiary of the Company ("outside directors") shall be eligible to receive
Options and PARS under the Plan.

4.  TERMS, CONDITIONS AND FORM OF OPTIONS AND PARS.

    All Options and PARS granted under the Plan shall be evidenced by a written
agreement in such form as the Board of Directors shall from time to time
approve, which agreements shall comply with and be subject to the following
terms and conditions.

       (a)    Stock Subject to Plan. Options and PARS may be granted under the
    Plan with respect to Staples common stock ("Staples Common Stock"). Subject
    to adjustment as provided in the Plan, the maximum number of shares of
    Staples Common Stock which may be issued under the Plan is 3,350,000 shares.
    All Options or PARS granted under the Plan, as provided below, shall be
    granted with respect to Staples Common Stock, If an Option shall expire or
    terminate for any reason without having been exercised in full, the
    unpurchased shares subject to such Option shall again be available for
    subsequent Option grants or PARS under the Plan; and if the shares subject
    to a PARS shall be repurchased by the Company, the repurchased shares shall
    again be available for subsequent Option grants or PARS under the Plan.

       (b)    Grants of Options and PARS.

            (i) INITIAL OPTION GRANT. An Option to purchase 15,000 shares of
        Staples Common Stock shall be granted automatically to outside directors
        who are initially elected to the Board of Directors subsequent to the
        approval of the Plan by the Company's stockholders at the close of
        business on the date of such director's initial election to the Board of
        Directors.

<Page>

            (ii) ANNUAL OPTION GRANTS.

On the date of the first regularly scheduled Board of Directors meeting
following the end of each fiscal year of the Company, commencing with the fiscal
year ending January 30, 1999, an Option shall be granted automatically to each
outside director to purchase a number of shares of Staples Common Stock equal to
3,000 multiplied by the number of regularly scheduled meeting days of the Board
of Directors attended by such director in the previous 12 months (up to a
maximum of 15,000 shares).

            (iii) ANNUAL AWARDS OF PARS. The Directors shall set the performance
        targets for PARS awarded to executive officers and directors of the
        Company at the earliest reasonable date, but no later than the last day
        of fiscal year in which the affected PARS are to be awarded. On the date
        that the PARS for any year are awarded to executive officers, (x) the
        Company shall grant to each outside director 400 PARS for each regularly
        scheduled meeting day of the Board of Directors attended by such
        director in the previous fiscal year (up to a maximum of 2,000 PARS) and
        (y) in addition, the Company shall grant to the Lead Director and the
        Chairman of each of the Audit, Compensation, and Governance Committees
        of the Board of Directors 200 PARS for each regularly scheduled meeting
        day of the Board of Directors attended by such director in the previous
        fiscal year (up to a maximum of 1,000 PARS).

       (c)    Terms of Options.

            (i) OPTION EXERCISE PRICE. The option exercise price per share for
        each Option granted under the Plan shall be equal to the last reported
        sale price per share of Staples Common Stock on the Nasdaq National
        Market on the date of grant (or, if no such price is reported on such
        date, such price as is reported on the nearest preceding date).

            (ii) NATURE OF OPTIONS. All Options granted under the Plan shall be
        nonstatutory options not entitled to special tax treatment under Section
        422 of the Internal Revenue Code of 1986, as amended (the "Code").

            (iii) VESTING. Except as otherwise provided in the Plan, (A) each
        Option to purchase shares of Staples Common Stock shall become
        exercisable, on a cumulative basis, in four equal annual installments on
        each of the first, second, third and fourth anniversary dates of its
        date of grant, provided the optionee continues to serve as a director of
        the Company on such dates. (Notwithstanding the foregoing, each
        outstanding Option shall immediately become exercisable in full in the
        event (A) a Change in Control (as defined in Section 8) of the Company
        occurs or (B) the optionee ceases to serve as a director of the Company
        due to his or her death, disability (within the meaning of Section
        22(e)(3) of the Code or any successor provision) or retires pursuant to
        a retirement policy adopted by the Company.

            (iv) OPTION EXERCISE PROCEDURE. An Option may be exercised only by
        written notice to the Company at its principal office accompanied by
        payment in cash of the exercise price with respect to the Option being
        exercised or by the tender (actual or constructive) of shares of Staples
        Common Stock owned by the director having a value as of the date of
        exercise equal to the exercise price. In the case of a constructive
        tender of shares of Staples Common Stock, the optionee and the Company
        may enter into an agreement to defer until an agreed-upon date the
        issuance, transfer and delivery of shares of Staples Common Stock with a
        value equal to the difference between the fair market value of the
        Staples Common Stock on the date of exercise and the exercise price of
        the Option being exercised. The Board of Directors may impose such
        restrictions on the tender of shares as it deems appropriate.

            (v) TERMINATION. Each Option shall terminate, and may no longer be
        exercised, on the date six months after the optionee ceases to serve as
        a director of the Company; provided that, in the event (A) an optionee
        ceases to serve as a director due to his or her death or disability
        (within the meaning of Section 22(e)(3) of the Code or any successor
        provision), or (B) an optionee dies within six months after he or she
        ceases to serve as a director of the Company, then the

                                        2
<Page>

        exercisable portion of the 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 the Option is transferred by
        will, by the laws of descent and distribution, or by written notice
        pursuant to Section 4(c)(vii). Notwithstanding the foregoing, each
        Option shall terminate, and may no longer be exercised, on the date 10
        years after the date of grant.

            (vi) OPTIONS NONTRANSFERABLE. Except as otherwise provided by the
        Board of Directors, each Option granted under the Plan by its terms
        shall not be transferable by the optionee otherwise than by will or the
        laws of descent and distribution, and shall be exercised during the
        lifetime of the optionee only by the optionee or his or her legal
        representative. No Option or interest therein may be transferred,
        assigned, pledged or hypothecated by the optionee during his or her
        lifetime, whether by operation of law or otherwise, or be made subject
        to execution, attachment or similar process.

            (vii) OPTION EXERCISE BY REPRESENTATIVE FOLLOWING DEATH OF DIRECTOR.
        An optionee, by written notice to the Company, may designate one or more
        persons (and from time to time change such designation), including his
        or her legal representative, who, by reason of the optionee's death,
        shall acquire the right to exercise all or a portion of the Option. If
        the person or persons so designated wish to exercise any portion of the
        Option, they must do so within the term of the Option as provided
        herein. Any exercise by a representative shall be subject to the
        provisions of the Plan.

       (d)    Terms of PARS.

            (i) NATURE OF PARS. All PARS hereunder shall consist of the issuance
        by the Company of shares of Staples Common Stock or an agreement for the
        future delivery of shares of Staples Common Stock at an agreed-upon date
        ("PARS Deferred Units") and the purchase by the recipient thereof of
        such shares, subject to the terms, conditions and restrictions described
        in the document evidencing the PARS and in this Plan.

            (ii) EXECUTION OF PARS AGREEMENT. In the case of the actual issuance
        of Staples Common Stock, the Company shall, upon the date of the PARS
        grant, issue the shares of Staples Common Stock subject to the PARS by
        registering such shares in book entry form with the Company's transfer
        agent in the name of the recipient. No certificate(s) representing all
        or a part of such shares shall be issued until the conclusion of the
        vesting period described in paragraph (iv) below.

            (iii) PRICE. Except as otherwise determined by the Board of
        Directors, all PARS issued hereunder shall be issued without the payment
        of any cash purchase price by the recipients (in which case the "price
        per share originally paid" for purposes of clause (2) of paragraph (v)
        below shall be zero).

            (iv) VESTING. Except as otherwise provided in the Plan, the
        restrictions on transfer and the forfeiture provisions of each PARS
        shall lapse on the same basis as PARS that have been awarded to the
        Company's executive officers for the fiscal year in which the Award Date
        relating to such PARS occurs. If no PARS have been awarded to any
        executive officer of the Company during the six months preceding an
        Award Date, then the restrictions on transfer and the forfeiture
        provisions of all PARS granted pursuant to this Plan on such Award Date
        shall lapse on such terms as shall be determined by the Board of
        Directors. Notwithstanding the foregoing, the restrictions on transfer
        and the forfeiture provisions of all PARS granted under this Plan shall
        immediately lapse in the event (A) a Change in Control of the Company
        occurs, or (B) the recipient ceases to serve as a director of the
        Company due to his or her death, disability (within the meaning of
        Section 22(e)(3) of the Code or any successor provision) or retires
        pursuant to a retirement policy adopted by the Company.

                                        3
<Page>

            (v) RESTRICTIONS ON TRANSFER. In addition to such other terms,
        conditions and restrictions on PARS contained in the Plan or the
        applicable PARS Agreement, all PARS shall be subject to the following
        restrictions:

               (1)  No PARS shall be sold, assigned, transferred, pledged,
        hypothecated or otherwise disposed of until they become vested pursuant
        to paragraph (iv) above. The period during which such restrictions are
        applicable is referred to as the "Restricted Period."

               (2)  Except as set forth in the last sentence of paragraph (iv)
        above, if a recipient ceases to be a director of the Company within the
        Restricted Period for any reason, the Company shall have the right and
        option for a period of three months following the date of such cessation
        to buy for cash that number of PARS as to which the restrictions on
        transfer and the forfeiture provisions contained in the PARS have not
        then lapsed, at a price equal to the price per share originally paid by
        the recipient. If such cessation occurs within the last three months of
        the applicable Restricted Period, the restrictions and repurchase rights
        of the Company shall continue to apply until the expiration of the
        Company's three month option period.

               (3)  Notwithstanding subparagraphs (1) and (2) above, the Board
        of Directors may, in its discretion, either at the time that PARS are
        awarded or at any time thereafter, waive the Company's right to
        repurchase shares of Staples Common Stock or PARS Deferred Units upon
        the occurrence of any of the events described in this paragraph (v) or
        remove or modify any part or all of the restrictions. In addition, the
        Board of Directors may, in its discretion, impose upon the recipient of
        PARS at the time that such PARS are granted such other restrictions on
        any PARS as the Board of Directors may deem advisable.

            (vi) ADDITIONAL SHARES. Any shares received by a recipient of PARS
        as a stock dividend or any PARS Deferred Units received in respect of a
        stock dividend, or as a result of stock splits, combinations, exchanges
        of shares, reorganizations, mergers, consolidations or otherwise with
        respect to such PARS shall have the same status and shall bear the same
        restrictions, all on a proportionate basis, as the shares or PARS
        Deferred Units initially subject to such.

            (vii) TRANSFERS IN BREACH OF PARS. If any transfer of PARS is made
        or attempted contrary to the terms of the Plan and of such PARS, the
        Board of Directors shall have the right to purchase for the account of
        the Company those shares from the owner thereof or his or her transferee
        at any time before or after the transfer at the price paid for such
        shares by the person to whom they were awarded under the Plan. In
        addition to any other legal or equitable remedies which it may have, the
        Company may enforce its rights by specific performance to the extent
        permitted by law. The Company may refuse for any purpose to recognize as
        a shareholder of the Company any transferee who receives any shares
        contrary to the provisions of the Plan and the applicable PARS or any
        recipient of PARS who breaches his or her obligation to resell shares as
        required by the provisions of the Plan and the applicable PARS, and the
        Company may retain and/or recover all dividends on such shares which
        were paid or payable subsequent to the date on which the prohibited
        transfer or breach was made or attempted.

            (viii) ADDITIONAL PARS PROVISIONS. The Board of Directors may, in
        its sole discretion, include additional provisions in any PARS granted
        under the Plan.

                                        4
<Page>

5.  LIMITATION OF RIGHTS.

       (a)    NO RIGHT TO CONTINUE AS A DIRECTOR. Neither the Plan, nor the
    granting of an Option or PARS nor any other action taken pursuant to the
    Plan, shall constitute or be evidence of any agreement or understanding,
    express or implied, that the Company will retain the optionee or recipient
    of PARS as a director for any period of time.

       (b)    RIGHTS AS A STOCKHOLDER.

            (i) OPTIONS. An optionee shall have no rights as a stockholder with
        respect to the shares covered by his or her 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 6) for which the record date is prior to the date
        such certificate is issued.

            (ii) PARS. Subject to the limitations set forth in Section 4(d) and
        except as otherwise provided herein, a recipient of PARS, other than
        PARS Deferred Units, shall have all rights as a shareholder with respect
        to the shares subject to such PARS including, without limitation, any
        rights to receive dividends or non-cash distributions with respect to
        such shares and to vote such shares and act in respect of such shares at
        any meeting of shareholders. A recipient of PARS Deferred Units shall
        have no rights as a shareholder with respect to the Staples Common Stock
        until the date of issuance to him or her of a stock certificate
        therefor, but the agreement evidencing the PARS Deferred Units may
        include the crediting of additional PARS Deferred Units equal in value
        to the cash amount of dividends paid with respect to same number of
        shares of Staples Common Stock as the PARS Deferred Units.

6.  ADJUSTMENT PROVISIONS FOR RECAPITALIZATIONS AND RELATED TRANSACTIONS.

       (a)    If, through or as a result of any merger, consolidation, sale of
    all or substantially all of the assets of the Company, reorganization,
    recapitalization, reclassification, stock dividend, stock split, reverse
    stock split, or other similar transaction, (i) the outstanding shares of
    Staples Common Stock are increased or decreased or are exchanged for a
    different number or kind of shares or other securities of the Company, or
    (ii) additional shares or new or different shares or other securities of the
    Company or other non-cash assets are distributed with respect to Staples
    Common Stock or other securities, except as otherwise determined by the
    Board of Directors, an appropriate and proportionate adjustment shall be
    made in (x) the number and kind of shares of Staples Common Stock subject to
    Options or the number and kind of shares of Staples Common Stock or PARS
    Deferred Units subject to PARS to be granted to outside directors after such
    event pursuant to Section 4(b), (y) the number and kind of shares of Staples
    Common Stock subject to then outstanding Options or the number and kind of
    shares of Staples Common Stock or PARS Deferred Units subject to any then
    outstanding PARS under the Plan, and (z) the exercise price for each share
    of Staples Common Stock subject to any then outstanding Options or
    repurchase rights of the Company under the Plan, without changing the
    aggregate purchase price as to which such Options or repurchase rights of
    the Company remain exercisable. No fractional shares or PARS Deferred Units
    will be issued under the Plan on account of any such adjustments.

       (b)    All share numbers herein have been adjusted to reflect all stock
    splits through April 5, 2000.

7.  MERGERS, CONSOLIDATIONS, ASSET SALES, LIQUIDATIONS, ETC.

    Subject to the provisions of Section 4(c)(iii) and 4(d)(iv), in the event of
a merger or consolidation or sale of all or substantially all of the assets of
the Company in which outstanding shares of Staples 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 the Company, the Board of Directors
of the Company, or the board of directors of any corporation assuming the
obligations of the Company, shall take one or more of the following actions, as
to outstanding Options of Staples Common Stock: (i) provide that such Options
shall be

                                        5
<Page>

assumed, or equivalent Options shall be substituted, by the acquiring or
succeeding corporation (or an affiliate thereof); (ii) upon written notice to
the optionees, provide that all unexercised Options shall (A) immediately become
exercisable in full and (B) terminate immediately prior to the consummation of
such transaction unless exercised by the optionee within a specified period
following the date of such notice; or (iii) in the event of a merger under the
terms of which holders of Staples Common Stock of the Company will receive upon
consummation thereof a cash payment for each share surrendered in the merger
(the "Merger Price"), make or provide for a cash payment to such optionees equal
to the difference between (A) the Merger Price times the number of shares of
Staples Common Stock subject to such outstanding Options (to the extent then
exercisable) with exercise prices not in excess of the Merger Price and (B) the
aggregate exercise price of all such Options, in exchange for the termination of
such Options.

8.  CHANGE IN CONTROL.

    For purposes of the Plan, a "Change in Control" shall be deemed to have
occurred if (i) any "person", as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (other
than the Company, any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or any corporation owned directly or
indirectly by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company), is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing 30% or more of the
combined voting power of the Company's then outstanding securities (other than
pursuant to a merger or consolidation described in clause (A) or (B) of
subsection (iii) below); (ii) during any period of two consecutive years ending
during the term of the Plan (not including any period prior to the adoption of
the Plan), individuals who at the beginning of such period constitute the Board
of Directors of the Company, and any new director (other than a director
designated by a person who has entered into an agreement with the Company to
effect any transaction described in clause (i), (iii) or (iv) of this Section 8)
whose election by the Board of Directors or nomination for election by the
Company's stockholders was approved by a vote of at least two-thirds of the
directors then still in office who were either directors at the beginning of the
period or whose election or nomination for election was previously so approved
(collectively, the "Disinterested Directors"), cease for any reason to
constitute a majority of the Board of Directors; (iii) the closing of a merger
or consolidation of the Company or any subsidiary of the Company with any other
corporation, other than (A) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than 50% of the combined
voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation or (B) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no "person" (as defined above) acquires more than
30% of the combined voting power of the Company's then outstanding securities;
or (iv) a complete liquidation of the Company or a sale by the Company of all or
substantially all of the Company's assets.

9.  MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS AND PARS.

    The Board of Directors shall have the power to modify or amend outstanding
Options and PARS; provided, however, that no modification or amendment may (i)
have the effect of altering or impairing any rights or obligations of any Option
or PARS previously granted without the consent of the optionee or holder
thereof, as the case may be, (ii) modify the number of shares of Staples Common
Stock subject to the Option or number of shares of Staples Common Stock or PARS
Deferred Units subject to the PARS (except as provided in Section 6) or (iii)
reprice, replace or regrant options issued through cancellation or by lowering
the option exercise price of a previously granted award unless approved by the
stockholders of the Company.

                                        6
<Page>

10. AMENDMENT OF THE PLAN.

    The Board of Directors may suspend or discontinue the Plan or amend it in
any respect whatsoever; provided, however, that without approval of the
stockholders of the Company, no amendment may (i) materially modify the
requirements as to eligibility to receive Options or PARS under the Plan, or
(ii) materially increase the benefits accruing to participants in the Plan.

11. WITHHOLDING.

       (a)    The Company shall have the right to deduct from payments of any
    kind otherwise due to the optionee or recipient of PARS any federal, state
    or local taxes of any kind required by law to be withheld with respect to
    any shares issued upon exercise of Options under the Plan or upon the
    expiration or termination of the Restricted Period relating to the PARS.
    Subject to the prior approval of the Company, the optionee or recipient of
    PARS may elect to satisfy such obligations, in whole or in part, (i) by
    causing the Company to withhold shares of Staples Common Stock otherwise
    issuable pursuant to the exercise of an Option or upon the expiration or
    termination of the Restricted Period relating to the PARS or (ii) by
    delivering to the Company shares of Staples Common Stock already owned by
    the optionee or PARS recipient. The shares so delivered or withheld shall
    have a fair market value equal to such withholding obligation. The fair
    market value of the shares used to satisfy such withholding obligation shall
    be determined by the Company as of the date that the amount of tax to be
    withheld is to be determined. An optionee or PARS recipient who has made an
    election pursuant to this Section 11(a) may only satisfy his or her
    withholding obligation with shares of Staples Common Stock which are not
    subject to any repurchase, forfeiture, unfulfilled vesting or other similar
    requirements.

       (b)    If the recipient of PARS under the Plan elects, in accordance
    with Section 83(b) of the Code, to recognize ordinary income in the year of
    acquisition of any shares awarded under the Plan, the Company will require
    at the time of such election an additional payment for withholding tax
    purposes based on the difference, if any, between the purchase price of such
    shares and the fair market value of such shares as of the date immediately
    preceding the date on which the PARS are awarded.

12. NOTICE.

    Any written notice to the Company required by any of the provisions of the
Plan shall be addressed to the Treasurer of the Company and shall become
effective when it is received.

13. GOVERNING LAW.

    The Plan and all determinations made and actions taken pursuant hereto shall
be governed by the laws of the State of Delaware.

14. STOCKHOLDER APPROVAL.

    The Plan is conditional upon stockholder approval of the Plan, and the Plan
shall be null and void if the Plan is not so approved by the Company's
stockholders.

                                        7

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