Document:

EXHIBIT 10.1

 

Boise Cascade, L.L.C.

1111 West Jefferson
Street   PO Box 50   Boise, ID 83728

T 208 384 4850   F 208 384 4913

TomStephens@BC.com

 

W. Thomas Stephens

Chairman & Chief
Executive Officer

 

October 1,
2005

 

 

Alexander
Toeldte

15
Lammermoor Drive

St.
Heliers, Auckland

NEW ZEALAND

 

Subject:                                                     Offer
of Future Employment

 

Dear
Alexander:

 

In
confirmation of our prior discussions, I am pleased to offer you the position of
President, Packaging & Newsprint, as of October 1, 2005.  In this position, your direct reports will be
Judy Lassa and Bob Strenge.  Also in
keeping with our prior discussions, it is my intent to seek the board’s
approval to promote you to Executive Vice President, Paper, Packaging &
Newsprint, at the regularly scheduled board meeting in October.  In that position, your direct reports will be
expanded to also include Miles Hewitt and Bob Tracy.  I have already discussed this possibility
with the board and have no reason to believe the board would not approve this
promotion.

 

Here
are the details of the offer:

 

1.               Salary
and Bonus.  Your starting annual
salary will be $250,000, which will increase to $500,000 upon your promotion to
Executive Vice President, Paper, Packaging & Newsprint.  You will be subject to regular performance
reviews.  You will be eligible for an
annual bonus with a target value of 65% of your base pay.  The bonus metrics will be similar to the
bonus metrics that are adopted for the senior Paper, Packaging & Newsprint
division managers of the company and may include some individual performance
goals that I determine.  Depending on
actual company and personal performance, the bonus could range from a zero
payout to 2.25 times the target value of 65% of base pay.  Your 2005 bonus (if any) will be prorated
based on your entry into the plan on October 1, 2005.

 

2.               YTO.  You will be eligible for the maximum paid time off (known as Your Time
Off, or YTO) available to the company’s salaried employees.  Currently, the maximum paid time off is 31
days annually.

 

3.               Signing
Bonus.  You will receive a bonus of $375,000
upon your acceptance of this position.

 

 

4.               Equity
Investment and Long-Term Incentive. 
You will have the opportunity to purchase a form of equity investment in
the organization at a price to be determined. 
You will also be eligible to receive long-term incentive grants if and
when such grants are authorized.  The
form and amount of grant, as well as terms such as vesting and/or performance
requirements that apply to the grant, will be determined at the time of grant.

 

5.               Relocation.  You will be eligible for reimbursement of
your relocation expenses in accordance with our employee relocation policy.

 

6.               Severance.  If you are involuntarily terminated (other
than for disciplinary reasons), you will be eligible for severance under the
company’s Severance Pay Policy for Executive Officers, which provides for one
year of severance.  You are also eligible
for a severance agreement in the form attached. 
This agreement provides that if you are involuntary terminated or if you
terminate your employment for “good reason,” you will receive two years of
severance, among other benefits.

 

7.               Other
Benefits.  You are also eligible for the
standard benefits offered to officers. 
Currently, these benefits include an annual financial counseling
allowance of $5,000; supplemental healthcare benefits in addition to
participation in the company’s standard healthcare plan; and participation in
the company’s 401(k) and deferred compensation plans.  More information regarding these benefits will
be provided at a later date.

 

Because of the terms of your visa, we
understand you are not able to begin work in your new role until October 1,
2005.  In the meantime, we look forward
to your response to this offer.

 

	
  Very
  truly yours,

  
	
   

  
	
  /s/
  Tom Stephens

  	
   

  
	
   

  
	
  Tom
  Stephens

  
	
   

  
	
  WTS/cw

  
	
   

  
	
  Enclosure

  

 

2EXHIBIT 10.2

 

Boise Cascade, L.L.C.

1111 West Jefferson
Street   PO Box 50   Boise, ID 83728

T 208 384 4850   F 208 384 4913

TomStephens@BC.com

 

W. Thomas Stephens

Chairman & Chief
Executive Officer

 

October 1,
2005

 

 

Alexander
Toeldte

15
Lammermoor Drive

St.
Heliers, Auckland

NEW ZEALAND

 

Subject:                                                     Foreign
Service Policy

 

Dear
Alexander:

 

This
letter summarizes the provisions of the Foreign Service Policy as it relates to
your employment in the United States. 
The primary objective is to clarify certain features of the policy and
to explain provisions unique to your move.

 

This
letter is not a contract of employment. 
Nothing in this letter is intended to imply guaranteed employment.  Tax codes, laws, benefits programs, and
policies change may impact the provisions of the foreign service policy as it
applies to you.

 

Duration of Assignment

 

This
assignment to Boise, Idaho, is anticipated to be permanent and our intent is to
treat you as any other United States employee with respect to your position
within the organization, once we have completed your relocation and a brief
transition period.  If due to immigration
requirements you, or members of your family, can not continue to reside in the
United States, we will provide for your repatriation to New Zealand as long as
you are actively employed with us when you receive notice from the U.S.
Immigration authorities that you cannot continue to reside in the U.S. or you
receive such notice within 180 days following termination of employment.  You must advise Boise Cascade of such notice
within 30 days of your receipt by certified mail.

 

Immigration

 

Fran
Voulelis will assist you in the process of collecting the appropriate documents
to submit to the third party attorney who will handle filing the paperwork to
allow you to work in the United States and obtain permanent residence.  It is your responsibility to present the
information necessary to allow your wife and children to enter and reside in
the United States as well.  The legal
expenses will be paid by Boise Cascade.

 

Allowances

 

You
will not be provided with Good/Services/Currency Equalization and Housing
Equalization as you will be a permanent United States resident.

 

 

Boise
will not provide you with an automobile other than specified below while
relocating to Boise.

 

Taxes

 

It is
our practice to equalize taxes so that employees relocated under the foreign
service policy, on average, are not adversely impacted by taxes between
countries as a result of the relocation. 
Adverse impact is relative to the originating country’s tax alone.  Under current tax law, compensation earned in
respect to services rendered in the United States under an HB-1 visa is only
taxed in the United States and income earned in New Zealand is only taxed in
New Zealand.  Your citizenship in Germany
and your wife’s Canadian citizenship do not appear to have a tax
consequence.   For 2005 and 2006, the
company will protect you from any adverse tax impact.  In protecting taxes, the company will
consider company-earned (source) as well as non-company-earned (nonsource)
income and will protect income earned through December 31, 2006, or if
earlier, your last day worked.  Tax
protection for the United States includes only Federal and State Income tax.

 

Because
reimbursement of taxes by the company creates an additional tax liability for
you, if there is a final tax reimbursement to you, it will be grossed up at a
rate commensurate with average marginal tax brackets at the time.

 

You
are required to file completed and accurate tax returns as required in New
Zealand, the United States, or any other country requiring a tax return from
you.

 

The
company will pay reasonable costs associated with the services of a tax adviser
for the preparation of your personal income tax returns in New Zealand, the United
States, and any third country.  The
company has engaged Ernst & Young for the provision of tax
services.  The costs outlined above are
met by the company on the assumption you will utilize the services of the tax
adviser chosen by the company.  No other
tax adviser’s fees will be reimbursed, nor will costs outside the scope of
agreement with the tax adviser.

 

Moving, Travel, Household Goods, Etc.

 

You
will receive a complete relocation package. 
You will receive $41,666.67 as a Relocation Allowance, plus storage of
household goods (up to six months), reasonable air shipment of some household
goods, purchase of appliances (up to $3,000) and up to six months of temporary
living.  Temporary living will include
lease, utility, and maintenance expenses. 
The leased house will be furnished and as similar as possible, based on
availability, to your housing in your originating country.  We will reimburse you for ordinary and
customary expenses incurred by you for the sale of your home in New
Zealand.  You will also be eligible for
reimbursement of two rental cars for up to three months.  You and your family will be entitled to
business class air fares to the United

 

2

 

States
upon acceptance of this position.  All
expenses must be submitted within 90 days from when the expenses were
incurred.  We will not provide cash in
lieu of expenses.

 

The
company will meet any tax liability arising from the above items.

 

Appraised Value Offer (Guaranteed Buyout)

 

Boise
will extend an Appraised Value Offer if your home in New Zealand does not sell
within 90 days of listing.  Under this
program, we will obtain one Home Appraisal from a certified Appraiser and one
Broker’s Market Appraisal for a licensed Real Estate agent.  If the value of these two appraisals is
within 5% of each other, we will offer to purchase your home at the average
value.  If they differ by more than 5%,
we will obtain another Home Appraisal and offer to purchase your home from you
based on the average value of the two appraisals closest to each other.  All program costs, including closing costs,
are paid by Boise.

 

The
company assumes no liability for losses you may incur from foreign home
ownership, including currency-exchange losses.

 

Please
review this information carefully.  As
you are well aware, relocating to a foreign country is complicated.  If any of this differs from your
understanding, please let me know.

 

If you
agree to the terms outlined in this offer and sign below, you are indicating
that you understand and accept the provisions of the program as outlined in
this letter.  The attached copy is for
your records.

 

	
  Very
  truly yours,

  
	
   

  
	
  /s/
  Tom Stephens

  	
   

  
	
   

  
	
  Tom
  Stephens

  
	
   

  
	
  WTS/cw

  
	
   

  
	
  Enclosure

  

 

 

I
understand and accept the provisions of the Foreign Service Program as outlined
above.

 

	
  October 1,
  2005

  	
   

  	
  /s/
  Alexander Toeldte

  	
   

  
	
  Date

  	
  Alexander Toeldte

  

 

3

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