Document:

odp-ex42_124.htm

Exhibit 4.2

DESCRIPTION OF REGISTRANT’S SECURITIES 

REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934

 

Office Depot, Inc. (“Office Depot”, “we,” “our,” or “us”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock, $0.01 par value per share (our “Common Stock”).

 

DESCRIPTION OF COMMON STOCK

 

The following description of our Common Stock is based upon our Restated Certificate of Incorporation, as amended by the Certificate of Amendment to the Restated Certificate of Incorporation (our “Charter”), our Amended and Restated Bylaws (our “Bylaws”), and applicable provisions of the Delaware General Corporation Law (the “DGCL”). The description does not purport to be complete and is subject to, and qualified in its entirety by express reference to, our Charter and Bylaws, each of which is filed as an exhibit to our Annual Report on Form 10‐K of which this Exhibit 4.2 is a part and is incorporated by reference herein. We encourage you to read our Charter, our Bylaws and the applicable provisions of the DGCL for additional information.

 

Authorized Capital Stock

 

Under our Charter, our authorized capital stock consists of 800,000,000 shares of Common Stock, and 1,000,000 shares of preferred stock, $0.01 par value per share (our “Preferred Stock”). The outstanding shares of our Common Stock are duly authorized, validly issued, fully paid and nonassessable.

 

Listing

 

Our Common Stock is listed and principally traded on the Nasdaq Global Select Market under the ticker symbol “ODP.”

 

Voting Rights

 

Each holder of our Common Stock is entitled to one vote for each share held by such holder on all matters voted upon by our stockholders. 

 

Dividend Rights 

 

The holders of our Common Stock are entitled to receive dividends when, as, and if declared by our board of directors out of funds legally available therefor, subject to the rights of any then outstanding shares of Preferred Stock.

 

Liquidation Rights

 

Subject to the rights of any then outstanding shares of Preferred Stock, in the event of a liquidation, dissolution or winding up of Office Depot, the holders of our Common Stock will be entitled to receive, after payment or provision for payment of all of its debts and liabilities, all of the assets of  Office Depot legally available for distribution to stockholders.

 

 

Special Meeting of Stockholders

 

Our Bylaws vest the power to call special meetings of stockholders in the Chief Executive Officer, board of directors, or stockholders holding shares representing not less than 25% of our outstanding Common Stock entitled to vote on the matter or matters to be brought before the meeting. Stockholders are permitted under the Bylaws to act by written consent in lieu of a meeting.

 

Preemptive and Other Rights

 

Holders of our Common Stock are not entitled to preemptive rights with respect to any shares which may be issued, and there are no conversion rights or redemption, purchase, retirement or sinking fund provisions with respect to our Common Stock.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our Common Stock is Computershare Shareowner Services LLC.

 

Certain Anti-Takeover Effects 

 

Certain provisions of our Charter, our Bylaws and the DGCL could have certain anti-takeover effects and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, as discussed below:

 

Authorized but Unissued Shares. Subject to the requirements of The NASDAQ Stock Market LLC and other applicable law, our authorized but unissued shares of Common Stock may be available for future issuance without stockholder approval. We may use these additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of Common Stock could render more difficult or discourage an attempt to obtain control of us by means of a tender offer, takeover attempt or otherwise.

 

Undesignated Preferred Stock. Our Charter provides that our board of directors may issue shares of Preferred Stock and fix the designations, voting powers, preferences and rights related to that preferred stock. Preferred Stock could be issued by our board of directors to increase the number of outstanding shares making a takeover more difficult and expensive. 

 

Advance Notice Requirements. Our Bylaws establish an advance notice procedure for stockholders seeking to nominate candidates for election to the board of directors or for proposing matters which can be acted upon at stockholders’ meetings.

 

Proxy Access. Our Bylaws contain provisions which provide that a stockholder, or group of up to 20 stockholders, that has owned continuously for at least three years shares of our Common Stock representing an aggregate of at least 3% of the voting power entitled to vote generally in the election of directors, may nominate and include in Office Depot’s proxy materials a specified number of director nominees, provided that the stockholder(s) and nominee(s) satisfy the requirements in our Bylaws. The maximum number of stockholder nominees is generally the greater of (x) two or (y) 20% of the total number of our directors in office as of the last day on which notice of a nomination may be delivered or, if such amount is not a whole number, the closest whole number below 20%.

 

No Cumulative Voting or Classified Board. Our Charter and Bylaws do not provide for cumulative voting on the election of directors and we currently do not have a classified board. 

 

2

 

Delaware Business Combination Statute. In general, Section 203 of the DGCL (“Section 203”) prohibits a publicly held Delaware corporation from engaging in various “business combination” transactions with any interested stockholder for a period of three years following the date of the transactions in which the person became an interested stockholder. We are not subject to Section 203, as our Charter contains a provision electing to “opt-out” of Section 203.

3odp-ex1032_188.htm

Exhibit 10.32

 

 

 

 

 

		
	
Date:
	
November 21, 2019

	
 
	
 

	
To:
	
Joseph Lower

	
 
	
 

	
From:
	
Gerry Smith

	
 
	
 

	
Re:
	
Retention Agreement

 

 

The purpose of this document is to set forth our agreement regarding your voluntary separation from employment with Office Depot, Inc. As we discussed, it is important to the company that you remain employed through January 10, 2020 in order to assist with the close out of the 2019 fiscal year. As a result, the company is willing to provide you additional compensation in the amount of $292,716.35, which is an amount equivalent to 50% of your 2019 Corporate Bonus target payout ("Additional Compensation"), if you remain employed through January 10, 2020 ("Vesting Date"). If you remain employed through January 10, 2020, you will also receive the second tranche of your new hire grant consisting of 196,078 Restricted Stock Units, which is scheduled to vest on January 8, 2020.

 

If, prior to the Vesting Date, your employment with the company is terminated due to fault of your own or you voluntarily elect to leave Office Depot's employ, you will not be entitled to receive the Additional Compensation.

 

If you become eligible for payment of the Additional Compensation, your entitlement to the Additional Compensation is contingent upon you executing and not revoking the company's customary release and covenant-not-to-sue agreement ("Release"). The company will provide the Release to you not later than seven (7) days after your separation date. You must execute and return the Release to the company within the period specified in the Release (which will not be more than 45 days after you receive it), and not revoke the Release within the applicable seven-day revocation period.

 

If you become entitled to the Additional Compensation, payment of the Additional Compensation will be made in a lump sum, less applicable taxes, other deductions required by law, and/or any amounts due Office Depot, within sixty (60) days following the earlier of the Vesting Date, and your separation date.

 

Assuming the conditions of this Agreement are met and you become eligible for payment of the Additional Compensation pursuant to the terms of this Agreement, no other compensation, remuneration, wages, incentive payments, bonuses, LTl or other vestings,  commissions, allowance, severance  or monies will be owed and/or paid to you (except for any earned wages which have not yet been paid pursuant to the normal payroll cycle).

 

This Agreement shall not change the at-will nature of your employment with Office Depot and nothing herein shall be deemed a guarantee of continued employment. Additionally, this Agreement may not be modified, amended or otherwise changed in any manner except by a written instrument signed by you and an authorized representative of Office Depot, Inc.

 

 

 

This Agreement will at all times be administered and construed in accordance with the requirements of section 409A of the Internal Revenue Code of 1986, as amended, and the Department of Treasury regulations and other guidance thereunder ("Code Section 409A"), including any applicable exceptions. To the extent that any compensation payable under this Agreement constitutes deferred compensation within the meaning of Code Section 409A, (i) the provisions of this Agreement that provide for payment of such compensation that is triggered by your termination or separation shall be deemed to provide for payment that is triggered only by your "separation from service" within the meaning of Treasury Regulation Section §1.409A-1(h) ("Separation from Service"), and (ii) if, on the date of your Separation from Service, you are a "specified employee" within the meaning of Code Section 409A and Treasury Regulation Section 1.409A-1(i) (with such status determined by Office Depot in accordance with rules established by Office Depot in writing in advance of the "specified employee identification date" that relates to the date of such Separation from Service or in the absence  of such  rules established by Office Depot, under the default rules for identifying specified employees under Treasury Regulation Section 1.409A-1(i)) and to the extent Office Depot makes a good faith determination that payment of such compensation must be delayed to comply with Code Section 409A(a)(2)(8)(i), payment of such compensation that is triggered by your Separation from Service shall be made on the first business day following the six (6) month anniversary of the date of such Separation from Service (provided, however, that if you die after the date of such Separation from Service, payment will be paid to your estate in a lump sum without regard to the six-month delay that otherwise applies to specified employees). You acknowledge and agree that Office Depot has made no representation regarding the tax treatment of any payment under this Agreement and, notwithstanding anything else in this Agreement, that you are solely responsible for all taxes due with respect to any payment under this Agreement.

 

If you accept the terms of this Agreement, please sign below.

 

 

 

 

				
	
/s/ Joseph Lower
	
 
	
11/21/2019
	
 

	
Joseph Lower
	
 
	
Date
	
 

	
EMP ID # 892742

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