Document:

Form of Severance Agreement

 Exhibit 10.1 
 SEVERANCE AGREEMENT 
 THIS [AMENDED AND RESTATED] SEVERANCE
AGREEMENT (this “Agreement”), dated as of             , 2009, is made and entered by and between Lincoln Electric Holdings, Inc., an Ohio corporation (the “Company”),
and                      (the “Executive”). 
 RECITALS 
 A. The Executive is a senior executive of the Company or one or more of its Subsidiaries
and has made and is expected to continue to make major contributions to the short- and long-term profitability, growth and financial strength of the Company. 
 B. The Company recognizes that, as is the case with virtually all publicly held corporations, the possibility of a Change in Control exists and that such possibility, and the uncertainty it may raise among management,
may result in the distraction or departure of management personnel to the detriment of the Company and its stockholders. 
 C. The Company
desires to assure itself of both present and future continuity of management and desires to establish certain minimum severance benefits for certain of its senior executives, including the Executive, applicable in the event of a Change in Control.

 D. The Company wishes to ensure that its senior executives are not unduly distracted by the circumstances attendant to the possibility of
a Change in Control and to encourage the continued attention and dedication of such executives, including the Executive, to their assigned duties with the Company. 
 E. The Company desires to provide additional inducement for the Executive to continue to remain in the employ of the Company. 
 Accordingly, the Company and the Executive agree as follows: 
 1. Certain Defined Terms. In addition
to terms defined elsewhere herein, certain initial capitalized terms have the following meanings: 
 (a) “Base Pay”
means the Executive’s annual base salary at the rate as in effect from time to time. 
 (b) “Board” means the
Board of Directors of the Company. 
 (c) “Cause” means that, prior to any termination pursuant to
Section 3(b), the Executive has: 
 (i) been convicted of, or pleaded nolo contendere to, a criminal violation, in
each case, involving fraud, embezzlement or theft in connection with the Executive’s duties or in the course of the Executive’s employment with the Company or any Subsidiary; 
 (ii) committed intentional wrongful damage to property of the Company or any Subsidiary; 

 (iii) committed intentional wrongful disclosure of secret processes or confidential
information of the Company or any Subsidiary; or 
 (iv) committed intentional wrongful engagement in any of the activities
set forth in the Confidentiality, Non-Competition and Non-Solicitation Agreement attached hereto as Annex B; 
 and, in each case, any such
act shall have been demonstrably and materially harmful to the Company. For purposes of this Agreement, no act or failure to act on the part of the Executive will be deemed “intentional” if it was due primarily to an error in judgment or
negligence, but will be deemed “intentional” only if done or omitted to be done by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company.
Notwithstanding the foregoing, the Executive will not be deemed to have been terminated for “Cause” hereunder unless and until there is delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than
two-thirds of the Board then in office (excluding the Executive if the Executive is then a member of the Board) at a meeting of the Board called and held for such purpose, after reasonable notice to the Executive and an opportunity for the
Executive, together with the Executive’s counsel (if the Executive chooses to have counsel present at such meeting), to be heard before the Board, finding that, in the good faith opinion of the Board, the Executive had committed an act
constituting “Cause” as herein defined and specifying the particulars thereof in detail. In addition, the Executive will be deemed to have been terminated for Cause if, within 12 months after the Participant’s Termination Date, facts
and circumstances are discovered that would have justified a termination for Cause, for a criminal violation involving fraud, embezzlement or theft in connection with the Executive’s duties or in the course of the Executive’s employment
with the Company or any Subsidiary. Nothing herein will limit the right of the Executive or the Executive’s beneficiaries to contest the validity or propriety of any such determination. 
 (d) “Change in Control” means the occurrence during the Term of any of the following events: 
 (i) any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of the combined voting power of the then-outstanding Voting Stock of the Company; provided, however, that:

 (1) for purposes of this Section 1(d)(i), the following acquisitions will not constitute a Change in Control:
(A) any acquisition of Voting Stock of the Company directly from the Company that is approved by a majority of the Incumbent Directors, (B) any acquisition of Voting Stock of the Company by the Company or any Subsidiary, (C) any
acquisition of Voting Stock of the Company by the trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, and (D) any acquisition of Voting Stock
of the Company by any 

  

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Person pursuant to a Business Transaction that complies with clauses (A), (B) and (C) of Section 1(d)(iii) below; 
 (2) if any Person is or becomes the beneficial owner of 30% or more of combined voting power of the then-outstanding Voting Stock of the
Company as a result of a transaction described in clause (A) of Section 1(d)(i)(1) above and such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock of the Company representing 1% or more of the
then-outstanding Voting Stock of the Company, other than in an acquisition directly from the Company that is approved by a majority of the Incumbent Directors or other than as a result of a stock dividend, stock split or similar transaction effected
by the Company in which all holders of Voting Stock are treated equally, such subsequent acquisition will be treated as a Change in Control; 
 (3) a Change in Control will not be deemed to have occurred if a Person is or becomes the beneficial owner of 30% or more of the Voting Stock of the Company as a result of a reduction in the number of shares of Voting
Stock of the Company outstanding pursuant to a transaction or series of transactions that is approved by a majority of the Incumbent Directors unless and until such Person thereafter becomes the beneficial owner of any additional shares of Voting
Stock of the Company representing 1% or more of the then-outstanding Voting Stock of the Company, other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Voting Stock are treated
equally; and 
 (4) if at least a majority of the Incumbent Directors determine in good faith that a Person has acquired
beneficial ownership of 30% or more of the Voting Stock of the Company inadvertently, and such Person divests as promptly as practicable but no later than the date, if any, set by the Incumbent Board a sufficient number of shares so that such Person
beneficially owns less than 30% of the Voting Stock of the Company, then no Change in Control will have occurred as a result of such Person’s acquisition; or 
 (ii) a majority of the Board ceases to be comprised of Incumbent Directors; or 
 (iii) the consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of the
assets of the Company or the acquisition of the stock or assets of another corporation, or other transaction (each, a “Business Transaction”), unless, in each case, immediately following such Business Transaction (A) the Voting Stock
of the Company outstanding immediately prior to such Business Transaction continues to represent (either by remaining outstanding or by being converted into Voting Stock of the surviving entity or any parent thereof), more than 50% of the combined
voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries), (B) no Person (other than the Company, such entity resulting from such 

  

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Business Transaction, or any employee benefit plan (or related trust) sponsored or maintained by the Company, any Subsidiary or such entity resulting from
such Business Transaction) beneficially owns, directly or indirectly, 30% or more of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Transaction, and (C) at least a majority of
the members of the Board of Directors of the entity resulting from such Business Transaction were Incumbent Directors at the time of the execution of the initial agreement or of the action of the Board providing for such Business Transaction; or

 (iv) approval by the shareholders of the Company of a complete liquidation or dissolution of the Company, except pursuant
to a Business Transaction that complies with clauses (A), (B) and (C) of Section 1(d)(iii). 
 (e)
“Code” means the Internal Revenue Code of 1986, as amended. 
 (f) “Employee Benefits” means the
perquisites, benefits and service credit for benefits as provided under any and all employee retirement income and welfare benefit policies, plans, programs or arrangements in which the Executive is entitled to participate, including without
limitation any stock option, performance share, performance unit, stock purchase, stock appreciation, savings, pension, supplemental executive retirement, or other retirement income or welfare benefit, deferred compensation, incentive compensation,
group or other life, health, medical/hospital or other insurance (whether funded by actual insurance or self-insured by the Company or a Subsidiary), disability, salary continuation, expense reimbursement and other employee benefit policies, plans,
programs or arrangements that may now exist or any equivalent successor policies, plans, programs or arrangements that may be adopted hereafter by the Company or a Subsidiary, providing perquisites, benefits and service credit for benefits at least
as great in the aggregate as are payable thereunder immediately prior to a Change in Control. 
 (g) “ERISA” means
the Employee Retirement Income Security Act of 1974, as amended. 
 (h) “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
 (i) “Good Reason” means the occurrence of one or more of the following events, without
the Executive’s written consent: 
 (i) A material diminution in the Executive’s base compensation; 
 (ii) A material diminution in the Executive’s authority, duties, or responsibilities; 
 (iii) A material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report,
including a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the Board; 
  

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 (iv) A material change in the geographic location at which the Executive must perform the
services, which adds fifty (50) miles or more to the Executive’s one-way daily commute; and 
 (v) Any other action
or inaction that constitutes a material breach by the Company of the Executive’s employment agreement, if any, or this Agreement. 
 A
termination of employment by the Executive for one of the reasons set forth in clauses (i)-(vi), above, will not constitute “Good Reason” unless the Executive provides, within 90 days of the initial existence of the condition described in
clauses (i) – (vi), above, written notice to the Company of the existence of the condition and the Company has not remedied such condition within 30 days of the receipt of such notice. 
 (j) “Incentive Pay” means an annual award, in addition to Base Pay, made or to be made in regard to services rendered in any
year or other period pursuant to the Company’s Management Incentive Plan or Cash Long-Term Incentive Plan, or any successors thereto. “Incentive Pay” does not include any stock option, stock appreciation, stock purchase, restricted
stock, long-term cash incentive or similar plan, program, arrangement or grant. 
 (k) “Incumbent Directors” means
the individuals who, as of the date hereof, are Directors of the Company (each, a “Director”) and any individual becoming a Director subsequent to the date hereof whose election, nomination for election by the Company’s shareholders,
or appointment, was approved by a vote of at least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection
to such nomination); provided, however, that an individual will not be an Incumbent Director if such individual’s election or appointment to the Board occurs as a result of an actual or threatened election contest (as described in
Rule 14a-12(c) of the Exchange Act) with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board. 
 (l) “Permanently Disabled” means that the Executive is disabled within the meaning of, and begins actually to receive disability
benefits pursuant to, the long-term disability plan in effect for, or applicable to, the Executive immediately prior to a Change in Control. 
 (m) “Release” means the General Release and Waiver of Claims in the form attached hereto as Annex C. 
 (n) “Release Effective Date” means the date on which the Release becomes fully effective and no longer subject to revocation by the Executive; provided, however, that if the maximum period in
which the Release may be revoked ends in the year following the year in which the Executive incurs a separation from service (within the meaning of Section 409A) then the Release Effective Date shall be deemed to be the later of (i) the
first business day in the year following the year in which the Executive incurs the 

  

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separation from service (within the meaning of Section 409A) or (ii) the Release Effective Date (without regard to this proviso). 
 (o) “Retirement Plans” means the defined benefit pension plans of the Company that are intended to be qualified under
Section 401(a) of the Code and the Lincoln Electric Holdings, Inc. Supplemental Executive Retirement Plan (the “SERP”) or any other plan or plans that is a successor thereto as such Retirement Plans were in effect immediately prior to
the Change in Control and if the Executive was a participant in such Retirement Plan immediately prior to the Change in Control. 
 (p) “Section 409A” mean Section 409A of the Code and any proposed, temporary or final regulation, or any other guidance, promulgated with respect to Section 409A by the U.S. Department of Treasury or the Internal Revenue
Service. 
 (q) “Severance Period” means the period of time commencing on the date of the first occurrence of a
Change in Control and continuing until the earlier of (i) the second anniversary of the occurrence of the Change in Control, or (ii) the Executive’s death. 
 (r) “Subsidiary” means an entity in which the Company directly or indirectly beneficially owns 50% or more of the outstanding
Voting Stock. 
 (s) “Term” means the period commencing as of the date hereof and expiring on the close of business
on December 31, 2010; provided, however, that (i) commencing on January 1, 2011 and each January 1 thereafter, the Term will automatically be extended for an additional year unless, not later than September 30
immediately preceding the end of the Term (for example, September 30, 2010 in the case of the Term expiring on December 31, 2010), the Company or the Executive shall have given notice that it or the Executive, as the case may be, does not
wish to have the Term extended; (ii) if a Change in Control commences during the Term, the Term will expire on the last day of the Severance Period; (iii) subject to Section 3(c), if, prior to a Change in Control, the Executive’s
position in the Company is reduced in status from the position the Executive occupies on the date hereof, the Term will automatically expire unless otherwise determined by the Board; and (iv) if, prior to a Change in Control, the Executive
reaches retirement age of sixty-five (65) or ceases for any reason to be an employee or officer of the Company and any Subsidiary, thereupon without further action the Term will automatically expire. For purposes of this Section 1(s), the
Executive will not be deemed to have ceased to be an employee of the Company and any Subsidiary by reason of the transfer of Executive’s employment between the Company and any Subsidiary, or among any Subsidiaries. 
 (t) “Termination Date” means the date on which the Executive’s employment is terminated (the effective date of which will
be the date of termination), or such other date that may be specified by the Executive if the termination is pursuant to Section 3(b). 
 (u) “Voting Stock” means securities entitled to vote generally in the election of directors of the Company. 
  

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 2. Operation of Agreement. This Agreement will be effective and binding immediately upon its
execution. 
 3. Termination Following a Change in Control. (a) In the event of the occurrence of a Change in Control, the
Executive’s employment may be terminated by the Company or a Subsidiary during the Severance Period and the Executive will be entitled to the benefits provided by Section 4 unless such termination is the result of the occurrence of one or
more of the following events: 
 (i) The Executive’s death; 
 (ii) The Executive becomes Permanently Disabled; or 
 (iii) Cause. 
 If, during the
Severance Period, the Executive’s employment is terminated by the Company or any Subsidiary other than pursuant to Section 3(a)(i), 3(a)(ii) or 3(a)(iii), the Executive will be entitled to the benefits provided by Section 4.

 (b) In the event of the occurrence of a Change in Control, the Executive may terminate employment with the Company and any
Subsidiary during the Severance Period for Good Reason and the Executive will be entitled to the benefits provided by Section 4 regardless of whether any other reason, other than Cause, for such termination exists or has occurred, including
without limitation other employment. 
 (c) Any termination by the Company of the Executive other than for Cause or a
individually negotiated arrangement, which occurs following the commencement of any discussion with a third person that results in a Change in Control within 12 months of such termination, will be deemed to be a termination of the Executive after a
Change in Control and during the Severance Period for purposes of this Agreement; provided that the Executive has executed the Confidentiality, Non-Competition and Non-Solicitation Agreement attached hereto as Annex B and the Release. 
 4. Severance Compensation and Change in Control Benefits. (a) If, following the occurrence of a Change in Control, the Company or Subsidiary
terminates the Executive’s employment during the Severance Period other than pursuant to Section 3(a)(i), 3(a)(ii) or 3(a)(iii), or if the Executive terminates the Executive’s employment pursuant to Section 3(b), provided that
the Executive has executed the Confidentiality, Non-Competition and Non-Solicitation Agreement attached hereto as Annex B and provided that no later than forty-five (45) days after the Termination Date, the Executive executes the Release, the
Company (subject to Section 12(b)) will pay to the Executive the lump sum payment amounts described in Annex A within five business days after the Release Effective Date and will continue to provide to the Executive the benefits described
in Annex A for the periods described therein. 
 (b) Without limiting the rights of the Executive at law or in equity, if
the Company fails to make any payment or provide any benefit required to be made or provided hereunder on a timely basis, the Company will pay interest on the amount or value thereof at an annualized rate of interest equal to the “prime
rate” as set forth from time to time during the relevant period in The Wall Street Journal “Money Rates” column. 

  

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Such interest will be payable at the same time as the underlying amount to which it relates. Any change in such prime rate will be effective on and as of the
date of such change. 
 (c) Unless otherwise expressly provided by the applicable plan, program or agreement, after the
occurrence of a Change in Control, and without regard to any applicable vesting requirements, the Company will pay in cash to the Executive a lump sum amount equal to the sum of any unpaid incentive compensation that has been earned, accrued,
allocated or awarded to the Executive for any performance period ending prior to the Termination Date (regardless of whether payment of such compensation is contingent on the continuing performance of services by the Executive). 
 (d) Unless otherwise expressly provided by the applicable plan, program or agreement, and without regard to any applicable vesting
requirements, within thirty (30) days after the occurrence of a Change in Control, the Company will pay in cash to the Executive a lump sum amount equal to the value of any annual bonus or long-term incentive pay (including, without limitation,
any Incentive Pay, incentive-based annual cash bonuses, and cash payments or awards under a long-term incentive plan, but not including any equity-based compensation or compensation provided under a qualified plan) earned, accrued, allocated or
awarded with respect to the Executive’s service during a performance period or periods that include the date on which the Change in Control occurred. Such amount will be equal to the product of (i) the higher of the plan target payout rate
or the actual amount earned based on performance through the date of the Change in Control, multiplied by (ii) a fraction, the denominator of which is the number of days of the Executive’s participation during the applicable performance
period to which the incentive pay relates (taking into account service rendered through the payment date), and the denominator of which is the aggregate number of days in such performance period. 
 (e) All equity incentive awards, including any restricted stock awards, held by the Executive upon the occurrence of the Change in Control
will be subject to the terms of the applicable plan, program or agreement under which such equity incentive awards were granted. 
 (f) In the event of any termination of the Executive’s employment by the Company pursuant to Section 3(a) or Section 3(c), or by the Executive pursuant to Section 3(b), the Company or a Subsidiary will pay the
Executive’s Accrued Obligations. “Accrued Obligations” shall mean, as of the Termination Date, to the extent not theretofore paid, the sum of (i) the Executive’s Base Pay earned during the Term and through the Termination
Date, (ii) the amount of any vested deferred compensation and other cash compensation accrued by the Executive as of the Termination Date that is not otherwise forfeitable, (iii) any vacation pay, expense reimbursements and other cash
entitlements incurred by the Executive as of the Termination Date, and (iv) all other benefits which have been earned and vested as of the Termination Date. For the purpose of this Section 4(f), except as provided in the applicable plan,
program or policy, no discretionary compensation shall be deemed earned or vested until it is specifically approved by the Board in accordance with the applicable plan, program or policy. Accrued Obligations shall be paid in a lump sum in cash
within thirty (30) days after the Termination Date; provided, however, that any portion of the Accrued Obligations that consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee
benefits shall be determined and paid 

  

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in accordance with the terms of the relevant plan, policy, program or agreement as applicable to the Executive. 
 (g) A termination by the Company pursuant to Section 3(a) or Section 3(c), or by the Executive pursuant to Section 3(b),
will not affect any rights that the Executive may have pursuant to any agreement, policy, plan, program or arrangement of the Company or Subsidiary providing Employee Benefits, which rights will be governed by the terms thereof, except for any
rights to severance compensation to which the Executive may be entitled upon termination of employment, which rights will be deemed to have been satisfied to the extent and only to the extent comparable benefits are provided under this Agreement.

 (h) Nothing in this Agreement will (i) be construed as creating an express or implied contract of employment, changing
the status of the Executive as an employee at will, giving the Executive any right to be retained in the employ of the Company, or giving the Executive the right to any particular level of compensation or benefits, or (ii) interfere in any way
with the right of the Company to terminate the employment of the Executive at any time with or without Cause, subject in either case to the obligations of the Company under this Agreement. 
 5. Limitation on Payments and Benefits. (a) Notwithstanding any provision of this Agreement to the contrary, in the event it
shall be determined that any payment or distribution by the Company to the Executive or for the Executive’s benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (the “Total
Payments”) would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto) by reason of being considered “contingent on a change in ownership or control” of the Company within the
meaning of Section 280G of the Code (or any successor provision thereto) or to any similar tax imposed by state or local law, or any interest or penalties are incurred by the Executive with respect to such tax (such tax or taxes, together with
any such interest and penalties, being hereafter collectively referred to as the “Excise Tax”), then the payments and benefits to be paid or provided under this Agreement shall be reduced to the minimum extent necessary so that no amount
of the Total Payments is subject to the Excise Tax. Whether requested by the Executive or the Company, the determination of whether a reduction in payments or benefits is required pursuant to the preceding sentence will be made at the expense of the
Company by the Company’s independent accountants (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting a Change in Control, the Company shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this
Section 5 will not of itself limit or otherwise affect any other rights of the Executive other than pursuant to this Agreement. In the event that any payment or benefit intended to be provided under this Agreement or otherwise is required to be
reduced pursuant to this Section 5, the Company will reduce the Executive’s payment and/or benefits, to the extent required, in the following order (but, in each case, only the portion thereof, if any, that has been determined by the
Accounting Firm to be an 

  

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“Excess Parachute Payment” within the meaning of Section 280G of the Code: (i) the services described in paragraph (4) of Annex A,
(ii) the benefit described in Paragraph (3) of Annex A; and (iii) the lump sum payment described in Paragraph (1) of Annex A. 
 (b) If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion that failure to report the Excise Tax on the Executive’s applicable
federal income tax return would not result in the imposition of a negligence or similar penalty. Any good faith determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Excise Tax payments that were not made by the Executive should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to paragraph (c), below, and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and either (i) the Executive shall repay to the Company the minimum amount required by the Internal Revenue Service to avoid any Excise Tax, or (ii) the Company shall
promptly pay any such Underpayment to or for the benefit of the Executive, in the Company’s discretion. 
 (c) The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the Executive to pay an Excise Tax. Such notification shall be given as soon as practicable but no later than fifteen
(15) business days after the Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the
expiration of the thirty (30)-day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 
 (i)
Give the Company any information reasonably requested by the Company relating to such claim, 
 (ii) Take such action in
connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

 (iii) Cooperate with the Company in good faith in order effectively to contest such claim, and 
 (iv) Permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax 

  

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or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without
limiting the foregoing provisions of this paragraph (c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner; and the Executive agrees to prosecute
such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to
pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment
of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with
respect to which any additional Excise Tax would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) If, after the receipt by the Executive of any amount advanced by the Company pursuant to paragraph (c), above, the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of said paragraph (c)) promptly pay to the Company the amount of such refund (together with any interest
paid or credited thereon, after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to said paragraph (c)), a determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and
shall not be required to be repaid; and the amount of such advance shall offset, to the extent thereof, the amount of any Excise Tax required to be paid. 
 (e) Notwithstanding the foregoing provisions of this Section 5, the determination of any amount necessary to indemnify the Executive shall be made taking into account all other payments made to the Executive
under any plans, agreements or arrangements aside from this Agreement that are intended to indemnify the Executive with respect to Excise Taxes on Excess Parachute Payments and under no circumstances will such amount be determined by inclusion of
any taxes or additional taxes or related interest or penalties payable by the Executive, if any, by reason of the application of Section 409A of the Code. 
 6. No Mitigation Obligation. The Company hereby acknowledges that it will be difficult and may be impossible for the Executive to find reasonably comparable employment following the Termination Date and that
the covenants contained in the Confidentiality, Non- 

  

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Competition and Non-Solicitation Agreement will further limit the employment opportunities for the Executive. Accordingly, the payment of the severance
compensation by the Company to the Executive in accordance with the terms of this Agreement is hereby acknowledged by the Company to be reasonable, and the Executive will not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise, nor will any profits, income, earnings or other benefits from any source whatsoever create any mitigation, offset, reduction or any other obligation on the part of the Executive hereunder or
otherwise, except as expressly provided in the penultimate sentence of Paragraph 2 of Annex A. 
 7. Funding;
Professional Fees and Expenses. (a) It is the intent of the Company that the Executive not be required to incur unnecessary fees and expenses for the retention of attorneys, accountants, actuaries, consultants, and/or other professionals
(“professionals”) in connection with the interpretation, enforcement or defense of the Executive’s rights under this Agreement because the cost and expense thereof would substantially detract from the benefits intended to be extended
to the Executive hereunder. If the Executive retains one or more professionals of the Executive’s choice in the reasonable belief that the Company has failed to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any arbitration or other action or proceeding designed to deny, or to recover from, the Executive the benefits provided
or intended to be provided to the Executive hereunder, the Company will reimburse the Executive for the reasonable fees and expenses of such professionals; provided that the Executive prevails in any respect in connection with the interpretation,
enforcement or defense of the Executive’s rights under this Agreement. Such reimbursements will be made within twenty-five business days (but in any event no later than the last day of the Executive’s tax year following the tax year in
which occurs the later of the Executive prevailing in any respect or the Executive incurring the expense) after delivery of the Executive’s written requests for reimbursement, accompanied by such evidence of fees and expenses incurred as the
Company may reasonably require. The reimbursements or in-kind benefits to be provided by the Company in one taxable year will not affect the reimbursement or in-kind benefits that the Company is obligated to pay in any other taxable year, and the
Executive’s right to reimbursement or in-kind benefits will not be subject to liquidation or exchange for another benefit. 
 (b) Without limiting the obligations of the Company pursuant to this Agreement, in the event a Change in Control occurs, the Board may determine, in its sole discretion, to secure the performance of the Company’s
obligations under this Agreement by amounts deposited or to be deposited in trust pursuant to certain trust agreements to which the Company shall be a party, providing, among other things for the payment of severance compensation to the Executive
pursuant to Section 4, and providing that the reasonable fees and related expenses of one or more professionals selected from time to time by the Executive pursuant to Section 7(a) shall be paid, or reimbursed to the Executive if paid by
the Executive, either in accordance with the terms of such trust agreements, or, if not so provided, on a regular, periodic basis upon presentation by the Executive to the trustee of a statement or statements prepared by such professional in
accordance with its customary practices. Any failure by the Company to satisfy any of its obligations under this subsection shall not limit the rights of the Executive hereunder. Upon the earlier to 

  

 - 12 - 

 
occur of (i) a Change in Control or (ii) a declaration by the Board that a Change in Control is imminent, the Company may to the extent it has not
previously done so: 
 (i) transfer to trustees of such trust agreements to be added to the principal of the trusts a sum
equal to (A) the present value on the date of the Change in Control (or on the fifth business day following the day that the Board has declared a Change in Control to be imminent) of the payments to be made to the Executive under the provision
of Section 4, less (B) the balance in the Executive’s accounts provided for in such trust agreements as of the most recently completed valuation thereof, as certified by the trustee under each trust agreement; provided,
however, that if the trustee under any trust agreement, respectively, does not so certify by the end of the fourth business day after the earlier of such Change in Control or declaration, then the balance of such respective account shall be
deemed to be zero. Any payments of severance compensation or other benefits hereunder by the trustee pursuant to any trust agreement shall, to the extent thereof, discharge the Company’s obligation to pay severance compensation and other
benefits hereunder, it being the intent of the Company that assets in such trusts be held as security for the Company’s obligation to pay severance compensation and other benefits under this Agreement; and 
 (ii) transfer to the trustees to be added to the principal of the trusts under the trust agreements such additional amount as the Board,
in its sole discretion, determines is necessary or desirable to satisfy the Company’s potential reimbursement obligations under Section 7(a). Any reimbursement of the Executive’s reasonable professional fees and related expenses by
the trustees pursuant to the trust agreements shall discharge, to the extent thereof, the Company’s obligation hereunder, it being the intent of the Company that assets, if any, in such trust be held as security for the Company’s
obligation under Section 7(a). The Executive understands and acknowledges that the corpus of the trust will be available to discharge not only the obligations of the Company to the Executive under Section 7(a), but also similar obligations
of the Company to other executives and employees under similar provisions of other agreements. 
 (c) Subject to the
foregoing, the Executive shall have the status of a general unsecured creditor of the Company and shall have no right to, or security interest in, any assets of the Company or any Subsidiary. Notwithstanding anything contained in this Agreement to
the contrary, in no event will any amount be transferred to a trust described in Section 7(b) during a “restricted period” within the meaning of Section 409A(b)(3)(A) of the Code. 
 8. Employment Rights. Nothing expressed or implied in this Agreement will create any right or duty on the part of the Company or the Executive to
have the Executive remain in the employment of the Company or any Subsidiary prior to or following any Change in Control. 
 9.
Withholding of Taxes. The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling. 
  

 - 13 - 

 10. Successors and Binding Agreement. (a) The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance reasonably satisfactory to the Executive, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Company and any
successor to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such
successor will thereafter be deemed the “Company” for the purposes of this Agreement), but will not otherwise be assignable, transferable or delegable by the Company. 
 (b) This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees and legatees. 
 (c) This Agreement is personal in nature and neither of the
parties hereto will, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 10(a) and 10(b). Without limiting the generality or effect of the
foregoing, the Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest, or otherwise, other than by a transfer by the Executive’s will or by the
laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 10(c), the Company will have no liability to pay any amount so attempted to be assigned, transferred or delegated. 

11. Notices. For all purposes of this Agreement, all communications, including without limitation, notices, consents, requests or approvals,
required or permitted to be given hereunder will be in writing and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five business days after
having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight courier service such as FedEx or UPS, addressed to the
Company (to the attention of the Secretary of the Company) at its principal executive office and to the Executive at the Executive’s principal residence, or to such other address as any party may have furnished to the other in writing and in
accordance herewith, except that notices of changes of address will be effective only upon receipt. 
 12. Compliance with
Section 409A of the Code. 
 (a) To the extent applicable, it is intended that this Agreement comply with the
provisions of Section 409A of the Code. This Agreement will be administered in a manner consistent with this intent. 
 (b) Notwithstanding any provisions of Section 4 and Annex A to the contrary, if the Executive is a “specified employee” (within the meaning of Section 409A and determined pursuant to policies adopted by the Company) on
his Termination Date and if any portion of the payments or benefits to be received by the Executive upon separation 

  

 - 14 - 

 
from service (within the meaning of Section 409A) would be considered deferred compensation under Section 409A, amounts of deferred compensation
that would otherwise be payable pursuant to this Agreement during the six-month period immediately following the Termination Date (the “Delayed Payments”) and benefits that constitute deferred compensation that would otherwise be provided
pursuant to this Agreement (except for the benefits described in Paragraph 4 of Annex A) (the “Delayed Benefits”) during the six-month period immediately following the Executive’s Termination Date (such period, the “Delay
Period”) will instead be paid or made available on the earlier of (i) the first day of the seventh month following the date of the Executive’s Termination Date and (ii) the Executive’s death (the applicable date, the
“Permissible Payment Date”). The Company will pay interest on the Delayed Payments and the value of the Delayed Benefits at the rate specified in Section 4(b). 
 (c) Each payment to be made to the Executive under the provisions of Section 4 or Annex A will be considered to be a separate payment
and not one of a series of payments for purposes of Section 409A. Further, coverages provided during one taxable year will not affect the degree to which coverages will be provided in any other taxable year. 
 (d) A termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement and Annex A providing
for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning of Section 409A). 
 (e) If any provision of the Agreement needs to be revised to satisfy the requirements of Section 409A, then such provision shall be
modified or restricted to the minimum extent and in the manner necessary to be in compliance with such requirements of the Code any such modification will maintain the same economic results as were intended under the Agreement. The Company cannot
guarantee that the payments and benefits that may be paid or provided pursuant to this Agreement will satisfy all applicable provisions of Section 409A. Payments made to the Executive under the Agreement in error shall be returned to the
Company and do not create a legally binding right to such payments. 
 13. Governing Law. The validity, interpretation, construction
and performance of this Agreement will be governed by and construed in accordance with the substantive laws of the State of Ohio and federal law, without giving effect to the principles of conflict of laws of such State, except as expressly provided
herein. In the event the Company exercises its discretion under the Confidentiality, Non-Competition and Non-Solicitation Agreement to bring an action to enforce the covenants contained in the Confidentiality, Non-Competition and Non-Solicitation
Agreement in a court of competent jurisdiction where the Executive has breached or threatened to breach such covenants, and in no other event, the parties agree that the court may apply the law of the jurisdiction in which such action is pending in
order to enforce the covenants to the fullest extent permissible. 
 14. Validity. If any provision of this Agreement or the
application of any provision hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, the 

  

 - 15 - 

 
remainder of this Agreement and the application of such provision to any other person or circumstance will not be affected, and the provision so held to be
invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent) necessary to make it enforceable, valid or legal. If any covenant in the Confidentiality, Non-Competition and Non-Solicitation Agreement should be
deemed invalid, illegal or unenforceable because its time, geographical area, or restricted activity, is considered excessive, such covenant will be modified to the minimum extent necessary to render the modified covenant valid, legal and
enforceable. 
 15. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be
performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, expressed or implied with respect to the
subject matter hereof have been made by either party that are not set forth expressly in this Agreement. The headings used in this Agreement are intended for convenience or reference only and will not in any manner amplify, limit, modify or
otherwise be used in the construction or interpretation of any provision of this Agreement. References to Sections are to Sections of this Agreement. References to Paragraphs are to Paragraphs of an Annex to this Agreement. Any reference in this
Agreement to a provision of a statute, rule or regulation will also include any successor provision thereto. 
 16. Dispute
Resolution. (a) Any dispute between the parties under this Agreement will be resolved (except as provided below) through informal arbitration by an arbitrator selected under the rules of the American Arbitration Association for arbitration
of employment disputes (located in the city in which the Company’s principal executive offices in the United States are based) and the arbitration will be conducted in that location under the rules of said Association. Each party will be
entitled to present evidence and argument to the arbitrator. The arbitrator will have the right only to interpret and apply the provisions of this Agreement and may not change any of its provisions, except as expressly provided in Section 14
and only in the event the Company has not brought an action in a court of competent jurisdiction to enforce the covenants in the Confidentiality, Non-Competition and Non-Solicitation Agreement. The arbitrator will permit reasonable pre-hearing
discovery of facts, to the extent necessary to establish a claim or a defense to a claim, subject to supervision by the arbitrator. The determination of the arbitrator will be conclusive and binding upon the parties and judgment upon the same may be
entered in any court having jurisdiction thereof. The arbitrator will give written notice to the parties stating the arbitrator’s determination, and will furnish to each party a signed copy of such determination. Any arbitration or action
pursuant to this Section 16 will be governed by and construed in accordance with the substantive laws of the State of Ohio and, where applicable, federal law, without giving effect to the principles of conflict of laws of such State.

 (b) Notwithstanding Section 16(a), the Company will not be required to seek or participate in arbitration regarding
any actual or threatened breach of the Executive’s covenants in the Confidentiality, Non-Competition and Non-Solicitation Agreement, but may pursue its remedies, including injunctive relief, for such breach in a court of competent jurisdiction
in the city in which the Company’s principal executive offices in the United States are based, or in the sole discretion of the Company, in a court 

  

 - 16 - 

 
of competent jurisdiction where the Executive has committed or is threatening to commit a breach of the Executive’s covenants, and no arbitrator may
make any ruling inconsistent with the findings or rulings of such court. 
 17. Survival. Notwithstanding any provision of this
Agreement to the contrary, the parties’ respective rights and obligations under Sections 3(c), 4, 5, 7, 8, 9, 10(b), 16 and 17 will survive any termination or expiration of this Agreement or the termination of the Executive’s
employment following a Change in Control for any reason whatsoever. 
 18. Beneficiaries. The Executive will be entitled to select
(and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following the Executive’s death, and may change such election, in either case by giving the
Company written notice thereof in accordance with Section 11. In the event of the Executive’s death or a judicial determination of the Executive’s incompetence, reference in this Agreement to the “Executive” will be deemed,
where appropriate, to the Executive’s beneficiary, estate or other legal representative. 
 19. Counterparts. This Agreement may
be executed in one or more counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same agreement. 
 20. Insurance; Indemnification. During the Severance Period and through at least the fifth anniversary of the Executive’s Termination Date, the Company agrees to maintain the Executive as an insured party
on all directors’ and officers’ insurance maintained by the Company for the benefit of its directors and officers on at least the same basis as all other covered individuals and to indemnify the Executive to the maximum extent permitted
under the applicable law. During the Severance Period and while potential liability exists after the Executive’s Termination Date, the Company shall cover the Executive under directors’ and officers’ liability insurance in the same
amount and to the same extent as the Company covers its other officers and directors. 
 21. Prior Agreement. This Agreement amends
and restates the Agreement, dated as of             ,             (the “Prior Agreement”), between the Company and the
Executive, which Prior Agreement will, without further action, be superseded as of the date first above written. 
 IN WITNESS WHEREOF, the
parties have caused this Agreement to be duly executed and delivered as of the date first above written. 
  

							
	LINCOLN ELECTRIC HOLDINGS, INC.	 		 	
			
		 		 	  

		 		 		 	[Executive]
	By:	 	  
	 		 	
		 	[Name and Title]	 		 	

  

 - 17 - 

 Annex A 
 Severance Compensation 
 1. A lump sum payment in an amount equal to [three/two] times
the sum of (A) Base Pay (at the highest rate in effect for any period within three years prior to the Termination Date), plus (B) Incentive Pay under the Company’s Management Incentive Plan only (in an amount equal to the greater of
the current target bonus or the average annual Management Incentive Plan amounts paid to the Executive over the past two years). 
 2. Health
and Life Benefits. For a period of 36 months following the Termination Date (the “Continuation Period”), the Company will arrange to provide the Executive with health and life insurance benefits (as such health and life insurance benefits
are described within the definition of Employee Benefits) (the “Health and Life Benefits”) substantially similar to those that the Executive was receiving or entitled to receive immediately prior to the Termination Date (or, if greater,
immediately prior to the reduction, termination, or denial described in Section 1(i)(ii)), except that the level of any such Health and Life Benefits to be provided to the Executive may be reduced in the event of a corresponding reduction
generally applicable to all recipients of or participants in such Health and Life Benefits. At the expiration of the Continuation Period, upon the Executive’s request, the Company will arrange to provide Health and Life Benefits at group rates
as described in the preceding sentence. If and to the extent that any benefit described in this Paragraph 2 is not or cannot be provided under any policy, plan, program or arrangement of the Company or any Subsidiary, as the case may be, then the
Company will itself provide for such Health and Life Benefits. Notwithstanding the foregoing, or any other provision of the Agreement, for purposes of determining the period of continuation coverage to which the Executive or any of the
Executive’s dependents is entitled pursuant to Section 4980B of the Code under the Company’s medical, dental and other group health plans, or successor plans, the Executive’s “qualifying event” will be the termination
of the Continuation Period and the Executive will be considered to have remained actively employed on a full-time basis through that date. Further, for purposes of the immediately preceding sentences and for purposes of calculating service or age to
determine the Executive’s eligibility for Health and Life Benefits, including benefits under any retiree medical benefits or life insurance plan or policy, the Executive will be considered to have remained actively employed on a full-time basis
through the termination of the Continuation Period. Health and Life Benefits otherwise receivable by the Executive pursuant to this Paragraph 2 will be reduced to the extent comparable benefits are actually received by the Executive from another
employer or under title XVIII of the Social Security Act (Medicare) following the Executive’s Termination Date, and any such benefits actually received by the Executive shall be reported by the Executive to the Company. Notwithstanding anything
in the Agreement or this Paragraph 2 to the contrary, the full cost of Health and Life Benefits provided pursuant to this Paragraph 2 will be paid by the Executive. 
 3. The Executive’s accrued benefit under the Company’s SERP shall be fully vested and non-forfeitable, and shall be payable to the Executive according to its Terms. 
 4. The Company will provide the Executive with third-party outplacement services suitable to the Executive’s position for the period following the
Executive’s Termination Date 

  

 C-1 

 
and ending on December 31 of the second calendar year following such Termination Date or, if earlier, until the first acceptance by the Executive of an
offer of employment, provided, however, that in no case will the Company be required to pay in excess of [$100,000] [$50,000] over such period in providing outplacement services and that all reimbursements hereunder will be paid
to the Executive within thirty (30) calendar days following the date on which the Executive submits the invoice but no later than December 31 of the third calendar year following the year of the Executive’s Termination Date.

 5. The payments and benefits under this Annex A are consideration in part for the Executive’s commitments under the Confidentiality,
Non-Competition and Non-Solicitation Agreement attached hereto as Annex B. 
  

 C-2Change of Control Agreement, dated as of December 14, 2007

 Exhibit 10.2 
 Change in Control Agreement 
 THIS CHANGE IN CONTROL AGREEMENT is made as of
December 14th by and between Office Depot, Inc., a Delaware corporation (the “Company”), and Steven M. Schmidt (the “Executive”). 
 The Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication of the
Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below) of the Company. The Board believes it is imperative to diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full attention and dedication to the Company currently and in the event of any threatened or pending Change of Control, and to provide
the Executive with compensation and benefits arrangements upon a Change of Control which ensure that the compensation and benefits expectations of the Executive will be satisfied and which are competitive with those of other corporations. Therefore,
in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement. 
 NOW, THEREFORE, IT IS HEREBY
AGREED AS FOLLOWS: 
 1.         Certain Definitions. (a) The “Effective Date”
shall mean the first date during the Change of Control Period (as defined in Section 1(b)) on which a Change of Control (as defined in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the Executive’s employment with the Company is terminated prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment (i) was at the
request of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement the “Effective
Date” shall mean the date immediately prior to the date of such termination of employment. 
 (b)         The “Change of Control Period” shall mean the period commencing on the date hereof and ending on the third anniversary of the date hereof; provided, however, that commencing on
the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal Date”), unless previously terminated, the Change of
Control Period shall be automatically extended so as to terminate three years from such Renewal Date, unless at least 60 days prior to the Renewal Date the Company shall give notice to the Executive that the Change of Control Period shall not be so
extended. 
  

 - 1 - 

 2.         Change of Control. For the purpose of this
Agreement, a “Change of Control” shall mean: 
 (a)         The acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”) (such 20% ownership shall be referred to as the “Threshold Amount”); provided, however, that for
purposes of this subsection (a), if the Threshold Amount is reached by reason of the following events, a Change in Control will not be triggered: (i) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company of the Company’s outstanding common stock, or (ii) any acquisition by any person pursuant to a transaction which complies with each and all of clauses (i), (ii) and (iii) of
subsection (c) of this Section 2. For the sake of clarity, if the Threshold Amount is reached by reason of the Company repurchasing its own outstanding common stock, a Change in Control will be triggered; or 
 (b)         Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

 (c)         Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 80% of, respectively, the
then-outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such Business

  

 - 2 - 

 
Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination, or the combined voting power of the then-outstanding voting securities of such corporation
except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (d)         Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 3.         Employment Period. The Company hereby agrees to continue the Executive in its employ, and the Executive hereby agrees to remain in the employ of the Company
subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the first anniversary of such date (the “Employment Period”). Such period may be extended in writing by the mutual
agreement of the Company and Executive at any time prior to such first anniversary. 
 4.        
Terms of Employment. (a) Position and Duties. (i) During the Employment Period, (A) the Executive’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities
shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned at any time during the 120-day period immediately preceding the Effective Date and (B) the Executive’s services shall
be performed at the location where the Executive was employed immediately preceding the Effective Date or any office or location less than 35 miles from such location. 
 (ii)         During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable
attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to
perform faithfully and efficiently such responsibilities. During the Employment Period it shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver
lectures, fulfill speaking engagements or teach at educational institutions, and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an
employee of the Company in accordance with this Agreement. It is expressly understood and agreed that to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities
(or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the Company. 
  

 - 3 - 

 (b)         Compensation. (i) Base Salary.
During the Employment Period, the Executive shall receive an annual base salary, including any applicable car allowance (“Annual Base Salary”), which shall be paid in installments in accordance with the Company’s standard payroll
practices for salary, at least equal to twelve times the highest monthly base salary and car allowance paid or payable, including any base salary which has been earned but deferred, to the Executive by the Company and its affiliated companies in
respect of the twelve-month period immediately preceding the month in which the Effective Date occurs. During the Employment Period, the Annual Base Salary shall be reviewed no more than 12 months after the last salary increase awarded to the
Executive prior to the Effective Date and thereafter at least annually. Any increase in Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. Annual Base Salary shall not be reduced after
any such increase and the term Annual Base Salary as utilized in this Agreement shall refer to Annual Base Salary as so increased. As used in this Agreement, the term “affiliated companies” shall include any company controlled by,
controlling or under common control with the Company. 
 (ii)         Annual Bonus. In
addition to Annual Base Salary, the Executive shall be awarded, for each fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the Executive’s highest bonus under the
Company’s annual bonus plans, or any comparable bonus under any predecessor or successor plan or plans, for the last three full fiscal years prior to the Effective Date (annualized in the event that the Executive was not employed by the Company
for the whole of such fiscal year) (the “Recent Annual Bonus”). Notwithstanding the previous sentence, the Executive shall be awarded the Annual Bonus only if the Executive is employed by the Company at the end of the applicable fiscal
year ending during the Employment Period. Each such Annual Bonus shall be paid in the fiscal year next following the fiscal year for which the Annual Bonus is awarded, no later than the fifteenth day of the third month of such fiscal year, unless
the Executive shall elect to defer the receipt of such Annual Bonus pursuant to the terms of any deferred compensation arrangement maintained by the Company that permits such deferral. 
 (iii)         Incentive, Savings and Retirement Plans. During the Employment Period, the Executive shall
be entitled to participate in all incentive, savings and retirement plans, practices, policies and programs applicable generally to other peer Executives of the Company and its affiliated companies, but in no event shall such plans, practices,
policies and programs provide the Executive with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and its affiliated companies for the Executive under such plans, practices, policies and programs as in effect at any
time during the 120-day period immediately preceding the Effective Date or if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and its affiliated companies.

  

 - 4 - 

 (iv)         Welfare Benefit Plans. During the Employment
Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other peer executives
of the Company and its affiliated companies, but in no event shall such plans, practices, policies and programs provide the Executive with benefits which are less favorable, in the aggregate, than the most favorable of such plans, practices,
policies and programs in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer
executives of the Company and its affiliated companies. 
 (v)         Expenses. During the
Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the Company and its affiliated
companies in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the
Company and its affiliated companies. To the extent that any such reimbursement does not qualify for exclusion from Federal income taxation, the Company will make the reimbursement only if the Executive incurs the corresponding expense during the
Employment Period and submits the request for reimbursement no later than two months prior to the last day of the calendar year following the calendar year in which the expense was incurred so that the Company can make the reimbursement on or before
the last day of the calendar year following the calendar year in which the expense was incurred; the amount of expenses eligible for such reimbursement during a calendar year will not affect the amount of expenses eligible for such reimbursement in
another calendar year, and the right to such reimbursement is not subject to liquidation or exchange for another benefit from the Company. 
 (vi)         Fringe Benefits. During the Employment Period, the Executive shall be entitled to fringe benefits, including, without limitation, tax and financial planning services, and, if
applicable, use of an automobile and payment of related expenses, in accordance with the most favorable plans, practices, programs and policies of the Company and its affiliated companies in effect for the Executive at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies. 
  

 - 5 - 

 (vii)         Office and Support Staff. During the
Employment Period, the Executive shall be entitled to an office or offices of a size and with furnishings and other appointments, and to exclusive personal secretarial and other assistance, at least equal to the most favorable of the foregoing
provided to the Executive by the Company and its affiliated companies at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as provided generally at any time thereafter with respect to
other peer executives of the Company and its affiliated companies. 
 (viii)        
Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and its affiliated companies as in effect for the Executive
at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.

 5.         Termination of Employment. (a) Death or Disability. The
Executive’s employment shall terminate automatically upon the Executive’s death or Disability during the Employment Period. For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the
Executive’s duties with the Company on a full-time basis for 180 consecutive days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers
and acceptable to the Executive or the Executive’s legal representative. 
 (b)        
Cause. The Company may terminate the Executive’s employment during the Employment Period for Cause. For purposes of this Agreement, “Cause” shall mean: 
 (i)         the continued failure of the Executive to perform substantially the Executive’s
duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board or the Chief
Executive Officer of the Company which specifically identifies the manner in which the Board or Chief Executive Officer believes that the Executive has not substantially performed the Executive’s duties, or 
 (ii)         the engaging by the Executive in illegal conduct or gross misconduct in violation
of the Company’s Code of Ethical Behavior. 
 Any act, or failure to act, based upon authority given pursuant to a resolution duty adopted by the Board
or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in
the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the Company’s Board of
Directors, finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct described in subsection (i) or (ii) above, and specifying the particulars thereof in detail. 
  

 - 6 - 

 (c)         Good Reason. The Executive’s employment
may be terminated by the Executive for Good Reason within the 1 year period following the date of the initial existence of the event or circumstances constituting Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

 (i)           a material diminution in the Executive’s authority,
duties or responsibilities with the Company; 
 (ii)          a material
failure by the Company to comply with any of the provisions of Section 4(b) of this Agreement; 
 (iii)         a material change in the office or location at which the Company requires the Executive to based during the Employment Period or the Company’s requiring the Executive to travel on
Company business to a substantially greater extent than required immediately prior to the Effective Date; 
 (iv)         any purported termination by the Company of the Executive’s employment other than as expressly permitted by this Agreement; or 
 (v)          any material failure by the Company to comply with and satisfy
Section 12(c) of this Agreement; 
 provided, however, that the Executive will have Good Reason to terminate employment only if (i) the Executive
provides notice to the Chief Executive Officer of the Company of the existence of the event or circumstances constituting Good Reason specified in any of the preceding clauses within 90 days of the initial existence of such event or circumstances,
and (ii) the Company does not remedy such event or circumstances within 30 days following receipt of such notice. 
 (d)         Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 13(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon,
(ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination
(as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice). The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing 

  

 - 7 - 

 
of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. 
 (e)         Date of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause or by the Executive for Good Reason,
the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause, the Date of Termination shall be the date on
which the Company notifies the Executive of such termination and (iii) if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the date on which
the definition of “Disability” is first satisfied with respect to the Executive. 
 6.         Obligations of the Company upon Termination. (a) Good Reason; By Company Other Than for Cause, Death or Disability. If, during the Employment Period, the Company shall
terminate the Executive’s employment other than for Cause, death or Disability or the Executive shall terminate employment for Good Reason within the 1 year period following the date of the initial existence of the event or circumstances
constituting Good Reason: 
 (i)         the Company shall pay to the Executive the
following amounts: 
   A.         the sum of (1) the
Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid which shall be paid in accordance with the Company’s standard payroll practices for salary, (2) in lieu of any bonus that might
otherwise have been payable to the Executive under the Company’s annual bonus plan(s) for the corresponding bonus period(s) that contain the Date of Termination, the product of (x) the higher of (I) the Recent Annual Bonus and (II)
the Annual Bonus paid or payable, including any bonus or portion thereof which has been earned but deferred (and annualized for any fiscal year consisting of less than twelve full months or during which the Executive was employed for less than
twelve full months), for the most recently completed fiscal year during the Employment Period, if any (such higher amount being referred to as the “Highest Annual Bonus”) and (y) a fraction, the numerator of which is the number of
days in the current fiscal year through the Date of Termination, and the denominator of which is 365 which shall be paid in a lump sum in cash within 30 days following the Date of Termination and (3) any accrued vacation pay due under the terms
of the Company’s vacation policy to the extent not theretofore paid which shall be paid at the time specified in the Company’s vacation policy (the sum of the amounts described in clauses (1), (2), and (3) shall be hereinafter
referred to as the “Accrued Obligations”); and 
  

 - 8 - 

   B.         the amount equal to the
product of (1) two and (2) the sum of (x) the Executive’s Annual Base Salary and (y) the Highest Annual Bonus which shall be paid in a lump sum in cash within 30 days following the Date of Termination; 
 (ii)         the Company shall pay to the Executive a lump sum in cash within 30 days following
the Date of Termination equal to the product of (I) the Company’s monthly COBRA premium in effect on the Date of Termination under the Company’s group health plan for the type of coverage in effect under such plan (e.g., family
coverage) for the Executive on the Date of Termination, and (II) 18; 
 (iii)
        within 30 days following the Date of Termination, the Company shall purchase a 24 month executive outplacement services package for the Executive from the provider generally used by the Company for
such purposes on the Date of Termination; and 
 (iv)         to the extent not
theretofore paid or provided, the Company shall pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy, practice, contract or
agreement of the Company and its affiliated companies in accordance with the terms of the applicable plan, program, policy, practice, contract or agreement, except as expressly provided otherwise by this Agreement (such other amounts and benefits
shall be hereinafter referred to as the “Other Benefits”). 
 (b)         Death. If
the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other
than for payment of the amounts set forth in Section 6(a)(i) and the provision of Other Benefits. 
 (c)         Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, this Agreement shall terminate without
further obligations to the Executive, other than for the payment of the amounts set forth in Section 6(a)(i) and the provision of Other Benefits. 
 (d)         Cause; Other than for Good Reason. If the Executive’s employment shall be terminated for Cause during the Employment Period, this Agreement shall
terminate without further obligations to the Executive other than the payment of the amounts set forth in Section 6(a)(i)(A)(1) and (3) and the provision of Other Benefits. If the Executive voluntarily terminates employment during the
Employment Period, excluding a termination for Good Reason, this Agreement shall terminate without further obligations to the Executive, other than for the payment of the amounts set forth in Section 6(a)(i)(A)(1) and (3) and the provision
of Other Benefits. 
  

 - 9 - 

 7.         Nonexclusivity of Rights. Nothing in this
Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies and for which the Executive may qualify, nor, subject to
Section 13(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or any of its affiliated companies. Amounts which are vested benefits or which the Executive
is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as expressly provided otherwise by this Agreement. 
 8.         Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay as incurred, to the fullest
extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability
under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at
the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that any such reimbursement does not qualify for exclusion from Federal income taxation,
the Company will make the reimbursement only if the Executive incurs the corresponding expense during the term of this Agreement or the period of two years thereafter and submits the request for reimbursement no later than two months prior to the
last day of the calendar year following the calendar year in which the expense was incurred so that the Company can make the reimbursement on or before the last day of the calendar year following the calendar year in which the expense was incurred;
the amount of expenses eligible for such reimbursement during a calendar year will not affect the amount of expenses eligible for such reimbursement in another calendar year, and the right to such reimbursement is not subject to liquidation or
exchange for another benefit from the Company. However, in the event the Executive is a “specified employee” on the Executive’s Date of Termination (as 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 the Executive’s “separation from service”), and to the extent that any portion of such reimbursements relate to expenses that
were triggered by the Executive’s “separation from service,” 

  

 - 10 - 

 
such reimbursements shall be paid no earlier than the date that is six months after the date of such “separation from service” (if the Executive
dies after the Executive’s Termination Date but before such reimbursements have been made, such reimbursements will be paid to the Executive’s estate in a lump sum without regard to any six-month delay that otherwise applies to specified
employees). For purposes of this Agreement, “specified employee” shall be defined as provided in Section 409A(a)(2)(B)(i) of the Code, “specified employee identification date” shall be defined as provided in Treasury
Regulation §1.409A-1(i), and “separation from service” shall be defined as provided in Section 409A(a)(2)(A)(i) of the Code. 
 9.         Certain Additional Payments by the Company. (a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined
that any payment or distribution by the Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such
that after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax
imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 9(a), if it shall be determined that the
Executive is entitled to a Gross-Up Payment, but that the Executive, after taking into account the Payments and the Gross-Up Payment, would not receive a net after-tax benefit of at least $50,000 (taking into account both income taxes and any Excise
Tax) as compared to the net after-tax proceeds to the Executive resulting from an elimination of the Gross-Up Payment and a reduction of the Payments, in the aggregate, to an amount (the “Reduced Amount”) such that the receipt of Payments
would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to the Executive and the Payments, in the aggregate, shall be reduced to the Reduced Amount. 
 (b)         Subject to the provisions of Section 9(c), all determinations required to be made under this
Section 9, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by Deloitte & Touche or such other
certified public accounting firm as may be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from
the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another nationally 

  

 - 11 - 

 
recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder).
All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by the Company to the Executive within five days of the receipt of the Accounting
Firm’s determination. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by
the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the
Company exhausts its remedies pursuant to Section 9(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment
shall be promptly paid by the Company to or for the benefit of the Executive. 
 (c)         The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later
than ten business days after the Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing
prior to the expiration of such period that it desires to contest such claim, the Executive shall: 
 (i)         give the Company any information reasonably requested by the Company relating to such claim; 
 (ii)         take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney reasonably selected by the Company; 
 (iii)         cooperate with the Company in good faith in order effectively to contest such claim; and 
 (iv)         permit the Company to participate in any proceedings relating to such claim; 
  

 - 12 - 

 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 9(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo
any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or to contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any
extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority. 
 (d)         If, after the receipt by the Executive of an
amount advanced by the Company pursuant to Section 9(c), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 9(c), a
determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
 (e)         Notwithstanding the foregoing, (i) each Gross-Up Payment required to be made by the Company to
the Executive hereunder and each repayment of a Gross-Up Payment required to be made by the Executive to the Company hereunder shall be paid no later than the end of the calendar year next following the calendar year in which Executive remits the
corresponding taxes to the Internal Revenue Service, (ii) each reimbursement of expenses related to a tax contest addressing the existence or amount of a tax liability required to be made by the Company to the Executive hereunder and each
repayment of such a reimbursement required to be made by the Executive to the Company hereunder shall be paid no later than the end of the calendar 

  

 - 13 - 

 
year next following the calendar year in which the Executive remits to the Internal Revenue Service the taxes that are the subject of the contest or, where
as a result of the contest no taxes are due or are remitted but other reimbursable costs and/or expenses have been incurred, the end of the calendar year following the calendar year in which the contest is completed or there is a final and
nonappealable settlement or other resolution of the contest; and (iii) in the event the Executive is a “specified employee” on the Executive’s Date of Termination (as 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 the Executive’s “separation from service”), and to the extent that any portion of such Gross-Up Payments
relates to compensation that was triggered by the Executive’s “separation from service” and/or any portion of such reimbursements related to expenses that were triggered by the Executive’s “separation from service,”
such portion of the Gross-Up Payments and/or such portion of the reimbursements, as applicable, shall be paid no earlier than the date that is six months after the date of such “separation from service” (if the Executive dies after the
Executive’s Date of Termination but before any such payments are made, the payments will be paid to the Executive’s estate without regard to any six-month delay that otherwise applies to specified employees). 
 10.         Code Section 409A. It is intended, and this Agreement will be so construed, that any
amounts payable under this Agreement and the Company’s and the Executive’s exercise of authority or discretion hereunder shall either be exempt from or comply with the provisions of Section 409A of the Code and the treasury
regulations relating thereto so as not to subject the Executive to the payment of interest and/or any tax penalty that may be imposed under Section 409A of the Code. Executive acknowledges and agrees that the Company has made no representation
to Executive as to the tax treatment of the compensation and benefits provided pursuant to this Agreement and that Executive is solely responsible for all taxes due with respect to such compensation and benefits. 
 11.         Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the Executive’s employment
by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive’s
employment with the Company, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the
Company and those designated by it. In no event shall an asserted violation of the provisions of this Section 11 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 
  

 - 14 - 

 12.         Successors. (a) This Agreement is
personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by the Executive’s legal representatives. 
 (b)         This Agreement shall inure to the
benefit of and be binding upon the Company and its successors and assigns. 
 (c)         The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
 13.         Miscellaneous. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without reference to principles of conflict of laws.
The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors
and legal representatives. 
 (b)         All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to the Executive: 
 Steven M. Schmidt 
 c/o Office Depot, Inc. 
 2200 Old Germantown
Road 
 Delray Beach, Florida 33445 
 If to the Company: 
 Office Depot, Inc. 
 2200 Old Germantown Road 
 Delray Beach, Florida 33445 
 Attention: Chief Executive Officer 
 or to such other
address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 
  

 - 15 - 

 (c)         The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
 (d)         The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation. 
 (e)         The Executive’s or the Company’s failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitations the right of the Executive to terminate employment for Good Reason pursuant to
Section 5(c)(i)-(v) of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
 (f)         The Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is “at will” and, subject to Section 1(a) hereof, prior to the Effective Date, the Executive’s employment and/or this Agreement may be terminated by either the Executive or the Company
at any time prior to the Effective Date, in which case the Executive shall have no further rights under this Agreement. From and after the Effective Date this Agreement shall supersede any other agreement between the parties with respect to the
subject matter hereof. 
 *         *        
*         *         * 
  

 - 16 - 

 IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written. 
  
  

			
	
	
	/s/ Steven M. Schmidt
	Executive: Steven M. Schmidt
	
	Date: December 14, 2007
	
	
	
	
	
	
	OFFICE DEPOT, INC.
		
	By:	 	/s/ Daisy Vanderlinde
	 Daisy Vanderlinde
 Its: Executive Vice
President – Human Resources

  

 - 17 -

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