<PAGE>

                                                                    EXHIBIT 10.1

                              AMENDMENT AGREEMENT
                              -------------------


          This Amendment Agreement made as of May 28, 1999 amends the Agreement
between Champion International Corporation, a New York corporation (the
"Company"), and Richard E. Olson (the "Executive") effective September 18, 1997
(the "Existing Agreement", and as amended hereby, the "Agreement").

          The Company considers it essential and in the best interests of its
shareholders to foster the continued employment of its senior management
personnel. The Executive is an important member of the Company's senior
management.  The Company wishes to provide additional incentive for the
Executive to continue to serve the Company by increasing the benefits provided
to the Executive in certain events following a Change in Control to a level
which is more in line with comparable benefits provided by other large publicly-
owned U.S. forest products companies.  The Company also wishes to amend the
Existing Agreement to eliminate any provision that could be an impediment to the
Company engaging in a transaction to be accounted for on a pooling-of-interests
basis, if the Company's Board of Directors determines that such a transaction
would be in the best interests of the Company's shareholders.

          NOW, THEREFORE, the parties agree that the Existing Agreement is
hereby amended as follows:

          1.   Paragraph 5 of the Existing Agreement is amended by deleting the
words "(whether or not any such period shall have been accelerated)," in the
first sentence thereof and the words"(regardless of whether or not any such
period shall have been accelerated)" in the third sentence thereof and, in each
case,  replacing such words with the following:

     "or, in the event of the termination of the Executive within three years
     following a Change in Control, during a period of two years in the event of
     a termination solely of the kind referred to in clauses (A), (B), (E) and
     (H) of subparagraph 8(b)(ii) or during a period of three years in the event
     of any other kind of termination (as defined in subparagraph 8(b)),"

Paragraph 5 is further amended to delete the words "under subparagraph 6(a)
(during any period of long-term disability) or 8(a)(i) below" in the proviso at
the end of the first sentence thereof.

                                       1
<PAGE>

          2.   Subparagraph 8(a)(i) of the Existing Agreement is amended by
deletion of the proviso at the end of the last sentence thereof.

          3.   Clauses (x) and (y) of subparagraph 8(a)(ii) of the Existing
Agreement are amended to read in their entirety as follows:

     "(x) a lump sum equal to twenty-four times the highest total monthly
     compensation (as defined in subparagraph 8(a)(i)) in the event of a
     termination solely of the kind referred to in clauses (A), (B), (E) and (H)
     of subparagraph 8(b)(ii), or a lump sum equal to thirty-six times such
     highest total monthly compensation in the event of any other kind of
     termination (as defined in subparagraph 8 (b)), shall be paid as soon as
     practicable after such termination; (y) the benefits required to be
     provided thereafter to the Executive, his spouse and family, set forth in
     attached Exhibit C, shall be valued at the cost of acquiring insurance
              ----------
     policies which would provide such benefit coverage for a two-year period in
     the event of a termination solely of the kind referred to in clauses (A),
     (B), (E) and (H) of subparagraph 8(b)(ii) or for a three-year period in the
     event of any other kind of termination (as defined in subparagraph 8(b)),
     and such cost shall be paid in a lump sum as soon as practicable after
     termination;".

          4.   The definition of "Code" in subparagraph 8(a)(iii) of the
Existing Agreement is amended to refer to the "Internal Revenue Code of 1986, as
amended from time to time".  Subparagraph 8(a)(iii) is further amended by adding
the following sentence at the end of such subparagraph:

     "Notwithstanding the foregoing provisions of this subparagraph 8(a)(iii),
     if, in the opinion of the accounting firm or firms whose opinion or
     opinions with respect to pooling-of-interests accounting is or are required
     as a condition to the consummation of a Change in Control transaction
     intended to qualify for pooling-of-interests accounting treatment,
     implementation of such provisions (or the provisions of any other Company
     agreement or plan or action of the Company's Board of Directors (the
     "Board") or committee thereof with respect to other equity awards, stock-
     based or stock-measured compensation or compensation which may be payable
     in stock) would preclude such transaction from so qualifying, the Board,
     acting prior to the Change in Control, unilaterally may require that
     options, other equity awards (including contingently credited shares,
     performance share units and restricted stock units), stock-based or stock-
     measured compensation or compensation which may be payable in stock held by
     the Executive (or to which the Executive may be entitled) be treated in
     connection with such transaction and thereafter in a way that does not
     preclude such transaction

                                       2
<PAGE>

     from so qualifying and that the Board deems to be fair to the Executive
     (including, but not limited to, eliminating any acceleration of vesting or
     payment and requiring the conversion of such options and awards to options
     and awards of the corporation acquiring control of the Company or its
     assets in such transaction, or the settlement of such options and awards in
     shares of such corporation)."

          5.   Subparagraph 8(a)(iv) of the Existing Agreement is amended by
inserting the following at the end of the first sentence thereof:

     "; provided, however, that, for purposes of this subparagraph 8(a)(iv), the
     ten-consecutive-year period referred to in the definition of 'Average
     Annual Compensation' set forth in subparagraph 9(b)(i) shall end on the
     second anniversary of the termination (and the total compensation for each
     of the last two years of such period shall equal one-half ( 1/2) of the
     lump sum payment set forth in clause (x) of subparagraph 8(a)(ii)) in the
     event of a termination solely of the kind referred to in clauses (A), (B),
     (E) and (H) of subparagraph 8(b)(ii) or such ten-consecutive-year period
     shall end on the third anniversary of the termination (and the total
     compensation for each of the last three years of such period shall equal
     one-third (1/3) of the lump sum payment set forth in clause (x) of
     subparagraph 8(a)(ii)) in the event of any other kind of termination (as
     defined in subparagraph 8(b))".

          6.   Subparagraph 8(b)(ii) of the Existing Agreement is amended by
deleting the word "or" immediately before clause (E) thereof and by adding the
following clauses (F), (G) and (H) immediately before the proviso at the end of
such subparagraph:

     ", (F) reduction in the monthly base salary of the Executive below the
     highest monthly base salary paid from and after September 18, 1997, (G)
     within three years following a Change in Control, the relocation of the
     Executive's principal place of employment other than to (x) the Borough of
     Manhattan in the City of New York, New York, or (y) any other location that
     is not more than thirty-five (35) miles by automobile from the location of
     the Executive's principal place of employment immediately prior to the
     Change in Control, or (H) within three years following a Change in Control,
     the Executive is no longer eligible for benefits or incentive compensation
     at the same level as his peers in the Company".

          7.   Subparagraph 8(d) of the Existing Agreement is amended to read in
its entirety as follows:

                                       3
<PAGE>

          "(d)  Definition of Change in Control
                -------------------------------

               For the purpose of this Agreement, a "Change in Control" of the
     Company shall be deemed to have occurred if the event set forth in any one
     of the following paragraphs shall have occurred:

               (i)    any Person (as defined in this subparagraph 8(d)) is or
     becomes the Beneficial Owner (within the meaning set forth in Rule 13d-3
     under the Securities Exchange Act of 1934, as in effect on the date hereof
     (the 'Exchange Act')), directly or indirectly, of securities of the Company
     (not including in the securities beneficially owned by such Person any
     securities acquired directly from the Company or its Affiliates (as defined
     in this subparagraph 8(d)) representing 30% or more of the combined voting
     power of the Company's then outstanding securities; or

               (ii)   the following individuals cease for any reason to
     constitute a majority of the number of directors then serving on the Board:
     individuals who, on May 28, 1999, constitute the Board and any new director
     (other than a director whose initial assumption of office is in connection
     with an actual or threatened election contest relating to the election of
     directors of the Company) whose appointment or election by the Board or
     nomination for election by the Company's shareholders was approved or
     recommended by a vote of at least two-thirds (2/3) of the directors then
     still in office who either were directors on May 28, 1999 or whose
     appointment, election or nomination for election was previously so approved
     or recommended; or

               (iii)  there is consummated a merger or consolidation of the
     Company or any direct or indirect subsidiary of the Company with any other
     corporation or entity, other than a merger or consolidation if the number
     of members on the board of directors (or similar governing body) of the
     corporation or entity which is the surviving corporation or entity in such
     merger or consolidation (whether the Company or another corporation or
     entity) (or if the surviving corporation or entity is controlled by another
     corporation or entity, the board of directors (or similar governing body)
     of such controlling corporation or entity) immediately after such merger or
     consolidation (the "Surviving Board") who were directors of the Company
     immediately prior to such merger or consolidation constitutes a majority of
     the members on the Surviving Board immediately after such merger or
     consolidation; or

               (iv)   the shareholders of the Company approve a plan of complete
     liquidation or dissolution of the Company or there is consummated an
     agreement for the sale or disposition by the Company of all or
     substan-

                                       4
<PAGE>

     tially all of the Company's assets to  an entity unless the number
     of members of the board of directors (or similar governing body) of such
     entity (or if such entity is controlled by any other entity immediately
     after such sale or disposition, the board of directors or similar governing
     body of such other entity) immediately after such sale or disposition (the
     "Controlling Board") who were directors of the Company immediately prior to
     such sale or disposition constitutes a majority the members of the
     Controlling Board immediately after such sale or disposition.

     For purposes of this subparagraph 8(d):

     'Person' shall have the meaning given in Section 3(a)(9) of the Exchange
     Act, as modified and used in Sections 13(d) and 14(d) thereof, except that
     such term shall not include (i) the Company or any of its Subsidiaries,
     (ii) a trustee or other fiduciary holding securities under an employee
     benefit plan of the Company or any of its Subsidiaries, (iii) an
     underwriter temporarily holding securities pursuant to an offering of such
     securities or (iv) a corporation owned, directly or indirectly, by the
     shareholders of the Company in substantially the same proportions as their
     ownership of stock of the Company.

     'Affiliate' and 'controlled' shall have the meanings set forth in Rule 12b-
     2 under the Exchange Act."

          8.   The first sentence of subparagraph 9(d)(i) of the Existing
Agreement is amended to read in its entirety as follows:

     "Upon the retirement of the Executive pursuant to subparagraph 9(b) above,
     the Executive shall automatically be paid his excess retirement allowance
     (and any related excess survivor retirement allowance ) in a lump sum as
     soon as practicable after such retirement."

          9.   Subparagraph 9(d)(ii) is amended to read in its entirety as
follows:  "(ii)  [Intentionally Omitted]".

          10.  The words "an election by the Executive" in the first sentence of
subparagraph 9(d)(iii) of the Existing Agreement are amended to read in their
entirety as follows: "a lump sum payment to the Executive".  The third and
fourth sentences of subparagraph 9(d)(iii) are deleted.  Subparagraph 9(d)(iii)
is further amended by the deletion therein of all references to subparagraph
9(d)(ii), sometimes referred to as clause (ii) of subparagraph 9(d).

          11.  Subparagraph 12(b) of the Existing Agreement is amended by adding
the following language at the beginning thereof:  "Subject to paragraph 21,".

                                       5
<PAGE>

          12.  The last sentence of paragraph 15 of the Existing Agreement is
replaced by the following four sentences:

     "Upon such a consolidation, merger or transfer of assets and assumption,
     (i) the term 'Company' shall refer to the 'Continuing Corporation', that
     is, the corporation which survived such consolidation or merger (whether
     the prior-to-the-transaction 'Company' or another corporation) or to which
     such assets are transferred, and (ii) the term 'Board' shall refer to the
     board of directors (or similar governing body) of the Continuing
     Corporation (except that, in determining whether or not such merger,
     consolidation or transfer constitutes a Change in Control under
     subparagraph 8(d), the terms 'Company' and 'Board' shall refer to the
     prior-to-the-transaction 'Company' or 'Board').  Upon such a consolidation,
     merger or transfer of assets and assumption, this Agreement shall continue
     in full force and effect.  Whether or not a consolidation, merger or
     transfer of assets (or any other transaction) constitutes a Change in
     Control under subparagraph 8(d), any subsequent transaction involving a
     Continuing Corporation (or involving any corporation or entity directly or
     indirectly controlling the Continuing Corporation) which meets the
     definition of Change in Control under subparagraph 8(d) shall constitute a
     Change in Control for all purposes of this Agreement.  The provisions of
     this paragraph 15 shall apply to any subsequent consolidation or merger of
     any such corporation into or with, or any subsequent transfer by any such
     corporation of all or substantially all of its assets to, another
     corporation."

          13.  Clause (x) of subparagraph 16(d)(iii) of the Existing Agreement
is amended by adding the words "and Excise Tax Gross-Up amount" immediately
after the words "legal expenses payments" therein.  Subparagraph 16(d)(iii) is
further amended by deleting all of the words from "(z)" through the end of such
subparagraph and replacing such words with the following: "(z) the retirement
payments (as described in subparagraph 8(a)(iv)) set forth in Exhibit G."

          14.  Subparagraph 16(d)(v) of the Existing Agreement is amended in its
entirety to read as follows: "(v)  [Intentionally Omitted]".

          15.  Exhibit C to the Existing Agreement is amended by changing the
reference to "subparagraph 8(a)(i)" therein to refer to "subparagraph 8(a)(ii)".

          16.  Exhibit D to the Existing Agreement is amended by deleting the
words "; however, payments not to cover the period, if any, after the last day
of the month next preceding the Executive's normal retirement date under the
Company's pension plan".

                                       6
<PAGE>

          17.  Exhibit G to the Existing Agreement is amended by (i) changing
each reference therein to "2 years" and "2 year" to "3 years" and "3 year",
respectively, (ii) deleting the footnote, which states that "This Exhibit G does
not reflect the possible reduction provided for in subparagraph 16(d)(v)
hereof", (iii) deleting the words "; however, payments not to cover the period,
if any, after the last day of the month next preceding the Executive's normal
retirement date under the Company's pension plan", (iv) deleting the reference
to "For Active Employees" and the provision "For Retired Employees", and (v)
adding the following language at the end thereof:

     "    .    Excise Tax Gross-Up           An amount equal to the Company's
                                             estimate of the amount payable
                                             pursuant to paragraph 21.

     Notwithstanding the foregoing, no amounts shall be deposited in Trust with
     respect to options or contingently credited shares (or other equity awards)
     if the Potential Change in Control relates to a transaction approved by the
     Board and intended to qualify for pooling-of-interests accounting treatment
     and the Board, prior to the Change in Control, decides to exercise its
     power under the last sentence of subparagraph 8(a)(iii) with respect to
     such options and contingently credited shares (and other equity awards);
     provided, however, that if the Board, prior to the Change in Control,
     determines that such transaction will not be consummated and that an
     alternative Change in Control transaction not intended to qualify for
     pooling-of-interests accounting treatment will be consummated, such amounts
     shall promptly be deposited in Trust."

          18.  Paragraph 21 of the Existing Agreement is amended to read in its
entirety as follows:

               "21.  Excise Tax Gross-Up.  Whether or not a termination occurs,
                     -------------------
     if any of the payments or benefits received or to be received by the
     Executive in connection with a Change in Control or the Executive's
     termination of employment (whether pursuant to the terms of this Agreement
     or any other plan, arrangement or agreement with the Company, any person
     (as defined in subparagraph 8(d)) whose actions result in a Change in
     Control or any person affiliated with either the Company or the person
     whose actions result in a Change in Control) (such payments or benefits,
     excluding the payment or payments to be made pursuant to this paragraph 21,
     being hereinafter referred to as the 'Initial Payments') will be subject to
     the excise tax (the 'Excise Tax') imposed under Section 4999 of the Code,
     the Company shall pay

                                       7
<PAGE>

     to the Executive an additional amount (the 'Gross-Up Payment') such that
     the net amount retained by the Executive, after subtraction of any Excise
     Tax on the Initial Payments and any federal, state and local (and foreign,
     if any) income and employment taxes and Excise Tax upon the payment or
     payments provided by this paragraph 21, shall be equal to the Initial
     Payments. Notwithstanding any of the provisions of this paragraph 21, to
     the extent, if any, that, in the opinion of the accounting firm or firms
     whose opinion or opinions with respect to pooling-of-interests accounting
     is or are required as a condition to the consummation of a Change in
     Control transaction intended to qualify for pooling-of-interests accounting
     treatment, implementation of the provisions of this paragraph 21 would
     preclude such transaction from so qualifying, the term 'Initial Payments'
     shall not include any 'parachute payments' (within the meaning of section
     280G(b)(2) of the Code) resulting from the treatment accorded (whether in
     connection with the transaction or thereafter) to stock options, other
     equity awards, stock-based or stock-measured compensation or compensation
     which may be payable in stock pursuant to subparagraph 8(a)(iii) or
     pursuant to any Company plan or other agreement or Board (or Board
     committee) action relating to such options, awards or compensation.

               "The determination of whether any of the Initial Payments will be
     subject to the Excise Tax and the amount of such Excise Tax will be made by
     tax counsel ('Tax Counsel') reasonably acceptable to the Executive and
     selected (and compensated) by the Company.  For purposes of such
     determination, (x) all of the Initial Payments shall be treated as
     'parachute payments' (within the meaning of section 280G(b)(2) of the Code)
     unless, in the written opinion of Tax Counsel, such payments or benefits
     (in whole or in part) do not constitute parachute payments, including by
     reason of section 280G(b)(4)(A) of the Code, (y) all 'excess parachute
     payments' (within the meaning of section 280G(b)(l) of the Code) shall be
     treated as subject to the Excise Tax unless, in the written opinion of Tax
     Counsel, such excess parachute payments (in whole or in part) represent
     reasonable compensation for services actually rendered (within the meaning
     of section 280G(b)(4)(B) of the Code) in excess of the Base Amount (as
     defined in Section 280G(b)(3) of the Code) allocable to such reasonable
     compensation, or are otherwise not subject to the Excise Tax, and (z) the
     value of any noncash benefits or any deferred payment or benefit shall be
     determined by the Company in accordance with the principles of sections
     280G(d)(3) and (4) of the Code.  For purposes of determining the amount of
     the Gross-Up Payment, the Executive shall be deemed to pay federal income
     tax at the highest marginal rate of federal income taxation in the calendar
     year in which the Gross-Up Payment is to be made and state and local (and
     foreign, if any) income taxes at the

                                       8
<PAGE>

     highest marginal rate of taxation in the state and locality of the
     Executive's residence on the date of termination of the Executive's
     employment (or if there has been no such termination, the date on which the
     Gross-Up Payment is calculated for purposes of this paragraph 21), net of
     the reduction in federal income taxes (if any) which is available from
     deduction of such state and local (and foreign, if any) taxes.

               "As soon as practicable following any such determination of the
     Gross-Up Payment by the Tax Counsel, the Company shall provide the
     specifics of the determination in writing to the Executive and to the
     trustee of the trust referred to in subparagraph 16(d)(ii).  The Gross-Up
     Payment will be made in cash by the Company to the Executive not later than
     the fifth business day following the date on which the Executive's
     termination occurs (or, if no termination shall have occurred, not later
     than the thirtieth (30th) business day immediately following the event that
     resulted in the imposition of the Excise Tax)(in either case, the 'Payment
     Date').  If the amount of the Gross-Up Payment cannot be accurately
     determined on or before the Payment Date, the Company shall pay to the
     Executive on such day an estimate, as determined in good faith in
     accordance with this paragraph 21, of the minimum amount to which the
     Executive is clearly entitled and shall pay the remainder of the Gross-Up
     Payment (together with interest on the unpaid remainder (or on all of the
     Gross-Up Payment to the extent the Company fails to make such payment when
     due) at 120% of the rate provided in Section 1274(b)(2)(B) of the Code) as
     soon as the amount thereof can be determined but in no event later than the
     thirtieth (30/th/) day after a Payment Date.  In the event that the amount
     of the estimated Gross-Up Payment made to the Executive exceeds the amount
     subsequently determined to have been due, such excess shall constitute a
     loan by the Company to the Executive, payable on the fifth (5/th/) business
     day after demand by the Company (together with interest at 120% of the rate
     provided in Section 1274(b)(2)(B) of the Code).

          "In the event that the Excise Tax is finally determined to be less
     than the amount taken into account hereunder in calculating the Gross-Up
     Payment, the Executive shall repay to the Company, within the five (5)
     business days immediately following the date that the amount of such
     reduction in the Excise Tax is finally determined, the portion of the
     Gross-Up Payment attributable to the amount of such reduction (including
     the Excise Tax component and the federal, state and local (and foreign, if
     any) income and employment tax components of the Gross-Up Payment), to the
     extent that such repayment results in a reduction in the Excise Tax and a
     dollar-for-dollar reduction in the Executive's taxable income and wages for
     purposes of federal, state and local (and foreign, if any) income and
     employment taxes, plus

                                       9
<PAGE>

     interest on the amount of such repayment at 120% of the rate provided in
     section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is
     determined to exceed the amount taken into account hereunder in calculating
     the Gross-Up Payment (including by reason of any payment the existence or
     amount of which cannot be determined at the time of the Gross-Up Payment),
     the Company shall pay to the Executive an additional Gross-Up Payment in
     respect of such excess (plus any interest, penalties or additions payable
     by the Executive with respect to such excess) within the five (5) business
     days immediately following the date that the amount of such excess is
     finally determined. The Executive and the Company shall each reasonably
     cooperate with the other in connection with any administrative or judicial
     proceedings concerning the existence or amount of liability for Excise Tax
     with respect to the Initial Payments."

          19.  The parties agree that (i) if the Company wishes to engage in a
Change in Control transaction intended to qualify for pooling-of-interests
accounting treatment, and (ii) if, in the opinion of the accounting firm or
firms whose opinion or opinions with respect to pooling-of-interests accounting
is or are required as a condition to the consummation of such transaction, (x)
the implementation of any provision of this Amendment Agreement or of any
provision of the Existing Agreement or (y) the taking of any action by the
Executive (including, without limitation, the sale of securities of the Company
or the exercise of stock options or stock appreciation rights granted by the
Company) (the "Disqualifying Action") would disqualify such transaction from
pooling-of-interests accounting treatment, then: with respect to (x), such
provision shall be null and void from the date hereof automatically and without
any action on the part of the Company or the Executive, and all the provisions
of the Existing Agreement not so nullified, as amended by all the provisions of
this Amendment Agreement not so nullified, shall remain in full force and
effect; and with respect to (y), the Executive agrees not to take any
Disqualifying Action.

          20.  The Executive hereby consents to amendment by the Company (if the
Company so elects and subject to the approval of the trustee then serving, if
required) of the Trust Agreement dated as of February 19, 1987, by and between
the Company and Fleet National Bank, as amended as of August 18, 1988 (the
"Benefits Trust") which was established to assure the payment of benefits under
the individual agreements listed on Exhibit I thereto (which include the
Existing Agreement) as follows:  amend Section 2.02(a) of the Benefits Trust to
include, as a third alternative form of investment for the assets of the
Benefits Trust, a letter of credit payable to the commercial bank serving as
trustee of the Benefits Trust from time to time, with the proceeds thereof to be
used in accordance with the provisions of the Benefits Trust.  The parties
hereto agree (and the Executive

                                       10
<PAGE>

consents) that the Company shall promptly amend (x) Section 3.01 of the Benefits
Trust (subject to the approval of the trustee serving thereunder, if required)
to define a "Change in Control" as such term is defined in subparagraph 8(d) of
the Agreement, and (y) Section 4.02(a) of the Benefits Trust (subject to the
approval of the trustee thereunder, if required) to delete clauses (iii) and
(iv) in the next-to-last sentence thereof. The Executive agrees that, upon the
Company's request, the Executive will sign any additional documents indicating
the Executive's consent to the amendments described in this Section 20 which are
needed to facilitate such amendments.

          IN WITNESS WHEREOF, the parties have executed this Amendment Agreement
as of the date first above written.

                         CHAMPION INTERNATIONAL CORPORATION

                         By: /s/ Lawrence A. Bossidy
                            --------------------------------------------
                                 Chairman of the
                                 Compensation and Stock Option Committee
Attest:

/s/ Lawrence A. Fox
----------------------
Secretary

                            /s/ Richard E. Olson
                           ---------------------------------------------
                                Executive

                                       11