Item 1.01. Entry into a Material Definitive Agreement.
On
Pursuant to the Agreement, the Board of Directors of the Company (the "Board")
increased the size of the Board to ten directors and appointed
Additionally, except in the event HG Vora (together with any affiliates of HG Vora) ceases to own at least 5% of the Company's then outstanding shares of common stock (the "Company Ownership Level Minimum") or HG Vora has materially breached the Agreement and failed to cure such breach within 5 business days of notice thereof, the Board has agreed to nominate the HG Vora Designee for election as one of the directors of the Company at the 2021 Annual Meeting (as one of a total of not more than 10 candidates for election to the Board at the 2021 Annual Meeting) and not to increase the size of the Board to more than 10 directors prior to, from and after the opening of the polls at the 2021 Annual Meeting.
During the term of the Agreement, so long as HG Vora (together with any affiliates of HG Vora) does not cease to satisfy the Company Ownership Level Minimum, HG Vora has not materially breached the Agreement and failed to cure such breach within 5 business days of notice thereof, and the HG Vora Designee is a member of the Board, the Board may not form a Transaction Committee, Executive Committee or any other committee with functions similar to those customarily granted to a Transaction Committee or Executive Committee without offering to the HG Vora Designee the opportunity to be a member of such committee, and any consideration of mergers, acquisitions or dispositions of material assets, or other extraordinary transactions must take place only at the full Board level or in committees of which the HG Vora Designee is a member.
In the event the HG Vora Designee (or any replacement director appointed in accordance with the provisions of the Agreement) is unable to serve, resigns or is removed as a director during the term of the Agreement, HG Vora has the ability to recommend a replacement director who is a "Partner" or more senior member of HG Vora and meets the conditions set forth in the Agreement (a "Replacement Director"), so long as HG Vora (together with any affiliates of HG Vora) satisfies the Company Ownership Level Minimum and HG Vora has not materially breached the Agreement and failed to cure such breach within 5 business days of notice thereof.
The Agreement provides that the HG Vora Designee must offer to resign from the
Board on
The Agreement terminates on the earlier of (i) the date that is 14 days prior to
the first date on which shareholders are permitted under the Company's bylaws to
submit director nominations for the 2022 Annual Meeting and (ii)
During the term of the Agreement, HG Vora agrees to vote all of its shares of
the Company's common stock in favor of recommendations of the Board with respect
to (i) each appointment, election of directors and any removal of directors,
(ii) the ratification of the appointment of the Company's independent registered
public accounting firm, (iii) the Company's "say on pay" proposal, (iv) the
Company's Long-Term Incentive Plan and (v) any other Company proposal or
shareholder proposal (except any proposals to amend, adopt or extend any
shareholder rights agreement) ("Other Proposals") unless, solely with respect to
any Other Proposal, both
• make, participate in or encourage any solicitation of proxies or consents; • own in excess of 9.9% of then-outstanding shares of the Company's common stock; • engage in a sale of the securities of the Company that would result in a third party owning or controlling more than 5% of the then outstanding shares of the Company's common stock, subject to certain exceptions, • effect, propose, participate in or facilitate any tender or exchange offer, merger, sale or acquisition of material assets or other extraordinary transaction involving the Company or any of its subsidiaries, subject to certain exceptions (provided that HG Vora may tender shares into any tender or exchange offer, subject to certain exceptions); • seek representation on the Board, seek or encourage the removal of any member of the Board, except as set forth in the Agreement, or seek or request the extension of any deadline for director nominations; • make or take any action in support of any proposal or request aimed at changing or influencing the Board, management, business strategy, policies or corporate governance of the Company; • take any actions which could cause the Company to make a public announcement regarding any of the foregoing, or publicly seek or request permission to do any of the foregoing; or 2
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• make any public communication in opposition to any merger, acquisition, amalgamation, recapitalization, restructuring, disposition, distribution, spin-off, asset sale, joint venture or other business combination or any . . .
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 5.02 by reference.
Pursuant to the Agreement described in Item 1.01 above, the Board increased the
size of the Board to ten directors and appointed
In connection with his appointment as a director,
The Company expects
Other than the Agreement and the Irrevocable Resignation, there are no
arrangements or understandings between
Item 7.01. Regulation FD Disclosure.
On
The information furnished in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits: Exhibit 10.1 Cooperation Agreement, by and amongHG Vora Capital Management , LLC andThe ODP Corporation , datedJanuary 25, 2021 . Exhibit 99.1 Press Release ofThe ODP Corporation , datedJanuary 26, 2021 . Exhibit 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. 3
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