Staples 2007 Annual Report Download - page 72

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APPENDIX A
Staples, Inc.
Executive Officer Incentive Plan
Fiscal Years 2008 - 2012
I. Summary and Objectives
Staples, Inc. (‘‘Staples’’) has developed this Executive Officer Incentive Plan (the ‘‘Incentive Plan’’) 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.
II. Term of Plan
The Incentive Plan will cover five fiscal years, beginning with the 2008 fiscal year (beginning February 3, 2008)
and ending with the 2012 fiscal year (ending February 2, 2013). Each such fiscal year is referred to herein as a ‘‘Plan
Year’’.
III. Eligibility
Provided that the Compensation Committee of the Board of Directors (the ‘‘Committee’’) 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’ bonus award
eligibility. Except as set forth in Section III. D with respect to a Plan Participant’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.
A. General Eligibility Requirements
Each executive officer of Staples, within the meaning of the rules 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 ‘‘Plan
Participant’’).
B. Changes in Position
A Plan Participant who changes from one position to another will be eligible for a prorated bonus award as
follows:
1. 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’s eligibility for a bonus for the
new position, if any, will be determined in accordance with any applicable bonus plan for that position.
2. 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.
C. Leaves of Absence
A Plan Participant who is on a company-approved leave of absence in excess of 90 days during a Plan Year will
not be eligible for a bonus award for the portion of his or her leave over 90 days unless otherwise approved by the
Committee.
A-1