<SUBMISSION>
<ACCESSION-NUMBER>0001104659-08-039892
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20080609
<ITEMS>1.01
<ITEMS>2.03
<ITEMS>5.02
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20080613
<DATE-OF-FILING-DATE-CHANGE>20080613
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>STAPLES INC
<CIK>0000791519
<ASSIGNED-SIC>5940
<IRS-NUMBER>042896127
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0227
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-17586
<FILM-NUMBER>08898722
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>500 STAPLES DRIVE
<STREET2>P O BOX 9328
<CITY>FRAMINGHAM
<STATE>MA
<ZIP>01702
<PHONE>5082535000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>500 STAPLES DR
<CITY>FRAMINGHAM
<STATE>MA
<ZIP>01702
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a08-16647_18k.htm
<DESCRIPTION>8-K
<TEXT>

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<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED
STATES</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES
AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
D.C. 20549</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 or 15(d)&nbsp;of the Securities Exchange
Act of 1934</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest event reported):<b>&#160; June&nbsp;9, 2008</b></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">Staples,&nbsp;Inc.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact Name of Registrant as Specified in Charter)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
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  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">0-17586</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">04-2896127</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State
  or Other Juris-<br>
  diction of Incorporation</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission<br>
  File Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS
  Employer<br>
  Identification No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="61%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:61.08%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Five Hundred Staples Drive,
  Framingham, MA</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">01702</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="61%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:61.08%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal
  Executive Offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:36.7%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="239" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="203" style="border:none;"></td>
  <td width="17" style="border:none;"></td>
  <td width="20" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="239" style="border:none;"></td>
 </tr>
</table>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">508-253-5000</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former Name or Former Address, if Changed Since Last
Report)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box
below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see
General Instruction A.2 below):</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">&#168;</font><font size="2" style="font-size:10.0pt;"> Written communications
pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">&#168;</font><font size="2" style="font-size:10.0pt;"> Soliciting material
pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">&#168;</font><font size="2" style="font-size:10.0pt;"> Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
CFR 240.14d-2(b))</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">&#168;</font><font size="2" style="font-size:10.0pt;"> Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
CFR 240.13e-4(c))</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.01&#160; Entry into a Material
Definitive Agreement.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information set forth below in Item 2.03 is
incorporated herein by reference.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.03&#160; Creation of a Direct
Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
a Registrant.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On June&nbsp;9, 2008, Staples,&nbsp;Inc. (the
&#147;Company&#148;) entered into a commercial paper program (the &#147;Program&#148;) on a private
placement basis under which the Company may issue unsecured commercial paper
notes (the &#147;Notes&#148;) up to a maximum aggregate amount outstanding at any time of
$3.0 billion. The Program was entered into in connection with its $3.0 billion
credit agreement entered into April&nbsp;1, 2008 with Bank of America, N.A. and
HSBC Bank USA, National Association, as co-syndication agents, and Lehman
Brothers Inc., as lead arranger and bookrunner, disclosed previously on the
Company&#146;s Current Report on Form&nbsp;8-K filed April&nbsp;1, 2008.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the Program, the Company may issue Notes from
time to time, and the proceeds of the Notes will be used for general corporate
purposes, including working capital, capital expenditures, acquisitions and
share repurchases.&#160; Amounts available
under the Program may be borrowed, repaid and reborrowed from time to time,
with the aggregate principal amount outstanding under the Program not to exceed
the maximum aggregate amount.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lehman Brothers Inc. and Banc of America Securities
LLC will act as dealers under the Program (each, a &#147;Dealer&#148;) pursuant to the
terms and conditions of their respective Commercial Paper Dealer Agreements
with the Company, dated as of June&nbsp;9, 2008 (each a &#147;Dealer
Agreement&#148;).&#160; LaSalle Bank will act as
issuing and paying agent under the Program.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Program provides the terms under which the
Dealers will either purchase from the Company or arrange for the sale by the
Company of Notes pursuant to an exemption from federal and state securities
laws.&#160; The Program contains customary
representations, warranties, covenants and indemnification provisions.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The maturities of the Notes will vary, but may not
exceed 397 days from the date of issue.&#160;
The Notes will bear such interest rates, if interest bearing, or will be
sold at such discount from their face amounts, as shall be agreed upon from
time to time by the Dealers and the Company.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Program contains certain events of default
including, among other things, non-payment of principal or interest and
bankruptcy and insolvency events.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A copy of each Dealer Agreement is attached to this
report as Exhibit&nbsp;10.1 and 10.2, respectively, and each is incorporated by
reference as though it were fully set forth herein.&#160; The description above is a summary of the
Program and is qualified in its entirety by the complete text of the Program
itself, including the Dealer Agreements.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No direct financial obligations of the Company are
outstanding under the Program as of the date hereof.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
5.02&#160; Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Staples&#146; Executive Officer Incentive Plan</font></i><font size="2" style="font-size:10.0pt;">. On June&nbsp;9,
2008, the stockholders of the Company approved Staples&#146; Executive Officer
Incentive Plan for the fiscal years 2008 through 2012 (the &#147;Incentive Plan&#148;),
which is similar to executive bonus plans that the Company adopted in prior
years and provides for the </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">payment of annual cash bonus awards to Staples&#146;
executive officers based on the Company&#146;s performance or the performance of the
Company&#146;s business units measured against specific performance objectives
established for that fiscal year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Incentive Plan will be administered by the
Compensation Committee of the Board of Directors, which Committee will have
broad authority to determine target bonuses, select performance objectives,
adopt rules&nbsp;and regulations relating to the Incentive Plan, and make
decisions and interpretations regarding the provisions of the Incentive
Plan.&#160; Each executive officer will have a
target bonus award (a &#147;Target Award&#148;) for each plan year. Target Awards will be
expressed as a percentage of the actual base salary paid to the executive
officer during that plan year. The percentages will be determined by the
Compensation Committee based upon the executive officer&#146;s job level and
responsibilities and may vary for different officers and business units.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Within 90 days after the beginning of each plan
year, the Compensation Committee will establish specific performance objectives
for the payment of bonus awards for that plan year. The performance objectives
for each plan year will be based on one or more of the following measures:
sales, earnings per share, return on net assets, return on equity and customer
service levels. These performance objectives are intended to establish the
benchmark of success for Staples. The Compensation Committee may determine that
special one-time or extraordinary gains or losses, including without limitation
as a result of certain acquisitions or divestitures and changes in accounting
principles, should or should not be included in determining whether such
performance objectives have been met. In addition, customer service target
levels will be based on pre-determined tests of customer service levels,
including without limitation scores on blind test (&#147;mystery&#148;) shopping, customer
comment card statistics, customer relations statistics (e.g., number of
customer complaints), delivery response levels or customer satisfaction surveys
conducted by a third party.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For each plan year, a specified percentage of each
executive officer&#146;s Target Award will be based upon each of the performance
objectives selected by the Compensation Committee for that plan year. For the
2008 plan year, the performance objectives are based on earnings per share,
return on net assets and customer service goals. For each of the performance
objectives, a specified percentage of the portion of the Target Award that is
based on that particular performance objective will be paid based on the level
of performance achieved.&#160; Each
performance objective has a threshold performance level that must be achieved
for any of the bonus award to be paid for such objective. No bonus will be paid
under the Incentive Plan for a plan year if the minimum earnings per share goal
established for such plan year is not achieved, regardless of whether any other
performance objective is achieved. If an executive officer dies before the end
of a plan year, however, a bonus award based on target performance will be paid
within 60 days of the executive officer&#146;s death.&#160; The maximum bonus award payable to any
executive officer for any plan year will be $4 million. In addition, the
Compensation Committee presently intends to limit bonus awards to 200% of an
executive officer&#146;s Target Award.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A more detailed description of the Incentive Plan is
included in Proposal Three of the Company&#146;s Definitive Proxy Statement on
Schedule 14A, as filed with the Securities and Exchange Commission on April&nbsp;28,
2008 (the &#147;2008 Proxy Statement&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This summary of the Incentive Plan is qualified by
reference to the full text of the Incentive Plan, as included as Appendix A to
the 2008 Proxy Statement and attached to this report as Exhibit&nbsp;10.3,
which is incorporated herein by reference as though it were fully set forth
herein.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Amended and Restated 2004 Stock Incentive Plan. </font></i><font size="2" style="font-size:10.0pt;">The
stockholders of the Company also approved an amendment to Staples&#146; Amended and
Restated 2004 Stock Incentive Plan (the &#147;Stock Plan&#148;) to increase the number of
shares issuable under the Stock Plan by 15,100,000 shares, from 62,330,000
shares to </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77,430,000 shares. Officers, directors, consultants,
advisors and other service providers are eligible for grants under the Stock
Plan.&#160; The Stock Plan was included as
Appendix B to the 2008 Proxy Statement and is attached to this report as Exhibit&nbsp;10.4.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 8.01&#160; Other Events.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On June&nbsp;9, 2008, Staples held its Annual
Meeting of Stockholders at which Staples&#146; stockholders took the following
actions:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Staples&#146;
stockholders elected the following directors to its board:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="17%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">DIRECTOR</font></b></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">FOR</font></b></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">AGAINST</font></b></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">ABSTAIN</font></b></p>
  </td>
  <td width="21%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Basil L. Anderson</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">619,898,344</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,418,462</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,774,952</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Arthur
  M. Blank</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">615,402,217</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,254,154</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,435,387</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mary
  Elizabeth Burton</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">613,980,877</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,454,063</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,656,818</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Justin King</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">621,583,728</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,619,590</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,888,440</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Carol
  Meyrowitz</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">615,759,680</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,853,553</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,478,525</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rowland
  T. Moriarty</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">611,291,662</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11,495,285</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,854,811</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert
  C. Nakasone</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">618,943,791</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,270,260</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,877,707</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ronald L. Sargent</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">612,934,867</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,370,422</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,786,469</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert
  E. Sulentic</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">621,563,704</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,629,048</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,899,006</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Martin
  Trust</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">613,895,251</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,907,763</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,288,744</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vijay
  Vishwanath</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">622,114,547</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,156,609</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,886,522</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paul F. Walsh</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">620,114,547</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:5.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,904,501</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,072,710</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in .7pt 0in .7pt;width:21.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Staples&#146;
stockholders voted to approve an amendment to Staples&#146; certificate of
incorporation deleting Article&nbsp;XII to remove provisions that require
holders of at least two-thirds of Staples&#146; outstanding voting stock to approve
certain significant corporate transactions by a vote of 619,048,683 shares of
common stock for, 4,064,724 shares of common stock against and 5,978,351 shares
of common stock abstaining.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Staples&#146;
stockholders voted to approve Staples&#146; Executive Officer Incentive Plan for the
fiscal years 2008 through 2012 by a vote 553,563,740 shares of common stock
for, 9,085,213 shares of common stock against and 6,045,160 shares of common
stock abstaining. There were 60,397,645 broker non-votes on this matter.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Staples&#146;
stockholders voted to approve an amendment to Staples&#146; Amended and Restated
2004 Stock Incentive Plan increasing the total number of shares of common stock
authorized for issuance under the plan by 15,100,000 shares, from 62,330,000
shares to 77,430,000 shares by a vote of 402,783,053 shares of common stock
for, 160,138,764 shares of common stock against and 5,772,296 shares of common
stock abstaining.&#160; There were 60,397,645
broker non-votes on this matter.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Staples&#146;
stockholders voted to ratify the selection by the Audit Committee of the Board
of Directors of the Company of Ernst&nbsp;&amp; Young LLP as Staples&#146;
independent registered public accounting firm for the current fiscal year by a
vote of 619,675,332 shares of common stock for, 3,759,084 shares of common
stock against and 5,657,342 shares of common stock abstaining.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
shareholder proposal regarding stockholders&#146; ability to call special meetings
was approved by a vote 379,520,343 shares of common stock for, 183,032,596
shares of common stock against and 6,141,174 shares of common stock
abstaining.&#160; There were 60,397,645 broker
non-votes on this matter.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01&#160; Financial Statements
and Exhibits.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp;Exhibits.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The exhibits listed in the Exhibit&nbsp;Index
immediately preceding such exhibits, which is incorporated herein by reference,
are filed as part of this Current Report on Form&nbsp;8-K.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURE</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">STAPLES, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June&nbsp;13, 2008</font></p>
  </td>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Kristin A. Campbell</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: Kristin A. Campbell</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President, General Counsel </font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and Secretary</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0in .7pt 0in .7pt;width:48.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:8.2%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="78%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:8.2%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="78%" valign="bottom" style="border:none;padding:0in .7pt 0in .7pt;width:78.82%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commercial
  Paper Dealer Agreement between Staples,&nbsp;Inc. and Lehman Brothers Inc.,
  dated as of June&nbsp;9, 2008.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commercial
  Paper Dealer Agreement between Staples,&nbsp;Inc. and Banc of America
  Securities LLC, dated as of June&nbsp;9, 2008.</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Staples&#146;
  Executive Officer Incentive Plan for the fiscal years 2008 through 2012</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.4</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:12.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended
  and Restated 2004 Stock Incentive Plan, as amended</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;10.1</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMMERCIAL
PAPER DEALER AGREEMENT<br>
4(2)&nbsp;PROGRAM</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">between</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">STAPLES,
INC., as Issuer</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">and</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LEHMAN
BROTHERS INC., as Dealer</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 1.0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Concerning Notes to be issued pursuant to an
Issuing and Paying Agency Agreement dated as of June&nbsp;9, 2008 between the
Issuer and LaSalle Bank, as Issuing and Paying Agent</font></b></p>

<p align="left" style="margin:0in 1.0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Dated as
of</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">June&nbsp;9,
2008</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commercial Paper Dealer
Agreement</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">4(2)&nbsp;Program</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This agreement (as amended, supplemented or otherwise modified and in
effect from time to time, the &#147;Agreement&#148;) sets forth the understandings
between the Issuer and the Dealer, each named on the cover page&nbsp;hereof, in
connection with the issuance and sale by the Issuer of its short-term
promissory notes (the &#147;Notes&#148;) through the Dealer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain terms used in this Agreement are defined in Section&nbsp;6
hereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Addendum to this Agreement, and any Annexes or Exhibits described
in this Agreement or such Addendum, are hereby incorporated into this Agreement
and made fully a part hereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Offers, Sales and Resales of
Notes.</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">While (i)&nbsp;the Issuer has and shall
have no obligation to sell the Notes to the Dealer or to permit the Dealer to
arrange any sale of the Notes for the account of the Issuer, and (ii)&nbsp;the
Dealer has and shall have no obligation to purchase the Notes from the Issuer
or to arrange any sale of the Notes for the account of the Issuer, the parties
hereto agree that in any case where the Dealer purchases Notes from the Issuer,
or arranges for the sale of Notes by the Issuer, such Notes will be purchased
or sold by the Dealer in reliance on the representations, warranties, covenants
and agreements of the Issuer contained herein or made pursuant hereto and on
the terms and conditions and in the manner provided herein.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">So long as this Agreement shall remain in effect, and
in addition to the limitations contained in Section&nbsp;1.7 hereof, the Issuer
shall not, without the consent of the Dealer, offer, solicit or accept offers
to purchase, or sell, any Notes except (a)&nbsp;in transactions with one or
more dealers which may from time to time after the date hereof become dealers
with respect to the Notes by executing with the Issuer one or more agreements
which contain provisions substantially identical to those contained in Section&nbsp;1
of this Agreement, of which the Issuer hereby undertakes to provide the Dealer
prompt notice or (b)&nbsp;in transactions with the other dealers listed on the
Addendum hereto, which are executing agreements with the Issuer which contain
provisions substantially identical to Section&nbsp;1 of this Agreement contemporaneously
herewith.&#160; In no event shall the Issuer
offer, solicit or accept offers to purchase, or sell, any Notes directly on its
own behalf in transactions with persons other than broker-dealers as
specifically permitted in this Section&nbsp;1.2.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Notes shall be in a minimum denomination of
$250,000 or integral multiples of $1,000 in excess thereof, will bear such
interest rates, if interest bearing, or will be sold at such discount from
their face amounts, as shall be agreed upon by the Dealer and the Issuer, shall
have a maturity not exceeding 397 days from the date of issuance and may have
such terms as are specified in Exhibit&nbsp;C hereto or the Private Placement
Memorandum.&#160; The Notes shall not contain
any provision for extension, renewal or automatic &#147;rollover.&#148;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The authentication and issuance of, and payment for,
the Notes shall be effected in accordance with the Issuing and Paying Agency
Agreement, and the Notes shall be either individual physical certificates or
book-entry notes evidenced by one or more master notes (each, a &#147;Master Note&#148;)
registered in the name of The Depository Trust Company (&#147;DTC&#148;) or its nominee,
in the form or forms annexed to the Issuing and Paying Agency Agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the Issuer and the Dealer shall agree on the terms
of the purchase of any Note by the Dealer or the sale of any Note arranged by
the Dealer (including, but not limited to, agreement with respect to the date
of issue, purchase price, principal amount, maturity and interest rate or
interest rate index and margin (in the case of interest-bearing Notes) or
discount thereof (in the case of Notes issued on a discount basis), and
appropriate compensation for the Dealer&#146;s services hereunder) pursuant to this
Agreement, the Issuer shall cause such Note to be issued and delivered in
accordance with the terms of the Issuing and Paying Agency Agreement and
payment for such Note shall be made by the purchaser thereof, either directly
or through the Dealer, to the Issuing and Paying Agent, for the account of the
Issuer.&#160; Except as otherwise agreed, in
the event that the Dealer is acting as an agent and a purchaser shall either
fail to accept delivery of or make payment for a Note on the date fixed for
settlement, the Dealer shall promptly notify the Issuer, and if the Dealer has
theretofore paid the Issuer for the Note, the Issuer will promptly return such
funds to the Dealer against its return of the Note to the Issuer, in the case
of a certificated Note, and upon notice of such failure in the case of a
book-entry Note.&#160; If such failure
occurred for any reason other than default by the Dealer, the Issuer shall
reimburse the Dealer on an equitable basis for the Dealer&#146;s loss of the use of
such funds for the period such funds were credited to the Issuer&#146;s account.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All offers and sales of the Notes by the Issuer shall
be effected pursuant to the exemption from the registration requirements of the
Securities Act provided by Section&nbsp;4(2)&nbsp;thereof, which exempts transactions
by an issuer not involving any public offering.&#160;
The Dealer and the Issuer hereby establish and agree to observe the
following procedures in connection with offers, sales and subsequent resales or
other transfers of the Notes:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Offers and sales of the Notes by or
through the Dealer shall be made only to: (i)&nbsp;investors reasonably
believed by the Dealer to be Qualified Institutional Buyers, Institutional
Accredited Investors or Sophisticated Individual Accredited Investors and (ii)&nbsp;non-bank
fiduciaries or agents that will be purchasing Notes for one or more accounts,
each of which is reasonably believed by the Dealer to be an Institutional
Accredited Investor or Sophisticated Individual Accredited Investor.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Resales and other transfers of the Notes
by the holders thereof shall be made only in accordance with the restrictions
in the legend described in clause (e)&nbsp;below.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No general solicitation or general
advertising shall be used in connection with the offering of the Notes.&#160; Without limiting the generality of the
foregoing, without the prior written approval of the Dealer, the Issuer shall
not issue any press release or place or publish any &#147;tombstone&#148; or other
advertisement relating to the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No sale of Notes to any one purchaser shall
be for less than $250,000 principal or face amount, and no Note shall be issued
in a smaller principal or face amount.&#160;
If the purchaser is a non-bank fiduciary acting on behalf of others,
each person for whom such purchaser is acting must purchase at least $250,000
principal or face amount of Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Offers and sales of the Notes by the
Issuer through the Dealer acting as agent for the Issuer shall be made in
accordance with Rule&nbsp;506 under the Securities Act, and shall be subject to
the restrictions described in the legend appearing on Exhibit&nbsp;A
hereto.&#160; A legend substantially to the
effect of such Exhibit&nbsp;A shall appear as part of the Private Placement </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .9in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Memorandum used in connection with offers and sales of Notes hereunder,
as well as on each individual certificate representing a Note and each Master
Note representing book-entry Notes offered and sold pursuant to this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Dealer shall furnish or shall have
furnished to each purchaser of Notes for which it has acted as the Dealer a
copy of the then-current Private Placement Memorandum unless such purchaser has
previously received a copy of the Private Placement Memorandum as then in
effect.&#160; The Private Placement Memorandum
shall expressly state that any person to whom Notes are offered shall have an
opportunity to ask questions of, and receive information from, the Issuer and
the Dealer and shall provide the names, addresses and telephone numbers of the
persons from whom information regarding the Issuer may be obtained.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer agrees, for the benefit of the
Dealer and each of the holders and prospective purchasers from time to time of
the Notes that, if at any time the Issuer shall not be subject to Section&nbsp;13
or 15(d)&nbsp;of the Exchange Act, the Issuer will furnish, upon request and at
its expense, to the Dealer and to holders and prospective purchasers of Notes
information required by Rule&nbsp;144A(d)(4)(i)&nbsp;in compliance with Rule&nbsp;144A(d).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event that any Note offered or to
be offered by the Dealer would be ineligible for resale under Rule&nbsp;144A,
the Issuer shall immediately notify the Dealer (by telephone, confirmed in
writing) of such fact and shall promptly prepare and deliver to the Dealer an
amendment or supplement to the Private Placement Memorandum describing the
Notes that are ineligible, the reason for such ineligibility and any other
relevant information relating thereto.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer represents that it is not
currently issuing commercial paper in the United States market in reliance upon
the exemption provided by Section&nbsp;3(a)(3)&nbsp;of the Securities Act.&#160; The Issuer agrees that, if it shall issue
commercial paper after the date hereof in reliance upon such exemption (a)&nbsp;the
proceeds from the sale of the Notes will be segregated from the proceeds of the
sale of any such commercial paper by being placed in a separate account; (b)&nbsp;the
Issuer will institute appropriate corporate procedures to ensure that the
offers and sales of notes issued by the Issuer pursuant to the Section&nbsp;3(a)(3)&nbsp;exemption
are not integrated with offerings and sales of Notes hereunder; and (c)&nbsp;the
Issuer will comply with each of the requirements of Section&nbsp;3(a)(3)&nbsp;of
the Securities Act in selling commercial paper or other short-term debt
securities other than the Notes in the United States.&#160; The Dealer agrees with the Issuer not to
offer or sell any Notes in a manner that might call into question the
availability of the private offering exemption contained in Section&nbsp;4(2)&nbsp;of
the Securities Act and Rule&nbsp;144A thereunder, it being agreed that the
foregoing procedures do not call into question the availability of such
exemption.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer hereby represents and warrants
to the Dealer, in connection with offers, sales and resales of Notes, as follows:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer hereby confirms to the Dealer
that (except as permitted by Section&nbsp;1.6(i)) within the preceding six
months neither the Issuer nor any person other than the Dealer or the other
dealers referred to in Section&nbsp;1.2 hereof acting on behalf of the Issuer
has offered or sold any Notes, or any substantially similar security of the
Issuer (including, without limitation, medium-term notes issued by the Issuer),
to, or solicited offers to buy any such security from, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any person other than the Dealer or the other dealers referred to in Section&nbsp;1.2
hereof.&#160; The Issuer also agrees that
(except as permitted by Section&nbsp;1.6(i)), as long as the Notes are being
offered for sale by the Dealer and the other dealers referred to in Section&nbsp;1.2
hereof as contemplated hereby and until at least six months after the offer of
Notes hereunder has been terminated, neither the Issuer nor any person other
than the Dealer or the other dealers referred to in Section&nbsp;1.2 hereof
(except as contemplated by Section&nbsp;1.2 hereof) will offer the Notes or any
substantially similar security of the Issuer for sale to, or solicit offers to
buy any such security from, any person other than the Dealer or the other
dealers referred to in Section&nbsp;1.2 hereof, it being understood that such
agreement is made with a view to bringing the offer and sale of the Notes
within the exemption provided by Section&nbsp;4(2)&nbsp;of the Securities Act
and Rule&nbsp;506 thereunder and shall survive any termination of this
Agreement.&#160; The Issuer hereby represents
and warrants that it has not taken or omitted to take, and will not take or
omit to take, any action that would cause the offering and sale of Notes
hereunder to be integrated with any other offering of securities, whether such
offering is made by the Issuer or some other party or parties, under
circumstances that would cause the offering and sale of the Notes by the Issuer
to fail to be exempt under Section&nbsp;4(2)&nbsp;of the Securities Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer represents and agrees that the
proceeds of the sale of the Notes are not currently contemplated to be used for
the purpose of buying, carrying or trading securities within the meaning of
Regulation T and the interpretations thereunder by the Board of Governors of
the Federal Reserve System.&#160; In the event
that the Issuer determines to use proceeds from the sale of the Notes for the
purpose of buying, carrying or trading securities, whether in connection with
an acquisition of another company or otherwise, the Issuer shall give the
Dealer at least three business days&#146; prior written notice to that effect.&#160; The Issuer shall also give the Dealer prompt
notice of the actual date that it commences to purchase securities with the
proceeds of the Notes.&#160; Thereafter, in
the event that the Dealer purchases Notes as principal and does not resell such
Notes on the day of such purchase, to the extent necessary to comply with
Regulation T and the interpretations thereunder, the Dealer will sell such
Notes either (i)&nbsp;only to offerees it reasonably believes to be Qualified
Institutional Buyers or to Qualified Institutional Buyers it reasonably
believes are acting for other Qualified Institutional Buyers, in each case in
accordance with Rule&nbsp;144A or (ii)&nbsp;in a manner which would not cause a
violation of Regulation T and the interpretations thereunder.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Representations and
Warranties of Issuer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Issuer
represents and warrants that:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all the requisite power and authority
to execute, deliver and perform its obligations under the Notes, this Agreement
and the Issuing and Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement and the Issuing and Paying
Agency Agreement have been duly authorized, executed and delivered by the
Issuer and constitute legal, valid and binding obligations of the Issuer
enforceable against the Issuer in accordance with their terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors&#146; rights
generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Notes have been duly authorized, and
when issued as provided in the Issuing and Paying Agency Agreement, will be
duly and validly issued and will constitute legal, valid and binding
obligations of the Issuer enforceable against the Issuer in accordance with
their terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors&#146; rights generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assuming compliance by the Dealer with
the procedures applicable to it set forth in Section&nbsp;1 hereof, the offer
and sale of the Notes in the manner contemplated hereby do not require
registration of the Notes under the Securities Act, pursuant to the exemption
from registration contained in Section&nbsp;4(2)&nbsp;thereof, and no indenture
in respect of the Notes is required to be qualified under the Trust Indenture
Act of 1939, as amended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Notes will rank at least pari passu
with all other unsecured and unsubordinated indebtedness of the Issuer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">2.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assuming
compliance by the Dealer with the procedures applicable to it set forth in Section&nbsp;1
hereof, no consent or action of, or filing or registration with, any
governmental or public regulatory body or authority, including the SEC, is
required to authorize, or is otherwise required in connection with the
execution, delivery or performance of, this Agreement, the Notes or the Issuing
and Paying Agency Agreement, except as may be required by the securities or
Blue Sky laws of the various states in connection with the offer and sale of
the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Neither the execution and delivery of
this Agreement and the Issuing and Paying Agency Agreement, nor the issuance of
the Notes in accordance with the Issuing and Paying Agency Agreement, nor the
fulfillment of or compliance with the terms and provisions hereof or thereof by
the Issuer, will (i)&nbsp;result in the creation or imposition of any mortgage,
lien, charge or encumbrance of any nature whatsoever upon any of the properties
or assets of the Issuer, or (ii)&nbsp;violate or result in a breach or a
default under any of the terms of the Issuer&#146;s charter documents or by-laws,
any contract or instrument to which the Issuer is a party or by which it or its
property is bound, or any law or regulation, or any order, writ, injunction or
decree of any court or government instrumentality, to which the Issuer is
subject or by which it or its property is bound, which breach or default might
have a material adverse effect on the financial condition or operations of the
Issuer and its subsidiaries taken as a whole or the ability of the Issuer to
perform its obligations under this Agreement, the Notes or the Issuing and
Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Except as disclosed in the Company
Information, there is no litigation or governmental proceeding pending, or to
the knowledge of the Issuer threatened, against or affecting the Issuer or any
of its subsidiaries which might reasonably be expected to result in a material
adverse change in the financial condition or operations of the Issuer and its
subsidiaries taken as a whole or the ability of the Issuer to perform its
obligations under this Agreement, the Notes or the Issuing and Paying Agency
Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer is not an &#147;investment company&#148;
within the meaning of the Investment Company Act of 1940, as amended</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Neither the Private Placement Memorandum
nor the Company Information contains any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Each (a)&nbsp;issuance of Notes by the
Issuer hereunder and (b)&nbsp;amendment or supplement of the Private Placement
Memorandum shall be deemed a representation and warranty by the Issuer to the
Dealer, as of the date thereof, that, both before and after giving effect to
such issuance and after giving effect to such amendment or supplement, (i)&nbsp;the
representations and warranties given by the Issuer set forth in this Section&nbsp;2
remain true and correct in all material respects on and as of such date as if
made on and as of such date, (ii)&nbsp;in the case of an issuance of Notes, the
Notes being issued on such date have been duly and validly issued and
constitute legal, valid and binding obligations of the Issuer, enforceable
against the Issuer in accordance with their terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors&#146; rights generally
and subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law), (iii)&nbsp;in
the case of an issuance of Notes, since the date of the most recent Private
Placement Memorandum, there has been no material adverse change in the
financial condition or operations of the Issuer and its subsidiaries taken as a
whole which has not been disclosed to the Dealer in writing and (iv)&nbsp;the
Issuer is not in default of any of its obligations hereunder, under the Notes
or the Issuing and Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Covenants and Agreements of
Issuer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Issuer covenants and agrees that:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will give the Dealer prompt
notice (but in any event prior to any subsequent issuance of Notes hereunder)
of any amendment to, modification of or waiver with respect to, the Notes or
the Issuing and Paying Agency Agreement, including a complete copy of any such
amendment, modification or waiver.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall, whenever there shall
occur any change in the financial condition or operations of the Issuer and its
subsidiaries taken as a whole or any development or occurrence in relation to
the Issuer that would have a material adverse effect on holders of the Notes or
potential holders of the Notes (including any downgrading or receipt of any
notice of intended downgrading in the rating accorded any of the Issuer&#146;s
securities by any nationally recognized statistical rating organization which
has published a rating of the Notes), promptly, and in any event prior to any
subsequent issuance of Notes hereunder, notify the Dealer (by telephone,
confirmed in writing) of such change, development or occurrence.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall from time to time
furnish to the Dealer such information as the Dealer may reasonably request,
including, without limitation, any press releases or material provided by the
Issuer to any national securities exchange or rating agency, regarding (i)&nbsp;the
Issuer&#146;s operations and financial condition, (ii)&nbsp;the due authorization
and execution of the Notes and (iii)&nbsp;the Issuer&#146;s ability to pay the Notes
as they mature.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will take all such action as
the Dealer may reasonably request to ensure that each offer and each sale of
the Notes will comply with any applicable state Blue Sky laws; provided, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">however, that the Issuer shall not be obligated to
file any general consent to service of process or to qualify as a foreign
corporation in any jurisdiction in which it is not so qualified or subject
itself to taxation in respect of doing business in any jurisdiction in which it
is not otherwise so subject.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will not be in default of any
of its obligations hereunder, under the Notes or under the Issuing and Paying
Agency Agreement, at any time that any of the Notes are outstanding.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall not issue Notes
hereunder until the Dealer shall have received (a)&nbsp;an opinion of counsel
to the Issuer, addressed to the Dealer, satisfactory in form and substance to
the Dealer, (b)&nbsp;a copy of the executed Issuing and Paying Agency Agreement
as then in effect, (c)&nbsp;a copy of resolutions adopted by the Board of
Directors of the Issuer, satisfactory in form and substance to the Dealer and
certified by the Secretary or similar officer of the Issuer, authorizing
execution and delivery by the Issuer of this Agreement, the Issuing and Paying
Agency Agreement and the Notes and consummation by the Issuer of the transactions
contemplated hereby and thereby, (d)&nbsp;prior to the issuance of any
book-entry Notes represented by a master note registered in the name of DTC or
its nominee, a copy of the executed Letter of Representations among the Issuer,
the Issuing and Paying Agent and DTC and of the executed master note, (e)&nbsp;prior
to the issuance of any Notes in physical form, a copy of such form (unless
attached to this Agreement or the Issuing and Paying Agency Agreement), (f)&nbsp;confirmation
of the then current rating assigned to the Notes by each nationally recognized
statistical rating organization then rating the Notes, and (g)&nbsp;such other
certificates, opinions, letters and documents as the Dealer shall have
reasonably requested.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall reimburse the Dealer for
all of the Dealer&#146;s reasonable and documented out-of-pocket expenses [related
to this Agreement, including expenses incurred in connection with its
preparation and negotiation, and the transactions contemplated hereby
(including, but not limited to, the printing and distribution of the Private
Placement Memorandum), and, if applicable, for the reasonable fees and
out-of-pocket expenses] of the Dealer&#146;s counsel.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Disclosure.</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Private Placement Memorandum and its contents
(other than the Dealer Information) shall be the sole responsibility of the
Issuer.&#160; The Private Placement Memorandum
shall contain a statement </font><font size="2" style="font-size:10.0pt;">expressly offering an opportunity for each
prospective purchaser to ask questions of, and receive answers from, the Issuer
concerning the offering of Notes and to obtain relevant additional information
which the Issuer possesses or can acquire without unreasonable effort or
expense.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer agrees to
promptly furnish the Dealer the Company Information as it becomes available.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(a)&nbsp; The Issuer further agrees to notify the
Dealer promptly upon the occurrence of any event relating to or affecting the
Issuer that would cause the Company Information then in existence to include an
untrue statement of a material fact or to omit to state a material fact
necessary in order to make the statements contained therein, in light of the
circumstances under which they are made, not misleading.&#160; Notwithstanding the foregoing, the Issuer
shall have no obligation to so notify the Dealer if (i)&nbsp;the Issuer has
temporarily suspended offers and sales of the Notes and </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">has given the Dealer written notice of such suspension, or (ii)&nbsp;there
are no Notes outstanding.&#160; In the event
that the Issuer wishes to resume offers and sales of the Notes, it shall (i)&nbsp;give
the Dealer notice thereof, and (ii)&nbsp;either (x)&nbsp;confirm that the then
current Private Placement Memorandum and Company Information do not violate the
representation contained in Section&nbsp;3.11&#160;
of this Agreement, or (y)&nbsp;if the representation contained in Section&nbsp;2.11
cannot be made, provide to the Dealer an updated Private Placement Memorandum
that will permit the representation to be made.&#160;
The Dealer agrees that, upon such notification, all solicitations and sales
of Notes shall be suspended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event that the Issuer
gives the Dealer notice pursuant to Section&nbsp;4.3(a)&nbsp;and the Dealer
notifies the Issuer that it then has Notes it is holding in inventory, (i)&nbsp;the
Issuer agrees promptly to supplement or amend the Private Placement Memorandum
so that the Private Placement Memorandum, as amended or supplemented, shall not
contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, and the Issuer shall
make such supplement or amendment available to the Dealer or (ii)&nbsp;if the
Issuer chooses not to promptly amend or supplement the Private Placement
Memorandum, the Issuer shall, if required by the Dealer, purchase from the
Dealer any such Notes held in inventory at a price equal to the face amount
thereof discounted on a ratable basis based on the Issuer&#146;s market rate
reflecting the remaining period until maturity in relation to the original
term, provided that no commissions or fees will be paid to such Dealer in
connection with any such repurchase pursuant to this Section&nbsp;4.3(b)(ii).</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event that (i)&nbsp;the
Issuer gives the Dealer notice pursuant to Section&nbsp;4.3(a), (ii)&nbsp;the
Dealer does not notify the Issuer that it is then holding Notes in inventory
and (iii)&nbsp;the Issuer chooses not to promptly amend or supplement the
Private Placement Memorandum in the manner described in clause (b)&nbsp;above,
then all solicitations and sales of Notes shall be suspended until such time as
the Issuer has so amended or supplemented the Private Placement Memorandum, and
made such amendment or supplement available to the Dealer.</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Without
limiting the generality of Section&nbsp;4.3(a), the Issuer shall review, amend
and supplement the Private Placement Memorandum on a periodic basis, but no
less than at least once annually, to incorporate current financial information
of the Issuer to the extent necessary to ensure that the information provided in
the Private Placement Memorandum is accurate and complete</font><font size="2" style="font-size:10.0pt;">.</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Indemnification and
Contribution.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will indemnify and hold
harmless the Dealer, each individual, corporation, partnership, trust,
association or other entity controlling the Dealer, any affiliate of the Dealer
or any such controlling entity and their respective directors, officers,
employees, partners, incorporators, shareholders, servants, trustees and agents
(hereinafter the &#147;Indemnitees&#148;) against any and all liabilities, penalties,
suits, causes of action, losses, damages, claims, costs and expenses
(including, without limitation, fees and disbursements of counsel) or judgments
of whatever kind or nature (each a &#147;Claim&#148;), imposed upon, incurred by or
asserted against the Indemnitees arising out of or based upon (i)&nbsp;any
allegation that the Private Placement Memorandum, the Company Information or
any information provided by the Issuer to the Dealer included (as of any
relevant time) or includes an untrue statement of a material fact or omitted
(as of any relevant time) or omits to state any material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading or (ii)&nbsp;arising out of or based upon the breach by
the Issuer of any agreement, covenant or representation made </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">in or pursuant to this Agreement.&#160;
This indemnification shall not apply to the extent that the Claim arises
out of or is based upon Dealer Information or that the Claim is determined by a
court of competent jurisdiction to have resulted from an Indemnitee&#146;s gross
negligence or willful misconduct.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Provisions relating to claims made for
indemnification under this Section&nbsp;5 are set forth on Exhibit&nbsp;B to this
Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In order to provide for just and
equitable contribution in circumstances in which the indemnification provided
for in this Section&nbsp;5 is held to be unavailable or insufficient to hold
harmless the Indemnitees, although applicable in accordance with the terms of
this Section&nbsp;5, the Issuer shall contribute to the aggregate costs
incurred by the Dealer in connection with any Claim in the proportion of the
respective economic interests of the Issuer and the Dealer; provided, however,
that such contribution by the Issuer shall be in an amount such that the
aggregate costs incurred by the Dealer do not exceed the aggregate of the
commissions and fees earned by the Dealer hereunder with respect to the issue
or issues of Notes to which such Claim relates.&#160;
The respective economic interests shall be calculated by reference to
the aggregate proceeds to the Issuer of the Notes issued hereunder and the
aggregate commissions and fees earned by the Dealer hereunder.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Definitions.</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Claim&#148; shall have the meaning set forth
in Section&nbsp;5.1.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Company Information&#148; at any given time
shall mean the Private Placement Memorandum (other than the Dealer Information)
together with, to the extent applicable, (i)&nbsp;the Issuer&#146;s most recent
report on Form&nbsp;10-K filed with the SEC and each report on Form&nbsp;10-Q
or 8-K filed by the Issuer with the SEC since the most recent Form&nbsp;10-K, (ii)&nbsp;the
Issuer&#146;s most recent annual audited financial statements and each interim
financial statement or report prepared subsequent thereto, if not included in
item (i)&nbsp;above, (iii)&nbsp;the Issuer&#146;s other publicly available recent
reports, including, but not limited to, any publicly available filings or
reports provided to its shareholders, (iv)&nbsp;any other information or
disclosure prepared pursuant to Section&nbsp;4.3 hereof and (v)&nbsp;any
information prepared or approved by the Issuer for dissemination to investors
or potential investors in the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Dealer Information&#148; shall mean material
concerning the Dealer provided by the Dealer in writing expressly for inclusion
in the Private Placement Memorandum.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Exchange Act&#148; shall mean the U.S.
Securities Exchange Act of 1934, as amended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Indemnitee&#148; shall have the meaning set
forth in Section&nbsp;5.1.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Institutional Accredited Investor&#148; shall
mean an institutional investor that is an accredited investor within the
meaning of Rule&nbsp;501 under the Securities Act and that has such knowledge
and experience in financial and business matters that it is capable of
evaluating and bearing the economic risk of an investment in the Notes,
including, but not limited to, a bank, as defined in Section&nbsp;3(a)(2)&nbsp;of
the Securities Act, or a savings and loan association or other institution, as</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">defined in Section&nbsp;3(a)(5)(A)&nbsp;of the
Securities Act, whether acting in its individual or fiduciary capacity.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Issuing and Paying Agency Agreement&#148;
shall mean the issuing and paying agency agreement described on the cover page&nbsp;of
this Agreement, as such agreement may be amended or supplemented from time to
time.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Issuing and Paying Agent&#148; shall mean the
party designated as such on the cover page&nbsp;of this Agreement, as issuing
and paying agent under the Issuing and Paying Agency Agreement, or any successor
thereto in accordance with the Issuing and Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Non-bank fiduciary or agent&#148; shall mean
a fiduciary or agent other than (a)&nbsp;a bank, as defined in Section&nbsp;3(a)(2)&nbsp;of
the Securities Act, or (b)&nbsp;a savings and loan association, as defined in Section&nbsp;3(a)(5)(A)&nbsp;of
the Securities Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Private Placement Memorandum&#148; shall mean
offering materials prepared in accordance with Section&nbsp;4 (including
materials referred to therein or incorporated by reference therein, if any)
provided to purchasers and prospective purchasers of the Notes, and shall
include amendments and supplements thereto which may be prepared from time to
time in accordance with this Agreement (other than any amendment or supplement
that has been completely superseded by a later amendment or supplement).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Qualified Institutional Buyer&#148; shall
have the meaning assigned to that term in Rule&nbsp;144A under the Securities
Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.12</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Rule&nbsp;144A&#148; shall mean Rule&nbsp;144A
under the Securities Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.13</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;SEC&#148; shall mean the U.S. Securities and
Exchange Commission.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.14</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Securities Act&#148; shall mean the U.S.
Securities Act of 1933, as amended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.15</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Sophisticated Individual Accredited
Investor&#148; shall mean an individual who (a)&nbsp;is an accredited investor
within the meaning of Regulation D under the Securities Act and (b)&nbsp;based
on his or her pre-existing relationship with the Dealer, is reasonably believed
by the Dealer to be a sophisticated investor (i)&nbsp;possessing such knowledge
and experience (or represented by a fiduciary or agent possessing such
knowledge and experience) in financial and business matters that he or she is
capable of evaluating and bearing the economic risk of an investment in the
Notes and (ii)&nbsp;having not less than $5 million in investments (as defined,
for purposes of this section, in Rule&nbsp;2a51-1 under the Investment Company
Act of 1940, as amended).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">General</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Unless otherwise expressly provided
herein, all notices under this Agreement to parties hereto shall be in writing
and shall be effective when received at the address of the respective party set
forth in the Addendum to this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to its conflict of laws provisions.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(a)&nbsp;The Issuer agrees that any suit,
action or proceeding brought by the Issuer against the Dealer in connection
with or arising out of this Agreement or the Notes or the offer and sale of the
Notes shall be brought solely in the United States federal courts located in
the Borough of Manhattan or the courts of the State of New York located in the
Borough of Manhattan.&#160; EACH OF THE DEALER
AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp;The Issuer hereby irrevocably accepts and submits to the
non-exclusive jurisdiction of each of the aforesaid courts in personam,
generally and unconditionally, for itself and in respect of its properties,
assets and revenues, with respect to any suit, action or proceeding in
connection with or arising out of this Agreement or the Notes or the offer and
sale of the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement may be terminated, at any
time, by the Issuer, upon one business day&#146;s prior notice to such effect to the
Dealer, or by the Dealer upon one business day&#146;s prior notice to such effect to
the Issuer.&#160; Any such termination,
however, shall not affect the obligations of the Issuer under Sections 3.7, 4.3(a)&nbsp;and
(b), 5 and 7.3 hereof or the respective representations, warranties,
agreements, covenants, rights or responsibilities of the parties made or
arising prior to the termination of this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement is not assignable by
either party hereto without the written consent of the other party; provided,
however, that the Dealer may assign its rights and obligations under this
Agreement to any affiliate of the Dealer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement is for the exclusive
benefit of the parties hereto, and their respective permitted successors and assigns
hereunder, and shall not be deemed to give any legal or equitable right, remedy
or claim to any other person whatsoever.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer acknowledges and
agrees that in connection with this purchase and sale of the Notes or any other
services the Dealer may be deemed to be providing hereunder, notwithstanding
any preexisting relationship, advisory or otherwise, between the parties or any
oral representations or assurances previously or subsequently made by the
Dealer: (i)&nbsp;no fiduciary or agency relationship between the Issuer and any
other person, on the one hand, and the Dealer, on the other, exists; (ii)&nbsp;the
Dealer is not acting as advisor, expert or otherwise, to the Issuer, including,
without limitation, with respect to the determination of the&#160; offering price of the Notes, and such
relationship between the Issuer, on the one hand, and the Dealer, on the other,
is entirely and solely commercial, based on arms-length negotiations; (iii)&nbsp;any
duties and obligations that the Dealer may have to the Issuer shall be limited
to those duties and obligations specifically stated herein; and (iv)&nbsp;the
Dealer and their respective affiliates may have interests that differ from
those of the Issuer.&#160; The Issuer hereby
waives any claims that the Issuer may have against the Dealer with respect to
any breach of fiduciary duty in connection with the purchase and sale of the
Notes.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date and year first above written.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Staples,&nbsp;Inc., as Issuer</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Lehman Brothers Inc.,</font></b><font size="2" style="font-size:10.0pt;">  <b>as Dealer</b></font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:44.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ronald L. Sargent</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ J .Petrossian</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Ronald L. Sargent</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: J .Petrossian</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Chairman and Chief
  Executive Officer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: SVP</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:44.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John J. Mahoney</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: John J. Mahoney</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Vice Chairman and
  Chief Financial Officer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in .7pt;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Addendum(1)</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following additional clauses shall apply to the Agreement and be
deemed a part thereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The addresses of the respective parties for purposes
of notices under Section&nbsp;7.1 are as follows:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the Issuer:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:&#160; 500 Staples Drive,
Framingham, MA 01702</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone number:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax number:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the Dealer:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address: 745 Seventh Avenue, 4th floor, New York, New York 10019-6801</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Product Management-Commercial Paper</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone number: 212-526-0731</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax number: 646-758-4641</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">There may be added to this Addendum any changes or
additions to the model Agreement, as agreed between the parties.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;A</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of
Legend for Private Placement Memorandum and Notes</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAVE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BEEN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTERED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECURITIES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">1933,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AMENDED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;ACT&#148;),</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OTHER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">APPLICABLE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECURITIES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">LAW,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OFFERS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SALES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MAY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MADE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONLY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">COMPLIANCE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">APPLICABLE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXEMPTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FROM</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTRATION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REQUIREMENTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">APPLICABLE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">STATE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECURITIES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">LAWS.</font><font size="1" style="font-size:9.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCEPTANCE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WILL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEEMED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REPRESENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(I)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BEEN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AFFORDED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OPPORTUNITY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTIGATE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MATTERS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RELATING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ISSUER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(II)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACQUIRING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">VIEW</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">DISTRIBUTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(III)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EITHER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(A)(1)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SOPHISTICATED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITHIN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MEANING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">501(a)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">CASE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">POSSESSES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">KNOWLEDGE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXPERIENCE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FINANCIAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BUSINESS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MATTERS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">HE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SHE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">CAPABLE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EVALUATING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BEARING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ECONOMIC</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RISK</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTMENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">LESS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">$5</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MILLION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTMENTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;INSTITUTIONAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR&#148;</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;SOPHISTICATED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR&#148;,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RESPECTIVELY)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(2)(i)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OWN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNT,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BANK</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(AS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEFINED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">3(a)(2)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SAVINGS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">LOAN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ASSOCIATION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OTHER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(AS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEFINED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">3(a)(5)(A)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACTING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FIDUCIARY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">CAPACITY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FIDUCIARY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(OTHER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">U.S.</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BANK</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SAVINGS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">LOAN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ASSOCIATION)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MORE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EACH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SOPHISTICATED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR;</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">QUALIFIED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BUYER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(&#147;QIB&#148;)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITHIN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MEANING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">144A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACQUIRING</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OWN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MORE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EACH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">QIB;</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACKNOWLEDGES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AWARE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SELLER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MAY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RELY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">UPON</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXEMPTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FROM</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTRATION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PROVISIONS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">5</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PROVIDED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">144A.</font><font size="1" style="font-size:9.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCEPTANCE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SHALL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ALSO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEEMED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGREE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RESALE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OTHER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TRANSFER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WILL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MADE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONLY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TRANSACTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXEMPT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FROM</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTRATION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">EITHER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ISSUER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PLACEMENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">DESIGNATED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ISSUER</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PLACEMENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(COLLECTIVELY,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;PLACEMENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENTS&#148;),</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NONE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SHALL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAVE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OBLIGATION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACQUIRE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THROUGH</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">PLACEMENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">SOPHISTICATED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">QIB,</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">QIB</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">TRANSACTION</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MEETS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">REQUIREMENTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">144A</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">MINIMUM</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">AMOUNTS</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:9.0pt;">  </font><font size="2" style="font-size:10.0pt;">$250,000.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

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<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;B</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further
Provisions Relating to Indemnification</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer agrees to reimburse each Indemnitee for all
expenses (including reasonable fees and disbursements of internal and external
counsel) as they are incurred by it in connection with investigating or
defending any loss, claim, damage, liability or action in respect of which
indemnification may be sought under Section&nbsp;5 of the Agreement (whether or
not it is a party to any such proceedings).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Promptly after receipt by an Indemnitee of notice of
the existence of a Claim, such Indemnitee will, if a claim in respect thereof
is to be made against the Issuer, notify the Issuer in writing of the existence
thereof; provided that (i)&nbsp;the omission so to notify the Issuer will not
relieve the Issuer from any liability which it may have hereunder unless and
except to the extent it did not otherwise learn of such Claim and such failure
results in the forfeiture by the Issuer of substantial rights and defenses, and
(ii)&nbsp;the omission so to notify the Issuer will not relieve it from
liability which it may have to an Indemnitee otherwise than on account of this
indemnity agreement.&#160; In case any such
Claim is made against any Indemnitee and it notifies the Issuer of the
existence thereof, the Issuer will be entitled to participate therein, and to
the extent that it may elect by written notice delivered to the Indemnitee, to
assume the defense thereof, with counsel reasonably satisfactory to such
Indemnitee; provided that if the defendants in any such Claim include both the
Indemnitee and the Issuer, and the Indemnitee shall have concluded that there
may be legal defenses available to it which are different from or additional to
those available to the Issuer, the Issuer shall not have the right to direct
the defense of such Claim on behalf of such Indemnitee, and the Indemnitee
shall have the right to select separate counsel to assert such legal defenses
on behalf of such Indemnitee.&#160; Upon
receipt of notice from the Issuer to such Indemnitee of the Issuer&#146;s election
so to assume the defense of such Claim and approval by the Indemnitee of
counsel, the Issuer will not be liable to such Indemnitee for expenses incurred
thereafter by the Indemnitee in connection with the defense thereof (other than
reasonable costs of investigation) unless (i)&nbsp;the Indemnitee shall have
employed separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence (it being understood,
however, that the Issuer shall not be liable for the expenses of more than one
separate counsel (in addition to any local counsel in the jurisdiction in which
any Claim is brought), approved by the Dealer, representing the Indemnitee who
is party to such Claim), (ii)&nbsp;the Issuer shall not have employed counsel
reasonably satisfactory to the Indemnitee to represent the Indemnitee within a
reasonable time after notice of existence of the Claim or (iii)&nbsp;the Issuer
has authorized in writing the employment of counsel for the Indemnitee.&#160; The indemnity, reimbursement and contribution
obligations of the Issuer hereunder shall be in addition to any other liability
the Issuer may otherwise have to an Indemnitee and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal
representatives of the Issuer and any Indemnitee.&#160; The Issuer agrees that without the Dealer&#146;s
prior written consent, it will not settle, compromise or consent to the entry
of any judgment in any Claim in respect of which indemnification may be sought
under the indemnification provision of the Agreement (whether or not the Dealer
or any other Indemnitee is an actual or potential party to such Claim), unless
such settlement, compromise or consent (i)&nbsp;includes an unconditional
release of each Indemnitee from all liability arising out of such Claim and (ii)&nbsp;does
not include a statement as to or an admission of fault, culpability or failure
to act, by or on behalf of any Indemnitee.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

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<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;C</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Statement
of Terms for Interest &#150; Bearing Commercial Paper Notes of Staples,&nbsp;Inc.</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO
THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC PRIVATE PLACEMENT MEMORANDUM
SUPPLEMENT (THE &#147;SUPPLEMENT&#148;) (IF ANY) SENT TO EACH PURCHASER AT THE TIME OF
THE TRANSACTION.</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160; <u>General.</u>&#160; (a)&nbsp; The obligations of the Issuer to
which these terms apply (each a &#147;Note&#148;) are represented by one or more Master
Notes (each, a &#147;Master Note&#148;) issued in the name of (or of a nominee for) The
Depository Trust Company (&#147;DTC&#148;), which Master Note includes the terms and
provisions for the Issuer&#146;s Interest-Bearing Commercial Paper Notes that are
set forth in this Statement of Terms, since this Statement of Terms constitutes
an integral part of the Underlying Records as defined and referred to in the
Master Note.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp; &#147;Business Day&#148; means any day other than a Saturday or Sunday
that is neither a legal holiday nor a day on which banking institutions are
authorized or required by law, executive order or regulation to be closed in
New York City and, with respect to LIBOR Notes (as defined below) is also a
London Business Day.&#160; &#147;London Business
Day&#148; means, a day, other than a Saturday or Sunday, on which dealings in
deposits in U.S. dollars are transacted in the London interbank market.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160; <u>Interest.</u>&#160; (a)&nbsp; Each Note will bear interest at a
fixed rate (a &#147;Fixed Rate Note&#148;) or at a floating rate (a &#147;Floating Rate Note&#148;).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp; The
Supplement sent to each holder of such Note will describe the following terms: (i)&nbsp;whether
such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is
an Original Issue Discount Note (as defined below); (ii)&nbsp;the date on which
such Note will be issued (the &#147;Issue Date&#148;); (iii)&nbsp;the Stated Maturity
Date (as defined below); (iv)&nbsp;if such Note is a Fixed Rate Note, the rate
per annum at which such Note will bear interest, if any, and the Interest
Payment Dates; (v)&nbsp;if such Note is a Floating Rate Note, the Base Rate,
the Index Maturity, the Interest Reset Dates, the Interest Payment Dates and
the Spread and/or Spread Multiplier, if any (all as defined below), and any
other terms relating to the particular method of calculating the interest rate
for such Note; and (vi)&nbsp;any other terms applicable specifically to such
Note.&#160; &#147;Original Issue Discount Note&#148;
means a Note which has a stated redemption price at the Stated Maturity Date
that exceeds its Issue Price by more than a specified de minimis amount and
which the Supplement indicates will be an &#147;Original Issue Discount Note&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&nbsp; Each
Fixed Rate Note will bear interest from its Issue Date at the rate per annum
specified in the Supplement until the principal amount thereof is paid or made
available for payment.&#160; Interest on each
Fixed Rate Note will be payable on the dates specified in the Supplement (each
an &#147;Interest Payment Date&#148; for a Fixed Rate Note) and on the Maturity Date (as
defined below).&#160; Interest on Fixed Rate
Notes will be computed on the basis of a 360-day year of twelve 30-day months.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any Interest Payment Date or the Maturity Date of a Fixed Rate Note
falls on a day that is not a Business Day, the required payment of principal,
premium, if any, and/or interest will be payable on the </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">next succeeding Business Day, and no additional interest will accrue in
respect of the payment made on that next succeeding Business Day.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp; The interest rate on each Floating Rate Note for each
Interest Reset Period (as defined below) will be determined by reference to an
interest rate basis (a &#147;Base Rate&#148;) plus or minus a number of basis points (one
basis point equals one-hundredth of a percentage point) (the &#147;Spread&#148;), if any,
and/or multiplied by a certain percentage (the &#147;Spread Multiplier&#148;), if any,
until the principal thereof is paid or made available for payment.&#160; The Supplement will designate which of the
following Base Rates is applicable to the related Floating Rate Note: (a)&nbsp;the
CD Rate (a &#147;CD Rate Note&#148;), (b)&nbsp;the Commercial Paper Rate (a &#147;Commercial
Paper Rate Note&#148;), (c)&nbsp;the Federal Funds Rate (a &#147;Federal Funds Rate Note&#148;),
(d)&nbsp;LIBOR (a &#147;LIBOR Note&#148;), (e)&nbsp;the Prime Rate (a &#147;Prime Rate Note&#148;),
(f)&nbsp;the Treasury Rate (a &#147;Treasury Rate Note&#148;) or (g)&nbsp;such other Base
Rate as may be specified in such Supplement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rate of interest on each Floating Rate Note will be reset daily,
weekly, monthly, quarterly or semi-annually (the &#147;Interest Reset Period&#148;).&#160; The date or dates on which interest will be
reset (each an &#147;Interest Reset Date&#148;) will be, unless otherwise specified in
the Supplement, in the case of Floating Rate Notes which reset daily, each
Business Day, in the case of Floating Rate Notes (other than Treasury Rate
Notes) that reset weekly, the Wednesday of each week; in the case of Treasury
Rate Notes that reset weekly, the Tuesday of each week; in the case of Floating
Rate Notes that reset monthly, the third Wednesday of each month; in the case
of Floating Rate Notes that reset quarterly, the third Wednesday of March,
June, September&nbsp;and December; and in the case of Floating Rate Notes that
reset semiannually, the third Wednesday of the two months specified in the
Supplement.&#160; If any Interest Reset Date
for any Floating Rate Note is not a Business Day, such Interest Reset Date will
be postponed to the next day that is a Business Day, except that in the case of
a LIBOR Note, if such Business Day is in the next succeeding calendar month,
such Interest Reset Date shall be the immediately preceding Business Day.
Interest on each Floating Rate Note will be payable monthly, quarterly or
semiannually (the &#147;Interest Payment Period&#148;) and on the Maturity Date.&#160; Unless otherwise specified in the Supplement,
and except as provided below, the date or dates on which interest will be
payable (each an &#147;Interest Payment Date&#148; for a Floating Rate Note) will be, in
the case of Floating Rate Notes with a monthly Interest Payment Period, on the
third Wednesday of each month; in the case of Floating Rate Notes with a
quarterly Interest Payment Period, on the third Wednesday of March, June, September&nbsp;and
December; and in the case of Floating Rate Notes with a semiannual Interest
Payment Period, on the third Wednesday of the two months specified in the
Supplement.&#160; In addition, the Maturity
Date will also be an Interest Payment Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any Interest Payment Date for any Floating Rate Note (other than an
Interest Payment Date occurring on the Maturity Date) would otherwise be a day
that is not a Business Day, such Interest Payment Date shall be postponed to
the next day that is a Business Day, except that in the case of a LIBOR Note,
if such Business Day is in the next succeeding calendar month, such Interest
Payment Date shall be the immediately preceding Business Day.&#160; If the Maturity Date of a Floating Rate Note
falls on a day that is not a Business Day, the payment of principal and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after such maturity.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest payments on each Interest Payment Date for Floating Rate Notes
will include accrued interest from and including the Issue Date or from and
including the last date in respect of which interest has been paid, as the case
may be, to, but excluding, such Interest Payment Date.&#160; On the Maturity Date, the interest payable on
a Floating Rate Note will include interest accrued to, but excluding, the
Maturity Date.&#160; Accrued interest will be
calculated by multiplying the principal amount of a Floating Rate Note by an
accrued interest factor.&#160; This accrued
interest factor will be computed by adding the interest factors </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">calculated for each day in the period for which accrued interest is
being calculated.&#160; The interest factor
(expressed as a decimal) for each such day will be computed by dividing the
interest rate applicable to such day by 360, in the cases where the Base Rate
is the CD Rate, Commercial Paper Rate, Federal Funds Rate, LIBOR or Prime Rate,
or by the actual number of days in the year, in the case where the Base Rate is
the Treasury Rate.&#160; The interest rate in
effect on each day will be (i)&nbsp;if such day is an Interest Reset Date, the
interest rate with respect to the Interest Determination Date (as defined
below) pertaining to such Interest Reset Date, or (ii)&nbsp;if such day is not
an Interest Reset Date, the interest rate with respect to the Interest
Determination Date pertaining to the next preceding Interest Reset Date,
subject in either case to any adjustment by a Spread and/or a Spread
Multiplier.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Interest Determination Date&#148; where the Base Rate is the CD Rate or
the Commercial Paper Rate will be the second Business Day next preceding an
Interest Reset Date.&#160; The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime
Rate will be the Business Day next preceding an Interest Reset Date.&#160; The Interest Determination Date where the
Base Rate is LIBOR will be the second London Business Day next preceding an Interest
Reset Date.&#160; The Interest Determination
Date where the Base Rate is the Treasury Rate will be the day of the week in
which such Interest Reset Date falls when Treasury Bills are normally
auctioned.&#160; Treasury Bills are normally
sold at auction on Monday of each week, unless that day is a legal holiday, in
which case the auction is held on the following Tuesday or the preceding
Friday.&#160; If an auction is so held on the
preceding Friday, such Friday will be the Interest Determination Date
pertaining to the Interest Reset Date occurring in the next succeeding week.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Index Maturity&#148; is the period to maturity of the instrument or
obligation from which the applicable Base Rate is calculated.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Calculation Date,&#148; where applicable, shall be the earlier of (i)&nbsp;the
tenth calendar day following the applicable Interest Determination Date or (ii)&nbsp;the
Business Day preceding the applicable Interest Payment Date or Maturity Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All times referred to herein reflect New York City time, unless
otherwise specified.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Issuer shall specify in writing to the Issuing and Paying Agent
which party will be the calculation agent (the &#147;Calculation Agent&#148;) with
respect to the Floating Rate Notes.&#160; The
Calculation Agent will provide the interest rate then in effect and, if
determined, the interest rate which will become effective on the next Interest
Reset Date with respect to such Floating Rate Note to the Issuing and Paying
Agent as soon as the interest rate with respect to such Floating Rate Note has
been determined and as soon as practicable after any change in such interest
rate.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All percentages resulting from any calculation on Floating Rate Notes
will be rounded to the nearest one hundred-thousandth of a percentage point,
with five-one millionths of a percentage point rounded upwards.&#160; For example, 9.876545% (or .09876545) would
be rounded to 9.87655% (or .0987655).&#160;
All dollar amounts used in or resulting from any calculation on Floating
Rate Notes will be rounded, in the case of U.S. dollars, to the nearest cent
or, in the case of a foreign currency, to the nearest unit (with one-half cent
or unit being rounded upwards).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">CD Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CD Rate&#148; means
the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the
Federal Reserve System </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(the &#147;FRB&#148;) in &#147;Statistical
Release H.15(519), Selected Interest Rates&#148; or any successor publication of the
FRB (&#147;H.15(519)&#148;) under the heading &#147;CDs (Secondary Market)&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate
is not published in H.15(519) by 3:00&nbsp;p.m. on the Calculation Date, the CD
Rate will be the rate on such Interest Determination Date set forth in the
daily update of H.15(519), available through the world wide website of the FRB
at http://www.federalreserve.gov/releases/h15/Update, or any successor site or
publication or other recognized electronic source used for the purpose of
displaying the applicable rate (&#147;H.15 Daily Update&#148;) under the caption &#147;CDs
(Secondary Market)&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If such rate is
not published in either H.15(519) or H.15 Daily Update by 3:00&nbsp;p.m. on the
Calculation Date, the Calculation Agent will determine the CD Rate to be the
arithmetic mean of the secondary market offered rates as of 10:00&nbsp;a.m. on
such Interest Determination Date of three leading nonbank dealers(2)&nbsp; in
negotiable U.S. dollar certificates of deposit in New York City selected by the
Calculation Agent for negotiable U.S. dollar certificates of deposit of major
United States money center banks of the highest credit standing in the market
for negotiable certificates of deposit with a remaining maturity closest to the
Index Maturity in the denomination of $5,000,000.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the dealers
selected by the Calculation Agent are not quoting as set forth above, the CD
Rate will remain the CD Rate then in effect on such Interest Determination
Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Commercial Paper Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Commercial Paper
Rate&#148; means the Money Market Yield (calculated as described below) of the rate
on any Interest Determination Date for commercial paper having the Index
Maturity, as published in H.15(519) under the heading &#147;Commercial
Paper-Nonfinancial&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate
is not published in H.15(519) by 3:00&nbsp;p.m. on the Calculation Date, then
the Commercial Paper Rate will be the Money Market Yield of the rate on such
Interest Determination Date for commercial paper of the Index Maturity as
published in H.15 Daily Update under the heading &#147;Commercial Paper-Nonfinancial&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If by 3:00&nbsp;p.m.
on such Calculation Date such rate is not published in either H.15(519) or H.15
Daily Update, then the Calculation Agent will determine the Commercial Paper
Rate to be the Money Market Yield of the arithmetic mean of the offered rates
as of 11:00&nbsp;a.m. on such Interest Determination Date of three leading
dealers of U.S. dollar commercial paper in New York City selected by the
Calculation Agent for commercial paper of the Index Maturity placed for an
industrial issuer whose bond rating is &#147;AA,&#148; or the equivalent, from a
nationally recognized statistical rating organization.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the dealers
selected by the Calculation Agent are not quoting as mentioned above, the
Commercial Paper Rate with respect to such Interest Determination Date will
remain the Commercial Paper Rate then in effect on such Interest Determination
Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Money Market
Yield&#148; will be a yield calculated in accordance with the following formula:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;margin-left:17.8pt;width:96.72%;">
 <tr>
  <td width="19%" rowspan="2" style="padding:0in .7pt 0in .7pt;width:19.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Money
  Market Yield =</font></p>
  </td>
  <td width="27%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:27.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D x 360</font></p>
  </td>
  <td width="21%" rowspan="2" style="padding:0in .7pt 0.375pt .7pt;width:21.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x
  100</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">360 - (D x M)</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&nbsp;&#160; Such nonbank dealers
referred to in this Statement of Terms may include affiliates of the Dealer.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">where &#147;D&#148; refers
to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and &#147;M&#148; refers to the actual number of days in
the interest period for which interest is being calculated.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Federal Funds Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Federal
Funds Rate&#148; means the rate on any Interest Determination Date for Federal Funds
as published in Reuters (or any successor service) on page&nbsp;FEDFUNDS1 under
the heading &#147;EFFECT&#148; (or any other page&nbsp;as may replace the specified page&nbsp;on
that service) (&#147;Reuters Page&nbsp;FEDFUNDS1&#148;).</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate does not
appear on Reuters Page&nbsp;FEDFUNDS1 or is not so published by 3:00&nbsp;p.m.
on the Calculation Date, the Federal Funds Rate will be the rate on such
Interest Determination Date as published in H.15 Daily Update under the heading
&#147;Federal Funds/(Effective)&#148;.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If such rate is
not published as described above by 3:00&nbsp;p.m. on the Calculation Date, the
Calculation Agent will determine the Federal Funds Rate to be the arithmetic
mean of the rates for the last transaction in overnight U.S. dollar federal
funds arranged by each of three leading brokers of Federal Funds transactions
in New York City selected by the Calculation Agent prior to 9:00&nbsp;a.m. on
such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the brokers
selected by the Calculation Agent are not quoting as mentioned above, the
Federal Funds Rate will remain the Federal Funds Rate then in effect on such
Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">LIBOR Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The London
Interbank offered rate (&#147;LIBOR&#148;) means, with respect to any Interest
Determination Date, the rate for deposits in U.S. dollars having the Index
Maturity that appears on the Designated LIBOR Page&nbsp;as of 11:00&nbsp;a.m.,
London time, on such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If no rate
appears, LIBOR will be determined on the basis of the rates at approximately
11:00&nbsp;a.m., London time, on such Interest Determination Date at which
deposits in U.S. dollars are offered to prime banks in the London interbank
market by four major banks in such market selected by the Calculation Agent for
a term equal to the Index Maturity and in principal amount equal to an amount
that in the Calculation Agent&#146;s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a &#147;Representative
Amount&#148;).&#160; The Calculation Agent will
request the principal London office of each of such banks to provide a
quotation of its rate.&#160; If at least two
such quotations are provided, LIBOR will be the arithmetic mean of such
quotations.&#160; If fewer than two quotations
are provided, LIBOR for such interest period will be the arithmetic mean of the
rates quoted at approximately 11:00&nbsp;a.m., in New York City, on such
Interest Determination Date by three major banks in New York City, selected by
the Calculation Agent, for loans in U.S. dollars to leading European banks, for
a term equal to the Index Maturity and in a Representative Amount; provided,
however, that if fewer than three banks so selected by the Calculation Agent
are providing such quotations, the then existing LIBOR rate will remain in
effect for such Interest Payment Period.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Designated
LIBOR Page&#148; means Reuters Screen LIBOR01 Page&nbsp;or any replacement page&nbsp;or
pages&nbsp;on which London interbank rates of major banks for the Index
Currency are displayed.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Prime Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Prime Rate&#148; means
the rate on any Interest Determination Date as published in H.15(519) under the
heading &#147;Bank Prime Loan&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate
is not published in H.15(519) prior to 3:00&nbsp;p.m. on the Calculation Date,
then the Prime Rate will be the rate on such Interest Determination Date as
published in H.15 Daily Update opposite the caption &#147;Bank Prime Loan&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the rate is not
published prior to 3:00&nbsp;p.m. on the Calculation Date in either H.15(519)
or H.15 Daily Update, then the Calculation Agent will determine the Prime Rate
to be the arithmetic mean of the rates of interest publicly announced by each
bank that appears on the Reuters Screen US PRIME1 Page&nbsp;(as defined below)
as such bank&#146;s prime rate or base lending rate as of 11:00&nbsp;a.m., on that
Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If fewer than four
such rates referred to above are so published by 3:00&nbsp;p.m. on the
Calculation Date, the Calculation Agent will determine the Prime Rate to be the
arithmetic mean of the prime rates or base lending rates quoted on the basis of
the actual number of days in the year divided by 360 as of the close of
business on such Interest Determination Date by three major banks in New York
City selected by the Calculation Agent.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the banks
selected are not quoting as mentioned above, the Prime Rate will remain the
Prime Rate in effect on such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Reuters Screen US Prime1
Page&#148; means the display designated as page&nbsp;&#147;USPrime1&#148; of the Reuters
Service, or any successor service, or any replacement page&nbsp;or pages&nbsp;on
that service, for the purpose of displaying prime rates or base lending rates
of major U.S. banks.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Treasury Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Treasury Rate&#148; means:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&nbsp;the
rate from the auction held on the Interest Determination Date (the &#147;Auction&#148;)
of direct obligations of the United States (&#147;Treasury Bills&#148;) having the Index
Maturity specified in the applicable pricing supplement above under the caption
&#147;INVESTMENT RATE&#148;, as that rate appears on Reuters Screen USAUCTION10 or
USAUCTION11 Page&nbsp;under the heading &#147;Investment Rate&#148; (or any other page&nbsp;as
may replace the specified page&nbsp;on that service or a successor service).</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;(2)&nbsp;if the rate referred to in clause (1)&nbsp;is
not so published by 3:00&nbsp;p.m. on the related Calculation Date, the Bond
Equivalent Yield (as defined below) of the rate for the applicable Treasury
Bills as published in H.15 Daily Update, under the caption &#147;U.S. Government
Securities/Treasury Bills/Auction High&#148;, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&nbsp;if the
rate referred to in clause (2)&nbsp;is not so published by 3:00&nbsp;p.m. on
the related Calculation Date, the Bond Equivalent Yield of the auction rate of
the applicable Treasury Bills as announced by the United States Department of
the Treasury, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)&nbsp;if the rate
referred to in clause (3)&nbsp;is not so announced by the United States
Department of the Treasury, or if the&#160;
Auction is not held, the Bond Equivalent Yield of the rate on the
particular Interest </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Determination Date
of the applicable Treasury Bills as published in H.15(519) under the caption &#147;U.S.
Government Securities/Treasury Bills/Secondary Market&#148;, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)&nbsp;if the
rate referred to in clause (4)&nbsp;not so published by 3:00&nbsp;p.m. on the
related Calculation Date, the rate on the particular Interest Determination
Date of the applicable Treasury Bills as published in H.15 Daily Update, under
the caption &#147;U.S. Government Securities/Treasury Bills/Secondary Market&#148;, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)&nbsp;if the
rate referred to in clause (5)&nbsp;is not so published by 3:00&nbsp;p.m. on
the related Calculation Date, the rate on the particular Interest Determination
Date calculated by the Calculation Agent as the Bond Equivalent Yield of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30&nbsp;p.m.
on that Interest Determination Date, of three primary United States government
securities dealers selected by the Calculation Agent, for the issue of Treasury
Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7)&nbsp;if the dealers so selected by the Calculation Agent are not
quoting as mentioned in clause (6), the Treasury Rate in effect on the
particular Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Bond Equivalent Yield&#148; means a yield
(expressed as a percentage) calculated in accordance with the following
formula:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;margin-left:.7pt;width:100.0%;">
 <tr>
  <td width="19%" rowspan="2" style="padding:0in .7pt 0in .7pt;width:19.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bond
  Equivalent Yield &nbsp;=</font></p>
  </td>
  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:23.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D x N</font></p>
  </td>
  <td width="25%" rowspan="2" style="padding:0in .7pt 0.375pt .7pt;width:25.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x
  100</font></p>
  </td>
  <td width="30%" valign="top" style="padding:0in .7pt 0in .7pt;width:30.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="23%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:23.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">360 - (D x M)</font></p>
  </td>
  <td width="30%" valign="top" style="padding:0in .7pt 0in .7pt;width:30.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">where &#147;D&#148; refers
to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis and expressed as a decimal, &#147;N&#148; refers to 365 or 366, as the case may be,
and &#147;M&#148; refers to the actual number of days in the applicable Interest Reset
Period.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Final Maturity.</font></u><font size="2" style="font-size:10.0pt;">&#160;
The Stated Maturity Date for any Note will be the date so specified in
the Supplement, which shall be no later than 397 days from the date of
issuance.&#160; On its Stated Maturity Date,
or any date prior to the Stated Maturity Date on which the particular Note
becomes due and payable by the declaration of acceleration, each such date being
referred to as a Maturity Date, the principal amount of each Note, together
with accrued and unpaid interest thereon, will be immediately due and payable.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><u><font size="2" style="font-size:10.0pt;">Events of Default.</font></u><font size="2" style="font-size:10.0pt;">&#160;
The occurrence of any of the following shall constitute an &#147;Event of
Default&#148; with respect to a Note:&#160; (i)&nbsp;default
in any payment of principal of or interest on such Note (including on a
redemption thereof); (ii)&nbsp;the Issuer makes any compromise arrangement with
its creditors generally including the entering into any form of moratorium with
its creditors generally; (iii)&nbsp;a court having jurisdiction shall enter a
decree or order for relief in respect of the Issuer in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or there shall be appointed a receiver, administrator,
liquidator, custodian, trustee or sequestrator (or similar officer) with
respect to the whole or substantially the whole of the assets of the Issuer and
any such decree, order or appointment is not removed, discharged or withdrawn
within 60 days thereafter; or (iv)&nbsp;the Issuer shall commence a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or consent to the entry of an order for relief in an
involuntary case under any such law, or consent to the appointment of or taking
possession by a receiver, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">administrator,
liquidator, assignee, custodian, trustee or sequestrator (or similar official),
with respect to the whole or substantially the whole of the assets of the
Issuer or make any general assignment for the benefit of creditors.&#160; Upon the occurrence of an Event of Default,
the principal of each obligation evidenced by such Note (together with interest
accrued and unpaid thereon) shall become, without any notice or demand,
immediately due and payable.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160; <u>Obligation Absolute.</u>&#160; No provision of the Issuing and Paying Agency
Agreement under which the Notes are issued shall alter or impair the obligation
of the Issuer, which is absolute and unconditional, to pay the principal of and
interest on each Note at the times, place and rate, and in the coin or
currency, herein prescribed.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160; <u>Supplement</u>.&#160; Any term contained in the Supplement shall
supercede any conflicting term contained herein.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;10.2</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMMERCIAL
PAPER DEALER AGREEMENT<br>
4(2)&nbsp;PROGRAM</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">between</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">STAPLES,
INC., as Issuer</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">and</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BANC OF
AMERICA SECURITIES LLC, as Dealer</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 1.0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Concerning Notes to be issued pursuant to an
Issuing and Paying Agency Agreement dated as of June&nbsp;9, 2008 between the
Issuer and LaSalle Bank, as Issuing and Paying Agent</font></b></p>

<p align="left" style="margin:0in 1.0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Dated as
of</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">June&nbsp;9,
2008</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commercial Paper Dealer
Agreement</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">4(2)&nbsp;Program</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This agreement (as amended, supplemented or otherwise modified and in
effect from time to time, the &#147;Agreement&#148;) sets forth the understandings
between the Issuer and the Dealer, each named on the cover page&nbsp;hereof, in
connection with the issuance and sale by the Issuer of its short-term
promissory notes (the &#147;Notes&#148;) through the Dealer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain terms used in this Agreement are defined in Section&nbsp;6
hereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Addendum to this Agreement, and any Annexes or Exhibits described
in this Agreement or such Addendum, are hereby incorporated into this Agreement
and made fully a part hereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Offers, Sales and Resales of
Notes.</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">While (i)&nbsp;the Issuer has and shall
have no obligation to sell the Notes to the Dealer or to permit the Dealer to
arrange any sale of the Notes for the account of the Issuer, and (ii)&nbsp;the
Dealer has and shall have no obligation to purchase the Notes from the Issuer
or to arrange any sale of the Notes for the account of the Issuer, the parties
hereto agree that in any case where the Dealer purchases Notes from the Issuer,
or arranges for the sale of Notes by the Issuer, such Notes will be purchased
or sold by the Dealer in reliance on the representations, warranties, covenants
and agreements of the Issuer contained herein or made pursuant hereto and on
the terms and conditions and in the manner provided herein.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">So long as this Agreement shall remain in effect, and
in addition to the limitations contained in Section&nbsp;1.7 hereof, the Issuer
shall not, without the consent of the Dealer, offer, solicit or accept offers
to purchase, or sell, any Notes except (a)&nbsp;in transactions with one or
more dealers which may from time to time after the date hereof become dealers
with respect to the Notes by executing with the Issuer one or more agreements
which contain provisions substantially identical to those contained in Section&nbsp;1
of this Agreement, of which the Issuer hereby undertakes to provide the Dealer
prompt notice or (b)&nbsp;in transactions with the other dealers listed on the
Addendum hereto, which are executing agreements with the Issuer which contain
provisions substantially identical to Section&nbsp;1 of this Agreement
contemporaneously herewith.&#160; In no event
shall the Issuer offer, solicit or accept offers to purchase, or sell, any
Notes directly on its own behalf in transactions with persons other than
broker-dealers as specifically permitted in this Section&nbsp;1.2.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Notes shall be in a minimum denomination of
$250,000 or integral multiples of $1,000 in excess thereof, will bear such
interest rates, if interest bearing, or will be sold at such discount from
their face amounts, as shall be agreed upon by the Dealer and the Issuer, shall
have a maturity not exceeding 397 days from the date of issuance and may have
such terms as are specified in Exhibit&nbsp;C hereto or the Private Placement
Memorandum.&#160; The Notes shall not contain
any provision for extension, renewal or automatic &#147;rollover.&#148;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The authentication and issuance of, and payment for,
the Notes shall be effected in accordance with the Issuing and Paying Agency
Agreement, and the Notes shall be either individual physical certificates or
book-entry notes evidenced by one or more master notes (each, a &#147;Master Note&#148;)
registered in the name of The Depository Trust Company (&#147;DTC&#148;) or its nominee,
in the form or forms annexed to the Issuing and Paying Agency Agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If the Issuer and the Dealer shall agree on the terms
of the purchase of any Note by the Dealer or the sale of any Note arranged by
the Dealer (including, but not limited to, agreement with respect to the date
of issue, purchase price, principal amount, maturity and interest rate or
interest rate index and margin (in the case of interest-bearing Notes) or
discount thereof (in the case of Notes issued on a discount basis), and
appropriate compensation for the Dealer&#146;s services hereunder) pursuant to this
Agreement, the Issuer shall cause such Note to be issued and delivered in
accordance with the terms of the Issuing and Paying Agency Agreement and
payment for such Note shall be made by the purchaser thereof, either directly
or through the Dealer, to the Issuing and Paying Agent, for the account of the
Issuer.&#160; Except as otherwise agreed, in
the event that the Dealer is acting as an agent and a purchaser shall either
fail to accept delivery of or make payment for a Note on the date fixed for settlement,
the Dealer shall promptly notify the Issuer, and if the Dealer has theretofore
paid the Issuer for the Note, the Issuer will promptly return such funds to the
Dealer against its return of the Note to the Issuer, in the case of a
certificated Note, and upon notice of such failure in the case of a book-entry
Note.&#160; If such failure occurred for any
reason other than default by the Dealer, the Issuer shall reimburse the Dealer
on an equitable basis for the Dealer&#146;s loss of the use of such funds for the
period such funds were credited to the Issuer&#146;s account.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">All offers and sales of the Notes by the Issuer shall
be effected pursuant to the exemption from the registration requirements of the
Securities Act provided by Section&nbsp;4(2)&nbsp;thereof, which exempts
transactions by an issuer not involving any public offering.&#160; The Dealer and the Issuer hereby establish
and agree to observe the following procedures in connection with offers, sales
and subsequent resales or other transfers of the Notes:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Offers and sales of the Notes by or
through the Dealer shall be made only to: (i)&nbsp;investors reasonably
believed by the Dealer to be Qualified Institutional Buyers, Institutional
Accredited Investors or Sophisticated Individual Accredited Investors and (ii)&nbsp;non-bank
fiduciaries or agents that will be purchasing Notes for one or more accounts,
each of which is reasonably believed by the Dealer to be an Institutional
Accredited Investor or Sophisticated Individual Accredited Investor.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Resales and other transfers of the Notes
by the holders thereof shall be made only in accordance with the restrictions
in the legend described in clause (e)&nbsp;below.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No general solicitation or general
advertising shall be used in connection with the offering of the Notes.&#160; Without limiting the generality of the
foregoing, without the prior written approval of the Dealer, the Issuer shall
not issue any press release or place or publish any &#147;tombstone&#148; or other
advertisement relating to the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">No sale of Notes to any one purchaser
shall be for less than $250,000 principal or face amount, and no Note shall be
issued in a smaller principal or face amount.&#160;
If the purchaser is a non-bank fiduciary acting on behalf of others,
each person for whom such purchaser is acting must purchase at least $250,000
principal or face amount of Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Offers and sales of the Notes by the
Issuer through the Dealer acting as agent for the Issuer shall be made in
accordance with Rule&nbsp;506 under the Securities Act, and shall be subject to
the restrictions described in the legend appearing on Exhibit&nbsp;A
hereto.&#160; A legend substantially to the
effect of such Exhibit&nbsp;A shall appear as part of the Private Placement </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .9in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Memorandum used in connection with offers and sales of Notes hereunder,
as well as on each individual certificate representing a Note and each Master
Note representing book-entry Notes offered and sold pursuant to this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Dealer shall furnish or shall have
furnished to each purchaser of Notes for which it has acted as the Dealer a
copy of the then-current Private Placement Memorandum unless such purchaser has
previously received a copy of the Private Placement Memorandum as then in
effect.&#160; The Private Placement Memorandum
shall expressly state that any person to whom Notes are offered shall have an
opportunity to ask questions of, and receive information from, the Issuer and
the Dealer and shall provide the names, addresses and telephone numbers of the
persons from whom information regarding the Issuer may be obtained.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer agrees, for the benefit of the
Dealer and each of the holders and prospective purchasers from time to time of
the Notes that, if at any time the Issuer shall not be subject to Section&nbsp;13
or 15(d)&nbsp;of the Exchange Act, the Issuer will furnish, upon request and at
its expense, to the Dealer and to holders and prospective purchasers of Notes
information required by Rule&nbsp;144A(d)(4)(i)&nbsp;in compliance with Rule&nbsp;144A(d).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event that any Note offered or to
be offered by the Dealer would be ineligible for resale under Rule&nbsp;144A,
the Issuer shall immediately notify the Dealer (by telephone, confirmed in
writing) of such fact and shall promptly prepare and deliver to the Dealer an
amendment or supplement to the Private Placement Memorandum describing the
Notes that are ineligible, the reason for such ineligibility and any other
relevant information relating thereto.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer represents that it is not
currently issuing commercial paper in the United States market in reliance upon
the exemption provided by Section&nbsp;3(a)(3)&nbsp;of the Securities Act.&#160; The Issuer agrees that, if it shall issue
commercial paper after the date hereof in reliance upon such exemption (a)&nbsp;the
proceeds from the sale of the Notes will be segregated from the proceeds of the
sale of any such commercial paper by being placed in a separate account; (b)&nbsp;the
Issuer will institute appropriate corporate procedures to ensure that the
offers and sales of notes issued by the Issuer pursuant to the Section&nbsp;3(a)(3)&nbsp;exemption
are not integrated with offerings and sales of Notes hereunder; and (c)&nbsp;the
Issuer will comply with each of the requirements of Section&nbsp;3(a)(3)&nbsp;of
the Securities Act in selling commercial paper or other short-term debt
securities other than the Notes in the United States.&#160; The Dealer agrees with the Issuer not to
offer or sell any Notes in a manner that might call into question the
availability of the private offering exemption contained in Section&nbsp;4(2)&nbsp;of
the Securities Act and Rule&nbsp;144A thereunder, it being agreed that the
foregoing procedures do not call into question the availability of such
exemption.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer hereby represents and warrants
to the Dealer, in connection with offers, sales and resales of Notes, as
follows:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer hereby confirms to the Dealer
that (except as permitted by Section&nbsp;1.6(i)) within the preceding six
months neither the Issuer nor any person other than the Dealer or the other
dealers referred to in Section&nbsp;1.2 hereof acting on behalf of the Issuer
has offered or sold any Notes, or any substantially similar security of the
Issuer (including, without limitation, medium-term notes issued by the Issuer),
to, or solicited offers to buy any such security from, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any person other than the Dealer or the other dealers referred to in Section&nbsp;1.2
hereof.&#160; The Issuer also agrees that
(except as permitted by Section&nbsp;1.6(i)), as long as the Notes are being
offered for sale by the Dealer and the other dealers referred to in Section&nbsp;1.2
hereof as contemplated hereby and until at least six months after the offer of
Notes hereunder has been terminated, neither the Issuer nor any person other
than the Dealer or the other dealers referred to in Section&nbsp;1.2 hereof
(except as contemplated by Section&nbsp;1.2 hereof) will offer the Notes or any
substantially similar security of the Issuer for sale to, or solicit offers to
buy any such security from, any person other than the Dealer or the other
dealers referred to in Section&nbsp;1.2 hereof, it being understood that such
agreement is made with a view to bringing the offer and sale of the Notes
within the exemption provided by Section&nbsp;4(2)&nbsp;of the Securities Act
and Rule&nbsp;506 thereunder and shall survive any termination of this
Agreement.&#160; The Issuer hereby represents
and warrants that it has not taken or omitted to take, and will not take or
omit to take, any action that would cause the offering and sale of Notes
hereunder to be integrated with any other offering of securities, whether such
offering is made by the Issuer or some other party or parties, under
circumstances that would cause the offering and sale of the Notes by the Issuer
to fail to be exempt under Section&nbsp;4(2)&nbsp;of the Securities Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer represents and agrees that the
proceeds of the sale of the Notes are not currently contemplated to be used for
the purpose of buying, carrying or trading securities within the meaning of
Regulation T and the interpretations thereunder by the Board of Governors of
the Federal Reserve System.&#160; In the event
that the Issuer determines to use proceeds from the sale of the Notes for the
purpose of buying, carrying or trading securities, whether in connection with
an acquisition of another company or otherwise, the Issuer shall give the
Dealer at least three business days&#146; prior written notice to that effect.&#160; The Issuer shall also give the Dealer prompt
notice of the actual date that it commences to purchase securities with the
proceeds of the Notes.&#160; Thereafter, in the
event that the Dealer purchases Notes as principal and does not resell such
Notes on the day of such purchase, to the extent necessary to comply with
Regulation T and the interpretations thereunder, the Dealer will sell such
Notes either (i)&nbsp;only to offerees it reasonably believes to be Qualified
Institutional Buyers or to Qualified Institutional Buyers it reasonably
believes are acting for other Qualified Institutional Buyers, in each case in
accordance with Rule&nbsp;144A or (ii)&nbsp;in a manner which would not cause a
violation of Regulation T and the interpretations thereunder.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Representations and
Warranties of Issuer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Issuer represents and warrants that:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all the requisite power and authority
to execute, deliver and perform its obligations under the Notes, this Agreement
and the Issuing and Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement and the Issuing and Paying
Agency Agreement have been duly authorized, executed and delivered by the
Issuer and constitute legal, valid and binding obligations of the Issuer
enforceable against the Issuer in accordance with their terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors&#146; rights
generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Notes have been duly authorized, and
when issued as provided in the Issuing and Paying Agency Agreement, will be
duly and validly issued and will constitute legal, valid and binding
obligations of the Issuer enforceable against the Issuer in accordance with
their terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors&#146; rights generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assuming compliance by the Dealer with
the procedures applicable to it set forth in Section&nbsp;1 hereof, the offer
and sale of the Notes in the manner contemplated hereby do not require
registration of the Notes under the Securities Act, pursuant to the exemption
from registration contained in Section&nbsp;4(2)&nbsp;thereof, and no indenture
in respect of the Notes is required to be qualified under the Trust Indenture
Act of 1939, as amended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Notes will rank at least pari passu with
all other unsecured and unsubordinated indebtedness of the Issuer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">2.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Assuming
compliance by the Dealer with the procedures applicable to it set forth in Section&nbsp;1
hereof, no consent or action of, or filing or registration with, any
governmental or public regulatory body or authority, including the SEC, is
required to authorize, or is otherwise required in connection with the
execution, delivery or performance of, this Agreement, the Notes or the Issuing
and Paying Agency Agreement, except as may be required by the securities or
Blue Sky laws of the various states in connection with the offer and sale of
the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Neither the execution and delivery of
this Agreement and the Issuing and Paying Agency Agreement, nor the issuance of
the Notes in accordance with the Issuing and Paying Agency Agreement, nor the
fulfillment of or compliance with the terms and provisions hereof or thereof by
the Issuer, will (i)&nbsp;result in the creation or imposition of any mortgage,
lien, charge or encumbrance of any nature whatsoever upon any of the properties
or assets of the Issuer, or (ii)&nbsp;violate or result in a breach or a
default under any of the terms of the Issuer&#146;s charter documents or by-laws,
any contract or instrument to which the Issuer is a party or by which it or its
property is bound, or any law or regulation, or any order, writ, injunction or
decree of any court or government instrumentality, to which the Issuer is
subject or by which it or its property is bound, which breach or default might
have a material adverse effect on the financial condition or operations of the
Issuer and its subsidiaries taken as a whole or the ability of the Issuer to
perform its obligations under this Agreement, the Notes or the Issuing and
Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.8</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Except as disclosed in the Company
Information, there is no litigation or governmental proceeding pending, or to
the knowledge of the Issuer threatened, against or affecting the Issuer or any
of its subsidiaries which might reasonably be expected to result in a material
adverse change in the financial condition or operations of the Issuer and its
subsidiaries taken as a whole or the ability of the Issuer to perform its
obligations under this Agreement, the Notes or the Issuing and Paying Agency
Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.9</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer is not an &#147;investment company&#148;
within the meaning of the Investment Company Act of 1940, as amended</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.10</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Neither the Private Placement Memorandum
nor the Company Information contains any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.11</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Each (a)&nbsp;issuance of Notes by the
Issuer hereunder and (b)&nbsp;amendment or supplement of the Private Placement
Memorandum shall be deemed a representation and warranty by the Issuer to the
Dealer, as of the date thereof, that, both before and after giving effect to
such issuance and after giving effect to such amendment or supplement, (i)&nbsp;the
representations and warranties given by the Issuer set forth in this Section&nbsp;2
remain true and correct in all material respects on and as of such date as if
made on and as of such date, (ii)&nbsp;in the case of an issuance of Notes, the
Notes being issued on such date have been duly and validly issued and
constitute legal, valid and binding obligations of the Issuer, enforceable
against the Issuer in accordance with their terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors&#146; rights generally
and subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law), (iii)&nbsp;in
the case of an issuance of Notes, since the date of the most recent Private
Placement Memorandum, there has been no material adverse change in the
financial condition or operations of the Issuer and its subsidiaries taken as a
whole which has not been disclosed to the Dealer in writing and (iv)&nbsp;the
Issuer is not in default of any of its obligations hereunder, under the Notes
or the Issuing and Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Covenants and Agreements of
Issuer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Issuer covenants and agrees that:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will give the Dealer prompt
notice (but in any event prior to any subsequent issuance of Notes hereunder)
of any amendment to, modification of or waiver with respect to, the Notes or
the Issuing and Paying Agency Agreement, including a complete copy of any such
amendment, modification or waiver.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall, whenever there shall
occur any change in the financial condition or operations of the Issuer and its
subsidiaries taken as a whole or any development or occurrence in relation to
the Issuer that would have a material adverse effect on holders of the Notes or
potential holders of the Notes (including any downgrading or receipt of any
notice of intended downgrading in the rating accorded any of the Issuer&#146;s
securities by any nationally recognized statistical rating organization which
has published a rating of the Notes), promptly, and in any event prior to any
subsequent issuance of Notes hereunder, notify the Dealer (by telephone,
confirmed in writing) of such change, development or occurrence.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall from time to time
furnish to the Dealer such information as the Dealer may reasonably request,
including, without limitation, any press releases or material provided by the
Issuer to any national securities exchange or rating agency, regarding (i)&nbsp;the
Issuer&#146;s operations and financial condition, (ii)&nbsp;the due authorization
and execution of the Notes and (iii)&nbsp;the Issuer&#146;s ability to pay the Notes
as they mature.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will take all such action as
the Dealer may reasonably request to ensure that each offer and each sale of
the Notes will comply with any applicable state Blue Sky laws; provided, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">however, that the Issuer shall not be obligated to file any general
consent to service of process or to qualify as a foreign corporation in any
jurisdiction in which it is not so qualified or subject itself to taxation in
respect of doing business in any jurisdiction in which it is not otherwise so
subject.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will not be in default of any
of its obligations hereunder, under the Notes or under the Issuing and Paying
Agency Agreement, at any time that any of the Notes are outstanding.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall not issue Notes
hereunder until the Dealer shall have received (a)&nbsp;an opinion of counsel
to the Issuer, addressed to the Dealer, satisfactory in form and substance to
the Dealer, (b)&nbsp;a copy of the executed Issuing and Paying Agency Agreement
as then in effect, (c)&nbsp;a copy of resolutions adopted by the Board of
Directors of the Issuer, satisfactory in form and substance to the Dealer and
certified by the Secretary or similar officer of the Issuer, authorizing
execution and delivery by the Issuer of this Agreement, the Issuing and Paying
Agency Agreement and the Notes and consummation by the Issuer of the transactions
contemplated hereby and thereby, (d)&nbsp;prior to the issuance of any
book-entry Notes represented by a master note registered in the name of DTC or
its nominee, a copy of the executed Letter of Representations among the Issuer,
the Issuing and Paying Agent and DTC and of the executed master note, (e)&nbsp;prior
to the issuance of any Notes in physical form, a copy of such form (unless
attached to this Agreement or the Issuing and Paying Agency Agreement), (f)&nbsp;confirmation
of the then current rating assigned to the Notes by each nationally recognized
statistical rating organization then rating the Notes, and (g)&nbsp;such other
certificates, opinions, letters and documents as the Dealer shall have
reasonably requested.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.7</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer shall reimburse the Dealer for
all of the Dealer&#146;s reasonable and documented out-of-pocket expenses [related
to this Agreement, including expenses incurred in connection with its
preparation and negotiation, and the transactions contemplated hereby
(including, but not limited to, the printing and distribution of the Private
Placement Memorandum), and, if applicable, for the reasonable fees and
out-of-pocket expenses] of the Dealer&#146;s counsel.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .55in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Disclosure.</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Private Placement Memorandum and its contents
(other than the Dealer Information) shall be the sole responsibility of the
Issuer.&#160; The Private Placement Memorandum
shall contain a statement </font><font size="2" style="font-size:10.0pt;">expressly offering an opportunity for each
prospective purchaser to ask questions of, and receive answers from, the Issuer
concerning the offering of Notes and to obtain relevant additional information
which the Issuer possesses or can acquire without unreasonable effort or
expense.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer agrees to
promptly furnish the Dealer the Company Information as it becomes available.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(a)&nbsp; The Issuer further agrees to notify the
Dealer promptly upon the occurrence of any event relating to or affecting the
Issuer that would cause the Company Information then in existence to include an
untrue statement of a material fact or to omit to state a material fact
necessary in order to make the statements contained therein, in light of the
circumstances under which they are made, not misleading.&#160; Notwithstanding the foregoing, the Issuer
shall have no obligation to so notify the Dealer if (i)&nbsp;the Issuer has
temporarily suspended offers and sales of the Notes and </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">has given the Dealer written notice of such suspension, or (ii)&nbsp;there
are no Notes outstanding.&#160; In the event
that the Issuer wishes to resume offers and sales of the Notes, it shall (i)&nbsp;give
the Dealer notice thereof, and (ii)&nbsp;either (x)&nbsp;confirm that the then
current Private Placement Memorandum and Company Information do not violate the
representation contained in Section&nbsp;3.11&#160;
of this Agreement, or (y)&nbsp;if the representation contained in Section&nbsp;2.11
cannot be made, provide to the Dealer an updated Private Placement Memorandum
that will permit the representation to be made.&#160;
The Dealer agrees that, upon such notification, all solicitations and
sales of Notes shall be suspended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event that the Issuer
gives the Dealer notice pursuant to Section&nbsp;4.3(a)&nbsp;and the Dealer
notifies the Issuer that it then has Notes it is holding in inventory, (i)&nbsp;the
Issuer agrees promptly to supplement or amend the Private Placement Memorandum
so that the Private Placement Memorandum, as amended or supplemented, shall not
contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, and the Issuer shall
make such supplement or amendment available to the Dealer or (ii)&nbsp;if the
Issuer chooses not to promptly amend or supplement the Private Placement
Memorandum, the Issuer shall, if required by the Dealer, purchase from the
Dealer any such Notes held in inventory at a price equal to the face amount
thereof discounted on a ratable basis based on the Issuer&#146;s market rate
reflecting the remaining period until maturity in relation to the original
term, provided that no commissions or fees will be paid to such Dealer in
connection with any such repurchase pursuant to this Section&nbsp;4.3(b)(ii).</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In the event that (i)&nbsp;the
Issuer gives the Dealer notice pursuant to Section&nbsp;4.3(a), (ii)&nbsp;the
Dealer does not notify the Issuer that it is then holding Notes in inventory
and (iii)&nbsp;the Issuer chooses not to promptly amend or supplement the
Private Placement Memorandum in the manner described in clause (b)&nbsp;above,
then all solicitations and sales of Notes shall be suspended until such time as
the Issuer has so amended or supplemented the Private Placement Memorandum, and
made such amendment or supplement available to the Dealer.</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Without
limiting the generality of Section&nbsp;4.3(a), the Issuer shall review, amend
and supplement the Private Placement Memorandum on a periodic basis, but no
less than at least once annually, to incorporate current financial information
of the Issuer to the extent necessary to ensure that the information provided
in the Private Placement Memorandum is accurate and complete</font><font size="2" style="font-size:10.0pt;">.</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Indemnification and
Contribution.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer will indemnify and hold
harmless the Dealer, each individual, corporation, partnership, trust,
association or other entity controlling the Dealer, any affiliate of the Dealer
or any such controlling entity and their respective directors, officers,
employees, partners, incorporators, shareholders, servants, trustees and agents
(hereinafter the &#147;Indemnitees&#148;) against any and all liabilities, penalties,
suits, causes of action, losses, damages, claims, costs and expenses
(including, without limitation, fees and disbursements of counsel) or judgments
of whatever kind or nature (each a &#147;Claim&#148;), imposed upon, incurred by or
asserted against the Indemnitees arising out of or based upon (i)&nbsp;any
allegation that the Private Placement Memorandum, the Company Information or
any information provided by the Issuer to the Dealer included (as of any
relevant time) or includes an untrue statement of a material fact or omitted
(as of any relevant time) or omits to state any material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading or (ii)&nbsp;arising out of or based upon the breach by the
Issuer of any agreement, covenant or representation made </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">in or pursuant to this Agreement.&#160;
This indemnification shall not apply to the extent that the Claim arises
out of or is based upon Dealer Information or that the Claim is determined by a
court of competent jurisdiction to have resulted from an Indemnitee&#146;s gross
negligence or willful misconduct.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Provisions relating to claims made for
indemnification under this Section&nbsp;5 are set forth on Exhibit&nbsp;B to
this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">In order to provide for just and
equitable contribution in circumstances in which the indemnification provided
for in this Section&nbsp;5 is held to be unavailable or insufficient to hold
harmless the Indemnitees, although applicable in accordance with the terms of
this Section&nbsp;5, the Issuer shall contribute to the aggregate costs
incurred by the Dealer in connection with any Claim in the proportion of the
respective economic interests of the Issuer and the Dealer; provided, however,
that such contribution by the Issuer shall be in an amount such that the
aggregate costs incurred by the Dealer do not exceed the aggregate of the
commissions and fees earned by the Dealer hereunder with respect to the issue
or issues of Notes to which such Claim relates.&#160;
The respective economic interests shall be calculated by reference to
the aggregate proceeds to the Issuer of the Notes issued hereunder and the
aggregate commissions and fees earned by the Dealer hereunder.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Definitions.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Claim&#148; shall have the meaning set forth
in Section&nbsp;5.1.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Company Information&#148; at any given time
shall mean the Private Placement Memorandum (other than the Dealer Information)
together with, to the extent applicable, (i)&nbsp;the Issuer&#146;s most recent
report on Form&nbsp;10-K filed with the SEC and each report on Form&nbsp;10-Q
or 8-K filed by the Issuer with the SEC since the most recent Form&nbsp;10-K, (ii)&nbsp;the
Issuer&#146;s most recent annual audited financial statements and each interim
financial statement or report prepared subsequent thereto, if not included in
item (i)&nbsp;above, (iii)&nbsp;the Issuer&#146;s other publicly available recent
reports, including, but not limited to, any publicly available filings or
reports provided to its shareholders, (iv)&nbsp;any other information or
disclosure prepared pursuant to Section&nbsp;4.3 hereof and (v)&nbsp;any
information prepared or approved by the Issuer for dissemination to investors
or potential investors in the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Dealer Information&#148; shall mean material
concerning the Dealer provided by the Dealer in writing expressly for inclusion
in the Private Placement Memorandum.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Exchange Act&#148; shall mean the U.S.
Securities Exchange Act of 1934, as amended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Indemnitee&#148; shall have the meaning set
forth in Section&nbsp;5.1.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.6</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Institutional Accredited Investor&#148; shall
mean an institutional investor that is an accredited investor within the
meaning of Rule&nbsp;501 under the Securities Act and that has such knowledge
and experience in financial and business matters that it is capable of
evaluating and bearing the economic risk of an investment in the Notes,
including, but not limited to, a bank, as defined in Section&nbsp;3(a)(2)&nbsp;of
the Securities Act, or a savings and loan association or other institution, as</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">defined in Section&nbsp;3(a)(5)(A)&nbsp;of the
Securities Act, whether acting in its individual or fiduciary capacity.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Issuing and Paying Agency Agreement&#148;
shall mean the issuing and paying agency agreement described on the cover page&nbsp;of
this Agreement, as such agreement may be amended or supplemented from time to
time.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Issuing and Paying Agent&#148; shall mean the
party designated as such on the cover page&nbsp;of this Agreement, as issuing
and paying agent under the Issuing and Paying Agency Agreement, or any successor
thereto in accordance with the Issuing and Paying Agency Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.9</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Non-bank fiduciary or agent&#148; shall mean
a fiduciary or agent other than (a)&nbsp;a bank, as defined in Section&nbsp;3(a)(2)&nbsp;of
the Securities Act, or (b)&nbsp;a savings and loan association, as defined in Section&nbsp;3(a)(5)(A)&nbsp;of
the Securities Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.10</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Private Placement Memorandum&#148; shall mean
offering materials prepared in accordance with Section&nbsp;4 (including
materials referred to therein or incorporated by reference therein, if any)
provided to purchasers and prospective purchasers of the Notes, and shall
include amendments and supplements thereto which may be prepared from time to
time in accordance with this Agreement (other than any amendment or supplement
that has been completely superseded by a later amendment or supplement).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 40.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.11</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Qualified Institutional Buyer&#148; shall
have the meaning assigned to that term in Rule&nbsp;144A under the Securities
Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.12</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Rule&nbsp;144A&#148; shall mean Rule&nbsp;144A
under the Securities Act.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.13</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;SEC&#148; shall mean the U.S. Securities and
Exchange Commission.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.14</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Securities Act&#148; shall mean the U.S.
Securities Act of 1933, as amended.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.15</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#147;Sophisticated Individual Accredited
Investor&#148; shall mean an individual who (a)&nbsp;is an accredited investor
within the meaning of Regulation D under the Securities Act and (b)&nbsp;based
on his or her pre-existing relationship with the Dealer, is reasonably believed
by the Dealer to be a sophisticated investor (i)&nbsp;possessing such knowledge
and experience (or represented by a fiduciary or agent possessing such
knowledge and experience) in financial and business matters that he or she is
capable of evaluating and bearing the economic risk of an investment in the
Notes and (ii)&nbsp;having not less than $5 million in investments (as defined,
for purposes of this section, in Rule&nbsp;2a51-1 under the Investment Company
Act of 1940, as amended).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160; General</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Unless otherwise expressly provided
herein, all notices under this Agreement to parties hereto shall be in writing
and shall be effective when received at the address of the respective party set
forth in the Addendum to this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to its conflict of laws provisions.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">(a)&nbsp;The Issuer agrees that any suit,
action or proceeding brought by the Issuer against the Dealer in connection
with or arising out of this Agreement or the Notes or the offer and sale of the
Notes shall be brought solely in the United States federal courts located in
the Borough of Manhattan or the courts of the State of New York located in the
Borough of Manhattan.&#160; EACH OF THE DEALER
AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160; (b) The Issuer hereby
irrevocably accepts and submits to the non-exclusive jurisdiction of each of
the aforesaid courts in personam, generally and unconditionally, for itself and
in respect of its properties, assets and revenues, with respect to any suit,
action or proceeding in connection with or arising out of this Agreement or the
Notes or the offer and sale of the Notes.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.35pt;text-indent:-23.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement may be terminated, at any
time, by the Issuer, upon one business day&#146;s prior notice to such effect to the
Dealer, or by the Dealer upon one business day&#146;s prior notice to such effect to
the Issuer.&#160; Any such termination,
however, shall not affect the obligations of the Issuer under Sections 3.7, 4.3(a)&nbsp;and
(b), 5 and 7.3 hereof or the respective representations, warranties,
agreements, covenants, rights or responsibilities of the parties made or
arising prior to the termination of this Agreement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement is not assignable by
either party hereto without the written consent of the other party; provided,
however, that the Dealer may assign its rights and obligations under this
Agreement to any affiliate of the Dealer.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">This Agreement is for the exclusive
benefit of the parties hereto, and their respective permitted successors and
assigns hereunder, and shall not be deemed to give any legal or equitable
right, remedy or claim to any other person whatsoever.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 45.0pt;text-indent:-22.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.8</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer acknowledges and
agrees that in connection with this purchase and sale of the Notes or any other
services the Dealer may be deemed to be providing hereunder, notwithstanding
any preexisting relationship, advisory or otherwise, between the parties or any
oral representations or assurances previously or subsequently made by the
Dealer: (i)&nbsp;no fiduciary or agency relationship between the Issuer and any
other person, on the one hand, and the Dealer, on the other, exists; (ii)&nbsp;the
Dealer is not acting as advisor, expert or otherwise, to the Issuer, including,
without limitation, with respect to the determination of the&#160; offering price of the Notes, and such
relationship between the Issuer, on the one hand, and the Dealer, on the other,
is entirely and solely commercial, based on arms-length negotiations; (iii)&nbsp;any
duties and obligations that the Dealer may have to the Issuer shall be limited
to those duties and obligations specifically stated herein; and (iv)&nbsp;the
Dealer and their respective affiliates may have interests that differ from
those of the Issuer.&#160; The Issuer hereby
waives any claims that the Issuer may have against the Dealer with respect to
any breach of fiduciary duty in connection with the purchase and sale of the
Notes.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date and year first above written.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Staples,&nbsp;Inc., as Issuer</font></b></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Banc of America Securities LLC,</font></b><font size="2" style="font-size:10.0pt;">  <b>as Dealer</b></font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:44.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ronald L. Sargent</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:44.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Robert Porter</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Ronald L. Sargent</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Robert Porter</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Chairman and Chief Executive
  Officer</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Managing Director</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:44.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John J. Mahoney</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: John J. Mahoney</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:48.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Vice Chairman and
  Chief Financial Officer</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:47.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Addendum(1)</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following additional clauses shall apply to the Agreement and be
deemed a part thereof.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The addresses of the respective parties
for purposes of notices under Section&nbsp;7.1 are as follows:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the Issuer:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address:&#160;
500 Staples Drive, Framingham, MA 01702</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MarciJo
Lerner</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone number:&#160; 508-253-7775</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax number:&#160;
508-253-5440</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the Dealer:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Address: 600 Montgomery St, Mail Code: CA5-801-15-31, San Francisco, CA
94111</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Manager,
Money Market Finance</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telephone number: 415-913-3689</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax number: 415-913-6288</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&#160;&#160; There may be added to this
Addendum any changes or additions to the model Agreement, as agreed between the
parties.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;A</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;of
Legend for Private Placement Memorandum and Notes</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAVE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BEEN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTERED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECURITIES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">1933,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AMENDED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;ACT&#148;),</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OTHER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">APPLICABLE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECURITIES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">LAW,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OFFERS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SALES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MAY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MADE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONLY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">COMPLIANCE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">APPLICABLE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXEMPTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FROM</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTRATION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REQUIREMENTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">APPLICABLE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">STATE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECURITIES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">LAWS.</font><font size="1" style="font-size:8.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCEPTANCE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WILL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEEMED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REPRESENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(I)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BEEN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AFFORDED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OPPORTUNITY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTIGATE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MATTERS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RELATING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ISSUER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(II)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACQUIRING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">VIEW</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">DISTRIBUTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(III)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EITHER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(A)(1)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SOPHISTICATED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITHIN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MEANING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">501(a)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">CASE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">POSSESSES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">KNOWLEDGE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXPERIENCE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FINANCIAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BUSINESS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MATTERS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">HE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SHE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">CAPABLE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EVALUATING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BEARING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ECONOMIC</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RISK</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTMENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">LESS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">$5</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MILLION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTMENTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;INSTITUTIONAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR&#148;</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;SOPHISTICATED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR&#148;,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RESPECTIVELY)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(2)(i)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OWN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNT,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BANK</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(AS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEFINED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">3(a)(2)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SAVINGS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">LOAN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ASSOCIATION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OTHER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(AS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEFINED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">3(a)(5)(A)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACTING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FIDUCIARY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">CAPACITY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FIDUCIARY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(OTHER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">U.S.</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BANK</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SAVINGS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">LOAN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ASSOCIATION)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MORE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EACH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SOPHISTICATED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR;</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">QUALIFIED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BUYER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(&#147;QIB&#148;)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WITHIN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MEANING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">144A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACQUIRING</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OWN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MORE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EACH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCOUNTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">QIB;</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACKNOWLEDGES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AWARE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SELLER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MAY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RELY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">UPON</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXEMPTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FROM</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTRATION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PROVISIONS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SECTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">5</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PROVIDED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">144A.</font><font size="1" style="font-size:8.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ITS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCEPTANCE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PURCHASER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SHALL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ALSO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">DEEMED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGREE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RESALE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OTHER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TRANSFER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THEREOF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WILL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MADE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ONLY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TRANSACTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EXEMPT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FROM</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REGISTRATION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">UNDER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACT,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">EITHER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ISSUER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PLACEMENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">DESIGNATED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">BY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ISSUER</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PLACEMENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">FOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTES</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(COLLECTIVELY,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">&#147;PLACEMENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENTS&#148;),</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NONE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">WHICH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SHALL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">HAVE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ANY</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OBLIGATION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACQUIRE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SUCH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">NOTE,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THROUGH</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">PLACEMENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AGENT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INSTITUTIONAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">SOPHISTICATED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INDIVIDUAL</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">ACCREDITED</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">INVESTOR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">QIB,</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OR</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TO</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">QIB</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">TRANSACTION</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THAT</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MEETS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">THE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">REQUIREMENTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">RULE</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">144A</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AND</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">IN</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">MINIMUM</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">AMOUNTS</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">OF</font><font size="1" style="font-size:8.0pt;">  </font><font size="2" style="font-size:10.0pt;">$250,000.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;B</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further
Provisions Relating to Indemnification</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Issuer agrees to reimburse each
Indemnitee for all expenses (including reasonable fees and disbursements of
internal and external counsel) as they are incurred by it in connection with
investigating or defending any loss, claim, damage, liability or action in
respect of which indemnification may be sought under Section&nbsp;5 of the
Agreement (whether or not it is a party to any such proceedings).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Promptly after receipt by an Indemnitee
of notice of the existence of a Claim, such Indemnitee will, if a claim in
respect thereof is to be made against the Issuer, notify the Issuer in writing
of the existence thereof; provided that (i)&nbsp;the omission so to notify the
Issuer will not relieve the Issuer from any liability which it may have
hereunder unless and except to the extent it did not otherwise learn of such
Claim and such failure results in the forfeiture by the Issuer of substantial
rights and defenses, and (ii)&nbsp;the omission so to notify the Issuer will
not relieve it from liability which it may have to an Indemnitee otherwise than
on account of this indemnity agreement.&#160;
In case any such Claim is made against any Indemnitee and it notifies
the Issuer of the existence thereof, the Issuer will be entitled to participate
therein, and to the extent that it may elect by written notice delivered to the
Indemnitee, to assume the defense thereof, with counsel reasonably satisfactory
to such Indemnitee; provided that if the defendants in any such Claim include
both the Indemnitee and the Issuer, and the Indemnitee shall have concluded
that there may be legal defenses available to it which are different from or
additional to those available to the Issuer, the Issuer shall not have the
right to direct the defense of such Claim on behalf of such Indemnitee, and the
Indemnitee shall have the right to select separate counsel to assert such legal
defenses on behalf of such Indemnitee.&#160;
Upon receipt of notice from the Issuer to such Indemnitee of the Issuer&#146;s
election so to assume the defense of such Claim and approval by the Indemnitee
of counsel, the Issuer will not be liable to such Indemnitee for expenses
incurred thereafter by the Indemnitee in connection with the defense thereof
(other than reasonable costs of investigation) unless (i)&nbsp;the Indemnitee
shall have employed separate counsel in connection with the assertion of legal
defenses in accordance with the proviso to the next preceding sentence (it
being understood, however, that the Issuer shall not be liable for the expenses
of more than one separate counsel (in addition to any local counsel in the
jurisdiction in which any Claim is brought), approved by the Dealer,
representing the Indemnitee who is party to such Claim), (ii)&nbsp;the Issuer
shall not have employed counsel reasonably satisfactory to the Indemnitee to
represent the Indemnitee within a reasonable time after notice of existence of
the Claim or (iii)&nbsp;the Issuer has authorized in writing the employment of
counsel for the Indemnitee.&#160; The
indemnity, reimbursement and contribution obligations of the Issuer hereunder
shall be in addition to any other liability the Issuer may otherwise have to an
Indemnitee and shall be binding upon and inure to the benefit of any
successors, assigns, heirs and personal representatives of the Issuer and any
Indemnitee.&#160; The Issuer agrees that
without the Dealer&#146;s prior written consent, it will not settle, compromise or
consent to the entry of any judgment in any Claim in respect of which
indemnification may be sought under the indemnification provision of the
Agreement (whether or not the Dealer or any other Indemnitee is an actual or potential
party to such Claim), unless such settlement, compromise or consent (i)&nbsp;includes
an unconditional release of each Indemnitee from all liability arising out of
such Claim and (ii)&nbsp;does not include a statement as to or an admission of
fault, culpability or failure to act, by or on behalf of any Indemnitee.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;C</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Statement
of Terms for Interest &#150; Bearing Commercial Paper Notes of Staples,&nbsp;Inc.</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO
THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC PRIVATE PLACEMENT MEMORANDUM
SUPPLEMENT (THE &#147;SUPPLEMENT&#148;) (IF ANY) SENT TO EACH PURCHASER AT THE TIME OF
THE TRANSACTION.</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160; <u>General.</u>&#160; (a)&nbsp; The obligations of the Issuer to
which these terms apply (each a &#147;Note&#148;) are represented by one or more Master
Notes (each, a &#147;Master Note&#148;) issued in the name of (or of a nominee for) The
Depository Trust Company (&#147;DTC&#148;), which Master Note includes the terms and
provisions for the Issuer&#146;s Interest-Bearing Commercial Paper Notes that are
set forth in this Statement of Terms, since this Statement of Terms constitutes
an integral part of the Underlying Records as defined and referred to in the
Master Note.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp; &#147;Business Day&#148; means any day other than a Saturday or Sunday
that is neither a legal holiday nor a day on which banking institutions are
authorized or required by law, executive order or regulation to be closed in
New York City and, with respect to LIBOR Notes (as defined below) is also a
London Business Day.&#160; &#147;London Business
Day&#148; means, a day, other than a Saturday or Sunday, on which dealings in
deposits in U.S. dollars are transacted in the London interbank market.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160; <u>Interest.</u>&#160; (a)&nbsp; Each Note will bear interest at a
fixed rate (a &#147;Fixed Rate Note&#148;) or at a floating rate (a &#147;Floating Rate Note&#148;).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;text-indent:-13.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&nbsp; The
Supplement sent to each holder of such Note will describe the following terms: (i)&nbsp;whether
such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is
an Original Issue Discount Note (as defined below); (ii)&nbsp;the date on which
such Note will be issued (the &#147;Issue Date&#148;); (iii)&nbsp;the Stated Maturity
Date (as defined below); (iv)&nbsp;if such Note is a Fixed Rate Note, the rate
per annum at which such Note will bear interest, if any, and the Interest Payment
Dates; (v)&nbsp;if such Note is a Floating Rate Note, the Base Rate, the Index
Maturity, the Interest Reset Dates, the Interest Payment Dates and the Spread
and/or Spread Multiplier, if any (all as defined below), and any other terms
relating to the particular method of calculating the interest rate for such
Note; and (vi)&nbsp;any other terms applicable specifically to such Note.&#160; &#147;Original Issue Discount Note&#148; means a Note
which has a stated redemption price at the Stated Maturity Date that exceeds
its Issue Price by more than a specified de minimis amount and which the
Supplement indicates will be an &#147;Original Issue Discount Note&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&nbsp; Each
Fixed Rate Note will bear interest from its Issue Date at the rate per annum
specified in the Supplement until the principal amount thereof is paid or made
available for payment.&#160; Interest on each
Fixed Rate Note will be payable on the dates specified in the Supplement (each
an &#147;Interest Payment Date&#148; for a Fixed Rate Note) and on the Maturity Date (as
defined below).&#160; Interest on Fixed Rate
Notes will be computed on the basis of a 360-day year of twelve 30-day months.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any Interest Payment Date or the Maturity Date of a Fixed Rate Note
falls on a day that is not a Business Day, the required payment of principal,
premium, if any, and/or interest will be payable on the </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">next succeeding Business Day, and no additional interest will accrue in
respect of the payment made on that next succeeding Business Day.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp; The interest rate on each Floating Rate Note for each
Interest Reset Period (as defined below) will be determined by reference to an
interest rate basis (a &#147;Base Rate&#148;) plus or minus a number of basis points (one
basis point equals one-hundredth of a percentage point) (the &#147;Spread&#148;), if any,
and/or multiplied by a certain percentage (the &#147;Spread Multiplier&#148;), if any,
until the principal thereof is paid or made available for payment.&#160; The Supplement will designate which of the
following Base Rates is applicable to the related Floating Rate Note: (a)&nbsp;the
CD Rate (a &#147;CD Rate Note&#148;), (b)&nbsp;the Commercial Paper Rate (a &#147;Commercial
Paper Rate Note&#148;), (c)&nbsp;the Federal Funds Rate (a &#147;Federal Funds Rate Note&#148;),
(d)&nbsp;LIBOR (a &#147;LIBOR Note&#148;), (e)&nbsp;the Prime Rate (a &#147;Prime Rate Note&#148;),
(f)&nbsp;the Treasury Rate (a &#147;Treasury Rate Note&#148;) or (g)&nbsp;such other Base
Rate as may be specified in such Supplement.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rate of interest on each Floating Rate Note will be reset daily,
weekly, monthly, quarterly or semi-annually (the &#147;Interest Reset Period&#148;).&#160; The date or dates on which interest will be
reset (each an &#147;Interest Reset Date&#148;) will be, unless otherwise specified in
the Supplement, in the case of Floating Rate Notes which reset daily, each
Business Day, in the case of Floating Rate Notes (other than Treasury Rate
Notes) that reset weekly, the Wednesday of each week; in the case of Treasury
Rate Notes that reset weekly, the Tuesday of each week; in the case of Floating
Rate Notes that reset monthly, the third Wednesday of each month; in the case
of Floating Rate Notes that reset quarterly, the third Wednesday of March,
June, September&nbsp;and December; and in the case of Floating Rate Notes that
reset semiannually, the third Wednesday of the two months specified in the
Supplement.&#160; If any Interest Reset Date
for any Floating Rate Note is not a Business Day, such Interest Reset Date will
be postponed to the next day that is a Business Day, except that in the case of
a LIBOR Note, if such Business Day is in the next succeeding calendar month,
such Interest Reset Date shall be the immediately preceding Business Day.
Interest on each Floating Rate Note will be payable monthly, quarterly or
semiannually (the &#147;Interest Payment Period&#148;) and on the Maturity Date.&#160; Unless otherwise specified in the Supplement,
and except as provided below, the date or dates on which interest will be
payable (each an &#147;Interest Payment Date&#148; for a Floating Rate Note) will be, in
the case of Floating Rate Notes with a monthly Interest Payment Period, on the
third Wednesday of each month; in the case of Floating Rate Notes with a
quarterly Interest Payment Period, on the third Wednesday of March, June, September&nbsp;and
December; and in the case of Floating Rate Notes with a semiannual Interest
Payment Period, on the third Wednesday of the two months specified in the
Supplement.&#160; In addition, the Maturity
Date will also be an Interest Payment Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any Interest Payment Date for any Floating Rate Note (other than an
Interest Payment Date occurring on the Maturity Date) would otherwise be a day
that is not a Business Day, such Interest Payment Date shall be postponed to
the next day that is a Business Day, except that in the case of a LIBOR Note,
if such Business Day is in the next succeeding calendar month, such Interest
Payment Date shall be the immediately preceding Business Day.&#160; If the Maturity Date of a Floating Rate Note
falls on a day that is not a Business Day, the payment of principal and
interest will be made on the next succeeding Business Day, and no interest on
such payment shall accrue for the period from and after such maturity.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest payments on each Interest Payment Date for Floating Rate Notes
will include accrued interest from and including the Issue Date or from and
including the last date in respect of which interest has been paid, as the case
may be, to, but excluding, such Interest Payment Date.&#160; On the Maturity Date, the interest payable on
a Floating Rate Note will include interest accrued to, but excluding, the
Maturity Date.&#160; Accrued interest will be
calculated by multiplying the principal amount of a Floating Rate Note by an
accrued interest factor.&#160; This accrued
interest factor will be computed by adding the interest factors </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">calculated for each day in the period for which accrued interest is
being calculated.&#160; The interest factor
(expressed as a decimal) for each such day will be computed by dividing the
interest rate applicable to such day by 360, in the cases where the Base Rate
is the CD Rate, Commercial Paper Rate, Federal Funds Rate, LIBOR or Prime Rate,
or by the actual number of days in the year, in the case where the Base Rate is
the Treasury Rate.&#160; The interest rate in
effect on each day will be (i)&nbsp;if such day is an Interest Reset Date, the
interest rate with respect to the Interest Determination Date (as defined
below) pertaining to such Interest Reset Date, or (ii)&nbsp;if such day is not
an Interest Reset Date, the interest rate with respect to the Interest
Determination Date pertaining to the next preceding Interest Reset Date,
subject in either case to any adjustment by a Spread and/or a Spread
Multiplier.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Interest Determination Date&#148; where the Base Rate is the CD Rate or
the Commercial Paper Rate will be the second Business Day next preceding an
Interest Reset Date.&#160; The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime
Rate will be the Business Day next preceding an Interest Reset Date.&#160; The Interest Determination Date where the
Base Rate is LIBOR will be the second London Business Day next preceding an
Interest Reset Date.&#160; The Interest
Determination Date where the Base Rate is the Treasury Rate will be the day of
the week in which such Interest Reset Date falls when Treasury Bills are
normally auctioned.&#160; Treasury Bills are
normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the
preceding Friday.&#160; If an auction is so
held on the preceding Friday, such Friday will be the Interest Determination
Date pertaining to the Interest Reset Date occurring in the next succeeding
week.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Index Maturity&#148; is the period to maturity of the instrument or
obligation from which the applicable Base Rate is calculated.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Calculation Date,&#148; where applicable, shall be the earlier of (i)&nbsp;the
tenth calendar day following the applicable Interest Determination Date or (ii)&nbsp;the
Business Day preceding the applicable Interest Payment Date or Maturity Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All times referred to herein reflect New York City time, unless
otherwise specified.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Issuer shall specify in writing to the Issuing and Paying Agent
which party will be the calculation agent (the &#147;Calculation Agent&#148;) with
respect to the Floating Rate Notes.&#160; The
Calculation Agent will provide the interest rate then in effect and, if
determined, the interest rate which will become effective on the next Interest
Reset Date with respect to such Floating Rate Note to the Issuing and Paying
Agent as soon as the interest rate with respect to such Floating Rate Note has
been determined and as soon as practicable after any change in such interest
rate.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All percentages resulting from any calculation on Floating Rate Notes
will be rounded to the nearest one hundred-thousandth of a percentage point,
with five-one millionths of a percentage point rounded upwards.&#160; For example, 9.876545% (or .09876545) would
be rounded to 9.87655% (or .0987655).&#160;
All dollar amounts used in or resulting from any calculation on Floating
Rate Notes will be rounded, in the case of U.S. dollars, to the nearest cent
or, in the case of a foreign currency, to the nearest unit (with one-half cent
or unit being rounded upwards).</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">CD Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;CD Rate&#148; means
the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the
Federal Reserve System </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(the &#147;FRB&#148;) in &#147;Statistical
Release H.15(519), Selected Interest Rates&#148; or any successor publication of the
FRB (&#147;H.15(519)&#148;) under the heading &#147;CDs (Secondary Market)&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate
is not published in H.15(519) by 3:00&nbsp;p.m. on the Calculation Date, the CD
Rate will be the rate on such Interest Determination Date set forth in the daily
update of H.15(519), available through the world wide website of the FRB at
http://www.federalreserve.gov/releases/h15/Update, or any successor site or
publication or other recognized electronic source used for the purpose of
displaying the applicable rate (&#147;H.15 Daily Update&#148;) under the caption &#147;CDs
(Secondary Market)&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If such rate is
not published in either H.15(519) or H.15 Daily Update by 3:00&nbsp;p.m. on the
Calculation Date, the Calculation Agent will determine the CD Rate to be the
arithmetic mean of the secondary market offered rates as of 10:00&nbsp;a.m. on
such Interest Determination Date of three leading nonbank dealers(2)&nbsp; in
negotiable U.S. dollar certificates of deposit in New York City selected by the
Calculation Agent for negotiable U.S. dollar certificates of deposit of major
United States money center banks of the highest credit standing in the market
for negotiable certificates of deposit with a remaining maturity closest to the
Index Maturity in the denomination of $5,000,000.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the dealers
selected by the Calculation Agent are not quoting as set forth above, the CD
Rate will remain the CD Rate then in effect on such Interest Determination
Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Commercial Paper Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Commercial Paper
Rate&#148; means the Money Market Yield (calculated as described below) of the rate
on any Interest Determination Date for commercial paper having the Index
Maturity, as published in H.15(519) under the heading &#147;Commercial
Paper-Nonfinancial&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate
is not published in H.15(519) by 3:00&nbsp;p.m. on the Calculation Date, then
the Commercial Paper Rate will be the Money Market Yield of the rate on such
Interest Determination Date for commercial paper of the Index Maturity as
published in H.15 Daily Update under the heading &#147;Commercial Paper-Nonfinancial&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If by 3:00&nbsp;p.m.
on such Calculation Date such rate is not published in either H.15(519) or H.15
Daily Update, then the Calculation Agent will determine the Commercial Paper
Rate to be the Money Market Yield of the arithmetic mean of the offered rates as
of 11:00&nbsp;a.m. on such Interest Determination Date of three leading dealers
of U.S. dollar commercial paper in New York City selected by the Calculation
Agent for commercial paper of the Index Maturity placed for an industrial
issuer whose bond rating is &#147;AA,&#148; or the equivalent, from a nationally
recognized statistical rating organization.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the dealers
selected by the Calculation Agent are not quoting as mentioned above, the
Commercial Paper Rate with respect to such Interest Determination Date will remain
the Commercial Paper Rate then in effect on such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Money Market
Yield&#148; will be a yield calculated in accordance with the following formula:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;margin-left:17.8pt;width:96.72%;">
 <tr>
  <td width="18%" rowspan="2" style="padding:0in .7pt 0in .7pt;width:18.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Money
  Market Yield =</font></p>
  </td>
  <td width="27%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:27.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D x 360</font></p>
  </td>
  <td width="22%" rowspan="2" style="padding:0in .7pt 0.375pt .7pt;width:22.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x
  100</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">360 - (D x M)</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0in .7pt 0in .7pt;width:31.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&nbsp;&#160; Such nonbank dealers
referred to in this Statement of Terms may include affiliates of the Dealer.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">where &#147;D&#148; refers
to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and &#147;M&#148; refers to the actual number of days in
the interest period for which interest is being calculated.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Federal Funds Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Federal
Funds Rate&#148; means the rate on any Interest Determination Date for Federal Funds
as published in Reuters (or any successor service) on page&nbsp;FEDFUNDS1 under
the heading &#147;EFFECT&#148; (or any other page&nbsp;as may replace the specified page&nbsp;on
that service) (&#147;Reuters Page&nbsp;FEDFUNDS1&#148;).</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate does not
appear on Reuters Page&nbsp;FEDFUNDS1 or is not so published by 3:00&nbsp;p.m.
on the Calculation Date, the Federal Funds Rate will be the rate on such
Interest Determination Date as published in H.15 Daily Update under the heading
&#147;Federal Funds/(Effective)&#148;.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If such rate is
not published as described above by 3:00&nbsp;p.m. on the Calculation Date, the
Calculation Agent will determine the Federal Funds Rate to be the arithmetic
mean of the rates for the last transaction in overnight U.S. dollar federal
funds arranged by each of three leading brokers of Federal Funds transactions
in New York City selected by the Calculation Agent prior to 9:00&nbsp;a.m. on
such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the brokers
selected by the Calculation Agent are not quoting as mentioned above, the
Federal Funds Rate will remain the Federal Funds Rate then in effect on such
Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">LIBOR Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The London
Interbank offered rate (&#147;LIBOR&#148;) means, with respect to any Interest
Determination Date, the rate for deposits in U.S. dollars having the Index
Maturity that appears on the Designated LIBOR Page&nbsp;as of 11:00&nbsp;a.m.,
London time, on such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If no rate
appears, LIBOR will be determined on the basis of the rates at approximately
11:00&nbsp;a.m., London time, on such Interest Determination Date at which
deposits in U.S. dollars are offered to prime banks in the London interbank
market by four major banks in such market selected by the Calculation Agent for
a term equal to the Index Maturity and in principal amount equal to an amount
that in the Calculation Agent&#146;s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a &#147;Representative
Amount&#148;).&#160; The Calculation Agent will
request the principal London office of each of such banks to provide a
quotation of its rate.&#160; If at least two
such quotations are provided, LIBOR will be the arithmetic mean of such
quotations.&#160; If fewer than two quotations
are provided, LIBOR for such interest period will be the arithmetic mean of the
rates quoted at approximately 11:00&nbsp;a.m., in New York City, on such
Interest Determination Date by three major banks in New York City, selected by
the Calculation Agent, for loans in U.S. dollars to leading European banks, for
a term equal to the Index Maturity and in a Representative Amount; provided,
however, that if fewer than three banks so selected by the Calculation Agent
are providing such quotations, the then existing LIBOR rate will remain in
effect for such Interest Payment Period.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Designated
LIBOR Page&#148; means Reuters Screen LIBOR01 Page&nbsp;or any replacement page&nbsp;or
pages&nbsp;on which London interbank rates of major banks for the Index
Currency are displayed.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Prime Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Prime Rate&#148; means
the rate on any Interest Determination Date as published in H.15(519) under the
heading &#147;Bank Prime Loan&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the above rate
is not published in H.15(519) prior to 3:00&nbsp;p.m. on the Calculation Date,
then the Prime Rate will be the rate on such Interest Determination Date as
published in H.15 Daily Update opposite the caption &#147;Bank Prime Loan&#148;.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the rate is not
published prior to 3:00&nbsp;p.m. on the Calculation Date in either H.15(519)
or H.15 Daily Update, then the Calculation Agent will determine the Prime Rate
to be the arithmetic mean of the rates of interest publicly announced by each
bank that appears on the Reuters Screen US PRIME1 Page&nbsp;(as defined below)
as such bank&#146;s prime rate or base lending rate as of 11:00&nbsp;a.m., on that
Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If fewer than four
such rates referred to above are so published by 3:00&nbsp;p.m. on the
Calculation Date, the Calculation Agent will determine the Prime Rate to be the
arithmetic mean of the prime rates or base lending rates quoted on the basis of
the actual number of days in the year divided by 360 as of the close of
business on such Interest Determination Date by three major banks in New York
City selected by the Calculation Agent.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the banks
selected are not quoting as mentioned above, the Prime Rate will remain the
Prime Rate in effect on such Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Reuters Screen US Prime1
Page&#148; means the display designated as page&nbsp;&#147;USPrime1&#148; of the Reuters
Service, or any successor service, or any replacement page&nbsp;or pages&nbsp;on
that service, for the purpose of displaying prime rates or base lending rates
of major U.S. banks.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Treasury Rate Notes</font></i></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Treasury Rate&#148; means:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&nbsp;the
rate from the auction held on the Interest Determination Date (the &#147;Auction&#148;)
of direct obligations of the United States (&#147;Treasury Bills&#148;) having the Index
Maturity specified in the applicable pricing supplement above under the caption
&#147;INVESTMENT RATE&#148;, as that rate appears on Reuters Screen USAUCTION10 or
USAUCTION11 Page&nbsp;under the heading &#147;Investment Rate&#148; (or any other page&nbsp;as
may replace the specified page&nbsp;on that service or a successor service).</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;(2)&nbsp;if the rate referred to in clause (1)&nbsp;is
not so published by 3:00&nbsp;p.m. on the related Calculation Date, the Bond
Equivalent Yield (as defined below) of the rate for the applicable Treasury
Bills as published in H.15 Daily Update, under the caption &#147;U.S. Government
Securities/Treasury Bills/Auction High&#148;, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&nbsp;if the
rate referred to in clause (2)&nbsp;is not so published by 3:00&nbsp;p.m. on
the related Calculation Date, the Bond Equivalent Yield of the auction rate of
the applicable Treasury Bills as announced by the United States Department of
the Treasury, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)&nbsp;if the
rate referred to in clause (3)&nbsp;is not so announced by the United States
Department of the Treasury, or if the Auction is not held, the Bond Equivalent
Yield of the rate on the particular Interest </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Determination Date
of the applicable Treasury Bills as published in H.15(519) under the caption &#147;U.S.
Government Securities/Treasury Bills/Secondary Market&#148;, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)&nbsp;if the
rate referred to in clause (4)&nbsp;not so published by 3:00&nbsp;p.m. on the
related Calculation Date, the rate on the particular Interest Determination
Date of the applicable Treasury Bills as published in H.15 Daily Update, under
the caption &#147;U.S. Government Securities/Treasury Bills/Secondary Market&#148;, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)&nbsp;if the
rate referred to in clause (5)&nbsp;is not so published by 3:00&nbsp;p.m. on
the related Calculation Date, the rate on the particular Interest Determination
Date calculated by the Calculation Agent as the Bond Equivalent Yield of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30&nbsp;p.m.
on that Interest Determination Date, of three primary United States government
securities dealers selected by the Calculation Agent, for the issue of Treasury
Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7)&nbsp;if the dealers so selected by the Calculation Agent are not
quoting as mentioned in clause (6), the Treasury Rate in effect on the
particular Interest Determination Date.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Bond Equivalent Yield&#148; means a yield
(expressed as a percentage) calculated in accordance with the following
formula:</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;margin-left:.7pt;width:100.0%;">
 <tr>
  <td width="19%" rowspan="2" style="padding:0in .7pt 0in .7pt;width:19.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bond
  Equivalent Yield &nbsp;=</font></p>
  </td>
  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:23.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D x N</font></p>
  </td>
  <td width="25%" rowspan="2" style="padding:0in .7pt 0.375pt .7pt;width:25.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x
  100</font></p>
  </td>
  <td width="30%" valign="top" style="padding:0in .7pt 0in .7pt;width:30.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="23%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:23.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">360 - (D x M)</font></p>
  </td>
  <td width="30%" valign="top" style="padding:0in .7pt 0in .7pt;width:30.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">where &#147;D&#148; refers
to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis and expressed as a decimal, &#147;N&#148; refers to 365 or 366, as the case may be,
and &#147;M&#148; refers to the actual number of days in the applicable Interest Reset
Period.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160; <u>Final Maturity.</u>&#160; The Stated Maturity Date for any Note will be
the date so specified in the Supplement, which shall be no later than 397 days
from the date of issuance.&#160; On its Stated
Maturity Date, or any date prior to the Stated Maturity Date on which the particular
Note becomes due and payable by the declaration of acceleration, each such date
being referred to as a Maturity Date, the principal amount of each Note,
together with accrued and unpaid interest thereon, will be immediately due and
payable.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160; <u>Events of Default.</u>&#160; The occurrence of any of the following shall
constitute an &#147;Event of Default&#148; with respect to a Note:&#160; (i)&nbsp;default in any payment of principal
of or interest on such Note (including on a redemption thereof); (ii)&nbsp;the
Issuer makes any compromise arrangement with its creditors generally including
the entering into any form of moratorium with its creditors generally; (iii)&nbsp;a
court having jurisdiction shall enter a decree or order for relief in respect
of the Issuer in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or there shall be
appointed a receiver, administrator, liquidator, custodian, trustee or
sequestrator (or similar officer) with respect to the whole or substantially
the whole of the assets of the Issuer and any such decree, order or appointment
is not removed, discharged or withdrawn within 60 days thereafter; or (iv)&nbsp;the
Issuer shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or
consent to the appointment of or taking possession by a receiver, </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">administrator,
liquidator, assignee, custodian, trustee or sequestrator (or similar official),
with respect to the whole or substantially the whole of the assets of the
Issuer or make any general assignment for the benefit of creditors.&#160; Upon the occurrence of an Event of Default,
the principal of each obligation evidenced by such Note (together with interest
accrued and unpaid thereon) shall become, without any notice or demand,
immediately due and payable.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160; <u>Obligation Absolute.</u>&#160; No provision of the Issuing and Paying Agency
Agreement under which the Notes are issued shall alter or impair the obligation
of the Issuer, which is absolute and unconditional, to pay the principal of and
interest on each Note at the times, place and rate, and in the coin or
currency, herein prescribed.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160; <u>Supplement</u>.&#160; Any term contained in the Supplement shall
supercede any conflicting term contained herein.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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</body>

</html>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>a08-16647_1ex10d3.htm
<DESCRIPTION>EX-10.3
<TEXT>

<html>

<head>





</head>

<body lang="EN-US" style="text-justify-trim:punctuation">

<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Staples,&nbsp;Inc.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Executive Officer Incentive Plan</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Fiscal Years 2008&nbsp;-&nbsp;2012</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">I.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font>Summary and Objectives</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Staples,&nbsp;Inc.
(&#147;Staples&#148;) has developed this Executive Officer Incentive Plan (the &#147;Incentive
Plan&#148;) to provide opportunities for Plan Participants (as defined below) to
earn financial rewards for their role in ensuring that Staples meets its annual
performance targets. The Incentive Plan aims to align the interests of the Plan
Participants with those of our shareholders. Bonus awards are based on actual
results measured against pre-established company financial objectives. Bonus
awards are intended to provide a reward to Plan Participants and supplement the
base salary program.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">II.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Term of Plan</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Incentive
Plan will cover five fiscal years, beginning with the 2008 fiscal year
(beginning February&nbsp;3, 2008) and ending with the 2012 fiscal year (ending February&nbsp;2,
2013). Each such fiscal year is referred to herein as a &#147;Plan Year&#148;.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">III.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font>Eligibility</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provided that
the Compensation Committee of the Board of Directors (the &#147;Committee&#148;)
determines that Staples meets the applicable performance objectives for a
particular Plan Year, as set forth below, and all other eligibility
requirements are met, the following guidelines will be used to determine Plan
Participants&#146; bonus award eligibility. Except as set forth in Section&nbsp;III.&nbsp;D
with respect to a Plan Participant&#146;s death, bonus awards are not guaranteed and
will not be paid unless Staples meets the required objectives set forth in the
Incentive Plan and the Committee authorizes the payment of bonus awards.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">A.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>General Eligibility
Requirements</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each executive
officer of Staples, within the meaning of the rules&nbsp;and regulations
promulgated by the Securities and Exchange Commission, will be eligible to participate
in the Incentive Plan, except that an executive officer whose employment
terminates prior to the end of a Plan Year, other than as a result of permanent
disability, death or retirement, will not be eligible to receive a bonus award
under the Incentive Plan for that Plan Year (each a &#147;Plan Participant&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">B.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Changes in Position</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A Plan
Participant who changes from one position to another will be eligible for a
prorated bonus award as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font>A Plan Participant who
transfers from an Incentive Plan eligible position into a position eligible for
another bonus plan is eligible for a prorated bonus award under the Incentive
Plan based on the number of days the associate was a Plan Participant during
the applicable Plan Year. The associate&#146;s eligibility for a bonus for the new
position, if any, will be determined in accordance with any applicable bonus
plan for that position.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160; </font>A
Plan Participant who changes from one Incentive Plan eligible position to
another, through a promotion, transfer or demotion, is eligible for a prorated
bonus award for each position based on the number of days the associate held
such position during the applicable Plan Year.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">C.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Leaves of Absence</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A Plan
Participant who is on a company-approved leave of absence in excess of 90&nbsp;days
during a Plan Year will not be eligible for a bonus award for the portion of
his or her leave over 90&nbsp;days unless otherwise approved by the Committee.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">D.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Retirement, Disability or
Death</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Retirement:</font></i>&#160;
If a Plan Participant terminates his or her employment after attaining
age 55 and if at the time of such termination of employment the sum of the
years of service (as determined by the Board of Directors of Staples) completed
by the associate plus the associate&#146;s age is greater than or equal to 65, the
associate will be eligible for a prorated bonus award based on the number of
days the associate was employed by Staples during the applicable Plan Year.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Disability:</font></i>&#160;
If a Plan Participant&#146;s employment is terminated due to permanent
disability before the end of the Plan Year, the associate will be eligible for
a prorated bonus award based on the number of days the associate was employed
by Staples during the applicable Plan Year.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In each case
described above, no prorated bonus will be paid unless all of the applicable
requirements set forth in the Incentive Plan are met, including without
limitation that the Committee determines that Staples meets the applicable
performance objectives for a particular Plan Year and authorizes the payment of
bonus awards.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Death:</font></i>&#160;
If a Plan Participant&#146;s employment is terminated due to death before the
end of the Plan Year, 100% of the Plan Participant&#146;s Target Award for such Plan
Year will be paid within 60&nbsp;days of such termination; provided, that if
such termination occurs during the Plan Participant&#146;s first Plan Year under the
Incentive Plan, the bonus award will be prorated based on the number of days
the associate was employed by Staples during the applicable Plan Year, calculated
as if the associate had been employed by Staples through the end of the Plan
Year.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">E.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font>Employment and Compliance</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As described
under &#147;General Eligibility Requirements,&#148; and except as set forth in Section&nbsp;III.&nbsp;D,
a Plan Participant must be employed as of the last day of the Plan Year in
order to be eligible for a bonus. If the employment of a Plan Participant
terminates during a Plan Year for any reason other than retirement (as defined
above), permanent disability or death, no bonus will be paid to the Plan
Participant for that Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, a
Plan Participant must comply with all applicable state and federal regulations
and Staples&#146; policies (the &#147;Compliance Requirements&#148;) in order to be eligible
to receive a bonus award under the Incentive Plan. A Plan Participant who is
terminated after the end of a Plan Year, but before bonus awards for such Plan
Year are distributed, for violating any of the Compliance Requirements will not
be eligible to receive a bonus award for such Plan Year.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IV.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160; </font>The Plan</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Within
90&nbsp;days after the beginning of each Plan Year, the Committee will
establish specific performance objectives for the payment of bonus awards for
that Plan Year. The performance objectives for each Plan Year will be based on
one or more of the following measures: sales, earnings per share, return on net
assets, return on equity and customer service levels. These performance
objectives are intended to establish the benchmark of success for Staples. The
Committee may determine that special one-time or extraordinary gains or losses,
including without limitation as a result of certain acquisitions or
divestitures and changes in accounting principles, should or should not be
included in determining whether such performance objectives have been met. In
addition, customer service target levels will be based on pre-determined tests
of customer service levels, including without limitation scores on blind test (&#147;mystery&#148;)
shopping, customer comment card statistics, customer relations statistics
(e.g., number of customer complaints), delivery response levels or customer
satisfaction surveys conducted by a third party.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For each Plan
Year, a specified percentage (which may vary from Plan Year to Plan Year) of
each Target Award (as defined below) will be based upon each of the performance
objectives selected by the Committee for that Plan Year. For each of the
performance objectives, a specified percentage of the portion of the Target
Award that is based on that particular performance objective will be paid based
on the level of performance achieved. Each performance objective has a
threshold performance level that must be achieved for any of the bonus award to
be paid for such objective. Except as set forth in Section&nbsp;III.&nbsp;D
with respect to a Plan Participant&#146;s death, no bonus will be paid under the
Incentive Plan for a Plan Year if the minimum earnings per share goal
established for such Plan Year is not achieved, regardless of whether any other
performance objective is achieved. The maximum bonus award payable to an
executive officer for any Plan Year is $4&nbsp;million. In addition, the
Committee presently intends to limit bonus awards to 200% of a Plan Participant&#146;s
Target Award.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">V.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160; </font>Payment Calculations</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Plan
Participant will have a target bonus award (a &#147;Target Award&#148;) for each Plan
Year. Target Awards will be expressed as a percentage of the actual base salary
paid to the Plan Participant during the Plan Year. The percentages will be
determined by the Committee based on the Plan Participant&#146;s job level and
responsibilities and may vary for different officers or business units. At the
end of the Plan Year, the Committee shall determine the amount, if any, to be
paid to each Plan Participant based on the extent that the performance goals
established for the Plan Participant were achieved and shall authorize payment
by Staples to the Plan Participant; provided that the Committee may use
negative discretion to decrease, but not increase, the amount of any bonus
award otherwise payable to a Plan Participant.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any bonus
checks will be distributed to Plan Participants within 2</font><font size="1" style="font-size:6.0pt;position:relative;top:-3.0pt;">1</font><font size="1" style="font-size:6.0pt;">/<font style="position:relative;top:3.0pt;">2</font>&#160;</font>months following the end of the
applicable Plan Year.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VI.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font>Plan Administration</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">A.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Administration</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Incentive
Plan will be administered by the Committee. The Committee will have broad
authority for: determining target bonuses and selecting performance objectives,
as described below; for adopting rules&nbsp;and regulations relating to the
Incentive Plan; and for making decisions and interpretations regarding the
provisions of the Incentive Plan, including determining to what extent, if any,
specific items are to be counted in the relevant financial measures for any
particular business, the satisfaction of performance objectives and the payment
of awards under the Incentive Plan.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">B.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Employment at Will</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Incentive
Plan does not create an express or implied contract of employment between
Staples and a Plan Participant. Both Staples and the Plan Participants retain
the right to terminate the employment relationship at any time and for any
reason.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">C.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Bonus Provisions (Amendments
and Termination)</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bonuses are
not earned or vested until actual payments are made. Staples reserves the right
at any time prior to actual payment of bonus awards to amend, terminate or
discontinue the Incentive Plan in whole or in part whenever it is considered
necessary.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Incentive
Plan may be amended or terminated by either the Board of Directors or the
Committee, provided that (1)&nbsp;no amendment or termination of the Incentive
Plan after the end of a Plan Year may adversely affect the rights of Plan
Participants with respect to their bonus awards for that Plan Year, and (2)&nbsp;no
amendment which would require stockholder approval under Section&nbsp;162(m)&nbsp;of
the Internal Revenue Code may be effected without such stockholder approval.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">D.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160; </font>Rights are Non-Assignable</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither the
Plan Participant nor any beneficiary nor any other person shall have any right
to assign the right to receive payments hereunder, in whole or in part, which
payments are non-assignable and non-transferable, whether voluntarily or
involuntarily.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">E.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font>Withholding</b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All required
deductions, including without limitation with respect to federal, state or
local taxes, will be withheld from the bonus awards prior to distribution.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>a08-16647_1ex10d4.htm
<DESCRIPTION>EX-10.4
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<head>





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<body lang="EN-US" style="text-justify-trim:punctuation">

<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.4</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMENDED AND RESTATED 2004 STOCK INCENTIVE
PLAN</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Purpose</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The purpose of
this Amended and Restated 2004 Stock Incentive Plan (the &#147;Plan&#148;) of Staples,&nbsp;Inc.,
a Delaware corporation (the &#147;Company&#148;), is to advance the interests of the
Company&#146;s stockholders by enhancing the Company&#146;s ability to attract, retain
and motivate persons who make (or are expected to make) important contributions
to the Company by providing such persons with equity ownership opportunities
and performance-based incentives and thereby better aligning the interests of
such persons with those of the Company&#146;s stockholders. Except where the context
otherwise requires, the term &#147;Company&#148; shall include any of the Company&#146;s
present or future parent or subsidiary corporations as defined in
Sections&nbsp;424(e)&nbsp;or (f)&nbsp;of the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder (the &#147;Code&#148;), and any other
business venture (including, without limitation, joint venture or limited
liability company) in which the Company has a controlling interest, as
determined by the Board of Directors of the Company (the &#147;Board&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Eligibility</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All of the
Company&#146;s employees, officers, directors, consultants, advisors, and other
service providers (including persons who have entered into an agreement with
the Company under which they will be employed by the Company in the future) are
eligible to be granted options, restricted stock, restricted stock units, stock
appreciation rights or other stock-based awards (each, an &#147;Award&#148;) under the
Plan. Each person who has been granted an Award under the Plan shall be deemed
a &#147;Participant&#148;.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Administration and
Delegation</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Administration
by Board of Directors. </i>The Plan will be administered by the Board. The
Board shall have authority to grant Awards and to adopt, amend and repeal such
administrative rules, guidelines and practices relating to the Plan as it shall
deem advisable. The Board may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Award in the manner and to the
extent it shall deem expedient to carry the Plan into effect and it shall be
the sole and final judge of such expediency. All decisions by the Board shall
be made in the Board&#146;s sole discretion and shall be final and binding on all
persons having or claiming any interest in the Plan or in any Award. No
director or person acting pursuant to the authority delegated by the Board
shall be liable for any action or determination relating to or under the Plan
made in good faith.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Appointment
of Committees.</i> To the extent permitted by applicable law, the Board may
delegate any or all of its powers under the Plan to one or more committees or
subcommittees of the Board (a &#147;Committee&#148;). Unless otherwise determined by the
Board, if a Committee is authorized to grant Awards to a Covered Employee (as
defined in Section&nbsp;162(m)&nbsp;of the Code), such Committee shall be
comprised solely of two or more &#147;outside directors&#148; within the meaning of Section&nbsp;162(m)&nbsp;of
the Code. All references in the Plan to the &#147;Board&#148; shall mean the Board or a
Committee of the Board or the officers referred to in Section&nbsp;3(c)&nbsp;to
the extent that the Board&#146;s powers or authority under the Plan have been
delegated to such Committee or officers.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Delegation
to Officers.</i> To the extent permitted by applicable law, the Board may
delegate to one or more officers of the Company the power to grant Awards to
employees or officers of the Company or any of its present or future subsidiary
corporations and to exercise such other powers under the Plan as the Board may
determine, provided that the Board shall fix the terms of the Awards to be
granted by such officers (including the exercise price of such Awards, which
may include a formula by which the exercise price will be determined) and the
maximum number of shares subject to Awards that the officers may grant;
provided further, however, that no officer shall be authorized to grant Awards
to himself or herself or to any &#147;executive officer&#148; of the Company (as defined
by Rule&nbsp;3b-7 under the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;)) or to any &#147;officer&#148; of the Company (as defined by Rule&nbsp;16a-1 under
the Exchange Act).</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Available for Awards</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Number
of Shares.</i> Subject to adjustment under Section&nbsp;9, Awards may be made
under the Plan for up to 77,430,000 shares of common stock, $.0006 par value
per share, of the Company (the &#147;Common Stock&#148;). For purposes of counting the
number of shares available for the grant of Awards under the Plan, (i)&nbsp;shares
of Common Stock covered by independent SARs shall be counted against the number
of shares available for the grant of Awards under the Plan; (ii)&nbsp;if any
Award (A)&nbsp;expires or is terminated, surrendered or canceled without having
been fully exercised or is forfeited in whole or in part (including as the
result of shares of Common Stock subject to such Award being repurchased by the
Company at the original issuance price pursuant to a contractual repurchase
right) or (B)&nbsp;results in any Common Stock not being issued because the
Award (other than a SAR) is settled for cash, the unused Common Stock covered
by such Award (other than a SAR) shall again be available for the grant of
Awards under the Plan; provided, however, in the case of Incentive Stock
Options (as hereinafter defined), the foregoing shall be subject to any
limitations under the Code; and (iii)&nbsp;shares of Common Stock tendered to
the Company by a Participant to (A)&nbsp;purchase shares of Common Stock upon
the exercise of an Award or (B)&nbsp;satisfy tax withholding obligations
(including shares retained from the Award creating the tax obligation) shall
not be added back to the number of shares available for the future grant of
Awards under the Plan.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, if any option or restricted stock award granted under the
1992 Plan expires, is terminated, surrendered or canceled without having been
fully exercised, is forfeited in whole or in part (including as the result of
shares of Common Stock subject to such restricted stock award being repurchased
by the Company at the original issuance price pursuant to a contractual
repurchase right), then in each such case the unused Common Stock covered by
such option or restricted stock award shall be available for the grant of Awards
under the Plan, subject, however, in the case of Incentive Stock Options, to
any limitations under the Code; and further provided that shares of Common
Stock tendered to the Company to (A)&nbsp;purchase shares of Common Stock upon
the exercise of any such option or (B)&nbsp;satisfy tax withholding obligations
(including shares retained from the option or restricted stock award creating
the tax obligation) shall not be added back to the number of shares available
for the future grant of Awards under the Plan and that the aggregate number of
shares of Common Stock available for grant of Awards pursuant to this sentence
shall not exceed 51,000,000. Shares issued under the Plan may consist in whole
or in part of authorized but unissued shares or treasury shares.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Sub-limits.</i>
Subject to adjustment under Section&nbsp;9, the following sub-limits on the
number of shares of Common Stock subject to Awards shall apply:</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Section&nbsp;162(m)&nbsp;Per-Participant
Limit. </i>The maximum number of shares of Common Stock with respect to which Awards
may be granted to any Participant under the Plan in any calendar year shall be
3,450,000. The per-Participant limit described in this Section&nbsp;4(b)(1)&nbsp;shall
be construed and applied consistently with Section&nbsp;162(m)&nbsp;of the Code
(&#147;Section&nbsp;162(m)&#148;).</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Limit
on Awards other than Options and SARs.</i> The maximum number of shares with
respect to which Awards other than Options and SARs may be granted shall be
one-half of the total number of shares of Common Stock covered by the Plan
(including any shares that may become available under this Plan pursuant to Section&nbsp;4(a)(2)&nbsp;hereof).</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Limits
on Awards to Directors.</i> The maximum number of shares with respect to which
Awards may be granted during the term of the Plan to directors who are not
employees of the Company shall be 2,000,000 and the maximum number of shares of
Common stock with respect to which Awards may be granted in any calendar year
to any director who is not an employee of the Company shall be 150,000.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Stock Options</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>General.</i>
The Board may grant options to purchase Common Stock (each, an &#147;Option&#148;) and
determine the number of shares of Common Stock to be covered by each Option,
the exercise price of each Option and the conditions and limitations applicable
to the exercise of each Option, including conditions relating to applicable
federal or state securities laws, as it considers necessary or advisable. An
Option which is not intended to be an Incentive Stock Option (as hereinafter
defined) shall be designated a &#147;Nonstatutory Stock Option&#148;.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Incentive
Stock Options.</i> An Option that the Board intends to be an &#147;incentive stock
option&#148; as defined in Section&nbsp;422 of the Code (an &#147;Incentive Stock Option&#148;)
shall only be granted to employees of Staples,&nbsp;Inc., any of Staples,&nbsp;Inc.&#146;s
present or future parent or subsidiary corporations as defined in
Sections&nbsp;424(e)&nbsp;or (f)&nbsp;of the Code, and any other entities the
employees of which are eligible to receive Incentive Stock Options under the
Code, and shall be subject to and shall be construed consistently with the
requirements of Section&nbsp;422 of the Code. The Company shall have no
liability to a Participant, or any other party, if an Option (or any part
thereof) that is intended to be an Incentive Stock Option is not an Incentive
Stock Option.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exercise
Price.</i> The Board shall establish the exercise price at the time each Option
is granted and specify it in the applicable option agreement; provided,
however, that the exercise price shall be not less than 100% of the fair market
value (the &#147;Fair Market Value&#148;) of the Common Stock, as determined by the
Board, at the time the Option is granted.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
Reload Rights.</i> Options granted under this Plan shall not contain any
provision entitling the optionee to the automatic grant of additional Options
in connection with any exercise of the original Option.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
Repricing.</i> Unless such action is approved by the Company&#146;s stockholders: (i)&nbsp;no
outstanding Option granted under the Plan may be amended to provide an exercise
price per share that is lower than the then-current exercise price per share of
such outstanding Option (other than adjustments pursuant to Section&nbsp;9),
and (ii)&nbsp;the Board may not cancel any outstanding Option and grant in
substitution therefor new Options under the Plan covering the same or a
different number of shares of Common Stock and having an exercise price per
share lower than the then-current exercise price per share of the cancelled
Option.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Duration
of Options.</i> Each Option shall be exercisable at such times and subject to
such terms and conditions as the Board may specify in the applicable option
agreement provided, however, that no Option will be granted for a term in
excess of 10&nbsp;years.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exercise
of Option.</i> Options may be exercised by delivery to the Company of a written
notice of exercise signed by the proper person or by any other form of notice
(including electronic notice) approved by the Company, together with payment in
full as specified in Section&nbsp;5(h)&nbsp;for the number of shares for which
the Option is exercised. Shares of Common Stock subject to the Option will be
delivered by the Company following exercise either as soon as practicable or,
to the extent permitted by the Company in its sole discretion, on a deferred
basis in compliance with Section&nbsp;409A of the Code (with the Company&#146;s
obligation to be evidenced by an instrument providing for future delivery of
the deferred shares at the time or times specified by the Board).</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Payment
Upon Exercise. </i>Common Stock purchased upon the exercise of an Option
granted under the Plan shall be paid for as follows:</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in
cash or by check, payable to the order of the Company;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except
as the Board may, in its sole discretion, otherwise provide in an option
agreement, by (i)&nbsp;delivery of an irrevocable and unconditional undertaking
by a creditworthy broker to deliver promptly to the Company sufficient funds to
pay the exercise price and any required tax withholding or (ii)&nbsp;delivery
by the Participant to the Company of a copy of irrevocable and unconditional
instructions to a creditworthy broker to promptly pay to the Company the
exercise price and any required tax withholding;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if
provided for in the option agreement or approved by the Company, in its sole
discretion, by delivery (either by actual delivery or attestation) of shares of
Common Stock owned by the Participant valued at their Fair Market Value,
provided (i)&nbsp;such method of payment is then permitted under applicable
law, (ii)&nbsp;such Common Stock, if acquired directly from the Company was
owned by the Participant for such minimum period of time, if any, as may be
established by the Board in its discretion, and (iii)&nbsp;such Common Stock is
not subject to any repurchase, forfeiture, unfulfilled vesting or other similar
requirements;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if
provided for in the option agreement or approved by the Company, in its sole
discretion, by payment of such other lawful consideration as the Board may
determine, but in no event may such consideration include delivery of a
promissory note of the Participant to the Company; or</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
any combination of the above permitted forms of payment.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Substitute
Options.</i> In connection with a merger or consolidation of an entity with the
Company or the acquisition by the Company of property or stock of an entity,
the Board may grant Options in substitution for any options or other stock or
stock-based awards granted by such entity or an affiliate thereof. Substitute
Options may be granted pursuant to this Section&nbsp;5(i)&nbsp;on such terms as
the Board deems appropriate in the circumstances, notwithstanding any
limitations on Options contained in the other sections of this Section&nbsp;5
or in Section&nbsp;2, so long as (a)&nbsp;the excess of the aggregate fair
market value of the shares subject to each substituted option immediately after
the issuance of such substituted option over the aggregate exercise price of
such option does not exceed the excess of the aggregate fair market value of
all shares subject to the original option immediately before the issuance of
such substituted option over the aggregate exercise price of the original
option and (b)&nbsp;the ratio of the option exercise price to the fair market
value of the stock for the substitute option is not greater than the ratio of
the option exercise price to the fair market value of the original option
immediately before such substitution.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
of Options.</i> Subject to the provisions of Section&nbsp;10(f), the Board may
amend an Option to convert it into a Stock Appreciation Right.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Stock Appreciation
Rights</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Nature
of Stock Appreciation Rights.</i> A Stock Appreciation Right, or SAR, is an
Award entitling the holder on exercise to receive an amount in cash or Common
Stock or a combination thereof (such form to be determined by the Board)
determined solely by reference to appreciation, from and after the date of
grant, in the fair market value of a share of Common Stock. The date as of
which such appreciation or other measure is determined shall be the exercise
date unless another date is specified by the Board.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Grant
of Stock Appreciation Rights. </i>Stock Appreciation Rights may be granted in
tandem with, or independently of, Options granted under the Plan.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Rules&nbsp;Applicable
to Tandem Awards. </i>When Stock Appreciation Rights are granted in tandem with
Options, (a)&nbsp;the Stock Appreciation Right will be exercisable only at such
time or times, and to the extent, that the related Option is exercisable
(except to the extent designated by the Board in connection with an Acquisition
Event or a Change in Control Event) and will be exercisable in accordance with
the procedure required for exercise of the related Option; (b)&nbsp;the Stock
Appreciation Right will terminate and no longer be exercisable upon the
termination or exercise of the related Option, except to the extent designated
by the Board in connection with an Acquisition Event or a Change in Control
Event and except that a Stock Appreciation Right granted with respect to less
than the full number of shares covered by an Option will not be reduced until
the number of shares as to which the related Option has been exercised or has
terminated exceeds the number of shares not covered by the Stock Appreciation
Right; (c)&nbsp;the Option will terminate and no longer be exercisable upon the
exercise of the related Stock Appreciation Right; and (d)&nbsp;the Stock
Appreciation Right will be transferable only with the related Option.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exercise
of Independent Stock Appreciation Rights.</i> A Stock Appreciation Right not
granted in tandem with an Option will become exercisable at such time or times,
and on such conditions, as the Board may specify. The Board may at any time
accelerate the time at which all or any part of the Right may be exercised.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Exercise
of Stock Appreciation Rights.</i> Stock Appreciation Rights may be exercised by
delivery to the Company of a written notice of exercise signed by the proper
person or by any other form of notice (including electronic notice) approved by
the Company.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Restricted Stock;
Restricted Stock Units</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Grants.</i>
The Board may grant Awards entitling recipients to acquire shares of Common
Stock (&#147;Restricted Stock&#148;), subject to the right of the Company to repurchase
all or part of such shares at their issue price or other stated or formula
price (or to require forfeiture of such shares if issued at no cost) from the
recipient in the event that conditions specified by the Board in the applicable
Award are not satisfied prior to the end of the applicable restriction period
or periods established by the Board for such Award. Instead of granting </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Awards for
Restricted Stock, the Board may grant Awards entitling the recipient to receive
shares of Common Stock to be delivered in the future (&#147;Restricted Stock Units&#148;)
subject to such terms and conditions on the delivery of the shares of Common
Stock as the Board shall determine (each Award for Restricted Stock or
Restricted Stock Units, a &#147;Restricted Stock Award&#148;).</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Terms
and Conditions.</i> The Board shall determine the terms and conditions of any
such Restricted Stock Award, including the conditions for repurchase (or
forfeiture) and the issue price, if any.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Limitations
on Vesting.</i> Restricted Stock Awards that vest based on the passage of time
alone shall be zero percent vested prior to the first anniversary of the date
of grant, no more than 33<font size="1" style="font-size:7.0pt;">1/3</font>%
vested after the said first anniversary of the date of grant and before the
second anniversary of the date of grant, and no more than 66<font size="1" style="font-size:7.0pt;">2/3</font>% vested after the second anniversary
of the date of grant and before the third anniversary of the date of grant.
Restricted Stock Awards that vest based on performance alone shall not vest
earlier than the first anniversary of the date of grant. Restricted Stock
Awards that vest upon the passage of time and provide for accelerated vesting
based on performance shall not vest earlier than the first anniversary of the
date of grant. Notwithstanding the preceding provisions of this Section&nbsp;7(c)(1),
the Board may grant Restricted Stock Awards that are not subject to any
limitations on vesting with respect to up to 5% of the total number of shares
of Common Stock covered by the Plan (excluding any shares that may become
available under this Plan pursuant to Section <br>
4(a)(2) hereof).</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding
any other provision of this Plan, the Board may, in its discretion, either at
the time a Restricted Stock Award is made or at any time thereafter, waive its
right to repurchase shares of Common Stock (or waive the forfeiture thereof) or
remove or modify any part or all of the restrictions applicable to the
Restricted Stock Award, provided that the Board may only exercise such rights
in extraordinary circumstances which shall include, without limitation, death
or disability of the Participant; estate planning needs of the Participant; a
merger, consolidation, sale, reorganization, recapitalization, or change in
control of the Company; or any other nonrecurring significant event affecting
the Company, a Participant or the Plan.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Other Stock-Based
Awards</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other Awards
of shares of Common Stock and other Awards that are valued in whole or in part
by reference to, or are otherwise based on, shares of Common Stock or other
property, including without limitation rights to purchase shares of Common Stock
(&#147;Other Stock Unit Awards&#148;), may be granted hereunder to Participants. Such
Other Stock Unit Awards shall also be available as a form of payment in the
settlement of other Awards granted under the Plan or as payment in lieu of
compensation to which a Participant is otherwise entitled. Other Stock Unit
Awards may be paid in shares of Common Stock or cash, as the Board shall
determine. Subject to the provisions of the Plan, the Board shall determine the
conditions of each Other Stock Unit Awards, including any purchase price
applicable thereto; provided, however, that the limitations on vesting and
exceptions thereto contained in Section&nbsp;7(c)(1)&nbsp;of the Plan shall
also apply to all Other Stock Unit Awards.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Adjustments for
Changes in Common Stock and Certain Other Events</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Changes
in Capitalization.</i> In the event of any stock split, reverse stock split,
stock dividend, recapitalization, combination of shares, reclassification of
shares, spin-off or other similar change in capitalization or event, or any
distribution to holders of Common Stock other than an ordinary cash dividend, (i)&nbsp;the
number and class of securities available under this Plan, (ii)&nbsp;the
sub-limits set forth in Section&nbsp;4(b), (iii)&nbsp;the number and class of
securities and exercise price per share subject to each outstanding Option, (iv)&nbsp;the
repurchase price per share subject to each outstanding Restricted Stock Award
and (v)&nbsp;the terms of each other outstanding stock-based Award shall be
adjusted by the Company in the same proportion (or substituted Awards may be
made, if applicable). If this Section&nbsp;9(a)&nbsp;applies and Section&nbsp;9(c)&nbsp;also
applies to any event, Section&nbsp;9(c)&nbsp;shall be applicable to such event,
and this Section&nbsp;9(a)&nbsp;shall not be applicable.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liquidation
or Dissolution.</i> In the event of a proposed liquidation or dissolution of
the Company, the Board shall upon written notice to the Participants provide
that all then unexercised Options will (i)&nbsp;become exercisable in full as
of a specified time at least 10 business days prior to the effective date of
such liquidation or dissolution and (ii)&nbsp;terminate effective upon such
liquidation or dissolution, except to the extent exercised before </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">such effective
date. The Board may specify the effect of a liquidation or dissolution on any
Restricted Stock Award granted under the Plan at the time of the grant.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reorganization Events.</i></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Definition.</i>
A &#147;Reorganization Event&#148; shall mean: (a)&nbsp;any merger or consolidation of
the Company with or into another entity as a result of which all of the
outstanding shares of Common Stock are converted into or exchanged for the
right to receive cash, securities or other property or (b)&nbsp;any exchange of
all of the Common Stock for cash, securities or other property pursuant to a
share exchange transaction.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Consequences
of a Reorganization Event on Awards.</i> In connection with a Reorganization
Event, the Board shall take any one or more of the following actions as to all
or any outstanding Awards on such terms as the Board determines: (i)&nbsp;provide
that Awards shall be assumed, or substantially equivalent Awards shall be
substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii)&nbsp;upon written notice to a Participant, provide that the Participant&#146;s
unexercised Options or other unexercised Awards shall become exercisable in
full and will terminate immediately prior to the consummation of such
Reorganization Event unless exercised by the Participant within a specified
period following the date of such notice, (iii)&nbsp;in the event of a
Reorganization Event under the terms of which holders of Common Stock will
receive upon consummation thereof a cash payment for each share surrendered in
the Reorganization Event (the &#147;Acquisition Price&#148;), make or provide for a cash
payment to a Participant equal to (A)&nbsp;the Acquisition Price times the
number of shares of Common Stock subject to the Participant&#146;s Options or other
Awards (to the extent the exercise price does not exceed the Acquisition Price)
minus (B)&nbsp;the aggregate exercise price of all such outstanding Options or
other Awards, in exchange for the termination of such Options or other Awards, (iv)&nbsp;provide
that outstanding Awards shall become exercisable or realizable, or restrictions
applicable to a Restricted Stock Award or other Award shall lapse, in whole or
in part, prior to or upon such Reorganization Event, (v)&nbsp;provide that, in
connection with a liquidation or dissolution of the Company, Awards shall
convert into the right to receive liquidation proceeds (if applicable, net of
the exercise price thereof) and (vi)&nbsp;any combination of the foregoing. To
the extent all or any portion of an Award becomes exercisable solely as a
result of clause&nbsp;(ii)&nbsp;above, the Board may provide that upon exercise
of such Award the Participant shall receive shares subject to a right of
repurchase by the Company or its successor at the Award exercise price; such
repurchase right (A)&nbsp;shall lapse at the same rate as the Award would have
become exercisable under its terms and (B)&nbsp;shall not apply to any shares
subject to the Award that were exercisable under its terms without regard to
clause&nbsp;(ii)&nbsp;above.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>General Provisions
Applicable to Awards</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Transferability
of Awards.</i> Awards shall not be sold, assigned, transferred, pledged or
otherwise encumbered by the person to whom they are granted, either voluntarily
or by operation of law, except by will or the laws of descent and distribution
or, other than in the case of an Incentive Stock Option, pursuant to a
qualified domestic relations order, and, during the life of the Participant,
shall be exercisable only by the Participant; provided, however, that the Board
may permit or provide in an Award for the gratuitous transfer of the Award by
the Participant to or for the benefit of any immediate family member, family
trust or family partnership established solely for the benefit of the
Participant and/or an immediate family member thereof if, with respect to such
proposed transferee, the Company would be eligible to use a Form&nbsp;S-8 for
the registration of the sale of the Common Stock subject to such Award under
the Securities Act of 1933, as amended; provided, further, that the Company
shall not be required to recognize any such transfer until such time as the
Participant and such permitted transferee shall, as a condition to such
transfer, deliver to the Company a written instrument in form and substance
satisfactory to the Company confirming that such transferee shall be bound by
all of the terms and conditions of the Award. References to a Participant, to
the extent relevant in the context, shall include references to authorized
transferees.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Documentation.</i>
Each Award shall be evidenced in such form (written, electronic or otherwise)
as the Board shall determine. Each Award may contain terms and conditions in
addition to those set forth in the Plan.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Board
Discretion.</i> Except as otherwise provided by the Plan, each Award may be
made alone or in addition or in relation to any other Award. The terms of each
Award need not be identical, and the Board need not treat Participants
uniformly.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Termination
of Status.</i> The Board shall determine the effect on an Award of the
disability, death, retirement, authorized leave of absence or other change in
the employment or other status of a Participant and the extent to which, and
the period during which, the Participant, the Participant&#146;s legal
representative, conservator or guardian may exercise rights under the Award.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Withholding.</i>
The Company may require each Participant to pay to the Company, or make
provision satisfactory to the Company for payment of, an amount sufficient to
pay any taxes, social security contributions, or other similar amounts required
by law to be withheld in connection with an Award to such Participant. If
provided for in an Award or approved by the Company, in its sole discretion, a
Participant may satisfy such tax obligations in whole or in part by delivery of
shares of Common Stock, including shares retained from the Award creating the
tax obligation, valued at their Fair Market Value; provided, however, that
except as otherwise provided by the Board, the total tax withholding where
stock is being used to satisfy such tax obligations cannot exceed the Company&#146;s
minimum statutory withholding obligations (based on minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes,
that are applicable to such supplemental taxable income). Shares surrendered to
satisfy tax withholding requirements cannot be subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements. The Company may,
to the extent permitted by law, deduct any such tax obligations from any
payment of any kind otherwise due to a Participant.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
of Award.</i> Except as prohibited by Section&nbsp;5(e), the Board may amend,
modify or terminate any outstanding Award, including but not limited to,
substituting therefor another Award of the same or a different type, changing
the date of exercise or realization, converting an Incentive Stock Option to a
Nonstatutory Stock Option and converting an Option into a SAR, provided that,
in each such case, the Participant&#146;s consent to such action shall be required
unless the Board determines that the action, taking into account any related
action, would not materially and adversely affect the Participant.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Conditions
on Delivery of Stock.</i> The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Plan or to remove restrictions from
shares previously delivered under the Plan until (i)&nbsp;all conditions of the
Award have been met or removed to the satisfaction of the Company, (ii)&nbsp;in
the opinion of the Company&#146;s counsel, all other legal matters in connection
with the issuance and delivery of such shares have been satisfied, including
any applicable securities laws and any applicable stock exchange or stock
market rules&nbsp;and regulations, and (iii)&nbsp;the Participant has executed
and delivered to the Company such representations or agreements as the Company
may consider appropriate to satisfy the requirements of any applicable laws, rules&nbsp;or
regulations.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Acceleration.</i>
The Board may at any time provide that any Award shall become immediately
exercisable in full or in part, free of some or all restrictions or conditions,
or otherwise realizable in full or in part, as the case may be; provided,
however, that this sentence shall apply to a Restricted Stock Award only to the
extent consistent with Sections&nbsp;7(c)(2)&nbsp;and 10(j).</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Deferral.</i>
The Board may provide in an Award or in an amendment to an Award that the
Participant may elect to defer the delivery of shares of Common Stock that
would otherwise be delivered pursuant to such Award. The Board may establish
such conditions on the Participant&#146;s election as it deems appropriate,
including provisions to obtain compliance with Section&nbsp;409A of the Code.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Performance
Conditions.</i> Notwithstanding any other provision of the Plan, if the
Committee determines at the time a Restricted Stock Award or an Other Stock
Unit Award is granted to a Participant who is then an officer, that such
Participant is, or is likely to be as of the end of the tax year in which the
Company would claim a tax deduction in connection with such Award, a Covered Employee
(as defined in Section&nbsp;162(m)&nbsp;of the Code), then the Committee may
provide that this Section&nbsp;10(j)&nbsp;is applicable to such Award.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If a
Restricted Stock Award or an Other Stock Unit Award is subject to this Section&nbsp;10(j),
then the lapsing of restrictions thereon and the distribution of Shares
pursuant thereto, as applicable, shall be subject to the achievement of one or
more objective performance goals established by the Committee, which shall be
based on one or more of the </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">following measures: sales,
earnings per share, return on net assets, return on equity, and customer
service levels. The Committee may determine that special one-time or
extraordinary gains and/or losses and/or other one-time or extraordinary events
should or should not be included or considered in the calculation of such
measures. In addition, customer service target levels will be based on
predetermined tests of customer service levels such as scores on blind test (&#147;mystery&#148;)
shopping, customer comment card statistics, customer relations statistics
(e.g.,&nbsp;number of customer complaints), and delivery response levels. The
Committee believes that disclosure of further detail concerning the performance
criteria may be confidential commercial or business information, the disclosure
of which would adversely affect the Company. Such performance goals may vary by
Participant and may be different for different Awards. Such performance goals
shall be set by the Committee within the time period prescribed by, and shall
otherwise comply with the requirements of, Section&nbsp;162(m)&nbsp;of the
Code, or any successor provision thereto, and the regulations thereunder.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Committee
shall have the power to impose such other restrictions on Awards subject to this
Section&nbsp;10(j)&nbsp;as it may deem necessary or appropriate to ensure that
such Awards satisfy all requirements for &#147;performance-based compensation&#148;
within the meaning of Section&nbsp;162(m)(4)(C)&nbsp;of the Code, or any
successor provision thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">11.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Miscellaneous</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
Right To Employment or Other Status.</i> No person shall have any claim or
right to be granted an Award, and the grant of an Award shall not be construed
as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan, except as expressly provided in the
applicable Award.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
Rights As Stockholder.</i> Subject to the provisions of the applicable Award,
no Participant shall have any rights as a stockholder with respect to any
shares of Common Stock to be distributed with respect to an Award until
becoming the record holder of such shares. Notwithstanding the foregoing, in
the event the Company effects a split of the Common Stock by means of a stock
dividend and the exercise price of and the number of shares subject to such
Option are adjusted as of the date of the distribution of the dividend (rather
than as of the record date for such dividend), then an optionee who exercises
an Option between the record date and the distribution date for such stock
dividend shall be entitled to receive, on the distribution date, the stock
dividend with respect to the shares of Common Stock acquired upon such Option
exercise, notwithstanding the fact that such shares were not outstanding as of
the close of business on the record date for such stock dividend.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Effective
Date and Term of Plan.</i> The Plan shall become effective on the date on which
it is approved by stockholders of the Company and shall remain in full force
and effect until terminated by the Board. No Awards shall be granted under the
Plan after the completion of ten years from the date on which the Plan is
adopted or was approved by the Company&#146;s stockholders, whichever is earlier,
but Awards previously granted may extend beyond that date.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
of Plan.</i> The Board may amend, suspend or terminate the Plan or any portion
thereof at any time, provided that no amendment requiring the approval of the
Company&#146;s stockholders under any applicable tax requirement, including without
limitation Sections&nbsp;162(m)&nbsp;and 422 of the Code, shall become
effective until such approval of the Company&#146;s stockholders is obtained and
provided further that without approval of the Company&#146;s stockholders, no
amendment may (i)&nbsp;increase the number of shares authorized under the Plan
(other than pursuant to Section&nbsp;9), (ii)&nbsp;materially increase the
benefits provided under the Plan, (iii)&nbsp;materially expand the class of
participants eligible to participate in the Plan, (iv)&nbsp;expand the types of
Awards provided under the Plan or (v)&nbsp;make any other changes which require
stockholder approval under the rules&nbsp;of the Nasdaq National Market,&nbsp;Inc.
No Award shall be made that is conditioned on the approval of the Company&#146;s
stockholders of any amendment to the Plan.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Provisions
for Foreign Participants.</i> The Board may modify the terms and conditions of
Awards granted to Participants who are foreign nationals or employed outside
the United States, establish subplans under the Plan, or adopt such
modifications or procedures as the Board may determine to be necessary or
advisable to recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee
benefit, accounting or other matters.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Compliance
With Code Section&nbsp;409A.</i> No Award shall provide for deferral of compensation
that does not comply with Section&nbsp;409A of the Code, unless the Board, at
the time of grant, specifically provides that the Award is not intended to
comply with Section&nbsp;409A of the Code.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Governing
Law.</i> The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the State of
Delaware, without regard to any applicable conflicts of law.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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