Document:

2015 2Q 10Q EX 10.3

Exhibit 10.3
FIRST AMENDMENT 
TO THE 
FEDERAL HOME LOAN MORTGAGE CORPORATION 
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN II  
(effective January 1, 2014)
FIRST AMENDMENT to the FEDERAL HOME LOAN MORTGAGE CORPORATION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN II (the “Plan”) by the FEDERAL HOME LOAN MORTGAGE CORPORATION (the “Corporation”), a corporation  organized and existing under the laws of the United States of America.
WITNESSETH
WHEREAS, the Plan was effective January 1, 2014; 
WHEREAS, the Corporation now desires to amend the Plan to change the exceptions to the requirement that a participant be employed on the last day of the plan year in order to share in an allocation of certain of the Supplemental Benefit Credits;
WHEREAS, Section 7.1 of the Plan permits the Corporation to amend the Plan; and
WHEREAS, the appropriate officer of the Corporation has been duly authorized to execute this amendment.
NOW THEREFORE, the Plan is amended as set forth below effective January 1, 2015.
Section 2.24 of the Plan is amended in its entirety to read as follows:
“2.24       Qualifying Termination.  A Participant’s termination of employment with an Employer on account of any of the following:
(a)           Retirement, which for this purpose means termination of employment on or after attainment of age 62 or on or after attainment of age 55 with at least 10 years of service (determined using a calculated service date that is based on original hire date as an employee of the Employer and/or previous service as an employee of the Employer); or
(b)           Involuntary termination of employment by the Employer unless the Participant:
(A)           is terminated for chronic unexcused absenteeism, disruptive behavior, refusal to perform assigned duties, or other lack of good faith efforts to perform to the best of his or her ability; or
(B)          is terminated for engaging in Significant Misconduct.  For purposes of this Section 2.24 Significant Misconduct includes, but is not limited to:  

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•    Dishonesty, theft, fraud, breach of trust or fiduciary duty, or destruction of property; 
•    Insider trading or abuse, or other violation of law, including violations of certain laws dealing with financial institutions;
•    Conviction (including any plea of nolo contendre) of a crime involving violence, theft, or fraud, whether related to the Corporation or not; 
•    Harassment, discrimination or retaliation in violation of applicable policy or law; 
•    Disclosure or misuse of Confidential Information (as that term is defined in Corporation policy, the Code of Conduct, or a restrictive covenant and/or confidentiality agreement between the Participant and the Corporation); or
•    Other misconduct, such as a violation of any written policy of the Corporation that results in termination of employment.”

IN WITNESS WHEREOF, the Federal Home Loan Mortgage Corporation has caused this FIRST AMENDMENT to the FEDERAL HOME LOAN MORTGAGE CORPORATION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN II to be executed by its duly authorized officer this 3rd day of August, 2015.
FEDERAL HOME LOAN MORTGAGE      CORPORATION
                
	
	
	By:      /s/ Daniel Scheinkman                    

	Daniel Scheinkman

	Vice President – Compensation and Benefits

 

	
	
	ATTEST:

	   /s/ Alicia S. Myara                        

	Alicia S. Myara, Assistant Secretary

2EX-10.2

 Exhibit 10.2 

AWARD AGREEMENT FOR 2015 CASH-SETTLED PERFORMANCE AWARD 

We are pleased to advise you that the Compensation Committee (the “Committee”) of the Board of Directors of Office Depot, Inc. (the
“Company”) has granted you a performance award pursuant to the Office Depot, Inc. 2007 Long-Term Incentive Plan (the “Plan”) on [—] (the “Grant Date”). Capitalized terms used but not defined in this
Award Agreement for 2015 Cash-Settled Performance Award (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 NASDAQ Stock Market LLC. 

 

	1.	Performance Award 

 You have been granted the right to earn a payment from the Company
based upon satisfaction of certain performance conditions pursuant to the provisions and restrictions contained in the Plan and this Agreement (the “Performance Award”). The target amount of your award is $[—] (your
“Target Award”) and is denominated as a number of shares of common stock of the Company (“Common Stock”) having an aggregate Grant Date value of $[—] based on the “fair value” of the Common Stock on
the Grant Date with such “fair value” to be determined in accordance with the terms of the Plan and generally accepted accounting principles. 
  

	2.	Vesting 

  

	 	a.	 Performance Conditions. Subject to the terms and conditions set forth herein and in Sections 2(b) below, you will be eligible to earn up to
[—]% of your Target Award based on the Company’s free cash flow as determined by the Committee pursuant to paragraph (i) below (“Free Cash Flow”) and operating income as determined by the Committee pursuant to
paragraph (ii) below (“Operating Income”). Generally, the Committee will determine Free Cash Flow and Operating Income for the Company’s fiscal year beginning on December 28, 2014, and ending on December 26, 2015 (the
“Fiscal Year”). However, in the event that the Closing Date (as defined in the Agreement and Plan of Merger between the Company, Staples, Inc. and Staples AMS, Inc. dated as of February 4, 2015 (the “Merger Agreement”)
occurs prior to December 26, 2015, then Free Cash Flow and Operating Income will be calculated for the period beginning December 28, 2014 and ending on such Closing Date rather than for the Fiscal Year. The Fiscal Year or any shorter
period over which Free Cash Flow and Operating Income will be calculated is referred to in this Agreement as the “Performance Period.” If the Committee determines that the Company does not achieve Free Cash Flow equal to at least the
threshold amount approved by the Committee for the Performance Period or does not achieve Operating Income equal to at least the threshold amount approved by the Committee for the Performance Period, you will immediately forfeit all rights to the
Performance Award. If the Committee determines that the Company has achieved at least the threshold amounts of Free Cash Flow and Operating Income for the Performance Period, you will be eligible to earn a percentage of your Target Award determined
on the basis of the Company’s achievement of the Operating Income 

  
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target set by the Committee for the Performance Period (as defined below) pursuant to the following table, up to a maximum of [—]% of your Target Award: 

 

			
	 Percentage of Attainment

of Operating Income

Target for Performance

Period
	 	Percentage of Target Award
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]
	 [—]
	 	[—]

 Straight-line interpolation shall be applied to determine the percentage of your Target Award earned for a percentile that
falls between the percentiles specified in the table above. 
 The Committee shall be entitled to adjust the percentage of your Target Award earned for the
Performance Period (i) based on your individual performance for the Performance Period, or (ii) based on business performance. In no event may an adjustment pursuant to this paragraph cause the percentage of your Target Award earned for
the Performance Period to exceed [—]%. 
 The Committee will determine the percentage of your Target Award, if any, that you are eligible
to earn on the foregoing basis (your “Eligible Award”). Upon the Committee’s determination of your Eligible Award, you will immediately forfeit the portion of your Performance Award other than your Eligible Award. To become vested in
all or a portion of your Eligible Award, you must satisfy the employment requirements of Section 2(b) below. 

  
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	 	i.	Free Cash Flow. The Committee will calculate the Company’s Free Cash Flow by subtracting Capital Expenditures from Net Cash Provided by (Used in) Operating Activities for the Performance Period.

  

	 	ii.	Operating Income. The Committee will calculate the Company’s Operating Income as the Company’s Total Company Adjusted Operating Income (Non-GAAP) for the Performance Period, with adjustments, both
positively and negatively, for the following items as approved by the Committee: expenses related to the merger of OfficeMax Incorporated with and into the Company; expenses related to the transactions described in the Merger Agreement; impacts of
unplanned acquisitions and divestitures; internal restructuring and country portfolio changes classified as Discontinued Operations; impairment charges related to goodwill, other intangible assets, and long-lived assets (non-cash); and unplanned
costs and benefits related to real estate strategy including, but not limited to, lease terminations or facility closure obligations; and any additional unplanned and extraordinary events (as determined by the Board Finance and Integration
Committee) for which the Committee determines adjustments should be made. Operating Income excludes, for example, merger-related expenses, North America cost reduction initiatives (e.g., severance), and North America store impairment charges
(non-cash). All calculations related to foreign exchange rates will measure results on a currency neutral basis. 

  

	 	b.	Employment Requirements. 

  

	 	i.	Continuous Employment. Except as provided in Sections 2(b)(ii) and 2(b)(iii) below, (A) you will vest in your Eligible Award (if any) on the date on which the Committee determines your Eligible Award,
provided that you remain continuously employed with the Company or any Subsidiary during the period beginning on the Grant Date and ending on [—], and (B) you will immediately forfeit your entire Performance Award upon your
termination of employment with the Company and its Subsidiaries prior to [—]. 

  

	 	ii.	 Death or Disability. If you terminate employment with the Company and its Subsidiaries due to death or Disability prior to
[—], you will vest in a pro rata portion of your Eligible Award (if any) on the date on which the Committee determines your Eligible Award and you will forfeit the remainder of your Eligible Award (if any) on such date. The
portion of your Eligible Award that will vest under the immediately prior sentence shall be determined by multiplying your Eligible Award by a fraction, the numerator of which is the total number of calendar days during which you were employed by
the Company and its Subsidiaries during the Fiscal Year and the denominator of which is 365, rounded up to the nearest whole dollar (as necessary). Your Disabled status must become effective prior to the date on which payment of your Eligible Award
(if any) would 

  
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otherwise be required pursuant to Section 4 below in order to be recognized under this Agreement. In the event of your death, payment will be made to your estate. 

 

	 	iii.	Termination of Employment without Cause or for Good Reason. In the event of your termination of employment with the Company and its Subsidiaries without Cause or for Good Reason prior to [—],
you will vest in a pro rata portion of your Eligible Award (if any) on the date on which the Committee determines your Eligible Award and you will forfeit the remainder of your Eligible Award (if any) on such date, provided that you satisfy the
release requirement and other obligations set out in the employment agreement between you and the Company dated as of [—]. The portion of your Eligible Award that will vest under the immediately prior sentence shall be determined
by multiplying your Eligible Award by a fraction, the numerator of which is the total number of calendar days during which you were employed by the Company and its Subsidiaries during the Fiscal Year and the denominator of which is 365, rounded up
to the nearest whole dollar (as necessary). 

  

	 	iv.	Definitions. As used herein, the terms “Cause”, “Good Reason” and “Disability” shall have the meanings set out in the employment agreement between you and the Company dated as of
[—]. 

  

	 	c.	No Other Special Vesting Rights. The provisions of the Plan with respect to accelerated vesting in the event of retirement and change in control (e.g., Sections 10.5 and 10.8 of the Plan) do not apply to your
Performance Award. If you forfeit your Performance Award at any time, you will cease to have any rights with respect to such forfeited Performance Award. 

  

	3.	Rights as Stockholder 

 You shall have no voting, dividend or any other rights as a
stockholder of the Company with respect to your Performance Award. 
  

	4.	Payment 

 The Company will make payment of the vested portion of your Eligible Award (if
any) in a lump sum in cash during the period beginning [—] and ending [—]. 
  

	5.	Withholding 

 You are required to pay to the Company all applicable federal, state,
local or other taxes, domestic or foreign, with respect to your Performance Award (the “Required Tax Payments”). Unless you make other arrangements with the consent of the Company, all Required Tax Payments and other authorized deductions
(e.g., 401(k) plan contributions) will be deducted from the amount of the payment made to you pursuant to Section 4. 

  
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	6.	Transferability of Performance Award 

 Your Performance Award 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. 
  

	7.	Conformity with Plan 

 Your Performance Award 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 Performance Award 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, 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 Director, Executive Compensation & International Compensation. 
  

	8.	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 Performance Award 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. In making such determination, the Committee may rely upon an opinion of counsel for the
Company. The Company shall have no liability to make any 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. The Committee shall be permitted to amend this Agreement in its discretion to the extent the Committee
determines that such amendment is necessary or desirable to achieve compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act and the guidance thereunder. 

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

 Your Performance Award
is also subject to your complying with and not breaching the non-compete, confidentiality, and non-solicitation covenants that you were required to sign as a condition of your employment with the Company. 

 

	10.	Compliance with Section 409A 

  

	 	a.	It is intended, and this Agreement shall be construed and administered, 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”). 

  

	 	b.	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 compensation that is subject to Section 409A and that has payment triggered by your termination of employment other than on account of your death 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) (a “Section 409A Separation from Service”), and (ii) if you are a
“specified employee” within the meaning of Treasury Regulation Section §1.409A-1(i) on the date of your Section 409A 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 Section 409A 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 such Section 409A Separation from Service shall be paid to you six months following the date of such Section 409A
Separation from Service (provided, however, that if you die after the date of such Section 409A Separation from Service, this six month delay shall not apply from and after the date of your death). 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.

  

	11.	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 Performance Award
shall not give you any right to any additional awards under the Plan or any other compensation plan the Company has 

  
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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. 

 

	12.	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 Performance Award or this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant of the Performance
Award 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 Performance Award that is then subject to
restrictions as provided herein. 
  

	13.	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, HRIS and Shared Services 

6600 North Military Trail, C278 

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. 
  

	14.	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. 

  
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	15.	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. 
  

	16.	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. 
  

	17.	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. 

Very truly yours, 
 OFFICE DEPOT, INC. 

  
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