Form of Restricted Stock Awards for Exceutives



 Exhibit 10.3 

 
 



 
 2012 RESTRICTED STOCK UNIT AWARD AGREEMENT 

We are pleased to advise you that the Compensation Committee (the “Committee”) of the Board of Directors of Office Depot, Inc.
(the “Company”) has on March 16, 2012 (the “Grant Date”) granted you a restricted stock unit award pursuant to the Office Depot, Inc. 2007 Long-Term Incentive Plan (the “Plan”). Capitalized terms used but not
defined in this 2012 Restricted Stock Unit Award Agreement (the “Agreement”) have the meanings given to them in the Plan. This award is subject to federal and local law and the requirements of the New York Stock Exchange. 

 

	 1.
	 Restricted Stock Units 


  

	   
	 You have been granted restricted stock units subject to the provisions and restrictions contained in the Plan and this Agreement (the
“Restricted Stock Units”). The target number of Restricted Stock Units that have been awarded to you are displayed as the March 16, 2012 restricted stock unit grant under the Performance Plan link of the Plan website (your
“Target Award”). 


  

	 2.
	 Vesting 


  

	 	 a.
	 Performance Condition - Subject to the terms and conditions set forth herein and in paragraphs (b) through (e) below,
including in particular the service condition in paragraph (b), you will be eligible to earn all or a portion of your Target Award based on the Company’s actual earnings before interest and taxes (“EBIT”) for the Company’s 2012
fiscal year relative to the threshold, target, and maximum EBIT levels established by the Committee for such fiscal year. These threshold, target and maximum EBIT levels are displayed under the Performance Plan link of the Plan website. If the
Committee determines that the Company does not achieve at least the threshold level of EBIT for its 2012 fiscal year, you will immediately forfeit all of your Restricted Stock Units. If the Committee determines that the Company’s achievement is
at least equal to the threshold level of EBIT for its 2012 fiscal year, you will be eligible to earn a number of Restricted Stock Units based on the interpolation model specified by the Committee relative to your Target Award. If the Committee
determines that the Company’s achievement is above the target level of EBIT for its 2012 fiscal year, the number of Restricted Stock Units you will be eligible to earn will be increased based on the interpolation model specified by the
Committee relative to your Target Award. If the Committee determines that the Company’s achievement is below the target level, but at least equal to the threshold level, of EBIT for its 2012 fiscal year, the number of Restricted Stock Units you
will be eligible to earn will be decreased based on the interpolation model specified by the Committee relative to your Target Award. The Committee will determine the number of Restricted Stock Units, if any, that you are eligible to earn on the
foregoing basis following the close of the Company’s 2012 fiscal year (your “Eligible Award”). 










 



 
  


	 	   
	 Upon the Committee’s determination of your Eligible Award, you will immediately forfeit all Restricted Stock Units other than your Eligible
Award. To become vested in all or a portion of your Eligible Award, you must satisfy the service condition in paragraph (b) below. 


  

	 	 b.
	 Service Condition and Normal Vesting - In addition to the Company satisfying at least the threshold performance condition in
paragraph (a), you must also satisfy the service condition under this paragraph in order to become vested in your Eligible Award. Your Eligible Award will vest one-third (rounded down to the next highest whole number of Restricted Stock Units, as
necessary) on each of the first, second and third anniversaries of the Grant Date; provided that, you are continuously employed by the Company or any Subsidiary from the Grant Date until each such anniversary date. 



 

	 	 c.
	 Effect on Vesting of Employment Termination - Notwithstanding paragraph 2(b) above, the following rules will apply if you separate
from service with the Company and its Subsidiaries before you have vested in your Restricted Stock Units pursuant to paragraph 2(b) above: 


  

	 	 i)
	 Death or Disability. 


  

	 	 A.
	 If you separate from service with the Company and its Subsidiaries due to death or Disability prior to the date on which the Committee has
determined the Company’s EBIT achievement for the 2012 fiscal year, your Target Award will vest on the date of such separation from service. 


  

	 	 B.
	 If you separate from service with the Company and its Subsidiaries due to death or Disability on or after the date on which the Committee has
determined the Company’s EBIT achievement for the 2012 fiscal year, your Eligible Award, if any, will vest (to the extent it has not previously vested) on the date of such separation from service. 



 

	 	 C.
	 For this purpose, you will be considered “Disabled” if you have been determined to be eligible to commence benefits under the
Company’s long-term disability program; the effective date of your Disabled status will be the later of the date on which such determination is made or the date as of which you are determined to be eligible to commence such benefits. Your
Disabled status must become effective under the preceding sentence prior to the date on which the Restricted Stock Units would otherwise be forfeited for failure to vest in order to be recognized under this Agreement. This definition of
“Disability” applies in lieu of the definition set out in the Plan. 



  
 2 









 



 
  


	 	 ii)
	 Termination of Employment.    Except as provided otherwise in paragraph 2(c)(i) above due to death or Disability, upon
your separation from service with the Company and its Subsidiaries, you will immediately forfeit all of your Restricted Stock Units that are not vested under paragraph 2(b) above or paragraph 2(d) below on the date of such separation from service.



  

	 	 d.
	 Change in Control - 


  

	 	 i)
	 Prior to EBIT Determination. If a Change in Control occurs prior to the date on which the Committee has determined the Company’s EBIT
achievement for the 2012 fiscal year, your Target Award will vest immediately prior to the date of the Change in Control. On the date of the Change in Control, you will immediately forfeit all of your Restricted Stock Units that are not vested under
this paragraph 2(d) or paragraph 2(b) or 2(c) above. 


  

	 	 ii)
	 After EBIT Determination. If a Change in Control occurs on or after the date on which the Committee has determined the Company’s EBIT
achievement for the 2012 fiscal year, your Eligible Award, if any, will vest (to the extent it has not previously vested) immediately prior to the date of the Change in Control. 



 

	 	 e.
	 No Other Special Vesting Rights – The provisions of the Plan with respect to accelerated vesting in the event of Retirement (sections
10.5(iii) and 10.6 of the Plan) do not apply to your Restricted Stock Units. 


  

	 3.
	 Rights as Stockholder 


  

	   
	 You shall have no voting, dividend or any other rights as a stockholder of the Company with respect to your Restricted Stock Units. Upon the
issuance of Common Stock pursuant to Section 4 below, you shall obtain full voting and other rights of a stockholder of the Company as to such shares. 



 

	 4.
	 Registration 


  

	   
	 Within 30 days after all or a portion of your Restricted Stock Units become vested under paragraphs 2(b) through (d) above, the Company will
issue to you and register in your name a certificate or certificates for (or evidence in book entry or similar account) a number of shares of the Company’s common stock (“Common Stock”) equal to the number of Restricted Stock Units
that became vested under paragraphs 2(b) through (d) above. Such shares will not be subject to any restrictions under this Agreement, but may be subject to certain restrictions under applicable securities laws. 



  
 3 









 



 
  


	 5.
	 Transferability of Restricted Stock Units 


  


	   
	 Your Restricted Stock Units may not be sold, pledged, assigned or transferred in any manner; any such purported sale, pledge, assignment or transfer
shall be void and of no effect. 


  

	 6.
	 Conformity with Plan 


  

	   
	 Your Restricted Stock Units are intended to conform in all respects with, and are subject to, all applicable provisions of the Plan which is
incorporated herein by reference. Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan except as expressly provided otherwise in this Agreement. The Committee reserves its right to amend or
terminate the Plan at any time without your consent; provided, however, that your Restricted Stock Units shall not, without your written consent, be adversely affected thereby (except to the extent the Committee reasonably determines that such
amendment or termination is necessary or appropriate to comply with applicable law or the rules or regulations of any stock exchange on which the Company’s stock is listed or quoted). All interpretations and determinations of the Committee or
its delegate shall be final, binding and conclusive upon you and your legal representatives with respect to any question arising hereunder or under the Plan or otherwise, including guidelines, policies or regulations which govern administration of
the Plan. By acknowledging this Agreement through the Plan website, you agree to be bound by all of the terms of the Plan and acknowledge availability and accessibility of the Plan document, the Plan Prospectus, and either the Company’s latest
annual report to shareholders or annual report on Form 10-K on the Plan and/or Company websites. You understand that you may request paper copies of the foregoing documents by contacting the Company’s Senior Manager, Executive
Compensation & International Compensation and Benefits. 


  

	 7.
	 Restrictions on Shares 


  

	   
	 If the Committee determines that the listing, registration or qualification upon any securities exchange or under any law of shares subject to the
grant of the Restricted Stock Units is necessary or desirable as a condition of, or in connection with, the granting of same or the issue or purchase of shares thereunder, no shares may be issued unless such listing, registration or qualification is
effected free of any conditions not acceptable to the Committee. All certificates for shares of Common Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the
rules, regulations, and other requirements of the Securities and Exchange Commission, any listing standards of any exchange or self-regulatory organization on which the Common Stock of the Company is listed, and any applicable federal or state laws;
and the Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. In making such determination, the Committee may rely upon an opinion of counsel for the Company. The Company
shall have no liability to deliver any shares under the Plan or make any 



  
 4 









 



 
  


	   
	 other distribution of the benefits under the Plan unless such delivery or distribution would comply with all applicable state, federal, and foreign
laws (including, without limitation and if applicable, the requirements of the Securities Act of 1933), and any applicable requirements of any securities exchange or similar entity. 



 

	 8.
	 Non-Compete, Confidentiality, and Non-Solicitation Requirements 



 

	   
	 Your Restricted Stock Units are also subject to your complying with and not breaching the non-compete, confidentiality, and non-solicitation
agreement that you were required to sign as a condition of your employment with the Company. 


  

	 9.
	 Compliance with Section 409A 


  

	   
	 It is intended, and this Agreement shall be construed, so that all compensation payable to you under this Agreement shall be exempt from section
409A of the Internal Revenue Code of 1986, as amended (the “Code”). However, to the extent that any compensation payable under this Agreement constitutes deferred compensation within the meaning of Code section 409A and the Department of
Treasury regulations and other guidance thereunder, (i) any provisions of this Agreement that provide for payment of such compensation that is triggered by your separation from service shall be deemed to provide for payment that is triggered
only by your “separation from service” within the meaning of Treasury Regulation Section §1.409A-1(h), and (ii) if you are a “specified employee” within the meaning of Treasury Regulation Section §1.409A-1(i) on
the date of your separation from service (with such status determined by the Company in accordance with rules established by the Company in writing in advance of the “specified employee identification date” that relates to the date of such
separation from service or in the absence of such rules established by the Company, under the default rules for identifying specified employees under Treasury Regulation Section 1.409A-1(i)), such compensation triggered by your separation from
service shall be paid to you six months following the date of such separation from service (provided, however, that if you die after the date of your separation from service, this six month delay shall not apply). You acknowledge and agree that the
Company has made no representation regarding the tax treatment of any payment under this Agreement and, notwithstanding anything else in this Agreement, that you are solely responsible for all taxes due with respect to any payment under this
Agreement. 


  

	 10.
	 Employment and Successors 


  

	   
	 Nothing in the Plan or this Agreement shall serve to modify or amend any employment agreement you may have with the Company or any Subsidiary or to
interfere with or limit in any way the right of the Company or any Subsidiary to terminate your employment at any time, or confer upon you any right to continue in the employ of the Company or any Subsidiary for any period of time or to continue
your present or any other rate of compensation subject to the terms of any employment agreement you may have with the Company. The grant of your Restricted Stock Units shall not give you any right to any 



  
 5 









 



 
  


	   
	 additional awards under the Plan or any other compensation plan the Company has adopted or may adopt. The agreements contained in this Agreement
shall be binding upon and inure to the benefit of any successor of the Company. 


  

	 11.
	 Amendment 


  

	   
	 The Committee may amend this Agreement by a writing that specifically states that it is amending this Agreement, so long as a copy of such amendment
is delivered to you, provided that no such amendment shall adversely affect in a material way your rights hereunder without your written consent (except to the extent the Committee reasonably determines that such amendment or termination is
necessary or appropriate to comply with applicable law or the rules or regulations of any stock exchange on which the Company’s stock is listed or quoted). Without limiting the foregoing, the Committee reserves the right to change, by written
notice to you, the provisions of the Restricted Stock Units or this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant of the Restricted Stock Units as a result of any change in applicable law or regulation
or any future law, regulation, ruling, or judicial decisions; provided that, any such change shall be applicable only to that portion of your Restricted Stock Units that are then subject to restrictions as provided herein.



  

	 12.
	 Notices 


  

	   
	 Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company as follows: 



Office Depot, Inc. 
 c/o Vice President, Global Compensation, Benefits, HRIM & HR Services 
 6600 North Military Trail 
 Boca Raton, FL 33496 

 

	   
	 Any notice to be given under the terms of this Agreement to you shall be addressed to you at the address listed in the Company’s records. By a
notice given pursuant to this Section, either party may designate a different address for notices. Any notice shall be deemed to have been duly given when personally delivered (addressed as specified above) or when enclosed in a properly sealed
envelope (addressed as specified above) and deposited, postage prepaid, with the U.S. postal service or an express mail company. 


  

	 13.
	 Severability 


  

	   
	 If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any section of this Agreement (or part of such a section) so declared to be unlawful or invalid shall, if possible, be construed in a
manner that will give effect to the terms of such section or part of a section to the fullest extent possible while remaining lawful and valid. 



  
 6 









 



 
  


	 14.
	 Entire Agreement 


  

	   
	 This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements or
understandings, oral or written, with respect to the subject matter herein. By acknowledging this Agreement online through the Plan website, you accept the Restricted Stock Units in full satisfaction of any and all obligations of the Company to
grant equity compensation awards to you as of the date hereof. 


  

	 15.
	 Governing Law 


  

	   
	 This Agreement will be governed by and enforced in accordance with the laws of the State of Florida, without giving effect to its conflicts of laws
rules or the principles of the choice of law. 


  

	 16.
	 Venue 


  

	   
	 Any action or proceeding seeking to enforce any provision of or based on any right arising out of this Agreement may be brought against you or the
Company only in the courts of the State of Florida or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of Florida, West Palm Beach Division; and you and the Company consent to the jurisdiction of
such courts in any such action or proceeding and waive any objection to venue laid therein. 


 To confirm your
understanding and acknowledgment of the terms contained in this Agreement, please log on to the Plan website, and follow the online instructions for acknowledging your Restricted Stock Units. 

Very truly yours, 
 OFFICE DEPOT, INC. 

  
 7