Document:

Reinsurance Group of America, Incorporated Exhibit 10.1 to Form S-8

EXHIBIT 10.1 

PHANTOM STOCK PLAN FOR 

DIRECTORS OF 

REINSURANCE GROUP OF
AMERICA, INCORPORATED 

AS AMENDED AND RESTATED 

EFFECTIVE JANUARY 1, 2003 

        
1.        PURPOSE 

                  The
purpose of the Phantom Stock Plan for Directors of Reinsurance Group of America,
Incorporated (the “Plan”) is to encourage the highest level of director
performance by members of the Board of Directors of Reinsurance Group of America,
Incorporated (the “Corporation”), by providing certain outside directors with
deferred compensation based on the Corporation’s success and progress. 

        
2.        DEFINITIONS 

                   As
used in this Plan, the following terms have the definitions set forth below. 

     	(a) 	  	
          “Affiliate” means a Parent or Subsidiary of the Corporation or a
          Subsidiary of a Parent. 

          

     	(b) 	  	
          “Board” shall mean the Board of Directors of the Corporation. 

          

     	(c) 	  	
          “Common Stock” means the Corporation’s common stock, par value of
          $0.01 per share. 

          

     	(d) 	  	
          “Director” means a duly elected and acting member of the Board who
          receives Director’s Fees from the Corporation for his or her services as a
          member of the Board and who is not an officer or employee of the Company or any
          of its Affiliates. 

          

     	(e) 	  	
          “Director’s Fees” means the following, whether payable in cash or
          Common Stock: 

          

     	1.		
           Annual Board retainer fees.

          

     	2.		
          Board meeting attendance fees.

          

     	3.		
          Committee meeting attendance fees. 

          

     	4.		
           Committee chairman fees. 

          

     	5.		
           Telephonic Board and telephonic Committee meeting fees.

          

1

     	(f) 	  	
          “Disability” means a physical or mental condition arising on or after
          January 1, 2003, which, in the opinion of a qualified doctor of medicine chosen
          by the Corporation, permanently prevents a Director from carrying out his or her
          duties as a member of the Board. 

          

     	(g) 	  	
          “Fair Market Value” means the closing price of a share of Common Stock
          on the New York Stock Exchange (“NYSE”) on a given date, or in the
          absence of market transactions on such date, the closing price on the NYSE on
          the last day on which a sale occurred prior to such date. 

          

     	(h) 	  	
          “Malfeasance” means (1) conduct, acts or omissions which are contrary
          to a Participant’s duties as a Director, which are inimicable or in any way
          contrary to the best interests of the Corporation or any of its Affiliates or
          which permit removal of a Director for cause as provided in the
          Corporation’s By-Laws, or (2) employment of a Participant by or association
          of a Participant with an organization which competes with the business of the
          Corporation or any of its Affiliates. 

          

     	(i) 	  	
          “Parent” means any corporation (other than the Corporation or a
          Subsidiary) in an unbroken chain of corporations ending with the Company, if, at
          the time Director’s Fees are earned, each of the corporations (other than
          the Corporation or a Subsidiary) owns stock possessing 50% or more of the total
          combined voting power of all classes of stock in one of the other corporations
          in such chain. 

          

     	(j) 	  	
          “Participant” means a Director who has satisfied the eligibility
          requirements of Section 4 and who has not ceased to be a Director. 

          

     	(k) 	  	
          “Performance Unit” means a hypothetical share of Common Stock
          allocated to a Participant on the Corporation’s records based on the Fair
          Market Value of the Common Stock at the time of the grant. 

          

     	(l) 	  	
          “Plan Year” means the calendar year. 

          

     	(m) 	  	
          “Restricted Period” means a period of ten (10) years from the last day
          of the Plan Year in which a Performance Unit is granted or, if earlier, the date
          of the Retirement of a Participant. 

          

     	(n) 	  	
          “Retirement” means retirement of a Participant as a Director, other
          than for failure to be renominated or reelected due to Malfeasance. 

          

     	(o) 	  	
          “Subsidiary” means, with respect to an entity, any corporation, other
          than the entity, in an unbroken chain of corporations beginning with the entity
          if, at the time Director’s Fees are earned, each of the corporations, other
          than the last corporation in the unbroken chain, owns stock possessing 50% or
          more of the total combined voting power of all classes of stock in one of the
          other corporations in such chain. 

          

2

        3.
        ADMINISTRATION

          
        The
Board shall administer the Plan. Questions involving eligibility, benefits or the
interpretation or operation of the Plan shall be referred to the Board. All determinations
of the Board, in its sole discretion, shall be conclusive. The Board may obtain such
advice or assistance as it deems appropriate from persons not serving on the Board. No
Board member shall participate in any decision that involves a determination of his or her
personal rights or obligations under this Plan. 

        4.
        ELIGIBILITY

          
        Each
Director who is a Participant on January 1, 2003 shall continue to be a Participant as of
such date. Each individual who becomes a Director on or after January 1, 2003 shall be
eligible to participate as of the beginning of the next Plan Year. Each eligible Director
is hereinafter referred to as a “Participant.” 

             5.        
          NUMBER OF PERFORMANCE UNITS 

          
        The
total number of Performance Units that may be granted under this Plan shall not exceed one
hundred thousand (100,000). 

             6.
        ELECTION TO RECEIVE PERFORMANCE UNITS 

          
        With
respect to each Plan Year, a Participant shall be eligible to receive a grant of
Performance Units in lieu of his or her Director’s Fees by making and filing with the
Board a written irrevocable election prior to the first day of such Plan Year. 

             7.        
          PERFORMANCE UNITS 

          
        If
a Participant elects to receive Performance Units as provided in Section 6, Performance
Units granted to such Participant shall be credited to a Performance Unit Account (the
“Account”) established and maintained for such Participant. The Performance
Units shall be allocated to a Participant’s Account annually on the day of the first
regular Board meeting of each year, unless the Board approves a different allocation date.
The number of Performance Units shall equal the number of full shares of Common Stock that
the amount of Director’s Fees would have purchased at Fair Market Value on the
allocation date. Partial Performance Units will not be allocated, and standard rounding
will be applied to determine the number of full Performance Units. The Account of a
Participant shall be the record of Performance Units granted to him or her under the Plan,
is solely for accounting and record keeping purposes and shall not require a segregation
of any Corporation assets or setting aside for or registering in the name of a Participant
any Common Stock. In addition, the existence of such record and the Account shall not be
deemed to create a trust of any kind or a fiduciary relationship between the Corporation
and a Participant or his or her beneficiary. Each allocation of Performance Units under
the Plan to a Participant and the number and value of such Performance Units as of the
date of allocation shall be communicated annually to the Participant. 

3

             8.        
          GRANTS, RESTRICTIONS AND PAYMENTS 

     	(a) 	  	
          General. Subject to the provisions of Section 8(c), the restrictions set forth
          in Section 8(b) shall apply to each Performance Unit during the Restricted
          Period. 

          

     	(b) 	  	
          Restrictions. The Participant shall have no rights and privileges of a
          shareholder as to such Performance Units. Accordingly, the Participant shall
          have no right to receive dividends actually paid or distributed at the time
          declared and no right to vote on account of any allocation of Performance Units
          to his or her Account. In addition, no interest in the Performance Units or any
          Account may be sold, transferred, assigned, pledged or otherwise encumbered or
          disposed of at any time. 

          

     	(c) 	  	
          Termination of Directorship. 

          

          	(i) 	  	
               If a Participant ceases to be a Director prior to the end of the Restricted
               Period for any reason other than Malfeasance, all rights with respect to
               Performance Units in a Participant’s Account shall immediately vest in the
               Participant’s beneficiary in the event of death, his or her estate in the
               case of Disability if there is no attorney-in-fact, or the Participant, as the
               case may be. 

               

          	(ii) 	  	
               If a Participant shall be determined, in the sole judgment and discretion of the
               Board, to be guilty of Malfeasance, he or she shall forfeit all rights to the
               Performance Units. 

               

     	(d) 	  	
           Payment for Performance Units.  

          

          	(i) 	  	
               At the end of the Restricted Period with respect to a Performance Unit, the
               Participant shall be entitled to receive from the Corporation, with respect to
               each Performance Unit, (A) cash equal to the Fair Market Value of a share of
               Common Stock at that time or (B) one share of Common Stock in lieu of cash. The
               Board shall have the sole discretion to determine whether such distribution
               shall be in cash or in stock. Distribution will be made within ninety (90) days
               after the end of the Restricted Period. A Participant will not be entitled to
               receive any earnings on the value of his or her Performance Units with respect
               to the period between the end of the Restricted Period and the distribution
               under the Plan. 

               

          	(ii) 	  	
               Notwithstanding Section 8(d)(i), in the event that the benefits to a Participant
               under this Plan are taxable for Federal income tax purposes to the Participant
               at a time other than the time the Participant actually receives such benefits,
               the Corporation shall immediately pay to such Participant the amounts so
               determined to be taxable and the Corporation’s obligations under the Plan
               to such Participant shall be reduced by a corresponding amount. 

               

4

          	(iii) 	  	
               Notwithstanding any contrary provision, if, at such time as the Participant
               becomes entitled to benefit payments hereunder, the Participant has any debt,
               obligation or other liability representing an amount owing to the Corporation or
               an affiliate of the Corporation, and if such debt, obligation or other liability
               is due and owing at the time benefit payments are payable hereunder, the
               Corporation may offset the amount due and owing it or an affiliate against the
               amount of benefits otherwise distributable hereunder. 

               

             9.        
          REGULATORY COMPLIANCE AND LISTING 

          
        If
the Board decides to deliver Common Stock in lieu of cash under Section 8, the issuance or
delivery of any Common Stock may be postponed by the Corporation for such period as may be
required to comply with any applicable requirements under the Federal securities laws, any
applicable listing requirements of any national securities exchange and requirements under
any other law or regulation applicable to the issuance or delivery of such shares, and the
Corporation shall not be obligated to issue, purchase or deliver any Common Stock if the
issuance, purchase or delivery of such shares shall constitute a violation of any
provision of any law or of any regulation of any governmental authority or any national
securities exchange. As a condition to receipt of Common Stock, the Participant shall
execute such agreements and other documents as the Corporation may reasonably request for
securities law purposes. 

        10.
        ADJUSTMENTS

          
        In
the event of any change in the outstanding shares of Common Stock by reason of a
recapitalization, reclassification, reorganization, stock split, reverse stock split,
combination of shares, stock dividend or similar transaction, the Board shall
proportionately adjust, in an equitable manner, the number of Performance Units held by a
Participant under the Plan. The foregoing adjustment shall be made in a manner that will
cause the relationship between aggregate appreciation in outstanding Common Stock and
earnings per share of the Corporation and the increase in value of each Performance Unit
granted hereunder to remain unchanged as a result of the applicable transaction. 

             11.        
          TERMINATION OR AMENDMENT OF PLAN 

          
        The
Board may at any time terminate the Plan and may from time to time alter or amend the Plan
or any part thereof (including any amendment deemed necessary to ensure that the
Corporation may comply with any regulatory requirement referred to in Section 9), provided
that, (a) unless otherwise required by law, the rights of a Participant with respect to
Performance Units granted prior to such termination, alteration or amendment may not be
impaired without the consent of such Participant and, further, that (b) to the extent the
approval of the Corporation’s shareholders is required under applicable laws or
regulations with respect to such alteration or amendment, such approval of the
Corporation’s shareholders is appropriately obtained. 

5

        12.
        MISCELLANEOUS

     	(a) 	  	
          Nothing in the Plan shall be deemed to create any obligation on the part of the
          Board to nominate any Director for reelection by the Corporation’s
          shareholders. 

          

     	(b) 	  	
          Neither the adoption of this Plan by the Board nor the submission of the Plan to
          the Corporation’s shareholders for approval shall be construed as creating
          any limitations on the power or authority of the Board to adopt such other
          additional incentive or other compensation arrangements as the Board may deem
          necessary or desirable. 

          

     	(c) 	  	
          The Corporation shall have the right to (i) deduct from all amounts paid
          pursuant to the Plan any taxes required by law to be withheld with respect to
          such amounts, and (ii) require, within three (3) months after issuance or
          delivery of any Common Stock, payment by the Participant of any taxes required
          by law with respect to the issuance or delivery of such shares. 

          

     	(d) 	  	
          The shares of any Common Stock delivered under the Plan may be either authorized
          but unissued shares or shares which have been or may be reacquired by the
          Corporation, as determined from time to time by the Board. 

          

     	(e) 	  	
          All costs and expenses incurred in the operation and administration of this Plan
          will be borne by the Corporation. 

          

     	(f) 	  	
          No rights, interests, or benefits under this Plan may be assigned, transferred,
          pledged, or hypothecated in any way. Such rights, interests or benefits shall
          not be subject to execution, attachment, or similar process. Any attempted
          assignment, transfer, pledge, or hypothecation, or other disposition of such
          rights, interests, or benefits contrary to the preceding provisions, or the levy
          of any attachment or similar process thereupon, shall be null and void and
          without effect. 

          

     	(g) 	  	
          This Plan shall be binding upon and inure to the benefit of the successors and
          assigns of the Corporation, whether by way of merger, consolidation, operation
          of law, assignment, purchase or other acquisition of substantially all of the
          assets or business of the Corporation and any such successor or assign shall
          absolutely and unconditionally assume all of the Corporation’s obligations
          hereunder. 

          

     	(h) 	  	
          The Plan will be governed by the laws of the State of Missouri. 

          

6

     	(i) 	  	
          The payments to a Participant or his or her beneficiary hereunder shall be made
          from assets which shall continue, for all purposes, to be part of the general,
          unrestricted assets of the Corporation. No person shall have any interest in any
          such assets by virtue of the provisions of the Plan. The Corporation’s
          obligation hereunder shall be an unfunded and unsecured promise to pay money in
          the future. To the extent that any person acquires a right to receive payments
          from the Corporation under the provisions hereof, such right shall be no greater
          than the right of any unsecured general creditor of the Corporation. No such
          person shall have nor acquire any legal or equitable right, interest or claim in
          or to any property or assets of the Corporation. 

          

             13.        
          EFFECTIVE DATE 

          
        The
restated Plan shall become effective as of January 1, 2003, or such later date as the
Board may determine, provided that the restated Plan shall not become effective until the
Corporation’s shareholders shall have adopted the Plan at a meeting of the
Corporation’s shareholders. 

        IN
WITNESS WHEREOF, the Corporation has executed this Plan on the date and year first
above-written. 

	  	REINSURANCE GROUP OF AMERICA, INCORPORATED 

	  	By: 	  
 
	  		A. Greig Woodring, President and Chief Executive Officer

	ATTEST:	

	  
 	
	James E. Sherman, Secretary	

7Letter Agreement

 

EXHIBIT 10.1

October 4, 2004

Mr. Neil R. Austrian

Office Depot, Inc.

2200 Old Germantown Road

Delray Beach, FL 33445

Dear Neil:

This letter, when signed by each of us shall constitute the agreement
(“Agreement”) between Office Depot, Inc. (“Company”) and yourself (“Executive”)
with regard to your serving as the Chairman and Chief Executive Officer of the
Company during the period from today’s date through the arrival of a new,
permanent Chief Executive Officer for the Company. This period is referred to
herein as the “Engagement.”

Engagement: Executive has agreed to serve, at the unanimous request of the
non-management Directors of the Board of Directors (the “Board”), as Chairman
and Chief Executive Officer (“CEO”) of the Company during the Engagement.
During the Engagement, Executive shall devote substantially his full working
time, and his best efforts to performing the duties of CEO of the Company.

During the Engagement, Executive shall have the normal duties, responsibilities
and authority attendant to the position of CEO of the Company, subject to the
power of the Board to expand or limit such duties, responsibilities and
authority from time to time.

Executive shall be allowed to serve as a director of any company or entity of
which he is currently a director, including any non-profit organization
(including trade, civic, educational or charitable organizations). With the
prior written approval of the Board, Executive also shall be allowed to serve
as (i) a director or officer of, 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 hereunder.

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.

Either party may terminate the Engagement at any time upon not less than sixty
(60) days’ notice to the other, subject to, in the case of a termination by the
Company,

2200 Old Germantown Road

Delray Beach, FL 33445

Phone (561) 438-4800

 

 

payment to Executive of the Minimum Compensation referred to in the next
section of this Agreement and to the vesting of the Restricted Stock award
referred to below. In the event Executive provides such notice of termination
prior to the completion of six months of service under the Engagement (other
than in connection with the assumption of such position by a new CEO, selected
by the Board, in which event he shall receive the Minimum Compensation), the
Company shall be obligated to pay Executive only at the monthly rate of
compensation referred to below for the number of months during Executive
actually renders services to the Company pursuant to this Agreement.

Cash Compensation: The Company shall pay to Executive for performing his
duties hereunder, cash compensation of $170,000 per month. Regardless of the
duration of the Engagement (other than Executive’s resignation as set forth in
the preceding section of this Agreement), the total such compensation payable
to Executive shall not be less than six months’ compensation, or $1,020,000
(the “Minimum Compensation”). Executive’s cash compensation shall be payable
in regular installments in accordance with the Company’s general payroll
practices and shall be subject to customary withholding for income taxes, FICA
and similar items.

Incentive Compensation, Equity Award: As further compensation to Executive for
accepting the position of CEO during the Engagement, and upon the terms of this
Agreement, the Company shall award to Executive, effective on October 5, 2004,
as of the market close, an award of “Restricted Stock” under the Company’s
Long-Term Equity Incentive Plan, calculated as follows: The Restricted Stock
award (the “Award”) shall consist of that number of shares of the Company’s
stock which results from dividing the sum of $1 million by the closing price of
the Company’s stock on October 5, 2004. The restrictions on such Restricted
Stock shall lapse and cease, and the Award shall become 100% vested, (i) upon
the third anniversary (the “Vesting Date”) of the Award, provided that
Executive either (a) remains CEO of the Company as of the Vesting Date, or (b)
remains a member of the Board of Directors of the Company as of the Vesting
Date, or (ii) upon the occurrence of any of the following events (a) Executive
has not been re-elected to the Board prior to the Vesting Date, despite having
offered himself as a candidate for re-election to the Board or (b) Executive
has been removed from his position as CEO, other than for “good cause” (defined
below), or (c) a change in control of the Company occurs. As used herein, the
term “change in control” shall have the meaning set forth on Attachment A to
this Agreement, which is incorporated by this reference herein and made a part
hereof.

If Executive resigns from his position as CEO (other than in connection with
the assumption of such position by a new CEO, selected by the Board) or from
the Board, or is removed for good cause from either his position as CEO or from
the Board prior to the Vesting Date, then the award of Restricted Stock shall
lapse and be null and void from the date of such resignation or removal for
good cause. Good cause shall be established only if a vote of 75% or more of
the Directors of the Company (other than Executive) shall specify the nature of
such “good cause” and shall direct that Executive shall be terminated for good
cause. As used herein, the term “good cause” shall mean: conviction of a
felony or willful malfeasance or gross negligence in discharging Executive’s
duties under this Agreement, resulting in material harm to the Company.

Other Benefits: In addition to the cash compensation, the Company shall
furnish the Executive with the following items (collectively “Benefits”) during
the term of the Engagement:

	a)	 	A car allowance of $1,500 per month, for use by Executive in
obtaining a suitable vehicle for his use during the Engagement, and for
upkeep, insurance, fuel and similar expenses.
	 
	b)	 	A suitable furnished apartment, condominium or residence, subject
to reasonable approval by Executive, for the use of Executive and his
spouse during the Engagement.
	 
	c)	 	Use of corporate jet for business travel, and during the
Engagement, for commuting between Executive’s Florida residence and his
other residences. When Executive determines in the reasonable
exercise of his judgment that his spouse should accompany him
(including without limitation when commuting between residences), then
this use shall be permitted.

 

 

The Benefits shall be provided to Executive on a tax “grossed-up” basis. This
shall be accomplished by either (at the Company’s option), (a) the Company’s
providing to Executive a Form W-2 which reflects the Company’s payment of the
applicable income tax withholdings on the value of the Benefits, or (b) by the
Company’s providing to Executive 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), including any taxes imposed upon the Gross-Up Payment,
Executive shall have received the value of such Benefits, undiminished by the
requirement that he pay any tax on such Benefits.

Benefits; Health & Welfare Plans: Other than the Benefits referred to in the
preceding section of this Agreement, Executive shall not participate in any
other benefit plans of the Company. Provided, however, that Executive shall
continue to participate in the Company’s stock option plan in his capacity as a
member of the Board of Directors of the Company, to the same extent as he has
been participating, and to the same extent as other members of the Board may
participate from time to time.

Business Expenses: The Company shall reimburse Executive for all reasonable
expenses incurred by Executive in the course of performing Executive’s duties
under this Agreement that are consistent with the Company’s policies in effect
from time to time with respect to travel, entertainment and other business
expenses. Reimbursement shall be subject to the Company’s customary
requirements imposed upon executive level employees, with respect to reporting
and documentation of such expenses.

Confidential Information: Executive acknowledges that the information,
observations and data obtained by Executive while employed by the Company
concerning the business or affairs of the Company or any subsidiary or
affiliate of the Company (“Confidential Information”) is 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 of Directors, 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 Company at the termination of the
Employment Term, or at any other time the Company may request, all memoranda,
notes, plans, records, reports, computer tapes, printouts and software and
other documents and data (and copies thereof) in any form or medium relating to
the Confidential Information, or the business of the Company or any subsidiary
or affiliate of the Company that Executive may then possess or have under
Executive’s control.

Suspension of Committee Memberships: During the Engagement, Executive shall
continue to serve as a member of the Board of Directors of the Company, subject
to the requirement that he stand for re-election at each Annual Meeting of
Shareholders of the Company. During the Engagement, Executive’s membership on
all Board committees on which he currently serves shall be suspended. However,
in his capacity as CEO, he shall be allowed to attend any and all meetings of
Board committees ex officio.

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 affect 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.
	 
	b)	 	Complete Agreement. This Agreement constitutes the complete
agreement and understanding among the parties and supersedes and
preempts 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.
	 
	c)	 	Construction. 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.

 

 

	d)	 	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 permitted assigns, except
that Executive may not assign Executive’s rights or delegate
Executive’s obligations hereunder without the prior written consent of
the Company.
	 
	e)	 	Assignment by the Company. This Agreement shall not be assignable
by the Company except to a successor of the Company (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, which
successor shall be required to perform this Agreement in the same
manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.
	 
	f)	 	Choice of Law. All issues and questions concerning the
construction, validity, enforcement and interpretation of this
Agreement 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.

Neil, if you will please countersign a copy of this Letter Agreement, it will
constitute the terms of the Engagement of you as interim Chairman and CEO of
the Company upon the terms herein.

Sincerely,

/s/ Lee A. Ault III

Lee A. Ault III

Chairman, Compensation Committee

Office Depot, Inc.

This Letter Agreement is agreed to:

/s/ Neil R. Austrian

Neil R. Austrian

Date: October 4, 2004

 

 

Attachment A

Definition of Change in Control

(a) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) (a “Person”) of beneficial ownership 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”).

(b) Individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of
the Board; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

(c) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a
“Business Combination”), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 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 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

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]