Document:

Letter Agreement dated December 28, 2008.

 Exhibit 10.2 
 

 
 December 28, 2008 
 Citibank
(South Dakota), N.A. 
 701 East 60th Street North 
 Sioux Falls,
SD 57117 
 Attn. Senior Vice President 
  

	Re:	Amended and Restated Merchant Services Agreement dated as of February 1, 2004 by and between Office Depot, Inc. and Citibank (South Dakota), N.A. 

 Dear Senior Vice President: 
 Reference is made to Citibank’s letter of
December 22, 2008 relative to the Amended and Restated Merchant Services Agreement dated as of February 1, 2004 by and between Office Depot, Inc. (“Office Depot”) and Citibank (South Dakota), N.A. (“Citi”), as amended
(the “Agreement”). In that letter, Citi noted to Office Depot that the December 15, 2008 rating downgrade of Office Depot’s senior unsecured debt by Standard & Poors constitutes a Material Adverse Change in the condition of
Company (a “MAC”), entitling Citi to terminate the Agreement and cause Office Depot to purchase the program Assets (the “MAC Event”). Office Depot has requested a temporary standstill of Citi’s rights triggered by the MAC
Event until March 31, 2009. Citi has indicated its willingness to grant a limited standstill of its right to terminate based upon the MAC Event, but only upon certain terms as set forth herein. This letter (the “Letter Agreement”)
memorializes the parties’ agreement relative to these events, and supplements the Agreement in certain respects. Capitalized terms used herein and not otherwise defined shall have the meaning assigned in the Agreement. 
 First, Office Depot hereby waives its early termination right contained in Section 6.2(a) of the Agreement. 
 Second, Office Depot shall establish a standby letter of credit in a form and content and issued by a financial institution acceptable to Citi in the amount of
$25,000,000 for a term of one (1) year from its date of issuance (the “LC”). The LC shall be drawn by Citi if: (a) for any reason, Office Depot fails to fund the Required Reserve Amount; (b) Office Depot fails to pay Citi
for any and all Chargebacks; and/or (c) Office Depot fails to pay any and all other obligations owed under the Agreement. 
 Upon Citi’s receipt of
this letter, duly executed by an authorized officer of Office Depot, Citi shall issue to Office Depot a letter good through the close of business on Friday, January 2, 2009 (the “First Standstill Period”), indicating Citi’s
willingness to stand still on its right to terminate the Agreement due to the MAC Event. If Citi receives a LC that is acceptable to Citi prior to the end of the First Standstill Period, Citi shall issue to Office Depot a letter good through the
close of business on March 31, 2009 indicating Citi’s willingness to stand still on its right to terminate the Agreement due to the MAC Event (the “Second Standstill Period”). In the event Citi does not receive the LC by the end
of the First Standstill Period, or upon the expiration of the Second 
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 Standstill Period, Citi shall be returned to the same position with respect to the MAC Event as it exists as of the date
of this letter, and shall be entitled to exercise any and all rights it has under the Agreement arising from the MAC Event. 
 By agreeing to the terms
contained in this Letter Agreement, Citi does not waive and has not waived any default by Office Depot under the Agreement other than the limited standstill of Citi’s right to terminate as discussed herein, and Citi expressly reserves all of
its rights to take any and all actions, and exercise any and all remedies at any time under the Agreement and under applicable law as a result of the occurrence of any such event. Nothing contained herein or in any stand still letter, nor
Citi’s willingness to meet with Office Depot as currently scheduled, shall be deemed to be a waiver of any such rights or remedies, or of any default which may occur or has already occurred under the Agreement, except as expressly limited
herein or therein. 
 Please sign a copy of this letter where provided below, representing Citi’s agreement to the terms of this Letter Agreement.

 I look forward to the opportunity to talk with you soon. 
  

	
	Very truly yours,
	
	 /s/    Michael D. Newman

	Michael D. Newman
	Executive Vice President & Chief Financial Officer

 

 
  

			
	Accepted and Agreed:
	
	Citibank (South Dakota), N.A.
		
	By:	 	 /s/    Jeffrey D. Gednalske

	Name:	 	Jeffrey D. Gednalske
	Title:	 	Vice President & Associate General Counsel

  

 2First Standstill Letter dated December 28, 2008.

 Exhibit 10.3 
 Citibank (South Dakota), N.A. 
 701 East 60th Street North 
 Sioux Falls, SD 57117 
 December 28, 2008 
 Office Depot, Inc. 
 2200 Old Germantown Road 
 Delray Beach, Florida 33445 
 Attn. Senior Vice President Finance/Controller

  

	Re:	Amended and Restated Merchant Services Agreement dated as of February 1, 2004 by and between Office Depot, Inc. and Citibank (South Dokota), N.A. 

 Dear Senior Vice President Finance/Controller: 
 Reference is made to your
letter of December 27, 2008 relative to the Amended and Restated Merchant Services Agreement dated as of February 1, 2004 by and between Office Depot, Inc. (“Office Depot”) and Citibank (South Dakota), N.A. (“Citi”), as
amended (the “Agreement”). Further reference is made to the material Adverse Change in the condition of Company under the Agreement resulting from the December 15, 2008 rating downgrade of Office Depot’s senior unsecured debt by
Standard & Poors (the “MAC Event”). In your letter, you requested a limited standstill of Citi’s right to terminate the Agreement and cause Office Depot to purchase the program Assets due to the MAC Event. 
 Based upon the commitments contained in your December 27, 2008 letter, Citi hereby agrees that it shall not, until the close of business on Friday, January 2,
2009, terminate the Agreement and require Office Depot to purchase the program Assets as a result of the MAC Event. 

 Office Depot, Inc. 
 December 27, 2008 
 Page 2 
 Upon Office
Depot’s satisfaction of all the conditions contained in your December 27, 2008 letter, the standstill shall be extended until the close of business on March 31, 2009, subject to the conditions contained in your December 27, 2008
letter. 
 By this letter, Citi does not waive and has not waived any default by Office Depot under the Agreement other than Citi’s limited stand still
as set forth herein, and Citi expressly reserves all of our rights to take any and all actions, and exercise any and all remedies at any time under the Agreement and under applicable law except as expressly limited herein. 
  

			
	Very truly yours,
	
	Citibank (South Dakota), N.A.
		
	By:	 	 /s/    Jeffrey D. Gednalske

	Name:	 	Jeffrey D. Gednalske
	Title:	 	Vice President & Associate General Counsel

  

	cc:	Office Depot, Inc. 

 2200 Old Germantown Road 

Delray Beach, Florida 33445 
 Attn. Sr.
Manager – Customer Programs 
 Office Depot, Inc. 
 2200 Old Germantown Road 
 Delray Beach, Florida 33445 
 Attn. Office of General CounselSecond Standstill Letter dated December 30, 2008.

 Exhibit 10.4 
 Citibank (South Dakota), N.A. 
 701 East 60th Street North 
 Sioux Falls, SD 57117 
 December 30, 2008 
 Office Depot, Inc. 
 2200 Old Germantown Road 
 Delray Beach, Florida 33445 
 Attn. Senior Vice President Finance/Controller

  

	Re:	Amended and Restated Merchant Services Agreement dated as of February 1, 

 2004 by and between Office Depot, Inc. and Citibank (South Dakota), N.A. 
 Dear Senior Vice President Finance/Controller:

 Reference is made to your letter of December 28, 2008 relative to the Amended and Restated Merchant Services Agreement dated as of February 1, 2004 by
and between Office Depot, Inc. (“Office Depot”) and Citibank (South Dakota), N.A. (“Citi”), as amended (the “Agreement”). Further reference is made to the Material Adverse Change in the condition of Company under the
Agreement resulting from the December 15, 2008 rating downgrade of Office Depot’s senior unsecured debt by Standard & Poors (the “MAC Event”). In your letter, you requested a limited standstill of Citi’s right to
terminate the Agreement and cause Office Depot to purchase the program Assets due to the MAC Event. 
 Based upon the commitments contained in your December
28, 2008 letter, Citi hereby agrees that it shall not, until the close of business on March 31, 2009, terminate the Agreement and require Office Depot to purchase the program Assets as a result of the MAC Event. 

 Office Depot, lnc. 
 December 30, 2008 
 Page 2 
  

 By this letter, Citi does not waive and has not waived any default by Office Depot under the Agreement other than
Citi’s limited stand still as set forth herein, and Citi expressly reserves all of our rights to take any and all actions, and exercise any and all remedies at any time under the Agreement and under applicable law except as expressly limited
herein. 
  

			
	Very truly yours,
	
	Citibank (South Dakota), N.A.
		
	By:	 	 

	Name:	 	
	Title:	 	

 

 
  

	cc:	Office Depot, Inc. 

 2200 Old Germantown Road 

Delray Beach, Florida 33445 
 Attn. Sr.
Manager – Customer Programs 
 Office Depot, Inc. 
 2200 Old Germantown Road 
 Delray Beach, Florida 33445 
 Attn. Office of General CounselLetter of Credit dated December 30, 2008.

 Exhibit 10.5 
 

 
 JPMorgan Chase Bank, N.A. 
 c/o JPMorgan Treasury Services 
 Global Trade Services 
 10420 Highland Manor Drive 
 Tampa, FL 33610 
 DEC 30, 2008 
 OUR L/C NO.: CTCS-716495 
 STANDBY LETTER OF CREDIT-IRREVOCABLE 
 NO. CTCS-716495 
 BENEFICIARY: 
 CITIBANK (SOUTH DAKOTA) , N.A. 
 701 EAST
60TH STREET NORTH 
 SIOUX FALLS, SD 57117 
 ATTN: SENIOR VICE
PRESIDENT 
 WE HEREBY ESTABLISH IN YOUR FAVOR OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. CTCS-716495 (THIS “LETTER OF CREDIT”) FOR THE ACCOUNT OF
OFFICE DEPOT, INC. (THE “APPLICANT”) FOR A SUM OR SUMS NOT TO EXCEED IN THE AGGREGATE AMOUNT OF U.S. DOLLARS $25,000,000.00 (TWENTY FIVE MILLION AND NO/100 U.S. DOLLARS). 
 FUNDS UNDER THIS LETTER OF CREDIT ARE AVAILABLE TO YOU, AT SIGHT, UPON RECEIPT BY US OF YOUR WRITTEN STATEMENT OR AUTHENTICATED S.W.I.F.T. OR TESTED TELEX/CABLE DRAWING CERTIFICATE(S) STATING: 
 “WE HEREBY CERTIFY THAT THE AMOUNT DRAWN HEREUNDER
U.S.$                     REPRESENTS FUNDS DUE AND PAYABLE TO US UNDER THE AMENDED AND RESTATED MERCHANT SERVICES AGREEMENT DATED FEBRUARY 1,
2004 AND AS PER THE LETTER AGREEMENT DATED AS OF DECEMBER 28, 2008.” 
 PARTIAL AND MULTIPLE DRAWINGS ARE PERMITTED. 
 THIS LETTER OF CREDIT EXPIRES ON DECEMBER 29, 2009 AT OUR OFFICE LOCATED AT 300 S. RIVERSIDE PLAZA, MAIL CODE IL1-0236, CHICAGO, ILLINOIS 60606-0236, ATTN: STANDBY
LETTER OF CREDIT UNIT. 
 WE HEREBY AGREE WITH YOU THAT DRAWING CERTIFICATE(S) PRESENTED UNDER AND IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER
OF CREDIT WILL BE DULY HONORED BY US UPON PRESENTATION IF PRESENTED ON OR BEFORE THE EXPIRATION DATE AT OUR COUNTERS AT 300 S. RIVERSIDE PLAZA, MAIL CODE IL1-0236, CHICAGO, ILLINOIS 60606-0236, ATTN: STANDBY LETTER OF CREDIT UNIT. 

 

 
 JPMorgan Chase Bank, N.A. 
 c/o JPMorgan Treasury Services 
 Global Trade Services 
 10420 Highland Manor Drive 
 Tampa, FL 33610 
 DEC 30, 2008 
 OUR L/C NO.: CTCS-716495 
 EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN, THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES (“ISP98”), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 590, AND AS TO MATTERS NOT GOVERNED BY THE
ISP98, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
  

	
	 

	AUTHORIZED SIGNATURE

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