Document:

Exhibit 10.7

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT to the Employment Agreement between Boise Cascade,
L.L.C. and W. Thomas Stephens dated October 29, 2004, is made this 22nd
day of February, 2008.

 

WHEREAS, certain changes to the Employment Agreement are necessary to
comply with Section 409A of the Internal Revenue Code; and

 

WHEREAS, the parties wish to make certain other changes.

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree to amend the Employment
Agreement as follows:

 

1.             The first sentence of
Section 3(a) is amended to read as follows:

 

“From the Effective Date through February 21, 2008, Executive’s
base salary shall be One Million Dollars ($1,000,000) per annum, and from February 22,
2008 through the remainder of the Employment Period, Executive’s base salary
shall be Eight Hundred Thousand Dollars ($800,000) or such higher rate as the
Board may determine from time to time (as adjusted from time to time, the “Base
Salary”), which salary shall be payable by the Company in regular installments
in accordance with the Company’s general payroll practices (in effect from time
to time).

 

2.             The last sentence of Section 3(e) is
deleted and replaced in its entirety with the following:

 

“Upon Executive’s termination of employment for any reason other than
the Company’s termination of Executive for Cause, the Company will purchase for
cash Executive’s condominium located in Boise for its appraised fair market
value.  Payment for the condominium in
Boise shall be made within two and one-half (21⁄2) months following the end of
year in which Executive’s termination occurs.”

 

3.             Section 5(b) is
deleted and replaced in its entirety with the following:

 

“(b)         If the Employment
Period is terminated by the Company or its successors in interest without cause
other than under the circumstances described in 5(d) or upon Executive’s
resignation with Good Reason, Executive shall be entitled to receive:

 

(i)            his full Base
Salary through the date of Executive’s termination;

 

(ii)           a lump sum equal to
two times the sum of Executive’s annual Base Salary and annual Target Bonus
(disregarding any reductions in Base Salary and/or Target Bonus which
constitute Good Reason);

 

 

(iii)          the value of any
unused and accrued time off, less any advanced time off, in accordance with the
time off policy applicable to Executive immediately prior to Executive’s date
of termination;

 

(iv)          continued coverage
under Executive’s term life insurance policy referred to in Section 3(f) with
the Company paying directly or reimbursing Executive for the entire premium for
a 24-month period (the “Severance Period”);

 

(v)           payment of a lump
sum payment equal to the sum of (a) thirty-six times the monthly group
premium for the life, disability, accident and healthcare insurance plans,
programs, or arrangements (other than the term life insurance policy referred
to in subsection (iv) above), and (b) three times the annual
allowance for financial counseling services, in each case in which Executive
was participating immediately prior to his date of termination.

 

Payments according to subsections (i), (ii), (iii) and (v) above
shall be made as soon as practical and in any event by the later of the end of
the year in which the termination occurs or two and one-half (21⁄2) months
following the date of termination (but subject in any case to the release
having then become effective in accordance with Section 6.D hereof).  Executive shall not be entitled to any other
salary, compensation or benefits after termination of the Employment Period,
except as specifically provided for in this Agreement or as otherwise expressly
required by applicable law.  Executive
shall have no duty or obligation to seek other employment during the Severance
Period or otherwise mitigate damages hereunder. 
Amounts paid pursuant to this paragraph shall be in lieu of all other
severance payments that would have otherwise been payable pursuant to the
Company’s severance plans, programs or policies.”

 

4.             Section 9(c) is
deleted and replaced in its entirety with the following:

 

“(c)         The Company will pay
Executive the amount of the Gross-up Payment as soon as the amount can be
determined but in no event later than the earlier of (i) the 30th
day after the Date of Termination, or (ii) the last day of the year
following the year in which the Excise Tax is required to be paid.  At the time that payments are made under this
Agreement, the Company shall provide Executive with a written statement setting
forth the manner in which the payments were calculated and the basis for the
calculations, including, without limitation, any opinions or other advice the
Company has received from its tax counsel, its auditor, or other advisors or
consultants (and any opinions or advice which are in writing shall be attached
to the statement.”

 

5.             Section 23 is
amended to add the following sentence to the end of the section:

 

“Notwithstanding anything to the contrary, Executive shall request
payment of an expense pursuant to this section no later than six months after
the end of the year in which the expense was incurred, and any such expense
will be paid by Company by the end of the year after the year in which the
expense was incurred.”

 

 

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

 

 

	
  BOISE CASCADE, L.L.C.

  	
  W. THOMAS STEPHENS

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   /s/ David G. Gadda

  	
   

  	
   /s/ W. Thomas Stephens

  
	
  Its

  	
  Vice President and General CounselExhibit
10.8

 

For elected officers
excluding the CEO

 

[letterhead]

CONFIDENTIAL

 

[DATE]

 

[ADDRESSEE]

[ADDRESS]

[CITY STATE ZIP]

 

Dear [SALUTATION]:

 

                                Boise
Cascade, L.L.C. (the “Company”) considers it essential to the best interests of
the Company and its owners to foster the continuous employment of key
management personnel in the event certain material events are threatened or
occur. In this regard, the Board of Managers of Boise Cascade Holdings, L.L.C.,
the Company’s parent company (the “Board”), has determined that appropriate
steps should be taken to reinforce and encourage the continued attention and
dedication of members of the Company’s management, including yourself, to their
assigned duties without distraction for a period of time.

 

                                In
order to induce you to remain in the employ of the Company, the Company agrees
that you shall receive the severance benefits set forth in this letter
agreement (the “Agreement”) if your employment is terminated under the
circumstances described below.

 

                1.             Term of Agreement.  This Agreement is effective on the date
hereof and shall continue in effect for three years, provided that on the
second anniversary of the effective date and each anniversary thereafter, the
term of the Agreement shall automatically be extended for an additional year,
unless the Company shall have given notice at least 60 days prior to the
anniversary date that such extension will not occur.  The period during which this Agreement is in
effect is referred to as the “Term.”

 

                2.             Qualifying Termination.  Except as set forth in Section 5, no
benefits shall be payable under this Agreement unless your employment is
terminated pursuant to a Qualifying Termination during the Term.  Your termination is a Qualifying Termination
if your employment terminates during the Term unless your termination is
because of your death, by the Company for Cause or Disability, or by you other
than for Good Reason.  A transfer of your
employment from the Company to one of its subsidiaries or affiliates, from a
subsidiary or affiliate to the Company, or between subsidiaries or affiliates
is not a termination of employment

 

 

for purposes of this Agreement. 
Mandatory retirement under the Company’s Officer Mandatory Retirement
Policy is not a Qualifying Termination. 
A transfer or other relocation of your place of work is not a
termination of employment for purposes of this Agreement if either you continue
employment with the Company after such transfer or the transfer or relocation
offered is to a site within a reasonable distance (as determined by the Company
in its sole discretion) of your current work site.

 

A.                                   Disability. 
If, as a result of your incapacity due to physical or mental illness or
injury, you are absent from your duties with the Company on a full-time basis
for 6 consecutive months, and within 30 days after written notice of
termination is given you have not returned to the full-time performance of your
duties, your employment may be terminated for “Disability.”

 

B.                                     Cause. 
Termination of your employment for “Cause” means termination upon (1) your
willful and continued failure to substantially perform your duties with the
Company (other than failure resulting from your incapacity due to physical or
mental illness or injury, or actual or anticipated failure resulting from your
termination for Good Reason), after a demand for substantial performance is
delivered to you by the Board which specifically identifies the manner in which
the Board believes that you have not substantially performed your duties, or (2) your
willful engagement in conduct which is demonstrably and materially injurious to
the Company, monetarily or otherwise. 
For purposes of this Section 2.B, no act or failure to act on your
part shall be considered “willful” unless done or omitted to be done by you not
in good faith and without reasonable belief that your act or omission was in
the best interest of the Company. 
Notwithstanding the foregoing, you shall not be deemed to have been
terminated for Cause unless and until:

 

·                                          a resolution is duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board by the Board at a meeting of the Board called and held for the
purpose (after reasonable notice to you and an opportunity for you, together
with your counsel, to be heard before the Board), finding that in the good
faith opinion of the Board you were guilty of conduct set forth above in
clauses (1) or (2) of this Section 2.B and specifying the
particulars of your conduct in detail, and

 

·                                          a copy of this resolution is delivered to
you.

 

Any decision by the Board that a termination
for Cause is warranted must be supported by clear and convincing evidence.

 

2

 

C.            Good Reason.  “Good Reason” means the failure of the
Company to require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform if no succession had taken place, prior to the effectiveness of any
succession which occurs during the Term.

 

Your right to terminate your employment
pursuant to this Section 2.C shall not be affected by your incapacity due
to physical or mental illness or injury. 
Your continued employment shall not constitute consent to, or a waiver
of rights with respect to, any event, circumstance, act or failure to act constituting
Good Reason.

 

D.            Notice of Termination.  Any purported termination by the Company or
by you shall be communicated by written Notice of Termination to the other
party according to Section 8.  A “Notice
of Termination” must indicate the specific termination provision in this
Agreement relied upon and set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of your employment
under the indicated provision.

 

E.             Date of Termination.  “Date of Termination” means:

 

(1)           if your employment is terminated for
Disability, 30 days after the Notice of Termination is given (provided that you
have not returned to the performance of your duties on a full-time basis during
that 30-day period);

 

(2)           if your employment is terminated for Cause,
for Good Reason, or for any other reason other than Disability, the date
specified in the Notice of Termination (which, in the case of a termination for
Cause shall not be less than 30 days from the date the Notice of Termination is
given, and in the case of a termination for Good Reason shall not be more than
60 days from the date the Notice of Termination is given); or

 

(3)           if a dispute exists regarding the
termination, the date on which the dispute is finally determined, either by mutual
written agreement of the parties or by a final judgment, order or decree of a
court of competent jurisdiction (the time for appeal having expired and no
appeal having been perfected), or, if earlier, the last day of the Term.  This subsection (3) shall apply only if (i) the
party receiving the Notice of Termination notifies the other party within 30
days that a dispute exists; (ii) the notice of dispute is made in good
faith; and (iii) the party giving the notice of dispute pursues resolution
of the dispute with reasonable 

 

3

 

diligence. While any dispute is pending under
this subsection (3), the Company  will
continue to pay you your full compensation in effect when the Notice of
Termination giving rise to the dispute was given (including, but not limited
to, base salary) and continue you as a participant in all compensation, benefit
and insurance plans and programs in which you were participating when the
Notice of Termination giving rise to the dispute was given, until the dispute
is finally resolved, or if earlier, the last day of the Term.  Amounts paid under this subsection (3) are
in addition to all other amounts due under this Agreement and shall not be
offset against or reduce any other amounts due under this Agreement.

 

3.             Compensation During Disability or Upon
Termination for Cause or Other than for Good Reason.

 

A.            During
any period that you fail to perform your duties as a result of incapacity due
to physical or mental illness or injury, you shall continue to receive your
full base salary at the rate then in effect and all compensation paid during
the period until your employment is terminated for Disability pursuant to Section 2.A.  Thereafter, your benefits shall be determined
in accordance with the insurance programs then in effect of the Company or
subsidiary corporation by which you are employed, and any qualified and
nonqualified retirement plan(s) in which you are a participant.

 

B.            If
your employment is terminated for Cause or by you other than for Good Reason,
the Company shall pay you only your full base salary through the Date of
Termination at the rate in effect at the time Notice of Termination is given,
plus all other amounts to which you are entitled under any compensation plan at
the time those payments are due, and the Company shall have no further
obligations to you under this Agreement.

 

4.             Compensation upon a Qualifying
Termination.  If your employment is
terminated pursuant to a Qualifying Termination, then you shall be entitled to
the payments and benefits provided in this Section 4.

 

A.            Not later than the 15th day
following the date the release required pursuant to Section 6.D becomes
effective and in any case by the later of the last day of the year in which the
Qualifying Termination occurs or two and one-half (21⁄2) months following the
date of the Qualifying Termination (but subject in any case to the release
having then become effective in accordance with Section 6.D hereof), the
Company will pay you the following amounts:

 

(1)            Your full base salary through the Date of Termination at
the rate in effect at the time Notice of Termination is given, plus all other
amounts 

 

4

 

to which you are entitled under any
compensation plan in which you then participate at the time those payments are
due (in each case, to the extent not already paid);

 

(2)           A lump sum severance payment equal to 1 times [2 times for SVPs and above] the sum of (a) your
annual base salary at the rate in effect at the time Notice of Termination is
given, plus (b) your target annual incentive for the year in which the
Date of Termination occurs (“Target Bonus”); and

 

(3)           To the extent not already paid, a lump sum amount equal to
the greater of the value of your unused and accrued time off, less any advanced
time off, in accordance with the time off policy applicable to you as in effect
on the Date of Termination.

 

B.            The Company shall for a 12-month [18-month for SVPs and above]  period following the Date of Termination,
maintain, in full force and effect for your continued benefit, all life (other
than any life insurance plan available only to executive officers), disability,
accident and healthcare insurance plans, programs, or arrangements, and
financial counseling services in which you were participating immediately prior
to the Date of Termination, subject to your timely payment of any applicable
premium at the active employee rate.

 

Notwithstanding the foregoing, the Company
shall continue to pay the Company-paid premium under the Company’s Supplemental
Life Plan (if you are a participant in such plan) for 12 months [24 months for SVPs and above] following
the Date of Termination.

 

C.            [this
section only for those participating in SERP]  If you experience a Qualifying Termination,
then, in addition to the aggregate retirement benefits to which you may be
entitled under the Company’s qualified pension plan and the Company’s
nonqualified excess benefit pension plan, the Company shall pay you amounts
equal to (1), (2), (3), or (4), whichever is applicable:

 

(1)           If
you have satisfied the service, but not the age, requirements of the Boise
Cascade, L.L.C. Supplemental Early Retirement Plan for Executive Officers (the “SERP”),
as in effect immediately prior to the Qualifying Termination, you shall receive
a monthly benefit, commencing on the earliest date you could have elected to
begin to receive benefits under the SERP, equal to the benefit to which you
would have been entitled under the SERP, had you satisfied the age and service
requirements as of the Date of Termination; or

 

(2)           If
you have satisfied the age, but not the service, requirement of the SERP, as in
effect immediately prior to the Qualifying 

 

5

 

Termination, you shall receive a monthly benefit, commencing as of the
Date of Termination equal to the benefit to which you would have been entitled
under the SERP, had you satisfied the age and service requirements as of the
Date of Termination; or

 

(3)           If
you have satisfied neither the age nor the service requirements of the SERP, as
in effect immediately prior to the Qualifying Termination, you shall receive a
monthly benefit, commencing on the earliest date you could have elected to
begin to receive benefits under the SERP, equal to the benefit to which you
would have been entitled under the SERP, had you satisfied the age and service
requirements as of the Date of Termination; or

 

(4)           If
you have satisfied both the age and the service requirements of the SERP, as in
effect immediately before the Qualifying Termination, you shall receive the
benefits to which you are entitled under the terms of the SERP pursuant to the
SERP and no additional benefits shall be payable under this Agreement.

 

The
benefits under this Section 4.C shall be paid in the same manner as, and
shall otherwise possess the same rights and privileges as were available with
respect to, benefits under the terms of the SERP as in effect immediately prior
to the Qualifying Termination.

 

C[D].       You shall not be required to mitigate the
amount of any payment provided for in this Section 4 by seeking other
employment or otherwise, nor shall the amount of any payment or benefit
provided for in Section 4.A be reduced by any compensation earned by you
as the result of employment by another employer, [bracketed language only for SERP participants: by  retirement benefits earned
after the Date of Termination] or otherwise.  Payments otherwise receivable by you pursuant
to Section 4.A(2) shall be reduced by the amount of any severance
benefits received by you pursuant to any Company severance policy.  Benefits otherwise receivable by you pursuant
to Section 4.B shall be reduced to the extent comparable benefits are
actually received by you during the 12-month [18-month
for SVPs and above]  period
following your termination, and you must report any such benefits actually
received by you to the Company.  Benefits
and payments otherwise receivable by you pursuant to Section 4 shall be
reduced by the amount of benefits and payments received by you pursuant to any
other written agreement between you and the Company providing benefits upon
termination.

 

5.             Legal Fees. 
The Company shall pay to you all reasonable legal fees and expenses
which you incur (a) as a result of your termination (including any legal
fees and expenses incurred in contesting or disputing your termination) or 

 

6

 

(b) in seeking in good faith to obtain or enforce any right or
benefit provided by this Agreement.  You
must request payment no later than six months after the end of the year in
which the fee or expense was incurred and payment shall be made within 10
business days after the Company receives your written request for payment
accompanied by reasonable evidence of fees and expenses incurred.

 

6.             Employee Covenants; Release.

 

A.            You
agree that you will not, directly or indirectly, use, make available, sell,
disclose or otherwise communicate to any person, other than in the course of
your assigned duties and for the benefit of the Company, either during the
period of your employment or at any time thereafter, any nonpublic, proprietary
or confidential information, knowledge or data relating to the Company, any of
its subsidiaries, affiliated companies or businesses, which you obtained during
your employment by the Company.  This
restriction will not apply to information that (i) was known to the public
before its disclosure to you; (ii) becomes known to the public after
disclosure to you through no wrongful act of yours; or (iii) you are
required to disclose by applicable law, regulation or legal process (provided
that you provide the Company with prior notice of the contemplated disclosure
and reasonably cooperate with the Company at its expense in seeking a protective
order or other appropriate protection of such information).

 

B.            During
your employment with the Company and for one year after your termination, you
agree that you will not, directly or indirectly, individually or on behalf of
any other person, firm, corporation or other entity, knowingly solicit, aid or
induce any managerial level employee of the Company or any of its subsidiaries
or affiliates to leave employment in order to accept employment with or render
services to or with any other person, firm, corporation or other entity
unaffiliated with the Company or knowingly take any action to materially assist
or aid any other person, firm, corporation or other entity in identifying or
hiring any such employee.

 

C.            You
agree that during and after your employment with the Company you shall not make
any public statements that disparage the Company, its respective affiliates,
employees, officers, directors, products or services.  Notwithstanding the foregoing, statements
made in the course of sworn testimony in administrative, judicial or arbitral
proceedings (including, without limitation, depositions in connection with such
proceedings) shall not be subject to this Section 8.C.

 

D.            Notwithstanding
anything in this Agreement to the contrary, the payment to you of the benefits
provided in Section 4 is conditioned upon your 

 

7

 

execution and delivery to the Company (and your failure to revoke) a
customary general release of claims which shall include a release of the
Company and, if applicable, purchaser, and their affiliates.

 

7.             Successors; Binding Agreement.

 

A.            This
Agreement shall inure to the benefit of and be enforceable by your personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.  If
you should die while any amount would still be payable to you under this
Agreement if you had continued to live, all such amounts, unless otherwise
provided in this Agreement, shall be paid in accordance with the terms of this
Agreement to your devisee, legatee or other designee or if there is no such
designee, to your estate.

 

B.            Any
dispute between you and the Company regarding this Agreement may be resolved
either by binding arbitration or by judicial proceedings at your sole election,
and the Company agrees to be bound by your election in that regard, provided
that the Company is entitled to seek equitable relief in a court of competent
jurisdiction in connection with the enforcement of the covenants set forth in Section 6.  Under no circumstance will a violation or
alleged violation of those covenants entitle the Company to withhold or offset
a payment or benefit due under this Agreement

 

8.             Notice. 
For the purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, addressed to the respective
addresses set forth on the first page of this Agreement, provided that all
notices to the Company shall be directed to the attention of the Board with a
copy to the Secretary of the Company, or to such other address as either party
may have furnished to the other in writing in accordance with this Section 8,
except that notice of change of address shall be effective only upon receipt.

 

9.             Miscellaneous.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by you and an officer designated by the
Board.  No waiver by either party at any
time of any breach by the other party of, or compliance with, any condition or
provision of this Agreement to be performed by the other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter of this Agreement have been made by either party
which are not expressly set forth in this Agreement.  All 

 

8

 

references to sections of the Exchange Act or the Code shall be deemed
also to refer to any successor provisions to those sections.  If obligations of the Company arise prior to
the expiration of the Term, those obligations shall survive the expiration of
the term.

 

10.           Validity.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

 

11.           Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

 

12.           No Guaranty of Employment. 
Neither this Agreement nor any action taken under this Agreement shall
be construed as giving you a right to be retained as an employee or an
executive officer of the Company.

 

13.           Governing Law.  This
Agreement shall be governed by and construed in accordance with Delaware law.

 

14.           Other Benefits; Indemnification.  Any payments made to you pursuant to this
Agreement are in addition to, and not in lieu of, any amounts to which you may
be entitled under any other employee benefit plan, program or policy of the
Company, except that payments made to you pursuant to Section 4.A(2) shall
be in lieu of any severance payment to which you would otherwise be entitled
under any severance pay policy of the Company, and except that the time period
during which benefits are provided under Section 4.B shall be included in
the “continuation coverage period” for purposes of COBRA, to the extent
applicable.  In addition to the other
payments and benefits provided herein, for the six year period immediately
following any termination of your employment from the Company during the Term
other than a termination for Cause, the Company shall cause you to be covered
under the directors and officers insurance coverage (“D&O insurance”) that
is in effect with respect to the then-current officers of the Company, it being
understood that the level of such coverage provided to you during such period
shall be substantially identical to that being provided at such time to the
current officers of the Company; provided that if at any time during such six
year period no D&O insurance is in effect with respect to the then-current
officers of the Company, the Company shall purchase and maintain at its sole
expense for the remainder of the six year period a run-off directors and
officers insurance policy providing coverage for you at the same level as the
D&O insurance in effect at the time of your termination of employment from
the Company.

 

9

 

                If this letter
correctly sets forth our agreement on the subject matter hereof, kindly sign
and return to the Company the enclosed copy of this letter which will then
constitute our agreement on this subject.

 

Sincerely,

 

BOISE CASCADE, L.L.C.

 

	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  	
   

  
	
   

  	
   [title]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED TO AND ACCEPTED this                  
  day of                            
  , 2008.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of Officer

  	
   

  	
   

  
					

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]