Document:

2012-2014 Executive LTIP

 Exhibit 10.1 
 XERIUM TECHNOLOGIES, INC. 
 EXECUTIVE LONG TERM INCENTIVE PLAN

 This Xerium Technologies, Inc. Executive Long Term Incentive Plan (the “Executive LTIP”) contains rules
supplemental to those set forth in the Xerium Technologies, Inc. 2010 Equity Incentive Plan (the “EIP”). The Executive LTIP provides for the grant of incentive award opportunities (each, an “Award”) under and subject to the terms
of the EIP, which is incorporated herein by reference. In the event of any inconsistency between the Executive LTIP and applicable provisions of the EIP, the EIP shall control. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the EIP. 
 1. Administration; Eligibility. The Executive LTIP shall be administered by the Committee
as described in the EIP. The Committee may in its discretion consult with outside advisors or internal Company resources for purposes of making any determinations in connection with its administration of the Program. Eligibility to participate in
the Executive LTIP shall be limited to executive officers who are selected in accordance with the terms of the EIP to participate in the Executive LTIP from among those individuals who are eligible to participate in the EIP (each, a
“Participant”). Participation in any Award shall not entitle a Participant to share in any future Awards or in any other future awards of the Company or its subsidiaries. 

2. Determination of Number of Shares. The number of shares of Common Stock covered by an Award (the “LTIP Shares”) shall
be as determined by the Committee and communicated to each Participant. 
 3. Determination of Time-Based Versus
Performance-Based LTIP Shares. Participants will receive fifty percent (50%) of their LTIP Shares in the form of time-based Restricted Stock Units as described in Section 4 below (“Time-Based RSUs”) and have the remainder of
their LTIP Shares (fifty percent (50%)) credited to them as Stock Units on the books of the Company on a one-for-one basis to be earned and vested subject to satisfaction of certain performance conditions (and to the extent the Award is
intended to qualify for the performance-based compensation exception under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), to the further limitations of the EIP with respect thereto) as described in
Section 5 below and Exhibit A (“Performance Units”). 
 4. Terms of Time-Based
RSUs. Any LTIP Shares that are to be conveyed in the form of Time-Based RSUs will be granted as of May 11, 2012, substantially in the form of the Restricted Stock Units Agreement attached as Exhibit B hereto (the “Time-Based RSU
Agreement”), which provides that the RSUs shall vest in three equal annual installments on
March 31st of 2013, 2014 and 2015 and settle in
shares of Common Stock as soon as administratively possible after they vest. 
 5. Determination of Number of Performance
Shares. The determination of the number of shares of Common Stock to be delivered at the end of the three-year performance period with respect to the Performance Units (the “Performance Shares”) shall be made in accordance with the
provisions of Exhibit A applicable for such three-year performance period. Performance Shares will be delivered following the filing of the Form 10-K audited results for the last fiscal year of the three-year performance period but in no case
later than March 31 of the calendar year following the close of the three-year performance period. 
 6. Tax
Withholding. The minimum tax withholding amount with respect to any payments being made in RSUs shall be satisfied by means of share withholding at the time the RSUs are settled as provided in the Restricted Stock Units Agreement. The minimum
tax withholding amount with respect to any payments being made in Performance Shares shall be satisfied by means of share withholding at the time Performance Shares are delivered. 

7. Intent to be Exempt from Section 162(m). Awards for the three-year performance period beginning in 2012 are not intended
to qualify for the performance-based compensation exception under Section 162(m) of the Code. In the case of any Award for a subsequent three-year performance period that is intended to so qualify, (i) the Exhibit A performance
goals with respect to such Award shall be established by the Committee not later than ninety (90) days after the commencement of the three-year performance period (or by such earlier date as is required by Section 1.162-27(e)(2)(i) of the
Treasury Regulations), (ii) the Exhibit A performance goals, as so established, shall be consistent with the eligible performance measures, if any, approved by the shareholders of the Company for use in respect of performance awards
under the EIP and shall be objectively determinable in compliance with Section 1.162-27(e)(2) of the Treasury Regulations, and (iii) no portion of the Award shall be paid unless and until

 
the Committee has certified (as required by Section 1.162-27(e)(5) of the Treasury Regulations) that the performance goals have been achieved (or, if the performance goals are expressed in
terms that admit of varying payout levels for different levels of performance, have been achieved at a level sufficient to support the payment). 
 8. Nature of Awards. Awards hereunder are intended to qualify as Stock Unit Awards under the EIP. The Executive LTIP is unfunded. 

9. Termination of Employment. No Performance Shares shall be payable to or in respect of a Participant, except as the Committee
shall otherwise expressly determine, unless the Participant is employed by the Company or a subsidiary on December 31 of the last year of the three-year performance period. 

10. Availability of Stock. If, when Performance Shares become payable in respect of any three-year performance period, the number
of shares of Stock needed exceeds the number of shares then available under the EIP, the Performance Shares shall be delivered when the shareholders approve an increase in the number of shares available under the EIP. If the shareholders do not
approve such an increase so that all or part of the Performance Shares are not delivered, the Company will pay out the value of any Performance Shares that were not delivered in cash and determine their value by using the average of the per-share
closing price of the Common Stock for the last twenty (20) trading days preceding the date the Performance Shares would have been delivered had there been a sufficient number available under the EIP. 

11. Clawback. If a participant receives an Award payout under the Executive LTIP based on financial statements that are
subsequently required to be restated in a way that would decrease the number of Performance Shares to which the Participant was entitled, the Participant will refund to the Company the difference between what the Participant received and what the
Participant should have received; provided that no refund will be required for Performance Shares delivered more than three years prior to the date on which the Company is required to prepare the applicable restatement. The value of any difference
to be refunded will be determined in a manner consistent with regulations the Securities and Exchange Commission may adopt pursuant to Section 945 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 

12. Treatment of Awards Upon a Change of Control. If (a) the Company merges into or combines with any other entity and,
immediately following such merger or combination, any Person or group of Persons acting in concert holds 50% or more of the voting power of the entity surviving such merger or combination (other than any Person or group of Persons which held 50% or
more of the Company’s voting power immediately prior to such merger or combination or any Affiliated Person of any such Person or member of such group); (b) any Person or group of Persons acting in concert acquires 50% or more of the
Company’s voting power; or (c) the Company sells all or substantially all of its assets or business for cash or for securities of another Person or group of Persons (other than to any Person or group of Persons which held 50% or more of
the Company’s total voting power immediately prior to such sale or to any Affiliated Person of any such Person or any member of such group) (each of (a), (b), or (c) a “Change of Control”), then, unless the Committee provides for
the continuation or assumption of Performance Units or for the grant of new awards in substitution therefore (which substitute awards, if any, may be payable in cash or other property or a combination thereof) by the surviving entity or acquirer, in
each case on such terms and subject to such conditions as the Committee may determine, with respect to each Performance Unit not so assumed or continued: 
 (a) In the event such transaction occurs on or after the close of the three-year performance period with respect to the Performance Units, the Committee shall determine, acting in its sole and reasonable
discretion, prior to the occurrence of the transaction, the extent to which the applicable performance metrics specified in Exhibit A have been satisfied. If financial statements or other relevant data are not available prior to the time of
such determination, the Committee shall make such determination based upon the financial information and data then available to the Company. 
 (b) In the event such transaction occurs prior to the close of the three-year performance period with respect to the Performance Units, the applicable performance metrics specified in Exhibit A
shall be determined as follows: (i) the three-year performance period shall be deemed to end on the effective date of such transaction; and (ii) the extent to which the applicable performance metrics specified in Exhibit A for the
shortened three-year performance period described in clause (i) above have been achieved shall be determined by the Committee based upon the financial information available to the Company (it being understood that the Committee may, to the
extent 

 
it deems necessary, extrapolate performance through the effective date of the transaction based upon available data); (iii) the performance determined pursuant to clause (ii) shall then
be adjusted by multiplying it by a fraction, the numerator of which is the number of days in the shortened three-year performance period and the denominator of which is 1,095, and the performance as so adjusted shall be the basis for determining the
number of Performance Shares to be paid out with respect to the Performance Units, subject to proration in accordance with Section 12(c) below. 
 (c) If subsection (b) above applies, the number of Performance Shares initially determined under subsection (b) with respect to an Award shall be prorated by multiplying such initially
determined amount by a fraction, the numerator of which is the number of days in the shortened three-year performance period and the denominator of which is 1,095. 
 For purposes of this Section 12, “Person” means any individual, partnership, limited liability company, corporation, association, trust, joint venture, unincorporated organization, or other
entity or group, and “Affiliated Person” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or is under common control with such Person. 

13. Amendment. The Committee may amend the Executive LTIP at any time and from time to time, and may terminate the Program, in
each case subject only to such limitations, if any, as the EIP may impose. 
 14. 409A. This Executive LTIP and the
Time-Based RSUs and Performance Units granted thereunder shall be construed and administered consistent with the intent that they at all times be in compliance with or exempt from the requirements of Section 409A of the Code and the regulations
promulgated thereunder. 

 XERIUM TECHNOLOGIES, INC. 

EXECUTIVE LONG TERM INCENTIVE PLAN 
 Exhibit A (Applicable to 2012-2014 Performance Period)  
 Except as otherwise
expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with U.S. generally accepted accounting principles. 
 Performance Shares  
 One measure of performance will be used in determining the
number of Performance Shares to be delivered, if any, with respect to Performance Units: Xerium Cumulative Bank Adjusted EBITDA. 
 i. Bank
Adjusted EBITDA Metric and Cumulative Bank Adjusted EBITDA Metric  
 “Bank Adjusted EBITDA Metric” means “Adjusted
EBITDA,” as such term is defined in the Credit and Guaranty Agreement (the “Credit Agreement”), dated as of May 26, 2011, entered into by and among the Company, certain subsidiaries of the Company, Citibank N.A., as
administrative agent, and other agents and banks party thereto, as in effect for Xerium Technologies, Inc. for the year ended December 31, 2011. 
 “Cumulative Bank Adjusted EBITDA Metric” means the sum of Bank Adjusted EBITDA Metric for fiscal years 2012 through 2014. Cumulative Bank Adjusted EBITDA Metric will be determined once following
the close of the three-year performance period. The Committee shall determine Cumulative Bank Adjusted EBITDA Metric relative to the target for such metric set forth below. 
 ii. Annual Currency Adjustments. 
 The final Bank Adjusted EBITDA Metric for each year in
the three-year performance period will be adjusted to reflect currency fluctuations relative to the US$ in all markets. Any adjustments made for any year in the three-year performance period under the 2012-2014 Executive LTIP will be based on the
following budgeted rates: 
  

					
	 Foreign Exchange Rates
	  	 	 
	 ARS
	  	$	0.2323	  
	 AUD
	  	$	1.0250	  
	 BRL
	  	$	0.5367	  
	 CAD
	  	$	0.9833	  
	 CHF
	  	$	1.0665	  
	 CNY
	  	$	0.1589	  
	 EUR
	  	$	1.2972	  
	 GBP
	  	$	1.5535	  
	 JPY
	  	$	0.01299	  
	 MXN
	  	$	0.07166	  
	 SEK
	  	$	0.14543	  
	 VND
	  	$	0.000047	  

 iii. Cumulative Target Bank Adjusted EBITDA Metric  
 The target for Cumulative Bank Adjusted EBITDA Metric for the 2012-2014 performance period (the “Target Cumulative Bank Adjusted EBITDA Metric”) shall be such amount as is set and approved by
the Compensation Committee; provided, however, that the amount may be adjusted by the Committee after the initial determination of the amount to reflect any material change of circumstance, including without limitation, the acquisition
or disposition of any business by the Company or any of its subsidiaries. 
 iv. Determination of Number of Performance Shares 

 “X” below refers to the number of Performance Units credited to a Participant under an Award. 

 “Y” below refers to the Cumulative Target Bank Adjusted EBITDA Metric set forth above. 

The number of Performance Shares payable with respect to an Award shall be determined after the close of the last year in the three-year performance
period as follows: 
 Cumulative Bank Adjusted EBITDA Metric below .85Y: no payment 

Cumulative Bank Adjusted EBITDA Metric at .85Y: bonus = 0.5X 
 Cumulative Bank Adjusted EBITDA Metric above .85Y but below Y: bonus = percentage of X determined based on straight line interpolation between 0.5X at .85Y and X at Y 

Cumulative Bank Adjusted EBITDA Metric at Y: bonus = X 
 Cumulative Bank Adjusted EBITDA Metric above Y: bonus = percentage of X determined based on straight line interpolation between X at Y and 2.00X at 1.15Y 

The number of Performance Shares payable with respect to Performance Units shall in all cases be capped at 2.00 times a Participant’s Performance
Units (2.00X). 

 Exhibit B  

XERIUM TECHNOLOGIES, INC. 
 TIME-BASED RESTRICTED STOCK UNITS AGREEMENT 
 (2012-2014 Executive LTIP)

 Dated as of May 11, 2012 
 Pursuant to the terms of the Xerium Technologies, Inc. Long Term Incentive Plan effective for fiscal years 2012 through 2014 (the “2012-2012 Executive LTIP”) and the Xerium Technologies, Inc.
2010 Equity Incentive Plan (the “Plan”), Xerium Technologies, Inc. (the “Company”) hereby grants to (the “Employee”) the Restricted Stock Units Award described below. 

 

	1.	The Restricted Stock Units Award. The Company hereby grants to the Employee Units, subject to the terms and conditions of this Agreement and the Plan. An Award
shall be paid hereunder, only to the extent that such Award is Vested, as provided in this Agreement. The Employee’s rights to the Units are subject to the restrictions described in this Agreement and the Plan in addition to such other
restrictions, if any, as may be imposed by law. 

  

	2.	Definitions. The following definitions will apply for purposes of this Agreement. Capitalized terms not defined in the Agreement are used as defined in the Plan,
including without limitation the following terms: “Affiliate”; “Committee”; and “Covered Transaction”. 

  

	 	(a)	“Agreement” means this Restricted Stock Units Agreement granted by the Company and agreed to by the Employee. 

 

	 	(b)	“Award” means the grant of Units in accordance with this Agreement. 

 

	 	(c)	“Cause” has the meaning ascribed to it in the written employment agreement between the Company and the Employee (as in effect on the date hereof). If
the Employee has no written employment agreement with the Company, “Cause” shall mean (i) the Employee’s conviction of or plea of nolo contendere to a felony or other crime involving moral turpitude; (ii) the Employee’s
fraud, theft or embezzlement committed with respect to the Company or any of its subsidiaries; or (iii) the Employee’s willful and continued failure to perform his material duties to the Company and its Subsidiaries, where the Company has
provided written notice to the Employee of the failure and the Employee shall not have remedied such failure within then (10) business days following the effectiveness of such notice. 

 

	 	(d)	“Change of Control” has the meaning ascribed to it in Section 12 of the 2012-2014 Executive LTIP. 

 

	 	(e)	“Change of Control Termination” means a termination of the Employee’s employment with the Company or a member of the Company Group that occurs
within three (3) months prior to or two (2) years following a Change of Control as a result of (x) termination by a member of the Company Group without Cause or (y) a Good Reason Termination. 

 

	 	(f)	“Common Stock” means the common stock of the Company, $0.01 par value. 

 

	 	(g)	“Company Group” means the Company together with its Affiliates. 

 

	 	(h)	“Fair Market Value” means, on the applicable date, or if the applicable date is not a date on which the NYSE is open the next preceding date on which
the NYSE was open, the last sale price with respect to such Common Stock reported on the NYSE or, if on any such date such Common Stock is not quoted by NYSE, the average of the closing bid and asked prices with respect to such Common Stock, as
furnished by a professional market maker making a market in such Common Stock selected by the Committee in good faith; or, if no such market maker is available, the fair market value of such Common Stock as of such day as determined in good faith by
the Committee. 

  

	 	(i)	 “Good Reason Termination” shall mean a termination of employment by the Employee with “Good Reason,” as such term is defined
in the written employment agreement between the Company and the Employee (as in effect on the date hereof), where the Employee provides notice of the Good Reason event within 90 days of its occurrence and provides the Company at least 30 days to
cure such matter. If the Employee has no written employment agreement with the Company, “Good Reason” shall mean a 

	 	
requirement that the Employee relocate more than fifty (50) miles from his then-current principal residence, it being understood that the Employee may be required to travel frequently and
that prolonged periods spent away from Employee’s principal residence shall not constitute Good Reason. 

  

	 	(j)	“Grant Date” means May 11, 2012. 

  

	 	(k)	“NYSE” means the New York Stock Exchange. 

  

	 	(l)	“Payment Date” means, as to Vested Units, within 30 days of the date on which the Units become Vested, provided that to the extent practicable such
Payment Date shall be immediately preceding the Change of Control transaction with respect to Units that become Vested in connection with a Change of Control. 

 

	 	(m)	“Pro Rata Portion” shall mean the product of (x) a fraction, the numerator of which is, as of the time of measurement, the number of months
(rounded down to the nearest whole number) occurring since the most recently occurring annual anniversary of the Grant Date (or the Grant Date if such an anniversary has not yet occurred) and the denominator of which is 12 and (y) (i) if
the time of measurement is prior to the first annual anniversary of the Grant Date, 33.33% of the Units not previously Vested; (ii) if the time of measurement is between the first and second annual anniversary of the Grant Date, 50% of the
Units not previously Vested; or (iii) if the time of measurement is between the second and third annual anniversary of the Grant Date, 100% of the Units not previously Vested. 

 

	 	(n)	“Unit” means a notional unit which is equivalent to a single share of Common Stock on the Grant Date, subject to Section 8(a).

  

	 	(o)	“Vested” means that portion of the Award to which the Employee has a nonforfeitable right. 

 

	 	(p)	“Vesting Dates” means the dates set forth in Section 3(a) of this Agreement. 

 

	3.	Vesting.  

  

	 	(a)	The Award shall become Vested based on the following schedule: 

  

			
	 Vesting Date
	 	 Percentage of Units (including any Units then

credited to the Employee pursuant to Section 7)
 Vested on Vesting Date

	March 31, 2013	 	33.33%
	March 31, 2014	 	33.33%
	March 31, 2015	 	33.34%

  

	4.	Payment of Award. Subject to Section 8(d) below, on the Payment Date, the Company shall issue to the Employee that number of shares of Common Stock as
equals that number of Units which have become Vested. 

  

	5.	Change of Control.  

 In
the event of a Change of Control unless the Committee determines, in its sole discretion, to accelerate the vesting of the entire portion of the Award that is not then Vested, the Pro Rata Percentage shall become Vested upon the Change of Control
and that portion of the Award that is not then Vested or and has not become Vested in accordance with this Section 5 or Section 6 shall be forfeited automatically and the Committee shall arrange for new rights of comparable value, granted
by the Company or another entity, to be substituted for the portion of the Award that is not Vested after giving effect to the Change of Control (such rights being referred to herein as a “Replacement Award”). Notwithstanding the
foregoing, if the Company is the surviving entity following the Change of Control, the Committee may elect to continue the portion of this Award that is not then Vested and does not become Vested upon the Change of Control in lieu of providing a
Replacement Award. 
  

	6.	Termination of Employment.  

 (a) Resignation or Termination by the Company. If the Employee ceases to be employed by the Company Group prior to a Vesting Date as a result of resignation, dismissal or any other reason,
then the portion of the Award that has not previously Vested shall be forfeited automatically; provided that (i) in the event of a termination by a member of the Company Group without Cause or a Good Reason Termination, a portion of the Award
equal to the Pro Rata Portion as of the time of termination shall Vest immediately prior to such termination and (ii) in the event that the Employee’s employment termination is a Change of Control

 
Termination, then the entire portion of the Award (or any Replacement Award) that is then not Vested shall become Vested on the date of termination. 

 

	 	(b)	Meaning of termination of employment. If the Company or a member of the Company Group provides Employee a written notice of termination of employment but the
termination of employment is not effective for a period of more than thirty (30) days due to applicable law or contractual arrangements between a member of the Company Group and the Employee, for the purposes of this Award, including without
limitation Section 6(a) hereof, the Employee’s employment shall be deemed terminated and the Employee shall be deemed ceased to be employed by the Company Group on the date that is thirty (30) days from the date of such notice instead
of the actual date of termination. 

  

	7.	Dividends. On each date on which dividends are paid by the Company, the Employee shall be credited with that number of additional Units (including fractional
Units) as is equal to the amount of the dividend that would have been paid on the Units then credited to the Employee under this Agreement (which shall not include any Vested Units following the Payment Date in respect of such Vested Units) had they
been held in Common Stock on such date divided by the Fair Market Value of a share of Common Stock on such date. 

  

	8.	Miscellaneous.  

  

	 	(a)	Adjustments Based on Certain Changes in the Common Stock. In the event of any stock split, reverse stock split, stock dividend, recapitalization or similar
change affecting the Common Stock, the Award shall be equitably adjusted. 

  

	 	(b)	No Voting Rights. The Award shall not be interpreted to bestow upon the Employee any equity interest or ownership in the Company or any Affiliate prior to the
applicable Payment Date, and then only with respect to the shares of Common Stock issued on such Payment Date. 

  

	 	(c)	No Assignment. No right or benefit or payment under the Plan shall be subject to assignment or other transfer nor shall it be liable or subject in any manner to
attachment, garnishment or execution. 

  

	 	(d)	Withholding. The Employee is responsible for payment of any taxes required by law to be withheld by the Company with respect to an Award. To facilitate that
payment, the Company will, to the extent permitted by law, retain from the number of shares of Common Stock issued to the Employee on the Payment Date that number of shares necessary for payment of the minimum tax withholding amount, valued at their
Fair Market Value on the business day most immediately preceding the date of retention. To the extent the Company’s withholding obligation cannot be satisfied by means of share withholding, the Company may, to the extent permitted by law,
deduct any such tax obligations from any payment of any kind due to the Employee. 

  

	 	(e)	Employment Rights. This Agreement shall not create any right of the Employee to continued employment with the Company or its Affiliates or limit the right of
Company or its Affiliates to terminate the Employee’s employment at any time and shall not create any right of the Employee to employment with the Company or any of its Affiliates. Except to the extent required by applicable law that cannot be
waived, the loss of the Award shall not constitute an element of damages in the event of termination of the Employee’s employment even if the termination is determined to be in violation of an obligation of the Company or its Affiliates to the
Employee by contract or otherwise. 

  

	 	(f)	Unfunded Status. The obligations of the Company hereunder shall be contractual only. The Employee shall rely solely on the unsecured promise of the Company and
nothing herein shall be construed to give the Employee or any other person or persons any right, title, interest or claim in or to any specific asset, fund, reserve, account or property of any kind whatsoever owned by the Company or any Affiliate.

  

	 	(g)	Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction will not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. In the event that any provision hereof would, under applicable law,
be invalid or unenforceable in any respect, such provision will be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law. 

 

	 	(h)	 Governing Law. This Agreement and all actions arising in whole or in part under or in connection herewith, will be governed by and construed in
accordance with the domestic substantive laws of the State 

	 	
of Delaware, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction. 

 

	 	(i)	409A. The Award shall be construed and administered consistent with the intent that it be at all times in compliance with, or exempt from, the requirements of
Section 409A of the Internal Revenue Code and the regulations thereunder. 

  

	 	(j)	Section 162(m). The Award shall be construed and administered consistent with the intent that it qualify to the maximum extent possible as qualifying
performance-based compensation within the meaning of Section 162(m) of the Internal Revenue Code and the regulations thereunder. 

  

	 	(k)	Amendment. This Agreement may be amended only by mutual written agreement of the parties. 

 IN WITNESS WHEREOF, Xerium Technologies, Inc. has executed this Restricted Stock Units
Agreement as of the date first written above. 
  

			
	Xerium Technologies, Inc.
		
	By:	 	

	 Name:
 Title:
	 	 Stephen R. Light
 Chairman,
CEO

 Acknowledged and agreed: 
  

			
	EMPLOYEE
		
	By:	 	 
	Name:	 	

 Number of LTIP Shares Granted 

 
  

 

			
	Number of Time-Based RSUs	 	Number of Performance Shares
	_______	 	_______Form of 2012 Restricted Stock Award Agreement

 Exhibit 10.1 

 
 

 
 2012 RESTRICTED STOCK AWARD AGREEMENT 
 We are pleased to advise you that the Board of Directors of Office Depot, Inc. (the “Company”) has as of May 7, 2012 (the “Grant Date”) granted you a restricted stock award
pursuant to the Office Depot, Inc. 2007 Long-Term Incentive Plan (the “Plan”). Capitalized terms used but not defined in this 2012 Restricted Stock Award Agreement (the “Agreement”) have the meanings given to them in the Plan.
This award is subject to federal and local law and the requirements of the New York Stock Exchange. 
  

	1.	Restricted Stock 

 You
have been granted 500,000 shares of the Company’s common stock (“Common Stock”) subject to the restrictions contained in the Plan and this Agreement (the “Restricted Shares”). 

 

	2.	Vesting  

  

	 	a.	Normal Vesting – The Restricted Shares will vest in two equal installments (rounded down to the next highest whole number of Restricted Shares, as
necessary) on each of December 31, 2012 and April 30, 2014; provided that, you are continuously employed by the Company or any Subsidiary from the Grant Date until each such vesting date (the “Vesting Period”).

  

	 	b.	Effect on Vesting of Employment Termination – Notwithstanding paragraph 2(a) above, the following rules will apply if your employment with the Company and
its Subsidiaries terminates before you have vested in the Restricted Shares: 

  

	 	i)	Death or Disability. If you terminate employment with the Company and its Subsidiaries due to death or Disability, the Restricted Shares will vest (to the extent
they have not previously vested) on the date of your employment termination. For this purpose, you will be considered “Disabled” if you have been determined to be eligible to commence benefits under the Company’s long-term disability
program; the effective date of your Disabled status will be the later of the date on which such determination is made or the date as of which you are determined to be eligible to commence such benefits. Your Disabled status must become effective
under the preceding sentence prior to the date on which the Restricted Shares would otherwise be forfeited for failure to vest in order to be recognized under this Agreement. This definition of “Disability” applies in lieu of the
definition set out in the Plan. 

  

	 	ii)	Termination without Cause; Termination for Good Reason. If (x) your employment with the Company and its Subsidiaries is terminated by the Company without
Cause or (y) you terminate your employment for Good 

  

					
	 6600 North Military Trail      
	  	
    Boca Raton, FL 33496–2434      
	  	     T + 561.438.4800

 

 
  

	 	
Reason, then the Restricted Shares will vest (to the extent they have not previously vested) on the date of such employment termination. As used herein, the term “Cause” shall mean
“good cause”, as defined in your Employment Agreement with the Company dated May 23, 2011. Additionally, as used herein, the term “Good Reason” shall mean “Good Reason”, as defined in your Change in Control
Agreement with the Company dated May 23, 2011 (the “CIC Agreement”); provided, however, that for purposes of the “Good Reason” definition under this Agreement, the references to “Effective Date”
within Section 5(c)(iii) of the CIC Agreement (regarding a material change in office or location) and within Section 4(b)(i) (regarding annual base salary) and Sections 4(b)(iii)-(viii) of the CIC Agreement (regarding certain benefit
arrangements and expense reimbursement rights) shall be deemed to refer to the date of this Agreement, and the references to “Employment Period” within such Sections shall be deemed to refer to the period of your employment with the
Company and its Subsidiaries; provided further that (x) for purposes of your ability to terminate for “Good Reason” under this Agreement due to the Company’s material failure to comply with Section 4(b)(ii) of the CIC
Agreement (regarding annual bonuses), the terms “Effective Date” and “Employment Period” as used in such Section 4(b)(ii) of the CIC Agreement shall apply as defined in the CIC Agreement and (y) for purposes of your
ability to terminate for “Good Reason” under this Agreement due to the Company’s material failure to comply with Section 4(b)(iii) of the CIC Agreement (regarding incentive, savings and retirement plans), any measurement of your
future incentive opportunities as compared to prior long-term incentive grants shall be made without regard to the Restricted Shares that were granted pursuant to this Agreement. 

 

	 	iii)	Termination of Employment. Except as provided otherwise in paragraphs 2(b)(i) or (ii) above due to your termination for death or Disability, without Cause
or for Good Reason, upon any other termination of your employment with the Company and its Subsidiaries you will immediately forfeit all of the Restricted Shares that are not vested on the date of such termination of employment.

  

	 	c.	No Other Special Vesting Rights – The provisions of the Plan with respect to accelerated vesting in the event of Retirement or upon a Change in Control
(Sections 10.5(iii), 10.6 and 10.11 of the Plan) do not apply to the Restricted Shares. However, to the extent your Restricted Shares remain outstanding and unvested following the occurrence of a Change in Control, you shall remain eligible to vest
in such Restricted Shares upon the earlier of the scheduled vesting dates or the occurrence of your termination of employment due to death, Disability, a termination without Cause or a termination for Good Reason, in each case, as set forth above.

  
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	3.	Treatment of Restricted Shares During Vesting Period and Registration 

 

	 	a.	Registration of Shares – The Restricted Shares shall be registered on the Company’s books in your name as of the Grant Date. The Company may issue
stock certificates or evidence your interest by using a book entry account. Physical possession or custody of any stock certificates that are issued may be retained by the Company until such time as the Restricted Shares are vested in accordance
with Section 2. The Company reserves the right to place a legend on such stock certificate(s) restricting the transferability of such certificates and referring to the terms and conditions (including forfeiture) of this Agreement and the Plan.

  

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

  

	 	c.	Dividends – During the Vesting Period, while you are employed by the Company or any Subsidiary, you will have the right to receive any dividends on your
Restricted Shares. If any dividends are paid or other distributions are made on the Restricted Shares during the Vesting Period, such dividends and other distributions shall be paid in the same proportion on the Restricted Shares to the Company for
your account and paid to you, without interest, within 30 days after the date on which the corresponding Restricted Shares vest. You will forfeit automatically any dividends and other distributions on the Restricted Shares held by the Company for
your account to the extent that you forfeit the corresponding Restricted Shares. 

  

	 	d.	Release of Restrictions – As soon as practicable after all or a portion of your Restricted Shares vest under Section 2 above, the Company will issue to
you a certificate or certificates for (or evidence in book entry or similar account) shares of Common Stock equal to the number of Restricted Shares that became vested under Section 2 above. Such shares will not be subject to any restrictions
under this Agreement, but may be subject to certain restrictions under applicable securities laws. 

  

	4.	No Section 83(b) Election 

 The grant of the Restricted Shares to you is conditioned upon you not making an election under section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) with respect to the
Restricted Shares. By acknowledging this Agreement through the Plan website, you agree not to make an election under Code section 83(b) with respect to the Restricted Shares. 

 

	5.	Transferability of Restricted Shares 

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

  
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	6.	Conformity with Plan 

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

 

	7.	Restrictions on Shares 

If the Committee determines that the listing, registration or qualification upon any securities exchange or under any law of shares
subject to the grant of the Restricted Shares is necessary or desirable as a condition of, or in connection with, the granting of same or the issue or purchase of shares thereunder, no shares may be issued unless such listing, registration or
qualification is effected free of any conditions not acceptable to the Committee. All certificates for shares of Common Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any listing standards of any exchange or self-regulatory organization on which the Common Stock of the Company is listed, and any applicable
federal or state laws; and the Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. In making such determination, the Committee may rely upon an opinion of counsel for the
Company. The Company shall have no liability to deliver any shares under the Plan or make any other distribution of the benefits under the Plan unless such delivery or distribution would comply with all applicable state, federal, and foreign laws
(including, without limitation and if applicable, the requirements of the Securities Act of 1933), and any applicable requirements of any securities exchange or similar entity. 

  
 4 

 

 
  

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

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

	9.	Section 409A 

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

	10.	Employment and Successors 

Nothing in the Plan or this Agreement shall serve to modify or amend any employment agreement you may have with the Company or any
Subsidiary or to interfere with or limit in any way the right of the Company or any Subsidiary to terminate your employment at any time, or confer upon you any right to continue in the employ of the Company or any Subsidiary for any period of time
or to continue your present or any other rate of compensation subject to the terms of any employment agreement you may have with the Company. The grant of the Restricted Shares shall not give you any right to any additional awards under the Plan or
any other compensation plan the Company has adopted or may adopt. The agreements contained in this Agreement shall be binding upon and inure to the benefit of any successor of the Company. 

 

	11.	Amendment 

 The Committee
may amend this Agreement by a writing that specifically states that it is amending this Agreement, so long as a copy of such amendment is delivered to you, provided that no such amendment shall adversely affect in a material way your rights
hereunder without your written consent (except to the extent the Committee reasonably determines that such amendment or termination is necessary or appropriate to comply 

  
 5 

 

 
  

 
with applicable law or the rules or regulations of any stock exchange on which the Company’s stock is listed or quoted). Without limiting the foregoing, the Committee reserves the right to
change, by written notice to you, the provisions of the Restricted Shares or this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant of the Restricted Shares as a result of any change in applicable law or
regulation or any future law, regulation, ruling, or judicial decisions; provided that, any such change shall be applicable only to that portion of the Restricted Shares that are then subject to restrictions as provided herein. 

 

	12.	Notices 

 Any notice to be
given under the terms of this Agreement to the Company shall be addressed to the Company as follows: 
 Office Depot, Inc.

 c/o Vice President, Global Compensation, Benefits, HRIM & HR Services 

6600 North Military Trail 
 Boca Raton, FL 33496 
 Any notice to be given under the terms of this Agreement to
you shall be addressed to you at the address listed in the Company’s records. By a notice given pursuant to this Section, either party may designate a different address for notices. Any notice shall be deemed to have been duly given when
personally delivered (addressed as specified above) or when enclosed in a properly sealed envelope (addressed as specified above) and deposited, postage prepaid, with the U.S. postal service or an express mail company. 

 

	13.	Severability 

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

	14.	Entire Agreement 

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

  
 6 

 

 
  

	15.	Governing Law 

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

 

	16.	Venue 

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

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

			
	 Very truly yours,

	  
 OFFICE DEPOT, INC.

 

	By:	 	 /s/ Michael R. Allison

	Name:	 	Michael R. Allison
	Title:	 	Executive Vice President, Human Resources

  
 7

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