| Borders      Group, Inc.100      Phoenix DriveAnn      Arbor, MI  48108t:      734-477-1100f:      734-477-1370www.bordersgroupinc.com |   |
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|   | Name |
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|   | Dear      Name: |
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| 1. | Subject      to all of the other provisions of this agreement, if your employment with      the Company is terminated by the Company other than for Cause or      Disability, or by you for Good Reason, the Company will pay to      you: |
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|   | (a) | Your      base salary through the month during which termination occurred, plus any      other amount due you at the time of termination under any bonus plan of      the Company; and |
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|   | (b) | Monthly      severance payments for the period specified in Section 5 equal to (i) your      monthly base salary at the time of termination, plus (ii) 1/12th      of the “target” bonus amount targeted for you for the fiscal year in which      termination occurred. |
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|   | (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 (within      the meaning of Rule 13d-3 promulgated under the Exchange Act) 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"); provided, however, that for purposes of this      subsection (a), the following acquisitions shall not constitute a Change      in Control:  (i) any acquisition directly from the Company, (ii)      any acquisition by the Company, (iii) any acquisition by any employee      benefit plan (or related trust) sponsored or maintained by the Company or      any corporation controlled by the Company or (iv) any acquisition by any      corporation pursuant to a transaction which complies with clauses (i),      (ii) and (iii) of subsection (c) of this Section 9;  or |
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|   | (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 |
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|   | (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 |
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|   | (d) | Approval      by the shareholders of the Company of a complete liquidation or      dissolution of the Company. |
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|   | (a) | For      purposes of this Section 10:  (i) a "Payment" shall mean any      payment or distribution in the nature of compensation to or for the      benefit of the Executive, whether paid or payable pursuant to this      Agreement or otherwise; (ii) "Agreement Payment" shall mean a Payment paid      or payable pursuant to this Agreement (disregarding this Section); (iii)      “Net After-Tax Receipt” shall mean the Present Value of a Payment net of      all taxes imposed on the Executive with respect thereto under Sections 1      and 4999 of the Code and under applicable state and local laws, determined      by applying the highest marginal rate under Section 1 of the Code and      under state and local laws which applied to the Executive’s taxable income      for the immediately preceding taxable year, or such other rate(s) as the      Executive shall certify, in the Executive’s sole discretion, as likely to      apply to the Executive in the relevant tax year(s); (iv) "Present Value"      shall mean such value determined in accordance with Sections      280G(b)(2)(A)(ii) and 280G(d)(4) of Code; (v) "Reduced Amount" shall mean      the amount of Agreement Payments that (A) has a Present Value that is less      than the Present Value of all Agreement Payments and (B) results in      aggregate Net After-Tax Receipts for all Payments that are greater than      the Net After-Tax Receipts for all Payments that would result if the      aggregate Present Value of Agreement Payments were any other amount that      is less than the Present Value of all Agreement Payments; and (vi) “Code”      shall mean the Internal Revenue Code of 1986, as  amended. |
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|   | (b) | Anything      in the Agreement to the contrary notwithstanding, in the event Ernst &      Young or such other accounting firm as shall be designated by the Company      (the "Accounting Firm") shall determine that receipt of all Payments would      subject the Executive to tax under Section 4999 of the Code, the      Accounting Firm shall determine whether some amount of Agreement Payments      meets the definition of “Reduced Amount.”  If the Accounting      Firm determines that there is a Reduced Amount, then the aggregate      Agreement Payments shall be reduced to such Reduced  Amount. |
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|   | (c) | If      the Accounting Firm determines that aggregate Agreement Payments should be      reduced to the Reduced Amount, the Company shall promptly give the      Executive notice to that effect and a copy of the detailed calculation      thereof. For purposes of reducing the aggregate Agreement Payments to the      Reduced Amount, only amounts payable under this Agreement (and no other      Payments) shall be reduced.   The reduction of the      aggregate Agreement Payments to the Reduced Amount, if applicable, shall      be made by reducing the amounts payable to the Executive pursuant to      Section 1(b) (as modified by Section 5) of this Agreement.  All      determinations made by the Accounting Firm under this Section shall be      binding upon the Company and the Executive and shall be made within 60      days of a termination of employment of the Executive.  As      promptly as practicable following such determination, the Company shall      pay to or distribute for the benefit of the Executive such Agreement      Payments as are then due to the Executive under this Agreement and shall      promptly pay to or distribute for the benefit of the Executive in the      future such Agreement Payments as become due to the Executive under this      Agreement. |
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|   | (d) | As      a result of the uncertainty in the application of Section 4999 of the Code      at the time of the initial determination by the Accounting Firm hereunder,      it is possible that amounts will have been paid or distributed by the      Company to or for the benefit of the Executive pursuant to this Agreement      which should not have been so paid or distributed ("Overpayment") or that      additional amounts which will have not been paid or distributed by the      Company to or for the benefit of the Executive pursuant to this Agreement      could have been so paid or distributed ("Underpayment"), in each case,      consistent with the calculation of the Reduced Amount      hereunder.  In the event that the Accounting Firm, based upon      the assertion of a deficiency by the Internal Revenue Service against      either the Company or the Executive which the Accounting Firm believes has      a high probability of success determines that an Overpayment has been      made, any such Overpayment paid or distributed by the Company to or for      the benefit of the Executive shall be repaid to the Company together with      interest at the applicable federal rate provided for in Section 7872(f)(2)      of the Code; provided,      however, that no such amount shall be payable by the Executive to the      Company if and to the extent such  payment would not either      reduce the amount on which the Executive is subject to tax under      Section 1 and Section 4999 of the Code or generate a refund of such      taxes.  In the event that the Accounting Firm, based upon      controlling precedent or substantial authority, determines that an      Underpayment has occurred, any such Underpayment shall be promptly paid by      the Company to or for the benefit of the Executive together with interest      at the applicable federal rate provided for in Section 7872(f)(2) of the      Code. |
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| (e)   | All      fees and expenses of the Accounting Firm in implementing the provisions of      this Section 10 shall be borne by theCompany. |
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| Borders,      Inc. and Walden Book Company, Inc. are subsidiaries of Borders Group,      Inc. |

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