Document:

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                                                                   Exhibit 10.02

                           EXCLUSIVE LICENSE AGREEMENT

                                     between

                   THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

                                       and

                                ATHEROGENICS INC.

                                       for

                                       [*]

[*]  Certain confidential information contained in this document, marked by an
     asterisk within brackets, has been omitted and filed separately with the
     Securities and Exchange Commission pursuant to a request for confidential
     treatment under Rule 406 of the Securities Act of 1933, as amended.
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                                TABLE OF CONTENTS

ARTICLE NO.                                                                PAGE
-----------                                                                ----

1.       DEFINITIONS

2.       PERIOD OF PATENT EXCLUSIVE GRANT

3.       SUBLICENSES

4.       PAYMENT TERMS

5.       LICENSE-ISSUE FEE

6.       MILESTONE PAYMENTS

7.       EARNED ROYALTIES AND MINIMUM ANNUAL ROYALTIES

8.       DUE DILIGENCE

9.       PROGRESS AND ROYALTY REPORTS

10.      BOOKS AND RECORDS

11.      LIFE OF THE AGREEMENT

12.      TERMINATION BY THE REGENTS

13.      TERMINATION BY LICENSEE

14.      DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION

15.      USE OF NAMES AND TRADEMARKS

16.      LIMITED WARRANTY

17.      PATENT PROSECUTION AND MAINTENANCE

18.      PATENT MARKING

19.      PATENT INFRINGEMENT

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20.      INDEMNIFICATION

21.      NOTICES

22.      ASSIGNABILITY

23.      NO WAIVER

24.      FAILURE TO PERFORM

25.      GOVERNING LAWS

26.      PREFERENCE FOR UNITED STATES INDUSTRY

27.      GOVERNMENTAL APPROVAL OR REGISTRATION

28.      EXPERT CONTROL LAWS

29.      SECRECY

30.      MISCELLANEOUS

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                           EXCLUSIVE LICENSE AGREEMENT

         This License Agreement (the "Agreement") is made effective this 17th
day of July, 1998 (the "Effective Date") between THE REGENTS OF THE UNIVERSITY
OF CALIFORNIA, a California corporation having its statewide administrative
offices at 300 Lakeside Drive, 22nd Floor, Oakland, California 94612-3550, ("The
Regents") represented by the University of California, San Diego campus having
its offices at 9500 Gilman Drive, La Jolla, CA 92093-0910, and AtheroGenics
Inc. ("Licensee"), a Georgia corporation having offices at 3065 Northwoods
Circle, Norcross, GA 30071.

                                     WHEREAS

         1. Certain inventions, generally characterized as [*] and officially
recorded in[*] (collectively the "Invention"), were made in the course of
research at the University of California, San Diego by Dr. Joseph Witztum and
others and are covered by Regents' Patent Rights as defined herein;

         2. The development of the Invention was sponsored in part by the
National Institutes of Health and as a consequence this license is subject to
overriding obligations to the Federal Government under 35 U.S.C. 200-212 and
applicable regulations;

         3. Dr. Witztum and the other inventors are employees of The Regents.
The Regents have asked Dr. Witztum and his co-inventors to assign their rights
to The Regents;

         4. Licensee has evaluated the Invention under a Secrecy Agreement with
The Regents [*], and has communicated its evaluation to The Regents;

         5. Licensee and The Regents have executed a Letter of Intent dated June
27, 1997, that was amended on December 24, 1997 to extend the "Negotiation
Period," as defined therein, to March 1, 1998;

         6. Licensee wishes to obtain rights from The Regents for the commercial
development, use, and sale of products from the Invention, and The Regents is
willing to grant those rights so that the Invention may be developed to its
fullest and the benefits enjoyed by the general public; and

         7. Licensee is currently a "small business firm" as defined in 15
U.S.C. 632;

         8. The parties recognize and agree that royalties due under this
Agreement will be paid on both pending patent applications and issued patents;

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         In view of the foregoing, the parties agree:

1.       DEFINITIONS

         1.1 "Regents' Patent Rights" means any subject matter claimed in or
covered by any of the following: Issued or Pending U.S. Patent Applications,
Provisional Applications and applications in preparation related to inventions
and as disclosed to Licensee as entitled [*] and assigned to The Regents; and
continuing applications thereof including divisions and substitutions but
excluding continuation-in-part applications (except continuations-in-part
applications supported by the original application); and patents issuing on said
applications including reissues, reexaminations and extensions; and any
corresponding foreign applications or patents.

         1.2 "Licensed Product" means any material that is either covered by
Regents' Patent Rights, that is produced by the Licensed Method, or that the use
of which would constitute, but for the license granted to Licensee under this
Agreement, an infringement of any pending or issued claim within Regents' Patent
Rights, including disease indications other than those set forth in the
Invention.

         1.3 "Licensed Method" means any method that is covered by Regents'
Patent Rights, the use of which would constitute, but for the license granted to
Licensee under this Agreement, an infringement of any pending or issued claim
within Regents' Patent Rights.

         1.4 "Net Sales" means the total of the gross invoice prices of Licensed
Products sold by Licensee, an affiliate, or a sublicensee, less the sum of the
following actual and customary deductions where applicable: cash, trade, or
quantity discounts; sales, use, tariff, import/export duties or other excise
taxes imposed on particular sales; transportation charges and allowances; or
credits to customers because of rejections or returns. For purposes of
calculating Net Sales, transfers to an affiliate or sublicensee for end use by
the affiliate or sublicensee will be treated as sales at list price.

         1.5 "Affiliate" means any corporation or other business entity in which
Licensee owns or controls, directly or indirectly, at least fifty percent (50%)
of the outstanding stock or other voting rights entitled to elect directors, or
in which Licensee is owned or controlled directly or indirectly by at least 50%
of the outstanding stock or other voting rights entitled to elect directors, but
in any country where the local law does not permit foreign equity participation
of at least 50%, then an "Affiliate" includes any company in which Licensee owns
or controls or is owned or controlled by, directly or indirectly, the maximum
percentage of outstanding stock or voting rights permitted by local law.

         1.6 "Field of Use" means all diagnostic and therapeutic use of the
Invention for human or veterinary application, including, but not limited to,
use in atherosclerosis and other cardiovascular and antiinflammatory diseases.

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         1.7 "Know How" means all technical information and know-how, whether or
not patented, which is invented, developed, acquired and owned or licensed by
The Regents (other than from Licensee or its Affiliates or sublicensees) prior
to and during the term of this Agreement and which relate to the Invention;
excluding, however, any such item, information and data licensed by The Regents
with respect to which The Regents do not have a right to sublicense to third
parties.

2.       PERIOD OF PATENT EXCLUSIVE GRANT

         2.1 Subject to the limitations set forth in this Agreement, The Regents
grant to Licensee a world-wide license under Regents' Patent Rights and Know How
to make, have made, use, import and sell Licensed Products and to practice
Licensed Methods for the life of the longest-lived patent covering the Invention
described herein.

         2.2 Except as otherwise provided in this Agreement, the license granted
in Paragraph 2.1 is exclusive for the life of the Agreement.

         2.3 The license granted in Paragraphs 2.1 and 2.2 is subject to all the
applicable provisions of any license to the United States Government executed by
The Regents and is subject to the overriding obligations to the U.S. Government
under 35 U.S.C. 200-212 and applicable governmental implementing regulations.

         2.4 The licenses granted in Paragraphs 2.1 and 2.2 are limited to
methods and products within the Field of Use. Licensee has no license under this
Agreement for other methods and products not described in Regents Patent Rights,
and know-how pertaining to the Invention.

         2.5 The Regents reserves the right to use the Invention, know-how and
associated technology for educational and research purposes.

3.       SUBLICENSES

         3.1 The Regents also grant to Licensee the right to issue sublicenses
to third parties to make, have made, use, import and sell Licensed Products and
to practice Licensed Method, as long as Licensee has current exclusive rights
thereto under this Agreement. To the extent applicable, sublicenses must include
all of the rights of and obligations due to The Regents (and, if applicable, the
United States Government) and contained in this Agreement.

         3.2 Licensee shall promptly provide The Regents with a copy of each
sublicense issued; use diligent efforts to collect and guarantee payment of all
payments due The Regents from sublicensees; and summarize and deliver all
reports due The Regents from sublicensees.

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         3.3 Upon termination of this Agreement for any reason, The Regents, at
its sole discretion, shall determine whether Licensee shall cancel or assign to
The Regents any and all sublicenses.

         3.4 Licensee shall pay The Regents [*] of each non-royalty payment
received by Licensee from each sublicensee of the Licensed Products, unless the
Licensed Product contains (i) any know-how added by Licensee, in which case the
foregoing percentage for non-royalty payments shall be [*] or (ii) any antibody
or a material component in addition to know-how added by Licensee, in which case
the foregoing percentage for non-royalty payment shall be [*] or (iii) more than
one antibody or material component in addition to know-how added by Licensee, in
which case the foregoing percentage for non-royalty payments shall be [*]
(collectively, Licensed Products meeting the conditions of (i) (ii) or (iii) are
referred to hereafter as a "Value Added Licensed Product").

         3.5 Licensee shall pay The Regents [*] of each earned royalty payment
received by Licensee, unless the Licensed Product is determined to be a "Value
Added Licensed Product" as defined in this Section 3.4, in which case,
Licensee's royalty payment to The Regents shall be [*] of each royalty payment
received from each sublicensee. Licensee may at its sole discretion select the
alternative royalty payment schedule described in Section 7.5.

         3.6 In the event that circumstances relating to the sublicensing of the
Licensed Products arise that make the sublicensing of the Licensed Product
unfeasible or otherwise require consultations between the parties, the parties
agree to discuss these circumstances and negotiate in good faith any amendments
to this Agreement that may be mutually agreeable to the parties hereto.

4.       PAYMENT TERMS

         4.1 Paragraphs 1.1, 1.2, and 1.3 define Regents' Patent Rights,
Licensed Products and Licensed Methods so that royalties are payable on products
and methods covered by both pending patent applications and issued patents.
Royalties will accrue in each country for the duration of Regents' Rights in
that country and are payable to The Regents when Licensee receives payment from
a third party.

         4.2 Licensee shall pay earned royalties quarterly within ninety (90)
days after the end of the applicable quarter of each calendar year in which such
royalties are earned.

         4.3 All monies due The Regents are payable in United States dollars.
When Licensed Products are sold for monies other than United States dollars,
Licensee shall first determine the earned royalty in the currency of the country
in which Licensed Products were sold and then convert the amount into equivalent
United States funds, using the exchange rate quoted in the Wall Street Journal
on the date payment was received by the licensee.

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         4.4 Royalties earned on sales occurring in any country outside the
United States may not be reduced by any taxes, fees, or other charges imposed by
the government of such country on the payment of royalty income. Licensee is
also responsible for all bank transfer charges. Notwithstanding this, all
payments made by Licensee in fulfillment of The Regents' tax liability in any
particular country will be credited against earned royalties or fees due The
Regents for that county.

         4.5 If at any time legal restrictions prevent the remittance of
royalties within 180 days by Licensee from any country where a Licensed Product
is, sold, Licensee shall convert the amount owed to The Regents into United
States funds and shall pay The Regents directly from its U.S. source of funds
for as long as the legal restrictions apply.

         4.6 If any patent or patent claim conferring exclusive marketing or
manufacturing rights to License under this Agreement within The Regents' Patent
Rights is held invalid in a decision by any court of competent jurisdiction, all
royalty payments will be held in an interest-bearing escrow account established
by the parties until a final decision is made by a court of competent
jurisdiction and last resort and from which no appeal has or can be taken, all
obligation to pay royalties based on that patent or claim or any claim patently
indistinct therefrom will cease as of the date of final decision. Licensee will
not, however, be relieved from paying any royalties that accrued and where
received before the final decision or that are based on another patent or claim
not involved in the final decision, or that are based on The Regents' property
rights.

         4.7 No royalties may be collected or paid on Licensed Products sold to
the account of the U.S. Government, any agency thereof, state or domestic
municipal government as provided for in the License to the Government.

         4.8 In the event payments, rebilling or fees are not received by The
Regents when due, Licensee shall pay to The Regents interest charges at a rate
of [*] per annum. Interest is calculated from the date payment was due until
actually received by The Regents.

5.       LICENSE-ISSUE FEE

         5.1 Licensee shall pay to The Regents a license-issue fee equal to the
higher of [*] of the patent costs reimbursable to The Regents under the Letter
of Intent, said license-issue fee to be paid on the first anniversary of the
execution of this License Agreement. Patent costs reimbursed to The Regents
within 30 days after the signing of this License Agreement shall not be used in
the license-issue fee calculation. This fee is [*].

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6.       MILESTONE PAYMENTS

Licensee shall pay to The Regents a one-time royalty in the form of milestone
payments in the following amounts within thirty (30) days following the
achievement of the specified events for therapeutic applications only:

Filing of the 1st IND (one time, any indication): [*]
Completing 1st Phase II, including Final Report submission (one time, any
  indication): [*]
Filing of a PLA document (all indications each time): [*]

Licensee shall pay to The Regents a one-time royalty in the form of a milestone
payment in the following amount within thirty (30) days following the
achievement of the specified event for diagnostic applications only:

Filing of a 510(k) (or similar): [*] (each time)

All Milestone Payments made to The Regents prior to First Market Introduction
shall be charged against royalties on sales paid to The Regents. Thereafter,
milestone payments shall not be reimbursed to Licensee by The Regents.

7.       EARNED ROYALTIES AND MINIMUM ANNUAL ROYALTIES

         7.1 Unless provided to the contrary in Section 7.2 and 7.3, Licensee
shall pay to The Regents a royalty on worldwide Net Sales according to the
following schedule for therapeutic applications only:

[*] on sales of less than [*]
[*] on sales greater than [*], but less than [*]
[*] on sales greater than [*], but less than [*]
[*] on sales greater than [*], but less than [*]
[*] on sales greater than [*], but less than [*]
[*] on sales greater than [*], but less than [*]
[*] on sales greater than [*].

         Unless provided to the contrary in Sections 7.2, Licensee shall pay to
The Regents a royalty of on worldwide Net Sales according to the following
schedule for diagnostic applications only:

- [*] on sales of Licensed Product in which the Licensed Method is supplemented
by monoclonal antibodies which are not included in The Regents Patent Rights;
- [*] on sales of Licensed Product in which the monoclonal antibodies of
Licensed Method are utilized without modification or supplementation by
Licensee;

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- [*] on all other sales of Licensed Product.

         7.2 If Licensee determines after consultation with The Regents that it
is required to pay royalties or other fees to any third party because the
manufacture, use, offer for sale, importation, or sale of a Licensed Method or a
Licensed Product would otherwise be likely to infringe any patent or other
intellectual property rights of such third party in a given country ("Third
Party Royalties"), Licensee may deduct from royalties thereafter due to The
Regents pursuant to this Agreement with respect to the Net Sales of such
Licensed Method or Licensed Product in such country up to [*] of the Third Party
Royalties. If the sum of the royalties paid hereunder and Third Party Royalties
for a given Licensed Product or a Licensed Method in a given country exceeds, at
any time, more than [*] on a therapeutic product or [*] on a diagnostic product
of the Net Sales, then upon Licensee's request, The Regents and Licensee agree
to negotiate in good faith in an effort to agree on a reduction in the royalties
payable hereunder to The Regents for such Licensed Product or Licensed Method in
such country. In the event the parties are unable to agree to such reduction
after a reasonable period of time, not to exceed thirty (30) days, either party
may request that the issue be arbitrated and the issue will be submitted to
final and binding arbitration in accordance with the rules of the American
Arbitration Association.

         7.3 Licensee may credit solely against all payments to The Regents,
including, without limitation, the royalties, accruing under this Agreement all
reasonable costs incurred by Licensee after the date hereof in connection with
any litigation, interference, opposition, or other action pertaining to the
validity, enforceability, allowability or subsistence of the Regents' Patent
Rights or whether Licensee's practice of the Regents' Patent Rights infringes a
third party patent.

         7.4 Licensee shall pay to The Regents a minimum annual royalty of [*]
for the life of Regents' Patent Rights, beginning with the year of the first
commercial sale of Licensed Product, but no later than the fifth-year
anniversary of the Effective Date. For the first year of commercial sales,
Licensee's obligation to pay the minimum annual royalty will be pro-rated for
the number of months remaining in that calendar year when commercial sales
commence and will be due the following March 31, to allow for crediting of the
pro-rated year's earned royalties. For subsequent years, the minimum annual
royalty will be paid to The Regents by March 31 of each year and will be
credited against the earned royalty due for the calendar year in which the
minimum payment was made.

         7.5 Licensee shall have the right to diligently sublicense the
Invention, the Licensed Products and the Licensed Method, including alternate
indications thereof, without restriction. In the case of a sublicense, Licensee
shall pay The Regents either of the following sublicense schedule as determined
by Licensee at its sole discretion:

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         i) [*] of each payment received from the sublicensee for Licensed
Products that are not Value Added Licensed Products and [*] of each payment
received from the sublicensee for Value Added Licensed Products, or
         ii) Royalties on worldwide net sales in the amount set forth in
Sections 7.1.

In either schedule, payment shall be made to The Regents within ninety (90) days
of sublicense payment being received by Licensee, except as provided for in
Sections 3.1, 3.2 and 3.3.

8.       DUE DILIGENCE

         8.1 Licensee, on execution of this Agreement, shall diligently proceed
with the development, manufacture and sale of Licensed Products and shall
earnestly and diligently endeavor to market the same within a reasonable time
after execution of this Agreement and in quantities sufficient to meet market
demands. The Regents expect that the first sale of Licensed Products shall occur
within twelve (12) years of the execution date of this Agreement, or within
eleven (11) years of the payment of the License Issue Fee, whichever is the
sooner, unless the first sale of Licensed Products is delayed by the process of
regulatory approval by federal, state or foreign national agencies.

         8.2 Licensee shall endeavor to obtain all necessary governmental
approvals for the manufacture, use and sale of Licensed Products, or shall
certify to The Regents in writing that none are needed.

         8.3 Licensee shall:

         8.3.1    submit a PMA (or 510(k)) covering Licensed Products to the
                  United States FDA within ten (10) years from the Effective
                  Date of this Agreement.

         8.3.2    market Licensed Products in the United States within one year
                  of receiving approval of the PLA for such Licensed Products
                  from the FDA; and

         8.3.4    reasonably fill the market demand for Licensed Products
                  following commencement of marketing at any time during the
                  exclusive period of this Agreement.

         8.4 If the Licensee is unable to perform any of the above provisions,
then The Regents has the right and option to either terminate this Agreement or
reduce Licensee's exclusive license to a nonexclusive license. This right, if
exercised by The Regents, supersedes the rights granted in Article 2 (GRANT).

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         8.5 In addition to the obligations set forth above, Licensee shall
spend directly or through partners an aggregate of not less than [*] for the
development of Licensed Products during the first [*] years of this Agreement.

9.       PROGRESS AND ROYALTY REPORTS

          9.1 Beginning December 31, 1998 and semi-annually thereafter, Licensee
shall submit to The Regents a progress report covering Licensee's (and any
Affiliate or sublicensee's) activities related to the development and testing of
all Licensed Products and the obtaining of the governmental approvals necessary
for marketing. Progress reports are required for each Licensed Product until the
first commercial sale of that Licensed Product occurs in the United States.

          9.2 Progress reports submitted under section 9.1 should include, but
are not limited to, the following topics related to the Licensed Product and
Licensed Method:

         -        summary of work completed
         -        key scientific discoveries
         -        summary of work in progress
         -        current schedule of anticipated events or milestones
         -        market plans for introduction of Licensed Products, and
         -        a Summary of resources (dollar value) spent in the reporting
                  period.

         9.3 Licensee has a continuing responsibility to keep The Regents
informed of the small business entity status (as defined by the United States
Patent and Trademark Office) of itself and its sublicensees and Affiliates.

         9.4 Licensee shall report to The Regents in its immediately subsequent
progress and royalty report the date of first commercial sale of a Licensed
Product in each country.

         9.5 After the first commercial sale of a Licensed Product anywhere in
the world, Licensee shall make quarterly royalty reports to The Regents on or
before the end of each calendar quarter of each calendar year for the preceding
calendar quarter. Each royalty report will cover Licensee's preceding calendar
quarter and will show (a) the gross sales and Net Annual Sales of Licensed
Products sold during the most recently completed calendar quarter; (b) the
number of each type of Licensed Product sold; (c) the royalties, in U.S.
dollars, payable with respect to sales of Licensed Products; (d) the method used
to calculate the royalty; and (e) the exchange rates used.

         9.6 If no sales of Licensed Products have been made during any
reporting period occurring after the first commercial sale of a Licensed Product
anywhere in the world by Licensee, a statement to this effect is required.

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10.      BOOKS AND RECORDS

         10.1 Licensee shall keep accurate books and records showing all
Licensed Products manufactured, used, and/or sold under the terms of this
Agreement. Books and records must be preserved for at least five (5) years from
the date of the royalty payment to which they pertain.

         10.2 Books and records must be open to inspection by representatives or
agents of The Regents at reasonable times. The Regents shall bear the fees and
expenses of examination but if an error in royalties of more than [*] of the
total royalties due for any year is discovered in any examination then Licensee
shall bear the fees and expenses of that examination.

11.      LIFE OF THE AGREEMENT

         11.1 Unless otherwise terminated by operation of law or by acts of the
parties in accordance with the terms of this Agreement, this Agreement will be
in force from the Effective Date until the last-to-expire patent licensed under
this Agreement; or for twenty (20) years from the date of this Agreement if no
patent issues; or until the last patent application licensed under this
Agreement is abandoned and no patent in Regent's Patent Rights ever issues,
whichever occurs first. By mutual agreement, the Agreement can be extended until
the expiration date of the last-to-expire patent licensed under this Agreement;
or until the last patent application licensed under this Agreement is abandoned
and no patent in Regents' Patent Rights ever issues. Upon expiration of this
Agreement, Licensee shall have a perpetual royalty free license to use Regents'
Patent Rights and Know How to make, have made, use, import and sell Licensed
Products and to practice Licensed Methods.

         11.2 Any termination of this Agreement will not affect the rights and
obligations set forth in the following Articles:

             Article 10  Books and Records
             Article 14  Disposition of Licensed Products on Hand on Termination
             Article 15  Use of Names and Trademarks
             Article 20  Indemnification
             Article 24  Failure to Perform
             Article 29  Secrecy

12.      TERMINATION BY THE REGENTS

         If Licensee fails to perform or violates any material term of this
Agreement, then The Regents may give written notice of default (Notice of
Default) to Licensee. If Licensee fails to repair the default within sixty (60)
days of the effective date of Notice of Default, The Regents may terminate this
Agreement and its licenses by a second written notice (Notice of Termination).
If a Notice of Termination is sent to Licensee, this Agreement will
automatically terminate on the effective date of that notice. Termination will
not relieve Licensee of its

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obligation to pay any fees owing at the time of termination and will not impair
any accrued right of The Regents. These notices are subject to Article 19
(Notices).

13.      TERMINATION BY LICENSEE

         13.1 Licensee has the right at any time to terminate this Agreement in
whole or as to any portion of Regents' Patent Rights by given notice in writing
to The Regents. Notice of termination will be subject to Article 19 (Notices)
and termination of this Agreement will be effective sixty (60) days from the
effective date of notice.

         13.2 Any termination under the above paragraph does not relieve
Licensee of any obligation or liability accrued under this Agreement prior to
termination or rescind any payment made to The Regents or anything done by
Licensee prior to the time termination becomes effective. Termination does not
affect in any manner any rights of The Regents arising under this Agreement
prior to termination.

14.      DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION

15.      USE OF NAMES AND TRADEMARKS

         Nothing contained in this Agreement confers any right use in
advertising, publicity, or other promotional activities any name, trade name,
trademark, or other designation of either party hereto (including contraction,
abbreviation or simulation of any of the foregoing). Unless required by law, the
use by Licensee of the name, "The Regents" or the name of any campus of the
University of California is prohibited.

16.      LIMITED WARRANTY

         16.1 The Regents warrants to Licensee that it has the lawful right to
grant this license.

         16.2 This license and the associated Invention are provided WITHOUT
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER
WARRANTY, EXPRESS OR IMPLIED. THE REGENTS MAKES NO REPRESENTATION OR WARRANTY
THAT THE LICENSED PRODUCTS OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT OR
OTHER PROPRIETARY RIGHT.

         16.3 IN NO EVENT MAY THE REGENTS BE LIABLE FOR ANY INCIDENTAL SPECIAL
OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE USE OF
THE INVENTION OR LICENSED PRODUCTS.

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         16.4 Nothing in this agreement:

         16.4.1   is a warranty or representation by The Regents as to the
                  validity or scope of any Regents' Patent Rights;

         16.4.2   is a warranty or representation that anything made, used, sold
                  or otherwise disposed of under any license granted in this
                  Agreement is or will be free from infringement of patents of
                  third parties;

         16.4.3   is an obligation to bring or prosecute actions or suits
                  against third parties for patent infringement except as
                  provided in Article 19;

         16.4.4   confers by implication, estoppel or otherwise any license or
                  rights under any patents of The Regents other than Regents'
                  Patent Rights as defined in this Agreement, regardless of
                  whether those patents are dominant or subordinate to Regent's
                  Patent Rights; or

         16.4.5   is an obligation to furnish any know-how not provided in
                  Regents' Patent Rights.

17.      PATENT PROSECUTION AND MAINTENANCE

         17.1 As long as Licensee has paid patent costs as provided for in
Paragraph 17.5, The Regents shall diligently endeavor to prosecute and maintain
the United States and foreign patents comprising Regents' Patent Rights using
counsel of its choice selected from those approved by Licensee from the list
approved by The Regents. The Regents agrees to keep Licensee fully informed of
any and all patent prosecution and other actions with respect to Regents' Patent
Rights including sending to Licensee copies of all correspondence with patent
offices and local associates, submitting to Licensee copies of all draft
responses to Office Actions and other substantive filings in sufficient time
prior to filing to provide Licensee with adequate time to review and comment on
such matters; provided, however, that Licensee shall be responsible for any of
its expenses including attorney's fees that Licensee incurs in reviewing and
commenting on the information received from The Regents. The Regents shall
consult with Licensee regarding any material actions concerning the Patent
Rights and shall use all reasonable efforts to take such actions requested by
Licensee. If The Regents decide to abandon or allow to lapse any patent or
patent application within the Patent Rights in any country, The Regents will
inform Licensee in a timely manner and Licensee shall have the right to
prosecute or maintain any such patent or patent application at its expense. The
Regents shall provide Licensee with copies of all relevant documentation so that
Licensee may be informed of the continuing prosecution and Licensee agrees to
keep this documentation confidential. The Regents' counsel will take
instructions only from The Regents, or from Licensee after these instructions
have been approved by The Regents, and all patents and patent applications under
this Agreement will be assigned solely to The Regents.

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         17.2 The Regents shall use all reasonable efforts to amend any patent
application to include claims reasonably requested by Licensee to protect the
products contemplated to be sold under this Agreement.

         17.3 Licensee shall apply for an extension of the term of any patent
related to the species of Fields of Use included within Regents' Patent Rights
if appropriate. Licensee shall prepare all documents, and The Regents agree to
execute the documents and to take additional action as Licensee reasonably
request in connection therewith.

         17.4 If either party receives notice pertaining to infringement or
potential infringement of any issued Licensed patents or plant-specific patent
included within Regents' Patent Rights, that party shall notify the other party
within ten (10) days after receipt of notice of infringement, and the terms of
Section 19 of this agreement shall apply.

         17.5 Licensee shall reimburse The Regents for all the costs of
preparing, filing, prosecuting and maintaining all United States and foreign
patent applications contemplated by this Agreement and requested by Licensee.
Relevant costs billed by The Regents' counsel will be rebilled to Licensee and
are due within 30 days of rebilling by The Regents. These costs include patent
prosecution costs for the Invention incurred by The Regents prior to the
execution of this Agreement and any patent prosecution costs that may be
incurred for patentability opinions, re-examination, re-issue, interferences, or
inventorship determinations. Prior costs relating to the filing of patents
requested by Licensee will be due on execution of this Agreement and billing by
The Regents.

         17.6 The Regents will notify Licensee of any actions with respect to
obtaining patents or other protection on the Invention as it relates to the
Field of Use in foreign countries. Licensee may request The Regents to obtain
patent or other patent protection on the Invention as it relates to the Field of
Use in foreign countries, if available. The Regents shall notify Licensee of any
action required to obtain or maintain foreign patents not less than ninety (90)
days prior to the deadline for any payment, filing, or action to be taken in
connection therewith. This notice concerning foreign filing must be in writing
and must identify the countries desired. The absence of a response by Licensee
to such a notice from The Regents to Licensee within forty five days of such
notice will be considered an election not to obtain or maintain foreign rights.

         17.7 Licensee's obligation to underwrite and to pay patent prosecution
costs will continue for so long as this Agreement remains in effect, but
Licensee may terminate its obligations with respect to any given patent
application or patent upon sixty (60) days written notice to The Regents. The
Regents will use its best efforts to curtail patent costs when a notice of
termination is received from Licensee. The Regents may prosecute and maintain
such application(s) or patent(s) at its sole discretion and expense, but
Licensee will have no further right or licenses thereunder. Non-payment of
patent costs may be deemed by The Regents as an election by Licensee not to
maintain application(s) or patent(s).

                                       13
<PAGE>   17

         17.8 The Regents may, after notification of Licensee, file, prosecute
or maintain patent applications at its own expense in any country in which
Licensee has not elected to have patent applications filed, prosecuted, or
maintained in accordance with this Article, and those applications and resultant
patents will not be subject to this Agreement.

18.      PATENT MARKING

         Licensee shall mark all Licensed Products made, used or sold under the
terms of this Agreement, or their containers, in accordance with the applicable
patent marking laws.

19.      PATENT INFRINGEMENT

         19.1 If Licensee learns of the substantial infringement of any patent
licensed under this Agreement, Licensee shall call The Regents' attention
thereto in writing and provide The Regents with reasonable evidence of
infringement. Neither party will notify a third party of the infringement of any
of Regents' Patent Rights without first obtaining consent of the other party,
which consent will not be unreasonably denied. Both parties shall use their best
efforts, including but not limited to arbitration, in cooperation with each
other to terminate infringement without litigation.

         19.2 Licensee may request that The Regents take legal action against
the infringement of Regents' Patent Rights. Request must be in writing and must
include reasonable evidence of infringement and damages to Licensee. If the
infringing activity has not abated within ninety (90) days following the
effective date of request, The Regents then has the right to:

         19.2.1   commence suit on its own account; or

         19.2.2   refuse to participate in the suit,

and The Regents shall give notice of its election in writing to Licensee by the
end of the one-hundredth (100th) day after receiving notice of written request
from Licensee. Licensee may thereafter bring suit for patent infringement, at
its own expense, if an only if The Regents elects not to commence suit and if
the infringement occurred during the period and in a jurisdiction where Licensee
had exclusive rights under this Agreement. If, however, Licensee elects to bring
suit in accordance with this paragraph, The Regents may thereafter join that
suit at its own expense.

         19.3 Legal action as is decided on will be at the expense or the party
bringing suit and all recoveries recovered thereby will belong to the party
bringing suit, but legal action brought jointly by The Regents and Licensee and
fully participated in by both will be at the joint expense of the parties and
all recoveries will be shared jointly by them in proportion to the share of
expense paid by each party.

                                       14
<PAGE>   18

         19.4 Each party shall cooperate with the other in litigation
proceedings instituted hereunder but at the expense of the party bringing suit.
Litigation will be controlled by the party bringing the suit, except that The
Regents may be represented by counsel of its choice and at its expense in any
suit brought by Licensee.

20.      INDEMNIFICATION

         20.1 Licensee shall indemnify, hold harmless and defend The Regents,
its officers, employees, and agents; the sponsors of the research that led to
the Invention; and the inventors of the parents and patent applications in
Regent's Patent Rights and their employers against any and all claims, suits
losses, damage, costs, fees, and expenses resulting from or arising out of
exercise of this license or any sublicense. This indemnification includes, but
is not limited to, any product liability.

         20.2 Licensee at its sole cost and expense, shall insure its activities
in connection with the work under this Agreement and obtain, keep in force and
maintain insurance as follows, or an equivalent program of self insurance:

         Comprehensive or commercial form general liability insurance
(contractual liability included) with limits as follows:

         -        Each occurrence $1,000,000
         -        Products/Completed Operations Aggregate $5,000,000
         -        Personal and Advertising injury $1,000,000
         -        General Aggregate (commercial form only) $5,000,000

         The coverage and limits referred to under the above do not in any way
limit the liability of Licensee. Licensee shall furnish The Regents with
certificates of insurance showing compliance with all requirements. Certificates
must:

         -        Provide for thirty (30) day advance written notice to The
                  Regents of any modification.
         -        Indicate that The Regents has been endorsed as an additional
                  Insured under the coverage referred to under the above.
         -        Include a provision that the coverage will be primary and will
                  not participate with nor will be excess over any valid and
                  collectable insurance or program of self-insurance carried or
                  maintained by The Regents.

         20.3 The Regents shall notify Licensee in writing of any claim or suit
brought against The Regents in respect of which The Regents intends to invoke
the provisions of this Article. Licensee shall keep The Regents informed on a
current basis of its defense of any claims under this Article.

                                       15
<PAGE>   19

21.      NOTICES

         Any notice or payment required to be given to either party is properly
given and effective (a) on the date of delivery if delivered in person or (b)
five (5) days after mailing if mailed by first-class certified mail, postage
paid, to the respective addresses given below, or to another address as is
designated by written notice given to the party.

In the case of Licensee:

                           Licensee INC.
                           3065 Northwoods Circle
                           Norcross, GA 30071
                           Attention: Dr. Russell Medford, President and CEO

With a copy to:

                           Sherry M. Knowles
                           King & Spalding
                           191 Peachtree Street, N.E.
                           Atlanta, Georgia 30303-1763

In the case of The Regents:

                           THE UNIVERSITY OF CALIFORNIA, SAN DIEGO
                           Technology Transfer Office
                           9500 Gilman Drive
                           La Jolla, California 92093-0910

                           Attention: Director

                           Referring to: [*]

22.      ASSIGNABILITY

         This Agreement may be assigned by The Regents, but is personal to
Licensee and assignable by Licensee only with the written consent of The
Regents, which consent will not be unreasonably withheld.

23.      NO WAIVER

         No Waiver by either party or any default of this Agreement may be
deemed a waiver of any subsequent or similar default.

                                       16
<PAGE>   20

24.      FAILURE TO PERFORM

         If either party finds it necessary to undertake legal action against
the other on account of failure of performance due under this Agreement, then
the prevailing party is entitled to reasonable attorney's fees in addition to
costs and necessary disbursements.

25.      GOVERNING LAWS

         THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, UNITED STATES
OF AMERICA, WITH JURISDICTION IN COURTS OF THE STATE OF CALIFORNIA, but
the scope and validity of any patent or patent application will be governed by
the applicable laws of the country of the patent or patent application.

26.      PREFERENCE FOR UNITED STATES INDUSTRY

         Because this Agreement grants the exclusive right to use or sell the
Invention in the United States, Licensee agrees that any products sold in the
U.S. embodying this Invention or produced through the use thereof will be
manufactured substantially in the United States.

27.      GOVERNMENT APPROVAL OR REGISTRATION

         If this Agreement or any associated transaction is required by law of
any nation to be either approved or registered with any governmental agency,
Licensee shall assume all legal obligations to do so.

28.      EXPORT CONTROL LAW

         Licensee shall observe all applicable United States and foreign laws
with respect to the transfer of Licensed Products and related technical data to
foreign countries, including, without limitation, the International Traffic in
Arms Regulations (ITAR) and the Export Administration Regulations. This may
include a requirement that Licensee manufacture in the United States Licensed
Products that are to be sold in the United States.

29.      SECRECY

         29.1 With regard to confidential information ("Data"), with can be oral
or written or both, received from The Regents regarding this Invention, Licensee
agrees:

         29.1.1   not to use the Data except for the sole purpose of performing
                  under the terms of this Agreement;

                                       17

<PAGE>   21

         29.1.2   to safeguard Data against disclosure to others with the same
                  degree of care as it exercises with its own data of a similar
                  nature;

         29.1.3   not to disclose Data to others (except to its employees,
                  agents or consultants who are bound to Licensee by a like
                  obligation of confidentiality) without the express written
                  permission of The Regents, except that Licensee is not
                  prevented from using or disclosing any of the Data that:

                  29.1.3.1 Licensee can demonstrate by written records was
                           previously known to it;

                  29.1.3.2 is now, or becomes in the future, public knowledge
                           other than through acts or omissions of Licensee; or

                  29.1.3.3 is lawfully obtained by Licensee from sources
                           independent of The Regents; and

         29.1.4   that the secrecy obligations of Licensee with respect to Data
                  will continue for a period ending five (5) years from the
                  termination date of this Agreement.

         29.2 With regard to biological material received by Licensee from The
Regents, if any, including any cell lines, vectors, genetic material,
derivatives, products, progeny or material derived therefrom ("Biological
Material"), Licensee agrees:

         29.2.1   not to use Biological Material except for the sole purpose of
                  performing under the terms of this Agreement;

         29.2.2.  not to transfer Biological Material to others (except to its
                  employees, agents or consultants who are bound to Licensee by
                  like obligations conditioning and restricting access, use and
                  continued use of Biological Material) without the express
                  written permission of The Regents, except that Licensee is not
                  prevented from transferring Biological Material that:

                  29.2.2.1 becomes publicly available other than through acts or
                           omissions of Licensee, or

                  29.2.2.2 is lawfully obtained by Licensee from sources
                           independent of The Regents;

         29.2.3   to safeguard Biological Material against disclosure and
                  transmission to others with the same degree of care as it
                  exercises with its own biological materials of a similar
                  nature;

         29.2.4   to destroy all copies of Biological Material at the
                  termination of this Agreement.

                                       18
<PAGE>   22

30.      MISCELLANEOUS

         30.1 The headings of the several sections are inserted for convenience
of reference only and are not intended to be a part of or to affect the meaning
or interpretation of this Agreement.

         30.2 This Agreement is not binding on the parties until it has been
signed below on behalf of each party. It is then effective as of the Effective
Date.

         30.3 No amendment or modification of this Agreement is valid or binding
on the parties unless made in writing and signed on behalf of each party.

         30.4 This Agreement embodies the entire understanding of the parties
and supersedes all previous communications, representations or understandings,
either oral or written, between the parties relating to the subject matter
hereof. The Secrecy Agreement between The Regents and Licensee dated June 27,
1997 is hereby terminated.

         30.5 In case of any of the provisions contained in this Agreement is
held to be invalid, illegal, or unenforceable in any respect, that invalidity,
illegality or unenforceability will not affect any other provisions of this
Agreement and this Agreement will be construed as if the invalid, illegal, or
unenforceable provisions had never been contained in it.

         IN WITNESS WHEREOF, both The Regents and Licensee have executed this
Agreement, in duplicate originals, by their respective and duly authorized
officers on the day and year written.

ATHEROGENICS, INC.                       THE REGENTS OF THE UNIVERSITY
                                         OF CALIFORNIA

By: Russell M. Meford                    By: Alan Paau
  ------------------------------            ------------------------------
           (Signature)                            (Signature) 2/21/98

Name: Russell M. Medford MD PhD          Name: Alan Paau, Ph.D
     ---------------------------              ------------------------------
          (Please Print)

Title: President and CEO                 Title: Director, Technology Transfer
      ------------------------------           ------------------------------

                                       19<PAGE>   1

                                                                    Exhibit 10.1

                                    AGREEMENT

THIS AGREEMENT is made and entered into, effective as of January 1, 2000,
between Office Depot, Inc., a Delaware corporation (the "COMPANY"), and Bruce
Nelson ("EXECUTIVE").

                                    RECITALS

A.   The Company and Executive are parties to certain existing agreements
     pertaining to Executive's employment, non-competition, change-in-control
     and other matters (collectively the "Former Agreements"), including certain
     agreements between the Company's predecessor company, Viking Office
     Products, Inc. ("Viking") and Executive, to which the Company succeeded at
     the time of the Company's merger with Viking;
B.   The Company and Executive desire to supersede and replace the Former
     Agreements with this Agreement, so that the terms and provisions of this
     Agreement set forth the complete statement of the relationships between the
     parties;
C.   The parties enter into this Agreement in consideration of the various
     promises, undertakings and understandings between them, as set forth below.

Now therefore, in consideration of the foregoing recitals, which are
incorporated by reference herein, and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

1.       EMPLOYMENT

The Company shall continue to employ Executive, and Executive hereby accepts
such continued employment with the Company, for the positions and duties, and
upon the further terms and conditions set forth in this Agreement, for the
period beginning on the date hereof and ending as provided in section 4 hereof
(the "Employment Term").:

2. POSITIONS AND DUTIES (a) POSITIONS. During the Employment Term, Executive
shall serve as the President, International of the Company, reporting directly
to the Company's Chief Executive Officer ("CEO"), and he shall have all the
normal duties, responsibilities and authority of the President of the Company's
international operations. Executive also shall serve as CEO and President of
Viking Office Products, Inc., reporting directly to the CEO, and shall have the

                                       1
<PAGE>   2

normal duties, responsibilities and authority of an Executive Officer of the
Company, subject to the power of the Company's CEO to expand or limit such
duties, responsibilities and authority; provided, however, that any such
expanded or limited duties, responsibilities and authority are consistent with
normal duties, responsibilities and authority of an executive officer in such
positions.

         (b) DEDICATION TO DUTIES; OTHER ACTIVITIES. Executive shall devote his
best efforts and full business time and attention (except for permitted vacation
periods and reasonable periods of illness or other incapacity) to the business
and affairs of the Company and its Subsidiaries; PROVIDED THAT Executive shall,
with the prior approval of the CEO, be allowed to serve as (i) a director or
officer of any non-profit organization including trade, civic, educational or
charitable organizations, or (ii) a director of any corporation which is not
competing with the Company or any of its Subsidiaries in the office product and
office supply industry so long as such duties do not materially interfere with
the performance of Executive's duties or responsibilities under this Agreement.
Executive shall perform Executive's duties and responsibilities under this
Agreement to the best of Executive's abilities in a diligent, trustworthy,
businesslike and efficient manner.

         (c) SUBSIDIARIES. For purposes of this Agreement, "SUBSIDIARIES" shall
mean any corporation of which the securities having a majority of the voting
power in electing directors are, at the time of determination, owned by the
Company, directly or through one or more Subsidiaries.

3.       BASE SALARY AND BENEFITS

(a) INITIAL BASE SALARY; ADJUSTMENTS. Initially, Executive's base salary shall
be $900,000 per annum (the "BASE SALARY"), which Base Salary shall be payable in
regular installments in accordance with the Company's general payroll practices
and shall be subject to customary withholding. Executive's Base Salary shall be
reviewed at least annually by the CEO and the Board of Directors and its
Compensation Committee and shall be subject to adjustment, but not reduction, as
the CEO, the Compensation Committee and the Board shall determine, based on
among other things, market practice and performance.

(b)  INCENTIVE & OTHER PLANS. In addition to the Base Salary, during the
     Employment Term, Executive shall be entitled to participate in the
     Company's long term incentive programs

                                       2
<PAGE>   3

     established currently or in the future by the Company, for which officers
     of the Company then at Executive's level are generally eligible (including,
     but not limited to, stock option, restricted stock, performance unit/share
     plans or long-term cash plans or other long-term incentive plans);
     provided, however, that Executive shall be entitled to receive total
     incentive benefits that are comparable to the incentive benefits provided
     to other executive officers at his level in the Company, as determined by
     the Compensation Committee of the Board, in its discretion.

         (c) BONUS PLAN. In addition to the Base Salary, Executive shall be
entitled to participate in the Company's Designated Executive Incentive Plan
(the "Bonus Plan") as administered by the Compensation Committee of the Board.
If the Compensation Committee (or the Company's Board of Directors (the
"Board")) modifies such Bonus Plan during the Employment Term, Executive shall
continue to participate at a level no lower than the highest established for any
officer of the Company then at Executive's level. In any event, Executive's
opportunity to earn total compensation, consisting of Base Salary and regular
bonus under the Bonus Plan (but not the matching bonus program, which expires
for Executive at the end of the year 2000), shall not be less than such total
compensation opportunity during the year 2000.

         (d) VACATIONS. Executive shall be entitled to paid vacation in
accordance with the Company's general payroll practices for officers of the
Company then at Executive's level, but in no event less than four (4) weeks per
year.

         (e) EXPENSE REIMBURSEMENTS. The Company shall reimburse Executive for
all reasonable expenses incurred by Executive in the course of performing
Executive's duties under this Agreement which are consistent with the Company's
policies in effect from time to time with respect to travel, entertainment and
other business expenses, subject to the Company's requirements with respect to
reporting and documentation of such expenses.

         (f) OTHER BENEFITS. Executive will be entitled to all other benefits
currently or in the future maintained for officers of the Company then at
Executive's level, including without limitation: medical and dental insurance,
life insurance (including split-dollar insurance) and short-term and long-term
disability insurance, supplemental health and life insurance (collectively
"Insurance Benefits"), profit sharing and retirement benefits.

                                       3
<PAGE>   4

4. TERM; RENEWALS. Subject to earlier termination pursuant to section 5 below,
the Employment Term shall end on December 31, 2004, and shall continue
automatically thereafter from year to year on an "evergreen" basis, unless and
until either the Company or Executive shall provide written notice to the other,
not less than six (6) months prior to the end of the then-current Term that this
Agreement shall not be continued.

5.       TERMINATION DUE TO DEATH, DISABILITY, INCAPACITY. The Employment Term
         also shall terminate prior to the date set forth in section 4 above:

         (a) upon Executive's death or permanent disability or incapacity (as
         determined by the Board in its good faith judgment);
         (b) upon the mutual agreement of the Company and Executive;
         (c) by the Company's termination of this Agreement for Cause (as
         defined below) or without Cause; or
         (d) by Executive's termination of this Agreement for Good Reason (as
         defined below) or without Good Reason.

6. TERMINATION OF THE EMPLOYMENT WITHOUT CAUSE; FOR GOOD REASON. If the
Employment Term is terminated by the Company without Cause or is terminated by
Executive for Good Reason, Executive (and Executive's family with respect to
clause (iii) below) shall be entitled to receive the following:

         (i)      An amount equal to the sum of (A) Executive's Base Salary
                  which would be payable through the second anniversary of such
                  termination and (B) Executive's Pro Rata Bonus, if and only if
                  Executive has not breached the provisions of section 13, 14
                  and 15 hereof,

         (ii)     vested and earned (in accordance with the Company's applicable
                  plan or program) but unpaid amounts under incentive plans,
                  health and welfare plans, deferred compensation plans, and
                  other employer programs of the Company which Executive
                  participates (other than the Pro Rata Bonus) and

                                       4
<PAGE>   5

         (iii)    Insurance Benefits through the second anniversary of such
                  termination pursuant to the Company's insurance programs to
                  the extent Executive participated immediately prior to the
                  date of such termination; PROVIDED THAT the insurance to which
                  Executive or Executive's family is entitled pursuant to this
                  clause (iii) shall be reduced by the amount of any such
                  insurance Executive or Executive's family is entitled to
                  receive as a result of any other employment.

         (iv)     All grants and awards, including stock options and restricted
                  stock shall continue to vest through the second anniversary of
                  such termination All stock options shall remain exercisable
                  through and including the ninetieth (90th) day following the
                  second anniversary of such termination (but not later than the
                  expiration of the original term of the option). Any long-term
                  incentive plan amount that has been earned but that is not yet
                  fully vested, shall become fully vested not later than the
                  second anniversary of such termination; and

         (v)      The amount payable pursuant to section 6(i) shall be payable
                  as follows: (a) $100,000 in the form of salary continuation of
                  $50,000 per annum and (b) the balance in one lump sum payment
                  within 30 days following termination of the Employment Term,
                  and the amounts payable pursuant to section 6 (ii) shall be
                  paid in accordance with the particular plan or program.

7. TERMINATION FOR CAUSE; WITHOUT GOOD REASON. If the Employment Term is
terminated by the Company for Cause or by Executive without Good Reason,
Executive shall be entitled to receive only the following: (i) Executive's Base
Salary through the date of such termination and (ii) vested and earned (in
accordance with the Company's applicable plan or program) but unpaid amounts
under incentive plans, health and welfare plans, deferred compensation plans,
and other employer programs of the Company which Executive participates;
provided, however, Executive shall not be entitled to payment of any Pro Rata
Bonus.

8. CONSEQUENCES OF TERMINATION FOR DEATH, DISABILITY OR INCAPACITY. If the
Employment Term is terminated upon Executive's death or permanent disability or
incapacity (as determined by the Board in its good faith judgment), Executive,
or Executive's estate if applicable, shall be entitled to receive the sum of (i)
Executive's Base Salary through the date of such termination

                                       5
<PAGE>   6

and (ii) vested and earned (in accordance with the Company's applicable plan or
program) but unpaid amounts under incentive plans, health and welfare plans,
deferred compensation plans, and other employer programs of the Company which
Executive participates. The amount payable pursuant to this section 4(d) shall
be payable, at the Company's discretion, in one lump sum payment within 30 days
following termination of the Employment Term or in any other manner consistent
with the Company's normal payment policies.

9. EFFECT OF TERMINATION ON FRINGE BENEFITS. Except as otherwise provided
herein, fringe benefits and bonuses hereunder (if any) which accrue or become
payable after the termination of the Employment Term shall cease upon such
termination.

10.      CERTAIN DEFINITIONS.

         (a) For purposes of the Agreement, Agreement, "CAUSE" shall mean:

                  (i) the willful and continued failure of Executive to perform
         substantially 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 Executive by the Board or the CEO which
         specifically identifies the manner in which the Board or the CEO
         believes that Executive has not substantially performed Executive's
         Duties, or

                  (ii) the willful engaging by Executive in illegal conduct or
         gross misconduct which is materially and demonstrably injurious to the
         Company.

         For purposes of this Subsection 10(a), no act or failure to act, on
         the part of Executive, shall be considered "willful" unless it is done,
         or omitted to be done, by Executive in bad faith or without reasonable
         belief that Executive's action or omission was in the best interest of
         the Company. Any act, or failure to act, based upon authority given
         pursuant to a resolution duly adopted by the Board or upon the
         instructions of the CEO or based upon the advice of counsel for the
         Company shall be conclusively presumed to be done, or omitted to be
         done, by Executive in good faith and in the best interest of the
         Company. The cessation of employment of Executive shall not be deemed
         to be for Cause unless

                                       6
<PAGE>   7

         and until there shall have been delivered to Executive a copy of a
         resolution duly adopted by the affirmative vote of not less than three
         quarters of the entire membership of the Board at a meeting of the
         Board called and held for such purpose (after reasonable notice is
         provided to Executive and Executive is given an opportunity, together
         with counsel, to be heard before the Board), finding that, in the good
         faith opinion of the Board, Executive is guilty of the conduct
         described in subparagraph (i)or (ii) above, and specifying the
         particulars thereof in detail.

         (b) For purposes of this Agreement, "GOOD REASON" shall mean (i) a
         material breach by the Company of a material provision of this
         Agreement which has not been cured by the Company within thirty (30)
         days after written notice of noncompliance has been given by Executive
         to the Company or (ii) the delivery by the Company of a notice of
         non-continuation pursuant to section 4 of this Agreement or
         non-continuation of the Change in Control Agreement attached hereto as
         Schedule 3, pursuant to section 1(b) thereof..

(c)      For purposes of the Agreement, "PRO RATA BONUS" shall mean the sum of
         (i) the pro rata portion (calculated as if the "target" amount under
         such plan has been reached) under any current annual incentive plan
         from the beginning of the year of termination through the date of
         termination and (ii) if and to the extent Executive is vested under any
         long-term incentive plan that provides for such pro-rata vesting, the
         pro rata portion (calculated as if the "target" amount under such plan
         has been reached) under any such long-term incentive plan or
         performance plan from the beginning of the period of determination
         through the date of termination.

         (d) For purposes of this Agreement, the term "DATE OF TERMINATION"
         shall mean thirty (30) days following written notice by one party to
         the other, as notices are prescribed to be provided in the Agreement,
         of a termination of Executive's Employment under the Agreement, and
         specifying the reason(s) therefor; provided, however that if
         Executive's employment is terminated by reason of death or disability,
         the Date of Termination shall be the date of death of Executive or the
         date on which Executive is determined to be disabled.

                                       7
<PAGE>   8

11. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY; GROSS-UP PROVISIONS. (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 Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement,
any schedule to this Agreement, or otherwise, but determined without regard to
any additional payments required under this Section 11) (a "Payment") would be
subject to the excise tax imposed by Section 4999 of the Code or any interest or
penalties are incurred by 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 Executive shall be entitled to receive an
additional payment (a "Gross-Up Payment") in an amount such that after payment
by 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, 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 11, if it shall be determined that Executive is
entitled to a Gross-Up Payment, but that 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 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
Executive and the Payments, in the aggregate, shall be reduced to the Reduced
Amount.

                  (b) Subject to the provisions of Section 11(c), all
determinations required to be made under this Section 11, 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 Executive (the "Accounting Firm") which shall provide detailed
supporting calculations both to the Company and Executive within 15 business
days of the receipt of notice from 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 a change in control or "CIC" as defined in

                                       8
<PAGE>   9

Schedule 3 to this Agreement, Executive 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.
Any Gross-Up Payment, as determined pursuant to this Section 11(b), shall be
paid by the Company to 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 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 11(c) and 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
Executive.

                  (c) 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 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. 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 Executive in writing prior to the expiration of such period
that it desires to contest such claim, 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,

                                       9
<PAGE>   10

                           (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 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 11, 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 Executive to pay the tax
claimed and sue for a refund or to contest the claim in any permissible manner,
and 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 Executive to pay such claim and sue for a refund, the Company
shall advance the amount of such payment to Executive, on an interest-free basis
and shall indemnify and hold 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 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 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 Executive of an amount advanced
by the Company pursuant to Section 11(c) above, Executive becomes entitled to
receive any refund with respect

                                       10
<PAGE>   11

to such claim, Executive shall (subject to the Company's complying with the
requirements of Section 11(c) above) 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 Executive of an amount advanced by
the Company pursuant to Section 11(c), a determination is made that Executive
shall not be entitled to any refund with respect to such claim and the Company
does not notify 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.

12. NOTICE OF TERMINATION; HOW GIVEN. Any termination by the Company for Cause
or by Executive for Good Reason, shall be communicated by Notice of Termination
to the other party hereto given in accordance with Section 18 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 Executive's
employment under the provision so indicated and (iii) if the Date of Termination
(as defined in Section 10(d)_ 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 Executive or the Company
to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
Executive or the Company, respectively, hereunder or preclude Executive or the
Company, respectively, from asserting such fact or circumstance in enforcing
Executive's or the Company's rights hereunder.

13. CONFIDENTIAL INFORMATION. Executive acknowledges that the information,
observations and data obtained by Executive while employed by the Company and
its Subsidiaries concerning the business or affairs of the Company or any other
Subsidiary ("CONFIDENTIAL INFORMATION") are the property of the Company.
Therefore, Executive agrees that Executive shall not disclose to any
unauthorized person or use for Executive's own purposes any Confidential
Information without the prior written consent of the Board or the CEO, unless
and to the extent that the aforementioned matters become generally known to and
available for use by the public other than as a result of Executive's acts or
omissions. Executive shall deliver to the

                                       11
<PAGE>   12

Company at termination of the Employment Term, or at any other time the Company
may request, all memoranda, notes, plans, record, reports, computer tapes,
printouts and software and other documents and data (and copies therein) in any
form or medium relating to the Confidential Information, Work Product (as
defined below) of the business of the Company or any Subsidiary that Executive
may then possess or have under Executive's control.

14. WORK PRODUCT. Executive acknowledges that all inventions, innovations,
improvements, development, methods, designs, analyses, drawings, reports and all
similar or related information (whether or not patentable) that relate to the
Company's or any of its Subsidiaries' actual or anticipated business, research
and development or existing or future products or services and that are
conceived, developed or made by Executive while employed by the Company and its
Subsidiaries ("WORK PRODUCT") belong to the Company. Executive shall promptly
disclose such Work Product to the Board or the CEO and perform all actions
reasonably requested by the Board or the CEO (whether during or after the
Employment Term) to establish and confirm such ownership (including, without
limitation, assignments, consents, powers of attorney and other instruments).

15. NON-COMPETE, NON-SOLICITATION. In consideration of this Agreement, Executive
and the Company are entering into the "NON-COMPETITION, NON-SOLICITATION AND
NO-HIRE AGREEMENT," attached hereto as SCHEDULE 2 and incorporated by reference
herein.

16. EXECUTIVE'S REPRESENTATIONS. Executive hereby represents and warrants to the
Company that (i) the execution, delivery and performance of this Agreement by
Executive do not and shall not conflict with, breach, violate or cause a default
under any contract, agreement, instrument, order, judgment or decree to which
Executive is a party or by which Executive is bound, (ii) Executive is not a
party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall be
the valid and binding obligation of Executive, enforceable in accordance with
its terms. Executive hereby acknowledges and represents that Executive has had
an opportunity to consult with independent legal counsel regarding Executive's
rights and obligations under this Agreement and that Executive fully understands
the terms and conditions contained herein.

                                       12
<PAGE>   13

17. SURVIVAL. Sections 5, 6 and 7 and sections 9 through 24 shall survive and
continue in full force in accordance with their terms notwithstanding any
termination of the Employment Term.

18. NOTICES. Any notice provided for in this Agreement shall be in writing and
shall be either personally delivered, or mailed by first class mail, return
receipt requested, to the recipient at the address below indicated:

                  NOTICE TO EXECUTIVE:
                  NAME:          BRUCE NELSON
                  ADDRESS:       7905 TRIESTE PLACE
                                 DELRAY BEACH, FL 33446

                  NOTICE TO THE COMPANY:
                  OFFICE DEPOT, INC.
                  2200 GERMANTOWN ROAD
                  DELRAY BEACH, FLORIDA  33445
                  ATTENTION:  CHIEF FINANCIAL OFFICER

                  AND

                  OFFICE DEPOT, INC.
                  2200 GERMANTOWN ROAD
                  DELRAY BEACH, FLORIDA  33445
                  ATTENTION:  EXECUTIVE VICE PRESIDENT - HUMAN RESOURCES

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement shall be deemed to have been given when so delivered
or mailed.

19.      MISCELLANEOUS PROVISIONS.

         (a)      SEVERABILITY. Whenever possible, each provision of this
                  Agreement shall be interpreted in such manner as to be
                  effective and valid under applicable law, but if any provision
                  of this Agreement is held to be invalid, illegal or
                  unenforceable in any respect under any applicable law or rule
                  in any jurisdiction, such invalidity, illegality or
                  unenforceability shall not effect any other provision or any
                  other jurisdiction, but this Agreement shall be reformed,
                  construed and enforced in such jurisdiction as if such
                  invalid, illegal or unenforceable provision had never been
                  contained herein.

                                       13
<PAGE>   14

         (B)      COMPLETE AGREEMENT. This Agreement and those documents
                  expressly referred to herein and the Schedules attached to
                  this Agreement embody the complete agreement and understanding
                  among the parties and supersede and preempt any prior
                  understandings, agreements or representations by or among the
                  parties, written or oral, which may have related to the
                  subject matter hereof in any way. Anything in this Agreement
                  to the contrary notwithstanding, the agreement between
                  Executive and Viking relating to Viking's ownership interest
                  in Executive's California residential real estate (the
                  "Residence Agreement"), a copy of which is attached hereto,
                  shall remain in full force and effect.

         (C)      NO STRICT CONSTRUCTION; NO WAIVER. The language used in this
                  Agreement shall be deemed to be the language chosen by the
                  parties hereto to express their mutual intent, and no rule of
                  strict construction shall be applied against any party.
                  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 Executive or the Company may have
                  hereunder, including, without limitations the right of
                  Executive to terminate employment for Good Reason pursuant to
                  this Agreement or any Schedule to this Agreement, shall not be
                  deemed to be a waiver of such provision or right or any other
                  provision or right of this Agreement.

         (D)      COUNTERPARTS. This Agreement may be executed in separate
                  counterparts, each of which is deemed to be an original and
                  all of which taken together constitute one and the same
                  agreement.

         (E)      SUCCESSORS AND ASSIGNS. This Agreement is intended to bind and
                  inure to the benefit of and be enforceable by Executive, the
                  Company and their respective heirs, successors and assigns,
                  except that Executive may not assign Executive's rights or
                  delegate Executive's obligations hereunder without the prior
                  written consent of the Company. This Agreement is personal to
                  Executive and without the prior written consent of the Company
                  shall not be assignable by Executive otherwise than by will or
                  the laws of descent and distribution. This Agreement shall
                  inure to the benefit of and be enforceable by Executive's
                  legal representatives. This Agreement shall inure to the
                  benefit of and be binding upon the Company and its successors
                  and assigns. 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

                                       14
<PAGE>   15

                  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.

         (F)      CHOICE OF LAW. All issues and questions concerning the
                  construction, validity, enforcement and interpretation of this
                  Agreement and the exhibits and schedules hereto shall be
                  governed by, and construed in accordance with, the laws of the
                  State of Florida, without giving effect to any choice of law
                  or conflict of law rules or provisions (whether of the State
                  of Florida or any other jurisdiction) that would cause the
                  application of the laws of any jurisdiction other than the
                  State of Florida.

         (G)      AMENDMENT AND WAIVER. The provisions of this Agreement may be
                  amended or waived only with the prior written consent of the
                  Company and Executive, and no course of conduct or failure or
                  delay in enforcing the provisions of this Agreement shall
                  affect the validity, binding effect or enforceability of this
                  Agreement.

20. NO SET-OFF OR MITIGATION. 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
Executive or others. In no event shall Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to Executive under any of the provisions of this Agreement, and such amounts
shall not be reduced whether or not Executive obtains other employment.

21. PAYMENT OF CERTAIN EXPENSES. If, and to the extent, Executive is successful
in any action against the Company to enforce any of his rights under this
Agreement, the Company shall reimburse Executive for his reasonable attorneys'
fees and expenses incurred in pursuing such action.

22. ARBITRATION. Except as to any controversy or claim which Executive elects by
written notice to the Company, to have adjudicated by a court of competent
jurisdiction, any dispute or controversy between the Company and Executive
arising out of or relating to this Agreement or the breach of this Agreement
shall be settled by arbitration administered by the American

                                       15
<PAGE>   16

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

23. WITHHOLDING. 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.

24. SCHEDULES. The Schedules attached hereto are incorporated by reference
herein and made a part hereof. The following Schedules are attached:

         (1       Retention Agreement
         (2       Agreement of Non-Competition, Non-Solicitation, and No-Hire
         (3       Change in Control Agreement

                                     * * * *

                                       16
<PAGE>   17

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the 7th
day of June, 2000, and effective as of the date first written above.

                                       OFFICE DEPOT, INC.

                                       By
                                         -----------------------------
                                       NAME: THOMAS KROEGER
                                       ITS:  EXECUTIVE VICE PRESIDENT
                                             HUMAN RESOURCES

                                       EXECUTIVE

                                       -----------------------------
                                       NAME:  BRUCE NELSON

                                       17
<PAGE>   18

                                   SCHEDULE 1

                               RETENTION AGREEMENT

This Retention Agreement ("Agreement") is entered into by Executive and the
Company, contemporaneously with the Employment Agreement to which this Agreement
is attached as Schedule 1.

A.   Under the terms of the Employment Agreement, the Company is employing
     Executive. In addition to the provisions thereof, the Company wishes to
     enter into this Agreement to provide further assurance that Executive will
     remain with the Company and provide to it his experience and expertise in
     the areas of domestic catalog marketing and in international business.

B.   The terms of this Agreement are provided for the purpose of further
     inducing Executive to remain with the Company, and Executive is ready and
     willing to enter into this Agreement.

Now therefore, in consideration of the foregoing Recitals, which are
incorporated by this reference and other good and valuable consideration, the
parties hereby agree as follows:

1.   RETENTION PAYMENTS TO EXECUTIVE. The Company hereby agrees to make the
     following payments to Executive and to grant the stock options referred to
     in Section 2 hereof:

     Contemporaneously herewith and to ensure the retention of Executive through
     at least the end of December 2002, the sum of Three Million, Eight Hundred
     Thousand Dollars ($3,800,000) is being deposited into a deferred
     compensation account with Merrill Lynch for the benefit of Executive, to be
     invested as directed by Executive in accordance with the terms and
     conditions of the Merrill Lynch deferred compensation agreement with the
     Company. This amount (the "Deferred Payment"), together with any and all
     income and appreciation on the Deferred Payment while in the deferred
     compensation account and unvested, shall vest 100% on December 31, 2002,
     provided that Executive remains an employee of the Company through and
     including December 31, 2002. It is further agreed, however, that the
     Deferred Payment shall also vest 100% upon the occurrence of any of the
     following events PRIOR to December 31, 2002:

                                       18
<PAGE>   19

         (i)      There is a change in control of the Company, as set forth in
                  the Change in Control Agreement attached to the Main Agreement
                  (defined below) as SCHEDULE 3.

         (ii)     Executive dies, becomes disabled or incapacitated as set forth
                  in the Agreement to which this Schedule is attached (the "Main
                  Agreement").

         (iii)    Executive's employment is terminated by the Company without
                  Cause or is terminated by Executive for Good Reason, as
                  defined and set forth in the Main Agreement; provided, however
                  that for purposes of this Schedule 1 only, and only for the
                  benefits provided in this Schedule 1, "Good Reason" shall also
                  be deemed to exist in the event that the Company shall notify
                  Executive, announce or take any other action, at any time, to
                  the effect that Executive is not, and will not be, a candidate
                  to succeed David I. Fuente as the CEO of the Company.

     The vested Deferred Payment, together with any income and appreciation,
     shall be payable to Executive (or Executive's beneficiaries) in accordance
     with the provisions of the Merrill Lynch deferred compensation agreement
     with the Company and Executive, and Executive's (or such beneficiaries')
     election thereunder.

2.   GRANT OF STOCK OPTIONS. As consideration for the cancellation of the Prior
     Agreements, the Company has granted to Executive on June 6, 2000, certain
     options to acquire stock in the Company (which option shall be evidenced by
     the option agreement attached to this Schedule 1) as follows:

     a)   A ten-year option (the "Retention Option") to acquire up to 400,000
          shares of the Company's stock. Such Retention Option shall provide,
          among other provisions, that it shall remain exercisable through and
          including 90 days following the second anniversary of any termination
          of Executive by the Company without Cause, or any termination by
          Executive with Good Reason, as such terms are defined in the Main
          Agreement and in Section 1(iii) of this Schedule 1.

                                       19
<PAGE>   20

     b)   The Retention Option shall vest in full (100%) on December 31, 2002;
          provided that Executive remains continuously employed by the Company
          on such date.

     c)   The Retention Option shall have an early vesting provision, which
          provides that the Retention Option shall vest in full (100%) upon the
          occurrence of any of the events set forth in Section 1 (i) through
          (iii) above and, in the case of Section 1(i) above, shall have an
          exercise period through the balance of the full ten-year term of the
          Retention Option.

3.   INCORPORATION FROM EMPLOYMENT AGREEMENT. The following provisions from the
     Employment Agreement are incorporated herein by reference: 11 through 23.

In testimony whereof, this SCHEDULE 1 is separately signed by the parties this
7th day of June, 2000.

EXECUTIVE                                      OFFICE DEPOT, INC.

                                               By
------------------------------                    ------------------------------
M. BRUCE NELSON                                Name:  THOMAS KROEGER
                                               Title: EXECUTIVE VICE PRESIDENT
                                                      HUMAN RESOURCES

                                       20
<PAGE>   21

                                   SCHEDULE 2

           AGREEMENT OF NON-COMPETITION, NON-SOLICITATION AND NO-HIRE

This Agreement of Non-Competition, Non-Solicitation and No-Hire (this
"Noncompete Agreement") is made and entered into this 7th day of June, 2000 by
and between Office Depot, Inc., a Delaware corporation (the "Company") and M.
Bruce Nelson (the "Executive").

                                    RECITALS

A.   The Company and Executive are on this date entering into certain agreements
     pertaining to the continued employment of Executive by the Company; and
B.   Executive acknowledges that he is being employed as a very senior executive
     officer of the Company and as such is fully familiar with the most
     sensitive, confidential and proprietary information of the Company
     ("Confidential Information"); and
C.   Executive has been requested by the Company to enter into this Noncompete
     Agreement as a condition to the Company's being willing to enter into the
     other Agreements being entered into contemporaneously herewith; and
D.   The parties are willing to abide by the terms and provisions of this
     Noncompete Agreement;

                                    AGREEMENT

NOW THEREFORE, in consideration of the foregoing recitals, which are
incorporated by reference and made a part hereof, the payment to Executive
referred to in Section 1 below, and other good and valuable consideration, the
parties hereby agree as follows:

1.   PAYMENT TO EXECUTIVE; AGREEMENT OF NON-COMPETITION. For and in
     consideration of the payment to Executive in one lump sum, in cash, on the
     date hereof of the sum of One Million Five Hundred Thousand Dollars
     ($1,500,000), receipt and sufficiency of which are hereby acknowledged,
     Executive acknowledges that in the course of Executive's employment with
     the Company Executive shall become familiar with the Company's trade
     secrets and with other Confidential Information concerning the Company and
     its Subsidiaries and that Executive's services shall be of special, unique
     and extraordinary value to the Company and its Subsidiaries. Therefore, and
     in consideration of the payment(s) being made to Executive hereunder,
     Executive agrees that, during the Employment Term and for a period of one
     year thereafter, unless

                                       21
<PAGE>   22

     Executive is named CEO of the Company, in which event, the Non-Compete
     Period is for three years after leaving the Company instead of one year,.
     (in either such event, as used herein, the "NONCOMPETE PERIOD"), Executive
     shall not directly or indirectly own any interest in, manage, control,
     participate in, consult with, render services for, or in any manner engage
     in any business competing with the businesses of the Company or its
     Subsidiaries, as such businesses exist or are in process on the date of the
     termination of Executive's employment with the Company, within any
     geographical area in which the Company or its Subsidiaries engage in such
     businesses on the date of termination of Executive's employment with the
     Company. Nothing herein shall prohibit Executive from being a passive owner
     of not more than 2% of the outstanding stock of any class of a corporation
     which is publicly traded, so long as Executive has no active participation
     in the business of such corporation.

2.   NON-SOLICITATION; NO-HIRE; NON-INTERFERENCE. During the Noncompete Period,
     Executive shall not directly, or indirectly through another entity, (i)
     induce or attempt to induce any employee of the Company or any Subsidiary
     to leave the employ of the Company or such Subsidiary, or in any way
     interfere with the relationship between the Company or any Subsidiary and
     any employee thereof, (ii) hire any person who was an employee of the
     Company or any Subsidiary at the time of termination of the Employment Term
     or (iii) induce or attempt to induce any customer, supplier, licensee,
     licensor, franchisee or other business relation of the Company or any
     Subsidiary to cease doing business with the Company or such Subsidiary, or
     in any way interfere with the relationship between any such customer,
     supplier, licensee or business relation and the Company or any Subsidiary
     (including, without limitation, making any negative statements or
     communications about the Company or its Subsidiaries).

3.   REFORMATION OF THIS AGREEMENT. If, at the time of enforcement of this
     Noncompete Agreement, any court shall hold that the duration, scope or
     geographical restrictions stated herein are unreasonable under the
     circumstances then existing, the parties agree that it is their mutual
     desire and intent that the Company shall be afforded the maximum duration,
     scope or area reasonable under such circumstances, and each of them hereby
     requests such court to reform this Agreement so that the maximum duration,
     scope and geographical restrictions available under applicable law at the
     time of enforcement of this

                                       22
<PAGE>   23

     Agreement shall be substituted by such court for the stated duration, scope
     or geographical area stated herein and that the court shall be allowed to
     revise the restrictions contained in this Noncompete Agreement to such
     provisions as are deemed reasonable by the court at the time such
     enforcement is requested.

4.   INJUNCTIVE RELIEF. In the event of the breach or any threatened breach by
     Executive of any of the provisions of this Noncompete Agreement, the
     Company, in addition and supplementary to any and all other rights and
     remedies existing in its favor, may apply to any court of law or equity of
     competent jurisdiction for specific performance and/or injunctive or other
     relief in order to enforce this Noncompete Agreement or to prevent any
     violations or threatened violations of the provisions hereof (without being
     required to post any bond or other security to secure such relief). In
     addition, in the event of any alleged breach or violation by Executive of
     this Noncompete Agreement, the Noncompete Period shall be tolled until such
     breach or violation has been duly cured and thereafter the Noncompete
     Period shall be extended for an additional period of time equivalent to the
     time during which Executive was in breach of this Noncompete Agreement.

5.   INCORPORATION OF TERMS BY REFERENCE. The provisions of the following number
     sections of the Agreement being entered into contemporaneously herewith
     between the Company and Executive (to which this Noncompete Agreement is
     attached as a Schedule) are incorporated by reference as if set forth at
     length herein and shall be deemed to constitute a part hereof
     notwithstanding the earlier termination of such Agreement: sections 11
     through 23 of the Agreement are incorporated by this reference.

IN TESTIMONY WHEREOF, the parties have signed this NONCOMPETE AGREEMENT this 7th
day of June, 2000.

EXECUTIVE                                      OFFICE DEPOT, INC.

                                               By
------------------------------                    ------------------------------
M. BRUCE NELSON                                Name:  THOMAS KROEGER
                                               Title: EXECUTIVE VICE PRESIDENT
                                                      HUMAN RESOURCES

                                       23
<PAGE>   24

                                   SCHEDULE 3

                           CHANGE IN CONTROL AGREEMENT

This Change in Control ("CIC") Agreement is entered into by Executive and the
Company, contemporaneously with the Employment Agreement to which this CIC
Agreement is attached as SCHEDULE 3.

a.   Executive and the Company (as successor by merger to Viking Office
     Products, Inc.) are parties to a certain Agreement, originally dated May
     12, 1997, as amended on November 13, 1997; and may also be parties to
     certain other agreements between Executive and Viking (including a certain
     Agreement dated as of April 12, 1995 and a bonus compensation arrangement
     dated as of August 25, 1997) (whether one or more, herein collectively
     referred to as the "Prior Agreements").

b.   Executive and the Company desire to resolve and settle any and all issues
     pertaining to the Prior Agreements, which are hereby superseded and
     replaced in their entirety by this Agreement, including this SCHEDULE 3,
     and to enter into this Agreement.

c.   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 Executive,
     notwithstanding the possibility, threat or occurrence of a Change in
     Control (as defined below) of the Company.

d.   The Board believes it is imperative to diminish the inevitable distraction
     of Executive by virtue of the personal uncertainties and risks created by a
     pending or threatened Change in

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     Control and to encourage Executive's full attention and dedication to the
     Company currently and in the event of any threatened or pending Change in
     Control, and to provide Executive with compensation and benefits
     arrangements upon a Change in Control which ensure that the compensation
     and benefits expectations of 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 CIC Agreement, supplemental to the Agreement of
Employment to which this SCHEDULE 3 is attached (such Agreement, together with
the Schedules thereto, herein referred to as the "Main Agreement").

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                  1. CERTAIN DEFINITIONS. (a) The "Effective Date" shall mean
the first date during the CIC Period (as defined in Section 1(b)) on which a CIC
(as defined in Section 1(c)) occurs. Anything in this Agreement to the contrary
notwithstanding, if a CIC occurs and if Executive's employment with the Company
is terminated prior to the date on which the CIC occurs, and if it is reasonably
demonstrated by Executive that such termination of employment (i) was at the
request of a third party who has taken steps reasonably calculated to effect a
CIC or (ii) otherwise arose in connection with or anticipation of a CIC, 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 "CIC 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 CIC 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 Executive that the CIC Period shall not be
so extended.

                  (c)  A "Change in Control" or "CIC" shall mean:

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<PAGE>   26

         (i)      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"); provided, however, that for purposes of this
                  subsection (a), the following acquisitions shall not
                  constitute a CIC: (i) any acquisition directly from the
                  Company, (ii) any acquisition by the Company, (iii) any
                  acquisition by any employee benefit plan (or related trust)
                  sponsored or maintained by the Company or any corporation
                  controlled by the Company, or (iv) any acquisition by any
                  corporation pursuant to a transaction which complies with
                  clauses (i), (ii) and (iii) of subsection (c) of this Section
                  2; OR
         (ii)     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
         (iii)    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 60% 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

                                       26
<PAGE>   27

                  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 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

         (iv) Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.

(d)  "Employment" shall mean the employment of Executive pursuant to the Main
     Agreement to which this Schedule 3 is attached.

Other terms shall have the meanings ascribed to them in various sections of this
CIC Agreement or otherwise shall have the meanings ascribed to them in the Main
Agreement.

                  2. TERMINATION OF EMPLOYMENT. In addition to the other
termination provisions contained in Sections 5 through 9 of the Main Agreement
to which this SCHEDULE 3 is attached, Executive's employment shall be subject to
the following provisions, immediately following the Effective Date of a CIC:

                                       27
<PAGE>   28

                  (a) GOOD REASON. Executive's employment may be terminated by
Executive for Good Reason. For purposes of this Agreement, following a CIC,
"Good Reason" shall not have the meaning ascribed to it in Section 10(b) of the
Main Agreement, but instead shall mean:

                           (i) the assignment to Executive of any duties
         inconsistent in any respect with Executive's Position(s) (including
         status, offices, titles and reporting requirements), authority, duties
         or responsibilities as contemplated by Section 2 of the Main Agreement,
         or any other action by the Company which results in a diminution in
         such Position(s), authority, duties or responsibilities, excluding for
         this purpose an isolated, insubstantial and inadvertent action not
         taken in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by Executive;

                           (ii) any failure by the Company to comply with any of
         the provisions of Section 3 of the Main Agreement, other than an
         isolated, insubstantial and inadvertent failure not occurring in bad
         faith and which is remedied by the Company promptly after receipt of
         notice thereof given by Executive;

                           (iii) the Company's requiring Executive to be based
         at any office or location other than in Delray Beach, Florida or in
         Torrance, California or the Company's requiring 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
         Executive's employment otherwise than as expressly permitted by the
         Main Agreement; or

                           (v) any failure by the Company to comply with and
         satisfy any other material provision of the Main Agreement.

                  (b) For purposes of this Section, any good faith determination
         of "Good Reason" made by Executive shall be conclusive and irrefutable
         by the Company. Anything in this Agreement to the contrary
         notwithstanding, a termination by Executive for any reason during the
         thirty (30) day period immediately preceding the first anniversary of
         the

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<PAGE>   29

         Effective Date of a CIC shall be deemed to be a termination for Good
         Reason for all purposes of this Agreement.

3. OBLIGATIONS OF THE COMPANY UPON TERMINATION. The Company shall have the
following obligations to Executive upon a termination of Executive's employment
following a CIC:

                  (a) If the termination is for death, disability or incapacity,
                  then for purposes of this CIC Agreement, the Company shall pay
                  to Executive or his estate, in a lump sum not more than 30
                  days after the Date of Termination, the sums due under Section
                  3(c) hereof, as if Executive had notified the Company of his
                  election to terminate the Agreement for Good Reason and not
                  the sums due under Section 5 of the Main Agreement.

                  (b) If the termination is for Cause, then the rights and
                  obligations of the parties shall be governed by the provisions
                  of Section 7 of the Main Agreement.

                  (c) If the termination is by the Company without Cause or by
                  Executive for Good Reason:

                           (i) the Company shall pay to Executive in a lump sum
                  in cash within 30 days after the Date of Termination the
                  aggregate of the following amounts:

                                    A. the sum of (1) Executive's annual Base
                  Salary through the Date of Termination to the extent not
                  theretofore paid, (2) the product of (x) the higher of (I) the
                  annual Bonus most recently paid to Executive pursuant to
                  Section 3(c) of the Main Agreement and (II) the Bonus paid or
                  payable pursuant to such Section 3(c), 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 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 and (3) any compensation
                  previously deferred by Executive (together with

                                       29
<PAGE>   30

                  any accrued interest or earnings thereon) and any accrued
                  vacation pay, in each case to the extent not theretofore paid
                  (the sum of the amounts described in clauses (1), (2), and (3)
                  shall be hereinafter referred to as the "Accrued
                  Obligations"); and

                                    B. the amount equal to the product of (a)
                  three (3) and (b) the sum of (x) Executive's annual Base
                  Salary and (y) the Highest Annual Bonus.

                                    (ii) for three (3) years after Executive's
                  Date of Termination, or such longer period as may be provided
                  by the terms of the appropriate plan, program, practice or
                  policy, the Company shall continue benefits to Executive
                  and/or Executive's family at least equal to those which would
                  have been provided to them in accordance with the plans,
                  programs, practices and policies described in Section 3(f) of
                  the Main Agreement if Executive's employment had not been
                  terminated or, if more favorable to Executive, as in effect
                  generally at any time thereafter with respect to other peer
                  executives of the Company and its affiliated companies and
                  their families, provided, however, that if Executive becomes
                  re-employed with another employer and is eligible to receive
                  medical or other welfare benefits under another
                  employer-provided plan, the medical and other welfare benefits
                  described herein shall be secondary to those provided under
                  such other plan during such applicable period of eligibility.
                  Notwithstanding the foregoing, the Company shall continue to
                  make all scheduled premium payments under any split-dollar
                  life insurance policy in effect on the Date of Termination on
                  behalf of Executive for so long as such payments are scheduled
                  (without giving effect to Executive's termination). For
                  purposes of determining eligibility (but not the time of
                  commencement of benefits) of Executive for retiree benefits
                  pursuant to such plans, practices, programs and policies,
                  Executive shall be considered to have remained employed until
                  three years after the Date of Termination and to have retired
                  on the last day of such period;

                                    (iii) the Company shall, at its sole expense
                  as incurred, provide Executive with out placement services the
                  scope and provider of which shall be selected by Executive in
                  his sole discretion; and

                                       30
<PAGE>   31

                                    (iv) to the extent not theretofore paid or
                  provided, the Company shall timely pay or provide to Executive
                  any other amounts or benefits required to be paid or provided
                  or which Executive is eligible to receive under any plan,
                  program, policy or practice or contract or agreement of the
                  Company and its affiliated companies (such other amounts and
                  benefits shall be hereinafter referred to as the "Other
                  Benefits").

         C. Following termination for any reason, Executive's obligation to "buy
out" Viking's interest in Executive's California residential real estate (as
defined in the Main Agreement and described in Section 19(b) of the Main
Agreement) shall be extended from one year to two years following such
termination of employment.

4. FULL SETTLEMENT. (a) 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 Executive or others.
In no event shall Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to Executive under any
of the provisions of this Agreement and such amounts shall not be reduced
whether or not Executive obtains other employment. Anything in the Main
Agreement to the contrary notwithstanding, the Company agrees to pay as
incurred, to the fullest extent permitted by law, all legal fees and expenses
which Executive may reasonably incur as a result of any contest (regardless of
the outcome thereof) by the Company, 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
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").

5. CANCELLATION OF THE PRIOR AGREEMENTS. The parties agree that upon the
execution and delivery of this Agreement by the parties, all of the Prior
Agreements are hereby canceled and are of no further force or effect. Executive
hereby represents and agrees that he is not entitled to any further payment or
other benefits under the Prior Agreements and that the entire agreement between
himself and the Company is fully set forth in this Agreement, including the
Schedules to this Agreement.

In Testimony whereof, this CIC Agreement is signed by the parties this 7th day
of June, 2000.

EXECUTIVE                                      OFFICE DEPOT, INC.

                                               By
------------------------------                    ------------------------------
M. BRUCE NELSON                                Name:  THOMAS KROEGER
                                               Title: EXECUTIVE VICE PRESIDENT
                                                      HUMAN RESOURCES

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