Document:

Amended Long Term Equity Incentive Plan

 

Exhibit 10.1

OFFICE DEPOT, INC.

AMENDED LONG-TERM EQUITY INCENTIVE PLAN

As Revised and Amended by the Shareholders

At the Annual Meeting, May 14, 2004

1. PURPOSE.

     This plan shall be known as the Office Depot, Inc. Long-Term Equity
Incentive Plan (the “Plan”). The purpose of the Plan shall be to promote the
long-term growth and profitability of Office Depot, Inc. (the “Company”) and
its Subsidiaries by (i) providing certain directors, officers and key employees
of, and certain other key individuals who perform services for, the Company and
its Subsidiaries with incentives to maximize stockholder value and otherwise
contribute to the success of the Company and (ii) enabling the Company to
attract, retain and reward the best available persons for positions of
substantial responsibility. Grants of incentive or nonqualified stock options,
stock appreciation rights (“SARs”), either alone or in tandem with options,
restricted stock, performance awards, or any combination of the foregoing may
be made under the Plan. The provisions of this Plan hereby supersede and
replace all prior versions and/or iterations of the Plan. This Plan may be
modified for purposes of local law in jurisdictions outside the United States
by the adoption by the Company, acting by and through a duly authorized
Committee appointed by the Board of Directors, of any amendment or Subplan
required by such local law requirements.

2. DEFINITIONS.

     (a) “BOARD OF DIRECTORS” and “BOARD” mean the board of directors of Office
Depot.

     (b) “CAUSE” (unless otherwise defined in the Participant’s grant letter or
in an employment contract to which he/she is a party) means the occurrence of
one of the following events:

               (i) Conviction of a felony or any crime or offense lesser than a felon
involving the property of the Company or a Subsidiary; or

               (ii) Conduct that has caused demonstrable and serious injury to the
Company or a Subsidiary, monetary or otherwise; or

               (iii) Willful refusal to perform or substantial disregard of duties
properly assigned, as determined by the Company; or

               (iv) Breach of duty of loyalty to the Company or a Subsidiary or other act
of fraud or dishonesty with respect to the Company or a Subsidiary.

 

               (c) “CHANGE IN CONTROL” means, except as may otherwise be provided by the
Committee, the occurrence of one of the following events:

               (i) if any “person” or “group” as those terms are used in Sections 12(d)
and 13(d) of the Exchange Act, other than an Exempt Person, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities; or

               (ii) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board and any new directors whose
election by the Board or nomination for election by the Company’s stockholders
was approved by at least two-thirds of the directors then still in office who
either were directors at the beginning of the period or whose election was
previously so approved, cease for any reason to constitute a majority thereof;
or

               (iii) the stockholders of the Company approve a merger or consolidation of
the Company with any other corporation; provided, however, a Change of Control
shall not be deemed to have occurred (A) if such merger or consolidation would
result in all or a portion of the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) either directly or indirectly more than 50% of the combined voting
power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or (B) if the
corporate existence of the Company is not affected and following the merger or
consolidation the Company’s chief executive officers retain their positions
with the Company and the directors of the Company prior to such merger or
consolidation constitute at least a majority of the board of the Company or the
entity that directly or indirectly controls the Company after such merger or
consolidation; or

               (iv) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all the Company’s assets, other than a sale to
an Exempt Person.

     (d) “CODE” means the Internal Revenue Code of 1986, as amended.

     (e) “COMMITTEE” means the Compensation Committee of the Board. The
membership of the Committee shall be constituted so as to comply at all times
with the applicable requirements of Rule 16b-3 under the Exchange Act and
Section 162(m) of the Code.

     (f) “COMMON STOCK” means the Common Stock, par value $.01 per share, of
the Company, and any other shares into which such stock may be changed by

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reason of a recapitalization, reorganization, merger, consolidation or any
other change in the corporate structure or capital stock of the Company.

     (g) “EMPLOYEE” means any person who is a regular employee of the Company
(including officers and directors who are also employees) of the Company,
either within or outside the United States, who is selected by the Committee to
participate in the Plan.

     (h) “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended.

     (i) “EXEMPT PERSON” means any employee benefit plan of the Company or a
trustee or other administrator or fiduciary holding securities under an
employee benefit plan of the Company.

     (j) “FAIR MARKET VALUE” of a share of Common Stock of the Company
means, as of the date in question,

	(1)	 	if the Common Stock is listed for trading on the New
York Stock Exchange, the mean of the highest and lowest sale
prices of the Common Stock on such date, as reported on the New
York Stock Exchange Composite Tape, or if no such reported sale
of the Common Stock shall have occurred on such date, on the
last day prior to such date on which there was such a reported
sale; or
	 
	(2)	 	if the Common Stock is not so listed, but is listed
on another national securities exchange or authorized for
quotation on the National Association of Securities Dealers Inc.
NASDAQ National Market System (“NASDAQ/NMS”), the mean of the
highest and lowest sale price of the Common Stock on such date
as reported on such exchange or NASDAQ/NMS, or if no such
reported sale of the Common Stock shall have occurred on such
date, on the last day prior to such date on which there was such
a reported sale;
	 
	(3)	 	if the Common Stock is not listed for trading on a
national securities exchange or authorized for quotation on
NASDAQ/NMS, the mean of the highest and lowest sale prices of
the Common Stock on such date as reported by the National
Association of Securities Dealers Automated Quotation System
(“NASDAQ”) or, if no such prices shall have been so reported for
such date, on the last day prior to such date on which there was
such a reported sale.

     (k) “INCENTIVE STOCK OPTION” means an option conforming to the
requirements of Section 422 of the Code and any successor thereto.

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     (l) “INTERNATIONAL PARTICIPANT” means a participant in the Plan who
resides or works outside of the United States.

     (m) “NON-EMPLOYEE” means any person, not an Employee of the Company, as
defined herein, who serves as a director, consultant or adviser to the Company.

     (n) “NON-EMPLOYEE DIRECTOR” has the meaning given to such term in Rule
16b-3 under the Exchange Act.

     (o) “NONQUALIFIED STOCK OPTION” means any stock option other than an
Incentive Stock Option.

     (p) “OFFICER” means an Employee or a Non-Employee of the Company whose
position in the Company or in any affiliate or subsidiary entity of the Company
is that of a corporate officer, as determined by the Board of Directors.

     (q) “OTHER COMPANY SECURITIES” mean securities of the Company other than
Common Stock, which may include, without limitation, unbundled stock units or
components thereof, debentures, preferred stock, warrants and securities
convertible into or exchangeable for Common Stock or other property.

     (r) “PARTICIPANT” means a recipient of any grant of stock options,
restricted stock, stock appreciation rights or performance awards under this
Plan.

     (s) “PRIOR PLAN(S)” means the Office Depot, Inc. Omnibus Equity Plan, the
Office Depot, Inc. Directors Stock Option Plan or any other plan which these
plans subsumed or replaced.

     (t) “RETIREMENT” means retirement as defined under any Company pension
plan or retirement program or termination of one’s employment on retirement
with the approval of the Committee.

     (u) “SUBSIDIARY” means a corporation or other entity of which outstanding
shares or ownership interests representing 50% or more of the combined voting
power of such corporation or other entity entitled to elect the management
thereof, or such lesser percentage as may be approved by the Committee, are
owned directly or indirectly by the Company.

3. ADMINISTRATION; POWERS OF THE COMMITTEE; LIMITATIONS OF LIABILITY.

     The Plan shall be administered by the Committee; provided that the Board
may, in its discretion, at any time and from time to time, resolve to
administer the Plan, in which case the term “Committee” shall be deemed to mean
the Board for all purposes herein. The Committee shall consist of at least two
directors.

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Subject to the provisions of the Plan, the Committee shall be authorized to (i)
select persons to participate in the Plan, (ii) determine the form and
substance of grants made under the Plan to each participant, and the conditions
and restrictions, if any, subject to which such grants will be made, (iii)
modify the terms of grants made under the Plan in the event of a Change in
Control or death, disability, retirement of the participant, or other situation
which the Committee deems as a special circumstance, (iv) interpret the Plan
and grants made thereunder, (v) make any adjustments necessary or desirable in
connection with grants made under the Plan to eligible participants located
outside the United States and (vi) adopt, amend, or rescind such rules and
regulations, and make such other determinations, for carrying out the Plan as
it may deem appropriate. Decisions of the Committee on all matters relating to
the Plan shall be in the Committee’s sole discretion and shall be conclusive
and binding on all parties. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with applicable federal and state laws and rules and regulations
promulgated pursuant thereto.

     No member of the Committee and no officer of the Company shall be liable
for any action taken or omitted to be taken by such member, by any other member
of the Committee or by any officer of the Company in connection with the
performance of duties under the Plan, except for such person’s own willful
misconduct or as expressly provided by statute. Members of the Committee and
officers of the Company shall be indemnified in connection with their
administration of the Plan to the fullest extent provided by the Delaware
General Corporation Law and by the Bylaws of the Company.

4. EXPENSES OF THE PLAN.

     The expenses of the Plan shall be borne by the Company. The Company shall
not be required to establish any special or separate fund or make any other
segregation of assets to assume the payment of any award under the Plan, and
rights to the payment of such awards shall be no greater than the rights of the
Company’s general creditors.

5. SHARES AVAILABLE FOR THE PLAN.

     Subject to adjustments as provided in Section 20, to allow for stock
splits, recapitalizations and similar occurrences, as of any date the total
number of shares of Common Stock with respect to which awards may be granted
under the Plan (the “Shares”) shall equal the excess (if any) of 62,068,750
over (i) the number of shares of Common Stock subject to outstanding awards
under the Plan or the Prior Plans, (ii) the number of shares of Common Stock in
respect of which options and stock appreciation rights have been exercised
under the Plan or the Prior Plans, and (iii) the number of shares of Common
Stock issued pursuant to performance awards or issued subject to forfeiture
restrictions which

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have lapsed under the Plan or the Prior Plans. Such Shares may be in whole or
in part authorized and unissued, or shares which are held by the Company as
treasury shares. If any grant under the Plan or any Prior Plan expires or
terminates unexercised, becomes unexercisable or is forfeited as to any Shares,
such unpurchased or forfeited Shares shall thereafter be available for further
grants under the Plan unless, in the case of options granted under the Plan or
any Prior Plan, related SARs are exercised.

6. PARTICIPATION.

     Participation in the Plan shall be limited to those directors (including
Non-Employee Directors), officers (including non-employee officers) and key
employees of, and other key individuals (including Non-Employees of the
Company) performing services for, the Company and its Subsidiaries selected by
the Committee (including participants located outside the United States).
Nothing in the Plan or in any grant thereunder shall confer any right on a
participant to continue in the employ of or the performance of services for the
Company or shall interfere in any way with the right of the Company to
terminate the employment or performance of services of a participant at any
time. By accepting any award under the Plan, each participant and each person
claiming under or through him or her shall be conclusively deemed to have
indicated his or her acceptance and ratification of, and consent to, any action
taken under the Plan by the Company, the Board or the Committee.

     Determinations made by the Committee under the Plan need not be uniform
and may be made selectively among eligible individuals under the Plan, whether
or not such individuals are similarly situated. A grant of any type made
hereunder in any one year to an eligible participant shall neither guarantee
nor preclude a further grant of that or any other type to such participant in
that year or subsequent years.

7. INCENTIVE AND NONQUALIFIED OPTIONS.

     The Committee may from time to time grant to eligible participants
Incentive Stock Options, Nonqualified Stock Options, or any combination
thereof; provided that the Committee may grant Incentive Stock Options only to
eligible Employees of the Company or its subsidiaries (as defined for this
purpose in Section 424(f) of the Code). In any one calendar year, the Committee
shall not grant to any one participant, options or SARs to purchase a number of
shares of Common Stock in excess of Two Million (2,000,000) shares (subject to
such adjustments as may be provided for under Section 20 hereof). The options
granted shall take such form as the Committee shall determine, subject to the
following terms and conditions.

     It is the Company’s intent that Nonqualified Stock Options granted under
the Plan not be classified as Incentive Stock Options, that Incentive Stock
Options be

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consistent with and contain or be deemed to contain all provisions required
under Section 422 of the Code and any successor thereto, and that any
ambiguities in construction be interpreted in order to effectuate such intent.
If an Incentive Stock Option granted under the Plan does not qualify as such
for any reason, then to the extent of such nonqualification, the stock option
represented thereby shall be regarded as a Nonqualified Stock Option duly
granted under the Plan, provided that such stock option otherwise meets the
Plan’s requirements for Nonqualified Stock Options.

     Incentive Stock Options or Nonqualified Stock Options, SARs, alone or in
tandem with options, restricted stock awards, performance awards, or any
combination thereof, may be granted to such persons and for such number of
Shares as the Committee shall determine (such individuals to whom grants are
made being sometimes herein called “optionees” or “grantees,” as the case may
be).

8. TERMS OF STOCK OPTIONS.

     (a) Price. The price per Share payable by an optionee upon the exercise
of each option (the “exercise price”) shall be established by the Committee,
except that the exercise price may not be less than 100% of the Fair Market
Value of a share of Common Stock as of the date of grant of the option, and in
the case of the grant of any Incentive Stock Option to an employee who, at the
time of the grant, owns more than 10% of the total combined voting power of all
classes of stock of the Company or any of its Subsidiaries, the exercise price
may not be less than 110% of the Fair Market Value of a share of Common Stock
as of the date of grant of the option, in each case unless otherwise permitted
by Section 422 of the Code.

     (b) Terms of Options. The term during which each option may be exercised
shall be determined by the Committee, but, except as otherwise provided herein,
in no event shall an option be exercisable in whole or in part, in the case of
a Nonqualified Stock Option or an Incentive Stock Option (other than as
described below), more than ten years from the date it is granted or, in the
case of an Incentive Stock Option granted to an employee who at the time of the
grant owns more than 10% of the total combined voting power of all classes of
stock of the Company or any of its Subsidiaries, if required by the Code, more
than five years from the date it is granted. All rights to purchase Shares
pursuant to an option shall, unless sooner terminated, expire at the date
designated by the Committee. The Committee shall determine the date on which
each option shall become exercisable and may provide that an option shall
become exercisable in installments. The Committee shall have the discretion to
provide in the form of option grant that the vesting and exercisability of the
option may be accelerated by the achievement of performance goals established
by the Committee at the time of grant. The performance goals shall be based on
one or more of the standards set forth in Section 15 hereof. The Shares
constituting each

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installment may be purchased in whole or in part at any time after such
installment becomes exercisable, subject to such minimum exercise requirements
as may be designated by the Committee. Unless otherwise provided herein or in
the terms of the related grant, an optionee may exercise an option only if he
or she is, and has continuously since the date the option was granted, been a
director, officer or employee of or performed other services for the Company or
a Subsidiary. Prior to the exercise of an option and delivery of the Shares
represented thereby, the optionee shall have no rights as a stockholder with
respect to any Shares covered by such outstanding option (including any
dividend or voting rights).

     (c) Limitations on Grants. If required by the Code, the aggregate Fair
Market Value (determined as of the grant date) of Shares for which an Incentive
Stock Option is exercisable for the first time during any calendar year under
all incentive stock option plans of the Company and its subsidiaries (as
defined in Section 424 of the Code) may not exceed $100,000.

9. WRITTEN AGREEMENT; VESTING; CONFIDENTIALITY AGREEMENT.

	(a)	 	Each Participant to whom a grant is made under this Plan shall
enter into a written agreement with the Company that shall contain such
provisions, including without limitation vesting requirements,
consistent with the provisions of the Plan, as may be approved by the
Committee. Unless the Committee may otherwise provide and except as
otherwise provided in Section 11 in connection with a Change of Control
or certain occurrences of termination, no grant under this Plan may be
exercised, and no restrictions relating thereto may lapse, within six
months of the date such grant is made.
	 
	(b)	 	Each Participant shall, as a condition to receiving a grant under
this Plan, enter into an agreement with the Company containing
non-compete, confidentiality, non-solicitation and no-hire provisions
substantially in conformity with the provisions of Attachment A hereto
and incorporated by reference herein, or in such other form of
non-compete, confidentiality, non-solicitation and no-hire agreement as
the Committee may adopt and approve from time to time (as so modified
or amended, the “Non-Compete Agreement”). Such provisions may be
included in, or incorporated by reference in, the written agreement
referred to in Section 9(a) above. Such agreement shall provide that
in the event the Participant shall violate or breach such provisions,
the Company shall have the right, among such other remedies for breach
as may be available to it at law or in equity, to require the
Participant to forfeit any unexercised options, SAR’s, performance
awards or unvested restricted stock awarded to Participant under this
Plan, and, in the event the Participant has realized any proceeds from
the disposition of any such stock or other awards within two years
prior to such violation or

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	 	 	breach, the Company shall have the right to seek to recover such
proceeds from the Participant.
	 
	(c)	 	The written agreement referred to in Section 9(a) above may consist
of a signed acknowledgment of receipt of a grant letter from the
Company to the Participant, pursuant to which the Participant agrees
that the terms of this Plan are incorporated by reference into such
grant letter, are available upon request from the Office of the Plan
Administrator at the Company or on the Company’s Intranet Site under
Human Resources. Similarly, the Participant shall be deemed to have
entered into a Non-Compete Agreement with the Company, in the form
attached hereto as Attachment A (or in such other form as the Committee
may adopt and specify from time to time), each time the Participant
signs an acknowledgment of receipt of such a grant letter.

10. EXERCISE OF STOCK OPTIONS.

     (a) Notice. Options may be exercised, in whole or in part, upon the
Company’s receipt of written notice of exercise in the form prescribed by the
Company, accompanied by payment of the exercise price of the Shares to be
acquired. However, no participant shall be eligible to exercise any Stock
Option (i) if the participant, at the time of the purported exercise, is not in
compliance with any provision of the Plan or (ii) with respect to which the
participant has not signed and returned to the Company a letter in the form
prescribed by the Company, acknowledging receipt of such Stock Option, agreeing
to abide by the provisions of the Plan and otherwise containing such provisions
as the Company shall prescribe. Once given, a notice may not be withdrawn
without the consent of the Company.

     (b) Method of Payment. Unless otherwise determined by the Committee,
payment shall be made (i) in cash (including check, bank draft or money order),
(ii) by delivery of outstanding shares of Common Stock with a Fair Market Value
on the date of exercise equal to the aggregate exercise price payable with
respect to the options’ exercise, (iii) by simultaneous sale through a broker
reasonably acceptable to the Committee of Shares acquired on exercise, as
permitted under Regulation T of the Federal Reserve Board, (iv) by authorizing
the Company to withhold from issuance a number of Shares issuable upon exercise
of the options which, when multiplied by the Fair Market Value of a share of
Common Stock on the date of exercise is equal to the aggregate exercise price
payable with respect to the options so exercised or (v) by any combination of
the foregoing. or (v) such other form of payment as the Committee may permit in
its discretion.

     (c) Payment by Tender of Shares. In the event a grantee elects to pay
the exercise price payable with respect to an option pursuant to clause (ii) of
Section 10(b) above, (A) only a whole number of share(s) of Common Stock (and
not

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fractional shares of Common Stock) may be tendered in payment, (B) such grantee
must present evidence acceptable to the Company that he or she has owned any
such shares of Common Stock tendered in payment of the exercise price (and that
such tendered shares of Common Stock have not been subject to any substantial
risk of forfeiture) for at least six months prior to the date of exercise, and
(C) Common Stock must be delivered to the Company. Delivery for this purpose
may, at the election of the grantee, be made either by (A) physical delivery of
the certificate(s) for all such shares of Common Stock tendered in payment of
the price, accompanied by duly executed instruments of transfer in a form
acceptable to the Company, or (B) direction to the grantee’s broker to
transfer, by book entry, such shares of Common Stock from a brokerage account
of the grantee to a brokerage account specified by the Company. When payment of
the exercise price is made by delivery of Common Stock, the difference, if any,
between the aggregate exercise price payable with respect to the option being
exercised and the Fair Market Value of the share(s) of Common Stock tendered in
payment (plus any applicable taxes) shall be paid in cash. No grantee may
tender shares of Common Stock having a Fair Market Value exceeding the
aggregate exercise price payable with respect to the option being exercised
(plus any applicable taxes).

     (d) Payment by Withholding of a Portion of Shares. In the event a
grantee elects to pay the exercise price payable with respect to an option
pursuant to clause (iv) above, (A) only a whole number of Share(s) (and not
fractional Shares) may be withheld in payment and (B) such grantee must present
evidence acceptable to the Company that he or she has owned a number of shares
of Common Stock at least equal to the number of Shares to be withheld in
payment of the exercise price (and that such owned shares of Common Stock have
not been subject to any substantial risk of forfeiture) for at least six months
prior to the date of exercise . When payment of the exercise price is made by
withholding of Shares, the difference, if any, between the aggregate exercise
price payable with respect to the option being exercised and the Fair Market
Value of the Share(s) withheld in payment (plus any applicable taxes) shall be
paid in cash. No grantee may authorize the withholding of Shares having a Fair
Market Value exceeding the aggregate exercise price payable with respect to the
option being exercised (plus any applicable taxes). Any withheld Shares shall
no longer be issuable under such option.

11. EFFECT OF TERMINATION; CHANGE OF CONTROL ON OPTIONS.

     (a) Termination. Except as may otherwise be provided by the Committee:

(i) If a participant ceases to be a director, officer or employee
of, or to perform other services for, the Company and any Subsidiary due
to the death of the participant, all of the participant’s options and
SARs shall become fully vested and exercisable and shall remain so for a
period of 24

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months from the date of such death but in no event after the expiration
date of the options or SARs.

      (ii) If a participant ceases to be a director, officer or employee
of, or to perform other services for, the Company and any Subsidiary upon
the occurrence of his or her Retirement, (A) all of the participant’s
options and SARs that were exercisable on the date of Retirement shall
remain exercisable for, and shall otherwise terminate at the end of, a
period of up to 90 days (except as provided in Section 11(a)(iv) hereof)
after the date of Retirement, but in no event after the expiration date
of the options or SARs and (B) all of the participant’s options and SARs
that were not exercisable on the date of Retirement shall be forfeited
(except as provided in Section 11(a)(v) hereof) immediately upon such
Retirement.

      (iii) If a participant ceases to be a director, officer or employee
of, or to perform other services for, the Company or a Subsidiary due to
Cause, all of the participant’s options and SARs shall be forfeited
immediately upon such cessation, whether or not then exercisable.

      (iv) If a participant who is a director or officer subject to
Section 16 of the Exchange Act ceases to be a director or officer of the
Company due to involuntary separation from the Company (other than
termination for Cause) or voluntary separation from the Company, provided
that the individual officer or director who so voluntarily separates
himself or herself from the Company shall have completed five (5) or more
years of service for the Company prior to the date of such voluntary
separation, (A) all of the participant’s options and SARs that were
exercisable on the date of such cessation shall remain exercisable for,
and shall otherwise terminate at the end of, a period of up to 18 months
after the date of such cessation, but in no event after the expiration
date of the options or SARs and, (B) except as provided in Section
11(a)(v) hereof with respect to directors, all of the participant’s
options and SARs that were not exercisable on the date of such cessation
shall be forfeited immediately upon such cessation.

      (v) With respect to a director of the Company whose period of
service ends, either voluntarily or by reason of his or her not seeking
re-election to the Board or not being re-nominated to the Board, any
issued but unvested stock options granted to such director during his
term of office shall be allowed to vest pursuant to its normal vesting
schedule during that number of calendar months following the end of the
calendar month in which his or her term of office ends which is equal to
up to one-half the number of months during which such director served as
a director of the Company. For example, if a director has served a
period of 30 months as a director of the Company, then such director
would have a period of 15 months, following the end of his or her term,
during which any stock options which by their normal vesting schedule
would vest during such 15-

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month period shall be allowed to vest and in such event, the director
would then have up to 18 months from the date of vesting of any such
option within which to exercise any stock options so vested. Nothing
contained in this Section 11(a)(v) shall serve to extend the term of any
stock option beyond its initial term upon issuance.

      (vi) Except as otherwise provided in Sections 11(a)(iv) or 11(a)(v)
hereof, if a participant who is not an officer subject to Section 16 of
the Exchange Act ceases to be a director, officer or employee of, or to
otherwise perform services for, the Company or a Subsidiary for any
reason other than death, Retirement or Cause, (A) all of the
participant’s options and SARs that were exercisable on the date of such
cessation shall remain exercisable for, and shall otherwise terminate at
the end of, a period of 90 days after the date of such cessation, but in
no event after the expiration date of the options or SARs and (B) all of
the participant’s options and SARs that were not exercisable on the date
of such cessation shall be forfeited immediately upon such cessation.
The Committee may, at its sole discretion, determine (i) whether any
leave of absence (including short-term or long-term disability or
medical leave) shall constitute a termination of employment for purposes
of this Plan and (ii) the impact, if any, of any such leave on
outstanding awards under the Plan.

(b) Change in Control. If there is a Change in Control, all
of the participant’s options and SARs shall become fully vested and
exercisable immediately prior to such Change in Control and shall
remain so until the expiration date of the options and SARs.

12. RELOAD OPTIONS.

     The Committee may provide (either at the time of grant or exercise of an
option), in its discretion, for the grant to a grantee who exercises all or any
portion of an option (“Exercised Options”) and who pays all or part of such
exercise price with shares of Common Stock, of an additional option (a “Reload
Option”) for a number of shares of Common Stock equal to the sum (the “Reload
Number”) of the number of shares of Common Stock tendered or withheld in
payment of such exercise price for the Exercised Options plus, if so provided
by the Committee, the number of shares of Common Stock, if any, tendered or
withheld by the grantee or withheld by the Company in connection with the
exercise of the Exercised Options to satisfy any federal, state or local tax
withholding requirements. The terms of each Reload Option, including the date
of its expiration and the terms and conditions of its exercisability and
transferability, shall be the same as the terms of the Exercised Option to
which it relates, except that (i) the grant date for each Reload Option shall
be the date of exercise of the Exercised Option to which it relates and (ii)
the exercise price for each Reload

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Option shall be the Fair Market Value of the Common Stock on the grant date of
the Reload Option.

13. STOCK APPRECIATION RIGHTS.

     The Committee shall have the authority to grant SARs under this Plan,
either alone or to any optionee in tandem with options (either at the time of
grant of the related option or thereafter by amendment to an outstanding
option). SARs shall be subject to such terms and conditions as the Committee
may specify.

     No SAR may be exercised unless the Fair Market Value of a share of Common
Stock of the Company on the date of exercise exceeds the exercise price of the
SAR or, in the case of SARs granted in tandem with options, any options to
which the SARs correspond. Prior to the exercise of the SAR and delivery of the
cash and/or Shares represented thereby, the participant shall have no rights as
a stockholder with respect to Shares covered by such outstanding SAR (including
any dividend or voting rights).

     SARs granted in tandem with options shall be exercisable only when, to the
extent and on the conditions that any related option is exercisable. The
exercise of an option shall result in an immediate forfeiture of any related
SAR to the extent the option is exercised, and the exercise of an SAR shall
cause an immediate forfeiture of any related option to the extent the SAR is
exercised.

     Upon the exercise of an SAR, the participant shall be entitled to a
distribution in an amount equal to the difference between the Fair Market Value
of a share of Common Stock on the date of exercise and the exercise price of
the SAR or, in the case of SARs granted in tandem with options, any option to
which the SAR is related, multiplied by the number of Shares as to which the
SAR is exercised (less any applicable taxes). The Committee shall decide
whether such distribution shall be in cash, in Shares having a Fair Market
Value equal to such amount, in Other Company Securities having a Fair Market
Value equal to such amount or in a combination thereof.

     All SARs will be exercised automatically on the last day prior to the
expiration date of the SAR or, in the case of SARs granted in tandem with
options, any related option, so long as the Fair Market Value of a share of
Common Stock on that date exceeds the exercise price of the SAR or any related
option, as applicable. A SAR granted in tandem with options shall expire at the
same time as any related option expires and shall be transferable only when,
and under the same conditions as, any related option is transferable.

14 . RESTRICTED STOCK.

     The Committee may at any time and from time to time grant Shares of
restricted stock under the Plan to such participants and in such amounts as it

13

 

determines. Each grant of restricted stock shall specify the applicable
restrictions on such Shares, the duration of such restrictions (which shall be
at least 3 years, subject to partial vesting at the end of year 1 and any time
thereafter, and except as otherwise provided in the third paragraph of this
Section 14), and the time or times at which such restrictions shall lapse with
respect to all or a specified number of Shares that are part of the grant.

     The participant will be required to pay the Company the aggregate par
value of any Shares of restricted stock (or such larger amount as the Board may
determine to constitute capital under Section 154 of the Delaware General
Corporation Law, as amended) within ten days of the date of grant, unless such
Shares of restricted stock are treasury shares. Unless otherwise determined by
the Committee, certificates representing Shares of restricted stock granted
under the Plan will be held in escrow by the Company on the participant’s
behalf during any period of restriction thereon and will bear an appropriate
legend specifying the applicable restrictions thereon, and the participant will
be required to execute a blank stock power therefor. Except as otherwise
provided by the Committee, during such period of restriction the participant
shall have all of the rights of a holder of Common Stock, including but not
limited to the rights to receive dividends and to vote, and any stock or other
securities received as a distribution with respect to such participant’s
restricted stock shall be subject to the same restrictions as then in effect
for the restricted stock.

     Except as may otherwise be provided by the Committee, (a) immediately
prior to a Change in Control or at such time as a participant ceases to be a
director, officer or employee of, or to otherwise perform services for, the
Company and its Subsidiaries due to death or Retirement during any period of
restriction, all restrictions on Shares granted to such participant shall
lapse, and (b) at such time as a participant ceases to be a director, officer
or employee of, or to otherwise perform services for, the Company or its
Subsidiaries for any other reason, all Shares of restricted stock granted to
such participant on which the restrictions have not lapsed shall be immediately
forfeited to the Company.

15 . PERFORMANCE AWARDS.

     Performance awards may be granted to participants at any time and from
time to time as determined by the Committee. The Committee shall have complete
discretion in determining the size and composition of performance awards so
granted to a participant and the appropriate period over which performance is
to be measured (a “performance cycle”), except that no performance cycle shall
be less than 12 months in duration. Performance awards may include (i) specific
dollar-value target awards, (ii) performance units, the value of each such unit
being determined by the Committee at the time of issuance, and/or (iii)
performance Shares, the value of each such Share being equal to the Fair Market
Value of a share of Common Stock. The value of each performance award may be
fixed or it may be permitted to fluctuate based on a

14

 

performance factor (e.g., return on equity) selected by the Committee. The
maximum aggregate payout (determined as of the end of the applicable
performance cycle) with respect to specific dollar-value target awards or
performance units awarded in any one fiscal year to any one Participant shall
be $2,500,000, and the maximum aggregate payout (determined as of the end of
the applicable performance cycle) with respect to performance Shares granted in
any one fiscal year to any one Participant shall be 100,000 performance Shares.

          The Committee shall establish performance goals and objectives for each
performance cycle on the basis of one or more of the following measurements of
the Company’s performance for the relevant period: earnings per share (EPS);
net earnings; pre-tax earnings; earnings before interest and taxes (EBIT);
earnings before interest, taxes, depreciation and amortization (EBITDA); net
operating profit after tax (NOPAT) return on assets; return on equity; return
on net assets (RONA); return on investment; return on capital; total
shareholder return; stock price (and stock price appreciation, either in
absolute terms or in relationship to the appreciation among members of a peer
group to be determined by the Committee); revenues; comparable store sales;
cash flow; economic profit; and sales per square foot; inventory turnover and
strategic milestones. The performance objectives established by the Committee
for any performance cycle may be expressed in terms of attaining a specified
level of the performance objective or the attainment of a percentage increase
or decrease in the particular objective, and may involve comparisons with
respect to historical results of the Company and its Subsidiaries and/or
operating groups or segments thereof, all as the Committee deems appropriate.
The performance objectives established by the Committee for any performance
cycle may be applied to the performance of the Company relative to a market
index, a peer group of other companies or a combination thereof, all as
determined by the Committee for such performance cycle. The performance
objectives established by the Committee must preclude the discretion to
increase the amount of any incentive award payable to a Participant.

          During any performance cycle, the Committee shall have the authority to
adjust the performance goals and objectives for such cycle for such reasons as
it deems equitable to the extent permitted under Section 162(m) of the Code.
Specifically, the Committee is authorized to make adjustments in the method of
calculating attainment of performance goals and objectives for a performance
cycle as follows: (i) to exclude the dilutive effects of acquisitions or joint
ventures; (ii) to assume that any business divested by the Company achieved
performance objectives at targeted levels during the balance of a performance
cycle following such divestiture; (iii) to exclude restructuring and/or other
nonrecurring charges; (iv) to exclude exchange rate effects, as applicable, for
non-U.S. dollar denominated net sales and operating earnings; (v) to exclude
the effects of changes to generally accepted accounting standards required by
the Financial Accounting Standards Board; (vi) to exclude the effects to any
statutory adjustments to corporate tax rates; (vii) to exclude the impact of
any

15

 

“extraordinary items” as determined under generally accepted accounting
principles; (viii) to exclude the effect of any change in the outstanding
shares of common stock of the Company by reason of any stock dividend or split,
stock repurchase, reorganization, recapitalization, merger, consolidation,
spin-off, combination or exchange of shares or other similar corporate change,
or any distributions to common shareholders other than regular cash dividends;
and (ix) to exclude any other unusual, non-recurring gain or loss or other
extraordinary item.

     The Committee shall determine the portion of each performance award that
is earned by a participant on the basis of the Company’s performance over the
performance cycle in relation to the performance goals for such cycle. The
earned portion of a performance award may be paid out in Shares, cash, Other
Company Securities, or any combination thereof, as the Committee may determine.

     A participant must be a director, officer or employee of, or otherwise
perform services for, the Company or its Subsidiaries at the end of the
performance cycle in order to be entitled to payment of a performance award
issued in respect of such cycle; provided, however, that, except as otherwise
provided by the Committee, (a) if a participant ceases to be a director,
officer or employee of, or to otherwise perform services for, the Company and
its Subsidiaries upon his or her death or Retirement prior to the end of the
performance cycle, the participant shall earn a proportionate portion of the
performance award based upon the elapsed portion of the performance cycle and
the Company’s performance over that portion of such cycle and (b) in the event
of a Change in Control, a participant shall earn no less than the portion of
the performance award that the participant would have earned if the performance
cycle(s) had terminated as of the date of the Change in Control.

16. WITHHOLDING TAXES.

     (a) Participant Election. The Committee may provide that a participant
may be permitted to elect to deliver shares of Common Stock (or have the
Company withhold shares acquired upon exercise of an option or SAR or
deliverable upon grant or vesting of restricted stock, as the case may be) to
satisfy, in whole or in part, the amount the Company is required to withhold
for taxes in connection with the exercise of an option or SAR or the delivery
of restricted stock upon grant or vesting, as the case may be. Such election
must be made on or before the date the amount of tax to be withheld is
determined. Once made, the election shall be irrevocable. The fair market value
of the shares to be withheld or delivered will be the Fair Market Value as of
the date the amount of tax to be withheld is determined. In the event a
participant elects to deliver shares of Common Stock pursuant to this Section
16(a), such delivery must be made subject to the conditions and pursuant to the
procedures set forth in Section 10(b) with respect to the delivery of Common
Stock in payment of the exercise price of options.

16

 

     (b) Company Requirement. The Company may require, as a condition to any
grant or exercise under the Plan, to the payment of any SAR or to the delivery
of certificates for Shares issued hereunder, that the grantee make provision
for the payment to the Company, either pursuant to Section 10(b) or this
Section 16(b), of any federal, state or local taxes of any kind required by law
to be withheld with respect to any grant or payment or any delivery of Shares.
The Company, to the extent permitted or required by law, shall have the right
to deduct from any payment of any kind (including salary or bonus) otherwise
due to a grantee, an amount equal to any federal, state or local taxes of any
kind required by law to be withheld with respect to any grant or payment or to
the delivery of Shares under the Plan, or to retain or sell without notice a
sufficient number of the Shares to be issued to such grantee to cover any such
taxes, the payment of which has not otherwise been provided for in accordance
with the terms of the Plan, provided that the Company shall not sell any such
Shares if such sale would be considered a sale by such grantee for purposes of
Section 16 of the Exchange Act that is not exempt from matching thereunder.

17. TRANSFERABILITY.

     Unless the Committee determines otherwise, no option, SAR, performance
award, or restricted stock granted under the Plan shall be transferable by a
participant otherwise than by will or the laws of descent and distribution.
Unless the Committee determines otherwise, an option, SAR, or performance award
may be exercised only by the optionee or grantee thereof or his guardian or
legal representative; provided that Incentive Stock Options may be exercised by
such guardian or legal representative only if permitted by the Code and any
regulations promulgated thereunder.

18. LISTING, REGISTRATION AND QUALIFICATION UNDER 162 (m) OF THE IRC AND
SECTION 16 OF THE SECURITIES EXCHANGE ACT OF 1934.

     If the Committee determines that the listing, registration or
qualification upon any securities exchange or under any law of Shares subject
to any option, SAR, performance award or restricted stock grant 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 such option or SAR may be exercised
in whole or in part, no such performance award may be paid out and no Shares
may be issued unless such listing, registration or qualification is effected
free of any conditions not acceptable to the Committee.

     It is the intent of the Company that the Plan comply in all respects with
Section 162(m) of the Code, that awards made hereunder comply in all respects
with Rule 16b-3 under the Exchange Act, that any ambiguities or inconsistencies
in construction of the Plan be interpreted to give effect to such intention and
that if any provision of the Plan is found not to be in compliance with Section
162(m),

17

 

such provision shall be deemed null and void to the extent required to permit
the Plan to comply with Section 162(m), as the case may be.

19. TRANSFER OF EMPLOYEE.

     The transfer of an employee from the Company to a Subsidiary, from a
Subsidiary to the Company, or from one Subsidiary to another shall not be
considered a termination of employment; nor shall it be considered a
termination of employment if an employee is placed on military, disability or
sick leave or such other leave of absence which is considered by the Committee
as continuing intact the employment relationship.

20. ADJUSTMENTS FOR REORGANIZATION, STOCK SPLITS, ETC.

     In the event of a reorganization, recapitalization, stock split, stock
dividend, combination of shares, merger, consolidation, distribution of assets,
or any other change in the corporate structure or shares of the Company, the
Committee shall make such adjustment as it deems appropriate in the number and
kind of Shares or other property reserved for issuance under the Plan, in the
number and kind of Shares or other property covered by grants previously made
under the Plan, and in the exercise price of outstanding options and SARs. Any
such adjustment shall be final, conclusive and binding for all purposes of the
Plan. In the event of any merger, consolidation or other reorganization in
which the Company is not the surviving or continuing corporation or in which a
Change in Control is to occur, all of the Company’s obligations regarding
options, SARs performance awards, and restricted stock that were granted
hereunder and that are outstanding on the date of such event shall, on such
terms as may be approved by the Committee prior to such event, be assumed by
the surviving or continuing corporation or canceled in exchange for property
(including cash).

     Without limitation of the foregoing, in connection with any transaction of
the type specified by clause (iii) of the definition of a Change in Control in
Section 2(c), the Committee may, in its discretion, (i) cancel any or all
outstanding options under the Plan in consideration for payment to the holders
thereof of an amount equal to the portion of the consideration that would have
been payable to such holders pursuant to such transaction if their options had
been fully exercised immediately prior to such transaction, less the aggregate
exercise price that would have been payable therefor, or (ii) if the amount
that would have been payable to the option holders pursuant to such transaction
if their options had been fully exercised immediately prior thereto would be
less than the aggregate exercise price that would have been payable therefor,
cancel any or all such options for no consideration or payment of any kind.
Payment of any amount payable pursuant to the preceding sentence may be made in
cash or, in the event that the consideration to be received in such transaction
includes securities or other property, in cash and/or securities or other
property in the Committee’s discretion.

18

 

21. TERMINATION OR MODIFICATION OF THE PLAN.

     The Board of Directors or the Committee, without approval of the
stockholders, may modify or terminate the Plan, except that no modification
shall become effective without prior approval of the stockholders of the
Company if stockholder approval would be required for continued compliance with
the performance-based compensation exception of Section 162(m) of the Code or
any listing requirement of the principal stock exchange on which the Common
Stock is then listed. With respect to International Participants, the
Committee may, in its sole discretion, amend the terms of the Plan or any
Awards under the Plan with respect to such International Participants in order
to conform such terms to the requirements of local laws in the country in which
the International Participant resides or works.

22. AMENDMENT OR SUBSTITUTION OF AWARDS UNDER THE PLAN.

     The terms of any outstanding award under the Plan may be amended from time
to time by the Committee in its discretion in any manner that it deems
appropriate (including, but not limited to, acceleration of the date of
exercise of any award and/or payments thereunder or of the date of lapse of
restrictions on Shares) in the event of a change in control or death,
disability, retirement of the participant, or other situation which the
Committee deems as a special circumstance; provided that, except as otherwise
provided in Section 15, no such amendment shall adversely affect in a material
manner any right of a participant under the award without his or her written
consent. The Committee may, with the grantee’s consent, cancel any award under
the Plan and issue a new award in substitution therefor upon such terms as the
Committee may in its sole discretion determine, provided that the substituted
award shall satisfy all applicable Plan requirements as of the date such new
award is made; and further provided, notwithstanding the foregoing or any other
provision of this Plan, that in no event shall an option or stock appreciation
right be granted in substitution for a previously granted option or stock
appreciation right, with the old award being canceled or surrendered as a
condition of receiving the new award, if the new award would have a lower
option exercise price or stock appreciation right appreciation base than the
award it replaces. The foregoing is not intended to prevent equitable
adjustment of awards upon the occurrence of certain events as herein provided,
for example, without limitation, adjustments pursuant to Section 15.

23. COMMENCEMENT DATE; TERMINATION DATE.

     The date of commencement of the Plan shall be October 1, 1997, subject to
approval by the stockholders of the Company. Unless previously terminated upon
the adoption of a resolution of the Board terminating the Plan, no Incentive
Stock Options shall be issued under this plan after the close of business on
September

19

 

30, 2007. No termination of the Plan shall materially and adversely affect any
of the rights or obligations of any person, without his consent, under any
grant of options or other incentives theretofore granted under the Plan.

24. GOVERNING LAW.

     The Plan shall be governed by the laws of the State of Florida, without
giving effect to any choice of law provisions.

* * *

20

 

Attachment A

NON-COMPETE, CONFIDENTIALITY

AND NON-SOLICITATION AGREEMENT

THIS AGREEMENT is made as of            between Office Depot, Inc., a
Delaware corporation (the “Company”) and       (“Employee”),
having employee identification number          .

     In consideration of the mutual covenants contained herein and other good
and valuable consideration, including the compensation paid to and benefits
received by Employee as an employee of the company, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

	1.	 	Non-Compete Agreement. Employee hereby agrees that, during the term of
Employee’s employment by the Company (including by any subsidiary of the
Company), and for a period of 12 months thereafter (as used herein, the
“Noncompete Period”), Employee shall not directly or indirectly own or
have any interest in, manage, control, participate in, consult with,
render services for, or in any manner engage in any business competing
with the businesses of the Company (or any of its subsidiaries), as such
businesses exist or are in process on the date hereof, within any
geographical area in which the Company (or its subsidiaries) engage in
such businesses on the date hereof. Nothing herein shall prohibit
Employee from being a passive owner of not more than 2% of the outstanding
stock of any class of a corporation which is publicly traded, so long as
Employee has no active participation in the business of such corporation.
	 
	2.	 	Confidential Information. Employee acknowledges that the information,
observations and data obtained by Employee while employed by the Company
and its subsidiaries concerning the business or affairs of the Company or
any subsidiary of the Company (“Confidential Information”) are the
property of the

21

 

	 	 	Company or such subsidiary. Therefore, Employee agrees that Employee
shall not disclose to any unauthorized person or use for Employee’s own
purposes any Confidential Information without the prior written consent
of the Company, unless and to the extent that the aforementioned matters
become generally known to and available for use by the public other than
as a result of Employee’s acts or omissions. Employee shall deliver to
the Company at the termination of Employee’s employment, or at any other
time the Company may request, all memoranda, notes, plans, records,
reports, computer tapes, disks, printouts and software and other
documents and data (and copies thereof) relating to the Confidential
Information, Work Product (as defined below) or the business of the
Company or any subsidiary which Employee may then possess or have under
Employee’s control.
	 
	3.	 	Inventions and Patents.

	(a)	 	Employee acknowledges that all inventions, innovations,
improvements, developments, methods, designs, analyses, drawings,
reports and all similar or related information (whether or not
patentable) which relate to the Company’s or any of its
subsidiaries’ actual or anticipated business, research and
development or existing or future products or services and which are
conceived, developed or made by Employee while employed by the
Company and its subsidiaries (“Work Product”) belong to the Company
and/or such subsidiary. Employee shall promptly disclose such Work
Product to the Company and perform all actions reasonably requested
by the Company (whether during or after employment) to establish and
confirm such ownership (including, without limitation, the execution
of assignments, consents, powers of attorney and other instruments).

(b) Notwithstanding the obligations set forth in paragraphs 1 and
2(a) above, after termination of Employee’s employment with the
Company, the Employee shall be free to use Residuals of the Company’s
Confidential Information and Work Product for any purpose, subject
only to its obligations with respect to disclosure set forth herein
and any copyrights and patents of the Company. The term “Residuals”
means information in non-tangible form that may be retained in the
unaided memory of Employee derived from the

22

 

Company’s Confidential Information and Work Product to which Employee
has had access during his or her employment with the Company.
Employee may not retain or use the documents and other tangible
materials containing the Company’s Confidential Information or Work
Product after the termination of his or her employment with the
Company.

	4.	 	Non-Solicitation.
	 
	a)	 	While employed by the Company or any subsidiary thereof and for a period
of six months after the termination of Employee’s employment, Employee
shall not directly or indirectly through another entity (i) induce or
attempt to induce any employee of the Company or any subsidiary to leave
the employ of the Company or subsidiary, or in any way interfere with the
relationship between the Company or any subsidiary and any employee
thereof, (ii) hire any person who was an employee of the Company or any
subsidiary at any time during his/her employment or (iii) induce or
attempt to induce any customer, supplier, licensee, licenser, franchisee
or other business relation of the Company or any subsidiary to cease doing
business with the Company or such subsidiary, or in any way interfere with
the relationship between any such customer, supplier, licensee or business
relation and the Company or any subsidiary (including, without limitation,
making any negative statements or communications about the Company or its
subsidiaries).
	 
	b)	 	The provisions of this paragraph 3 will be enforced to the fullest extent
permitted by the law in the jurisdiction in which Employee resides at the
time of the enforcement of the provision.
	 
	c)	 	In the event of the breach or a threatened breach by Employee of any of
the provisions of this paragraph 3, the Company, in addition and
supplementary to other rights and remedies existing in its favor, may
apply to any court of law or equity of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce or
prevent any violations of the provisions hereof (without posting a bond or
other security).

23

 

	5.	 	Employee’s Representations. Employee hereby represents and warrants to the
Company that (i) the execution, delivery and performance of this Agreement by
Employee do not and shall not conflict with, breach, violate or cause a default
under any contract, agreement, instrument, order, judgment or decree to which
Employee is a party or by which Employee is bound, (ii) Employee is not a party
to or bound by any employment agreement, non-compete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall
be the valid and binding obligation of Employee, enforceable in accordance with
its terms. Employee hereby acknowledges and represents that Employee has had
an opportunity to consult with independent legal counsel regarding Employee’s
rights and obligations under this Agreement and that Employee fully understands
the terms and conditions contained herein.
	 
	6.	 	Survival. This Agreement shall survive and continue in full force in
accordance with its terms notwithstanding any termination of employment.
Nothing in this Agreement shall be deemed to imply any obligation of continued
employment of Employee by the Company which employment shall be “at will”
unless otherwise specifically agreed in writing.
	 
	7.	 	Notices. Any notice provided for in this Agreement shall be in writing and
shall be either personally delivered, or mailed by first class mail, return
receipt requested, to the recipient at the address below indicated:

	 	 	Notices to Employee:
	 
	 	 	Employee’s last address appearing in the payroll/personnel records
of the Company.
	 
	 	 	Notices to the Company:
	 
	 	 	Office Depot, Inc.

2200 Old Germantown Road

Delray Beach, Florida 33445

Attention: Executive Vice President — Human Resources

24

 

	 	 	or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement shall be deemed to have been given when so
delivered or mailed.
	 
	8.	 	Severability. Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other
jurisdiction, but this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.
	 
	9.	 	Complete Agreement. This Agreement and those documents expressly
referred to herein and other documents of even date herewith embody the
complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject
matter hereof in any way.
	 
	10.	 	No Strict Construction. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction shall be applied against
any party.
	 
	11.	 	Counterparts. This Agreement may be executed in separate counterparts,
each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.
	 
	12.	 	Successors and Assigns. This Agreement is intended to bind and inure to
the benefit of and be enforceable by Employee, the Company and their
respective heirs, successors and assigns, except that Employee may not
assign Employee’s rights or delegate Employee’s obligations hereunder
without the prior written consent of the Company.

25

 

	13.	 	Choice of Law. All issues and questions concerning the construction,
validity, enforcement and interpretation of this Agreement and the
exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of Florida, without giving effect
to any choice of law or conflict of law rules or provisions (whether of
the State of Florida or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of
Florida.
	 
	14.	 	Amendment and Waiver. The provisions of this Agreement may be amended or
waived only with the prior written consent of the Company and Employee,
and no course of conduct or failure or delay in enforcing the provisions
of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.
	 
	15.	 	Stock Option Plan Awards. Employee may receive from time to time, grants
of stock options and/or awards of shares of restricted stock pursuant to
the terms of the Office Depot, Inc. Amended Long-Term Equity Incentive
Plan, or under another comparable plan of the Company (herein collectively
referred to as the “Stock Option Plan”). Employee hereby agrees that his
or her signature on this Agreement is deemed to be “remade” on each and
every occasion on which Employee receives any grant or award under the
Stock Option Plan. Employee further agrees that as a remedy available to
the Company for any breach of this Agreement by Employee, the Company
shall have the absolute right to cancel any unvested or vested but
unexercised stock option or any award of restricted stock under the Stock
Option Plan upon evidence that Employee has breached, or intends to breach
this Agreement. Employee shall not be required to separately sign any
document to cause this provision of this Agreement to be applicable to any
future grant or award under the Stock Option Plan.
	 
	16.	 	Arbitration Provisions. Any dispute or controversy between the Company
and Employee arising out of or relating to this Agreement or the breach of
this Agreement shall be settled by arbitration administered by the
American Arbitration Association (“AAA”) in accordance with its National
Rules for the Resolution of Employment Disputes then in effect, and
judgment on the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual

26

 

	 	 	agreement of the Company and Employee, unless the parties are unable to
agree to an arbitrator, in which case the arbitrator will be selected under
the procedures of the AAA. The arbitrator shall have the authority to
award any remedy or relief that a court of competent jurisdiction could
order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this
arbitration provision, apply to any court otherwise having jurisdiction
over such dispute or controversy and seek interim provisional, injunctive
or other equitable relief until the arbitration award is rendered or the
controversy is otherwise resolved. Except as necessary in court
proceedings to enforce this arbitration provision or an award rendered
hereunder, or to obtain interim relief, or as may otherwise be required by
law, neither a party nor an arbitrator may disclose the existence, content
or results of any arbitration hereunder without the prior written consent
of the Company and Employee. The Company and Employee acknowledge that
this agreement evidences a transaction involving interstate commerce.
Notwithstanding any choice of law provision included in this Agreement, the
United States Federal Arbitration Act shall govern the interpretation and
enforcement of this arbitration provision. The arbitration proceeding
shall be conducted in Palm Beach County, Florida or such other location to
which the parties may agree. The Company shall pay the costs of any
arbitrator appointed hereunder and the administrative fees and costs
imposed by the AAA.

* * * * *

27

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

	 	 	 	 	 
	 	 	OFFICE
DEPOT, INC.

	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	Print Name:	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	Initials:	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	Employee:

	 
	 	 	 	 
	 	 	

	

	 	Signature
	 	Date
	 
	 	 	 	 
	 	 	

	 	 	Print Name
	 
	 	 	 	 
	 	 	

	 	 	Employee ID Number

28Form of Restricted Stock Award

 

Exhibit 10.2

FORM OF RESTRICTED STOCK AWARD

	 	 	 
	Name:

	 	Date
	 
	 	 
	Employee ID Number: XXXXX
	 	 

               This will confirm that the Compensation Committee (the “Committee”) of the
Board of Directors of Office Depot, Inc. (the “Company”) has on the date hereof
granted to you a restricted stock award pursuant to the Office Depot, Inc.
Long-Term Equity Incentive Plan (the “Plan”). This restricted stock award
(your “Award”) relates to XXXXXX shares of the Company’s common stock (“Common
Stock”). Capitalized terms used but not defined herein have the meanings given
to them in the Plan.

     1. Vesting. Your Award is subject to the following vesting restrictions:

               a. Your Award will vest XX percent on the XXXXX anniversary and XX percent
on the XXXXX anniversary of the date of this letter, provided that you remain
employed by the Company throughout the period beginning on the date hereof and
ending on the Vesting Date (the “Vesting Period”).

               b. Upon the receipt of a copy of this Agreement containing your signature,
the Company will register a certificate or certificates for the number of
shares of Common Stock indicated above in your name (your “Restricted Shares”).
Restricted Shares shall bear a legend specifying that such shares are not
transferable and are subject to the terms and conditions of this Agreement and
of the Plan. If your employment with the Company terminates for any reason
(including your death) during the Vesting Period, your Restricted Shares will
be cancelled and you will cease to have any rights with respect to such shares
or this Agreement. Restricted Shares will be held in escrow by the Company on
your behalf until the Restricted Shares vest or are forfeited.

               c. During the Vesting Period, while you are employed by the Company, you
will have the right to vote your Restricted Shares. If your Restricted Shares
are forfeited at any time during the Vesting Period, you will cease to have any
rights with respect to such forfeited shares.

               d. Within 45 days after the vesting in full of your Award, the Company
will issue to you a certificate or certificates for shares of Common Stock
(your “Vested Shares”) in exchange for your Restricted Shares on a one-for-one
basis, and your Restricted Shares will be cancelled. Such Vested Shares will
not be subject to any restrictions under this Agreement, but

 

may be subject to certain restrictions under applicable securities laws and
such shares will bear a legend specifying any such restrictions.

     2. Registration. The issuance of shares of Common Stock in payment of
your Award has been registered by the Company under the Securities Act of 1933
pursuant to an effective registration statement (“Registration Statement”). By
signing this Agreement you agree that you will not reoffer, resell or otherwise
dispose of any shares issued to you in payment of your Award in any manner
which would violate any federal or state securities law, and further agree to
reimburse the Company for any loss, damage or expense of any kind which it may
suffer by reason of any breach of such agreement. You further acknowledge that
the Company has no obligation to keep the Registration Statement effective or
current or to file or keep effective any current or other registration
statement concerning any shares subject to your award. Notwithstanding any
other provision of this Agreement, the Committee may suspend the issuance of
stock in payment of your Award if it determines that securities exchange
listing or registration or qualification under any securities laws is required
in connection therewith and have not been completed on terms acceptable to the
Committee.

     3. Withholding. The Company may withhold, or require you to remit to the
Company, an amount in cash sufficient to satisfy any withholding or other tax
due under any federal, state, local, or foreign tax law with respect to any
amount payable and/or shares issuable pursuant to your Award, and the Committee
may defer such payment or issuance unless indemnified to its satisfaction. The
Committee may, in its sole discretion, satisfy any such withholding or other
tax obligation by withholding shares of Common Stock from the shares otherwise
issuable to you pursuant to your Award.

     4. No Employment Rights. Nothing in the Plan or your Award shall serve to
modify or amend any employment agreement you may have with the Company or to
interfere with or limit in any way the right of the Company or any Affiliate to
terminate your employment at any time, or confer upon you any right to continue
in the employ of the Company or any Affiliate 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
Award shall not give you any right to any additional awards under the Plan or
any other compensation plan the Company has adopted or may adopt.

     5. Conformance with Plan. This Agreement is intended to conform in all
respects with the Plan. Inconsistencies between this Agreement and the Plan
will be resolved in accordance with the terms of the Plan.

     6. Successors. This Agreement will be binding upon and inure to the
benefit of any successor of the Company.

*   *   *   *   *

2

 

     Please acknowledge your Award by signing the extra copy of this Agreement
in the space provided and returning the same to the Stock Option Administrator
of the Company.

	 	 	 	 	 
	 	 	OFFICE DEPOT, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	     Neil Austrian
	

	 	 	 	     Chairman & Chief Executive Officer

     The undersigned hereby acknowledges the foregoing Award, and agrees to be
bound by the provisions of the foregoing Agreement and the Plan.

	 	 	 	 	 
	 	 	

	 	 	Participant Name

Dated: _____________________, 20__.

3

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