Document:

Exhibit 10.1

 

OFFICEMAX
INCORPORATED

 

2006 Annual Incentive Award Agreement

 

This
Annual Incentive Award (the “Award”) is granted on February 9, 2006 (the “Award Date”), by
OfficeMax Incorporated (“OfficeMax”) to <<insert name >> (“Awardee” or “you”)
pursuant to the 2003 OfficeMax Incentive and Performance Plan (the “Plan”) and
pursuant to the following terms:

 

1.                                       The
Award is subject to all the terms and conditions of the Plan. All capitalized
terms not defined in this Agreement shall have the meaning stated in the Plan.

 

2.                                       For purposes of this Award, the following
terms shall have the meanings stated below.

 

2.1.                              “Award Period” means the 2006 fiscal year.

 

2.2.                              “Base Salary” means your annual pay rate in effect at the end of the
Award Period, without taking into account (a) any amounts deferred pursuant to
an election under any 401(k) plan, pre-tax premium plan, deferred compensation
plan, or flexible spending account sponsored by OfficeMax or any subsidiary,
(b) any incentive compensation, employee benefit, or other cash benefit paid or
provided under any incentive, bonus or employee benefit plan sponsored by
OfficeMax or any subsidiary, or (c) any excellence award, gains upon stock
option exercises, restricted stock grants or vesting, moving or travel expense
reimbursement, imputed income, or tax gross-ups, without regard to whether the
payment or gain is taxable income to you.

 

2.3.                              “EBIT Dollars” means OfficeMax’s earnings from operations before
interest and taxes, as calculated by OfficeMax in its sole discretion.

 

2.4.                              “Net Sales” means the gross sales or revenues less returns, allowances,
rebates, and coupons for OfficeMax, as calculated by OfficeMax in its sole
discretion.

 

2.5.                              “Performance Goals” means EBIT Dollars, Return on Sales and Sales
Growth.

 

2.6.                              “Return on Sales” (ROS) means the ratio of reported operating profit to
reported Net Sales, expressed as a percentage, for OfficeMax during the Award
Period, as calculated by OfficeMax in its sole discretion.

 

 

2.7.                              “Sales Growth” means the percentage change in overall same location Net
Sales for OfficeMax during the Award Period, adjusted for store closures, store
openings, acquisitions, divestitures, and changes in fiscal periods, as
calculated by OfficeMax in its sole discretion.

 

3.                                       Your target award percentage is <<insert >> % of your Base
Salary.

 

4.                                       Your Award will be calculated based on the
Performance Goals, as follows:

 

4.1.                              Payout. Each Performance
Goal as a percent of target is weighted as follows: EBIT Dollars 50%, ROS 25%, Sales
Growth 25%. Using the payout charts attached as Exhibit 1, a payout multiple
will be identified for each Performance Goal.

 

4.2.                              General Terms. Payout
multiples between numbers indicated on Exhibit 1 will be calculated using
straight-line interpolation. Notwithstanding the Performance Goals and formulas
set forth above, no award will be earned or paid for the Award Period unless
OfficeMax has net income for the Award Period, as calculated by OfficeMax in
its sole discretion.

 

5.                                       This Award will be paid in cash.

 

6.                                       If you terminate employment before December
31, 2006, your Award will be treated as follows:

 

6.1.                              If your termination of employment is a direct result of the sale or
permanent closure of any facility or operating unit of OfficeMax or any
subsidiary, or a bona fide curtailment, or a reduction in workforce, as
determined by OfficeMax in its sole discretion, and you execute a
waiver/release in the form required by OfficeMax, you will receive a pro rata
Award, if an Award is paid, based on the number of days during the Award Period
that you were employed and eligible over 365.

 

6.2.                              If your termination of employment is a result of your death or total
and permanent disability, you will receive a pro rata Award, if an Award is
paid, calculated as provided in paragraph 6.1.

 

6.3.                              If, at the time of your termination, you are at least age 55 and have
at least 10 years of employment with OfficeMax, you will receive a pro rata Award,
if an Award is paid, calculated as provided in paragraph 6.1.

 

 

6.4.                              Except as described in paragraphs 6.1, 6.2 and 6.3, you must be
employed by OfficeMax or its subsidiary on the last day of the Award Period to
be eligible to receive payment of an Award. If you terminate employment for any
reason other than as described in paragraph 6.1, 6.2 or 6.3, whether your
termination is voluntary or involuntary, with or without cause, you will not be
eligible to receive payment of any Award for 2006.

 

7.                                       The Committee reserves the right to reduce or
eliminate the Award, whether or not the Performance Goals have been met.

 

8.                                       In the event of a Change in Control (as
defined in the Plan) prior to December 31, 2006, the provisions of the Plan
shall apply.

 

You must sign this Agreement and return it to OfficeMax’s Compensation
Department on or before April 15, 2006, or the Award will be forfeited. Return
your executed Agreement to:  Pam Delaney,
OfficeMax, 150 E Pierce Road, Itasca, IL 60143, or fax your signed form to 630-438-2460.

 

 

	
  OfficeMax
  Incorporated

  	
  Awardee

  
	
   

  	
   

  
	
  By:Exhibit 10.2

 

OFFICEMAX
INCORPORATED

 

Restricted Stock Unit Award Agreement

Elected Officers

 

This
Restricted Stock Unit Award (the “Award”), is granted on February                       ,
2006 (the “Award Date”), by OfficeMax Incorporated (“OfficeMax”) to <<insert name>> (“Awardee” or “you”) pursuant to the 2003 OfficeMax Incentive and
Performance Plan (the “Plan”) and pursuant to the following terms:

 

1.                                      The Award is subject to all the terms and
conditions of the Plan. All capitalized terms not defined in this Agreement
shall have the meaning stated in the Plan.

 

2.                                       You are hereby awarded a potential grant of <<insert #RSUs>> restricted
stock units (your “Potential RSU Award”) at no cost to you, subject to the
restrictions set forth in the Plan and this Agreement.

 

3.                                       Your Potential RSU Award shall be null and
void if the fiscal years 2006 and 2007 Return on Net Assets (RONA), as
calculated by OfficeMax in its sole discretion, does not reach a minimum
criteria. For 2006 and 2007, the RONA minimum of <<insert >> % for each year must be reached or the
RSU award shall be null and void.

 

4.                                       Once the RONA in 3 above has been met, the
sum of OfficeMax’s reported Earnings Before Interest and Taxes (“EBIT” ) for
its 2006 and 2007 fiscal years as calculated by OfficeMax in its sole
discretion, must equal at least $ <<insert
>>  (the “EBIT Minimum”).

 

5.                                       If OfficeMax achieves the RONA and EBIT
Minimums, then your Potential RSU Award with one half being adjusted based upon
OfficeMax’s 2006 Return on Sales (“ROS”) as described below and the other half
being adjusted based upon OfficeMax’s 2007 ROS. ROS means the ratio of reported
operating profit to reported Net Sales, expressed as a percentage, for
OfficeMax during the relevant fiscal year, as calculated by OfficeMax in its
sole discretion. “Net Sales” means the gross sales or revenues less returns,
allowances, rebates, and coupons for OfficeMax, as calculated by OfficeMax in
its sole discretion.

 

The
first half of the Potential RSU Award shall be adjusted for 2006 ROS in
accordance with the following chart and shall vest on February 8, 2008, and
payable as soon as practical:

 

	
  2006 Return on Sales

  	
   

  	
  Percentage of Potential RSU Award 

  (Based on Number of RSUs Granted

  at Target)

  
	
  <<insert
  >>% or
  greater

  	
   

  	
  <<insert
  >>%

  
	
  <<insert
  >>%

  	
   

  	
  <<insert
  >>%

  
	
  <<insert
  >>%

  	
   

  	
  <<insert
  >>%

  
	
  < <<insert >>%

  	
   

  	
  <<insert
  >>%

  

 

 

The second half of the
Potential RSU Award shall be adjusted for 2007 ROS in accordance with the
following chart and shall vest on February 8, 2009, and payable as soon as practical:

 

	
  2007 Return on Sales

  	
   

  	
  Percentage of Potential RSU Award

  (Based on Number of RSUs Granted

  at Target)

  
	
  <<insert
  >>% or
  greater

  	
   

  	
  <<insert
  >>%

  
	
  <<insert
  >>%

  	
   

  	
  <<insert
  >>%

  
	
  <<insert
  >>%

  	
   

  	
  <<insert
  >>%

  
	
  < <<insert >>%

  	
   

  	
  <<insert
  >>%

  

 

Where ROS falls between the
numbers shown on the tables above, the Percentage of Potential RSU Award shall
be calculated using straight-line interpolation.

 

6.                                       The restrictions on the restricted stock
units earned (after application of paragraphs 3, 4 and 5 above) will lapse and
the units will vest at the times set forth in paragraph 5, above.

 

a.                                       If your termination of employment occurs
before February 8, 2008 and:  (i) you are
involuntarily terminated not for “disciplinary reasons” as determined by the
Company, (ii) you terminate employment as a result of death or total and
permanent disability, or (iii) you voluntarily terminate employment and at the
time of your termination you are at least age 55 and have at least 10 years of
employment with OfficeMax, then the restrictions will lapse so that your
restricted stock units shall vest in a pro rata manner as follows:

 

A.                                   A pro-rata portion of the percentage of the
unvested units which would have otherwise vested February 8, 2008 based on the
number of full months worked since the Award Date over 24 months, plus

 

B.                                     A pro rata portion of the percentage of
unvested units which would have otherwise vested February 8, 2009 based on the
number of full months worked since the Award Date over 36 months.

 

b.                                      If your termination of employment occurs
between February 9, 2008, and February 8, 2009 and:  (i) you are involuntarily terminated not for “disciplinary
reasons” as determined by the Company, (ii) you terminate employment as a
result of death or total and permanent disability, or (iii) you voluntarily
terminate employment and at the time of your termination you are at least age
55 and have at least 10 years of employment with OfficeMax, then the
restrictions on the unvested units which would have otherwise vested February
8, 2009, will lapse based on the number of full months worked since February 9,
2008, over 12 months.

 

c.                                       Any units you receive under paragraphs 6.a or
6.b will be paid as soon as the Company’s relative achievement of the
performance measures has been

 

 

determined
and applied to your Award as described in paragraphs 3, 4  and 5. Any unvested units remaining after
payout will be forfeited.

 

d.                                      Upon your voluntary or involuntary
termination for any other reason, all units not yet vested at the time of
termination will be immediately forfeited.

 

7.                                       If you previously accepted an offer to
relocate from OfficeMax’s Shaker Heights, Ohio location to OfficeMax’s Illinois
location and you later rescind your acceptance, all units not yet vested at the
time of such rescission will be immediately forfeited.

 

8.                                       In the event of a Change in Control (as
defined in the Plan) prior to the third anniversary of the Award Date, the
continuing entity may either continue this Award or replace this Award with an
award of at least equal value with terms and conditions not less favorable than
the terms and conditions provided in this Award Agreement, in which case the
Award will vest according to the terms of the applicable Award Agreement. If
the continuing entity does not so continue or replace this Award, or if you
experience a “qualifying termination” (such term to be defined in an agreement
providing specific benefits upon a change in control or in the Plan), the
Restriction Period will lapse with respect to all units not vested at the time
of the Change in Control or your termination (as applicable), and all units
will vest immediately.

 

9.                                       The units awarded pursuant to this Agreement
cannot be sold, assigned, pledged, hypothecated, transferred, or otherwise
encumbered prior to vesting. Any attempt to transfer your rights in the awarded
units prior to vesting will result in the immediate forfeiture of the units.

 

10.                                 You will not receive dividends or dividend
units on the awarded units. With respect to the awarded units, you are not a
shareholder and do not have any voting rights.

 

11.                                 Vested restricted stock units will be paid to
you in whole shares of OfficeMax common stock. Partial shares, if any, will be
paid in cash.

 

You must
sign this Agreement and return it to OfficeMax’s Compensation Department on or
before April              ,
2006, or the Award will be forfeited. Return your executed Agreement to:  Pam Delaney, OfficeMax, 150 Pierce Road,
Itasca, IL 60143, or fax your signed form to 630-438-2460.

 

	
  OFFICEMAX
  INCORPORATED

  	
  AWARDEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed
  Name

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]