Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b) On September 24, 2021, N. David Bleisch, Executive Vice President, Chief
Legal & Administrative Officer and Corporate Secretary of The ODP Corporation
(the "Company"), informed the Company of his intention to leave the Company. At
the Company's request, Mr. Bleisch will remain in his current role until
April 30, 2022 and continue to lead ongoing initiatives and assist with the
transition of his responsibilities to his successor.
(e) In connection with Mr. Bleisch's announced separation, on September 28,
2021, the Company and Mr. Bleisch entered into an Executive Transition Agreement
(the "Agreement") providing for Mr. Bleisch's continued employment in his
current role from the effective date of the Agreement through April 30, 2022
(the "Transition Period"). The material terms of the Agreement are as follows:
Mr. Bleisch will continue to be paid a base salary during the Transition Period
at a rate equal to his current annual rate. In addition, his current target
bonus percentage, benefits (except for employee benefits changes that apply to
similarly situated executives of the Company) and perquisites will remain the
same as they currently are, and he will receive long-term incentive awards
commensurate with his position and consistent with the Company's past practice.
In addition, pursuant to the terms of the Agreement, upon completion of the
Transition Period, Mr. Bleisch shall be entitled to receive, contingent upon his
execution and non-revocation of a release of claims in favor of the Company and
compliance with restrictive covenants included in the release, the following
benefits (the "Retention Benefits"): a lump sum amount equal to eighteen months
of his annual base salary, a lump sum equal to eighteen times the difference
between the Company's monthly COBRA charge and the applicable active employee
charge for medical, dental, and vision insurance coverage, any earned but unpaid
annual bonus for the current fiscal year, and a prorated annual bonus for the
Company's fiscal year in which Mr. Bleisch's separation occurs adjusted to
reflect actual Company performance for the year. The Agreement further provides
that if Mr. Bleisch's employment is terminated by the Company without Good Cause
(as that term is defined in the Agreement) or Mr. Bleisch resigns with Good
Reason (as that term is defined in the Agreement), Mr. Bleisch will be deemed to
have remained employed through the Transition Period for purposes of his
entitlement to the above-referenced benefits provided that he executes a release
in favor of the Company, which includes certain restrictive covenants, including
non-compete, non-solicitation, confidentiality, and non-disparagement covenants.
Further, in the event of such termination, Mr. Bleisch would be entitled to full
vesting of restricted stock units and performance stock units that are scheduled
to vest prior to April 30, 2022 and pro rata vesting of all restricted stock
units outstanding as of April 30, 2022 as if he were employed through the
Transition Period. Finally, the
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Agreement provides that if the Company undergoes a change in control and Mr.
Bleisch incurs a qualifying termination of employment during the Transition
Period, Mr. Bleisch will receive the severance benefits set forth in the
Company's Executive Change in Control Plan in lieu of the Retention Benefits
unless the Retention Benefits are more economically beneficial to Mr. Bleisch.
The Company is beginning a search for Mr. Bleisch's successor and will
communicate the appointment at the appropriate time.
A copy of the Company's press release announcing Mr. Bleisch's departure is
attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated
herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
Exhibit 99.1 Press Release of The ODP Corporation, dated September 29, 2021.
Exhibit 104 Cover Page Interactive Data File - the cover page XBRL tags are
embedded within the Inline XBRL document.
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