Document:

Exhibit 10.3

 

OFFICEMAX
INCORPORATED

Nonstatutory Stock Option Award Agreement

 

This Nonstatutory
Stock Option Award (the “Award”), is granted as of April
18, 2005 (the “Award Date”), by OfficeMax Incorporated (“OfficeMax”) to Sam
Duncan (“Awardee” or “you”) pursuant to the 2003 OfficeMax Incentive and
Performance Plan (the “Plan”) and 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
awarded a nonstatutory stock option to purchase up to 180,000 shares of Stock
at a price of $32.66 per share (the “Grant Price”).

 

3.                                       The Option
shall become exercisable as follows:

 

a.                                       On each of
the first five anniversaries of the Award Date, the Option shall become
exercisable with respect to 20% of the shares of Stock subject to the Option.

 

b.                                      If at any
time prior to the fifth anniversary of the Award Date:  (i) you are involuntarily terminated not for
Cause, as such term is defined in the Employment Agreement between you and
OfficeMax dated April 14, 2005 (the “Employment Agreement”), as determined by
OfficeMax (or any successor), (ii) you terminate employment as a result of
death or Disability, as such term is defined in the Employment Agreement, or
(iii) you voluntarily terminate employment for Good Reason, as such term is
defined in the Employment Agreement, then a pro rata portion of the unvested
shares of Stock subject to the Option, calculated as follows, shall become exercisable.

 

•                  If
termination occurs before the first anniversary of the Award Date, you will
receive:

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 12 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 24 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 36 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 48 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 60 months.

 

•                  If
termination occurs on or after the first anniversary of the Award Date but
before the second anniversary of the Award Date, you will receive:

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 24 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 36 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 48 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 60 months.

 

•                  If
termination occurs on or after the second anniversary of the Award Date but
before the third anniversary of the Award Date, you will receive:

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 36 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 48 months, plus

 

 

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 60 months.

 

•                  If
termination occurs on or after the third anniversary of the Award Date but
before the fourth anniversary of the Award Date, you will receive:

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 48 months, plus

•                  A pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 60 months.

 

•                  If
termination occurs on or after the fourth anniversary of the Award Date but
before the fifth anniversary of the Award Date, you will receive a pro rata
portion of 20% of the shares of Stock subject to the Option based on the number
of months worked since the Award Date divided by 60 months.

 

c.                                       If you
terminate employment for any reason other than as stated in paragraph 3.b
before the third anniversary of the Award Date (including involuntary
termination for Cause), any portion of the Option which is not then exercisable
pursuant to subsection 3.a or 3.b will be forfeited upon your termination
of employment.

 

4.                                       The Option
must be exercised on or before the earliest of the following:

 

(a)           the tenth anniversary of the Award
Date;

(b)                                 one year
after your termination of employment as a result of your retirement, death, or
Disability, provided that you have not, as of the date of the exercise of the
Option, commenced Employment with any Competitor (see paragraph 8 below);

(c)                                  one year
after your termination of employment pursuant to paragraph 3.b, provided that
you have not, as of the date of the exercise of the Option, commenced
Employment with any Competitor (see paragraph 8 below); or

(d)                                 one year
after your termination of employment for any other reason, subject to
paragraph 5.

 

5.                                       The Option
shall be canceled immediately if you are terminated for Disciplinary Reasons,
as that term is defined in the Executive Officer Severance Pay Policy.

 

6.                                       In
the event of a Change in Control 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 substantially equivalent 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” (as defined in the letter agreement
between you and OfficeMax regarding benefits upon a change in control), the
Option shall become fully vested and exercisable immediately upon the Change in
Control, or, in the case of your termination, upon the date of termination.

 

7.                                       You may
exercise the Option upon notice and payment of the Grant Price by any of the
following methods, unless disallowed by law:

 

(a)                                  broker
assisted exercise;

(b)                                 Stock
already owned by you; or

(c)                                  cash.

 

You may elect to receive the proceeds of
the exercise in either cash or Stock.

 

8.                                       “Competitor”
means any business, foreign or domestic, which is engaged, at any time relevant
to the provisions of this Agreement, in the sale or distribution of products,
or in the provision of services in competition with the products sold or
distributed or services provided by OfficeMax or any subsidiary, partnership,
or joint venture of OfficeMax.  The
determination of whether a business is a Competitor shall be made by OfficeMax’s
General Counsel, in his or her sole discretion. 
“Employment with a Competitor” means providing significant services as
an employee or consultant, or otherwise rendering services of a significant
nature for remuneration, to a Competitor.

 

 

You must sign this Agreement and return it to
OfficeMax’s Compensation Department on or before May 13, 2005, or the Award
will be forfeited.  Return your executed
Agreement to:  Linda VanDeventor,
OfficeMax, 150 Pierce Road, Itasca, IL 
60143, or fax your signed form to 630-438-2463.

 

	
  OfficeMax
  Incorporated

  	
  Awardee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Matthew
  R. Broad

  	
   

  	
  /s/ Sam
  Duncan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sam Duncan

  
	
   

  	
  Printed NameExhibit
10.4

 

OFFICEMAX INCORPORATED

Restricted
Stock Unit Award Agreement

 

This Restricted Stock Unit Award (the “Award”), is granted on April 18, 2005 (the “Award Date”),
by OfficeMax Incorporated (“OfficeMax”) to Sam Duncan (“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
awarded 35,000 restricted stock units, at no cost to you, subject to the
restrictions set forth in the Plan and this Agreement.

 

3.                                       Your Award
is subject to a three-year restriction period. 
On each of the first three anniversaries of the Award Date, one-third of
the restricted stock units granted (and not forfeited under the provisions of
paragraph 4 or paragraph 6) will vest.

 

4.                                      a.                                        If at any
time prior to the third anniversary of the Award Date:  (i) you are involuntarily terminated not
for Cause, as such term is defined in the Employment Agreement between you and
OfficeMax dated April 14, 2005 (the “Employment Agreement”), as determined by
OfficeMax (or any successor), (ii) you terminate employment as a result of
death or Disability, as such term is defined in the Employment Agreement, or
(iii) you voluntarily terminate employment for Good Reason, as such term
is defined in the Employment Agreement, then a pro rata portion of the unvested
units, calculated according to paragraph 4.b, shall vest.

 

b.                                      The pro rata
portion of units vesting under paragraph 4.a shall be calculated as follows:

 

•                  If
termination occurs on or before the first anniversary of the Award Date, you
will receive:

•                  A pro rata
portion of one-third of the unvested units based on the number of months worked
since the Award Date divided by 12 months, plus

•                  A pro rata
portion of one-third of the unvested units based on the number of months worked
since the Award Date divided by 24 months, plus

•                  A pro rata
portion of one-third of the unvested units based on the number of months worked
since the Award Date divided by 36 months.

 

•                  If
termination occurs after the first anniversary of the Award Date but on or
before the second anniversary of the Award Date, you will receive:

•                  A pro rata
portion of one-third of the unvested units based on the number of months worked
since the Award Date divided by 24 months, plus

•                  A pro rata
portion of one-third of the unvested units based on the number of months worked
since the Award Date divided by 36 months.

 

•                  If
termination occurs after the second anniversary of the Award Date but on or
before the third anniversary of the Award Date, you will receive a pro rata
portion of one-third of the unvested units based on the number of months worked
since the Award Date divided by 36 months.

 

The restrictions on any units vesting by
operation of this paragraph 4 will lapse and the units will vest as of the
termination date.

 

b.                                      Upon your
voluntary or involuntary termination for any reason other than as specified in
paragraph 4.a, all units not yet vested at the time of termination will be
immediately forfeited.

 

 

In addition, upon your termination as
specified in paragraph 4.a, any units remaining unvested after the pro rata
vesting will be immediately forfeited.

 

5.                                       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 substantially equivalent 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 (as defined in the letter agreement
between you and OfficeMax regarding benefits upon a change in control), all
units not vested at the time of the Change in Control or your termination (as
applicable) will vest immediately.

 

6.                                       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.

 

7.                                       With respect
to the awarded units, you are not a shareholder and do not have any voting
rights.  You will not receive dividends
or dividend units on the awarded units until vesting.  Upon vesting, you receive notional dividend
units on the vested awarded units equal to the amount of dividends paid on
OfficeMax’s common stock on and after the vesting date.

 

8.                                       Vested
restricted stock units will be paid to you in whole shares of OfficeMax common
stock upon vesting, provided that if in OfficeMax’s good faith determination,
some or all of the remuneration attributable to this payment is not deductible
by OfficeMax for federal income tax purposes pursuant to Section 162(m) of
the Code, then payment of such units will occur the day following the six month
anniversary of your termination of employment with OfficeMax, and provided
further that if in OfficeMax’s good faith determination this deferral could
reasonably be expected to result in the imposition of tax upon you with respect
to the units prior to payment of the units, payment of all units will occur the
day following the six month anniversary of your termination of employment with
OfficeMax.  Partial shares, if any, and
dividend units will be paid in cash.

 

You must sign this Agreement and return it to OfficeMax’s Compensation
Department on or before May 13, 2005, or the Award will be forfeited.  Return your executed Agreement to:  Linda VanDeventer, OfficeMax, 150 Pierce
Road, Itasca, IL  60143, or fax your
signed form to 630-438-2463.

 

	
  OfficeMax Incorporated

  	
  Awardee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Matthew R. Broad

  	
   

  	
  /s/ Sam Duncan

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sam Duncan

  
	
   

  	
  Printed Name

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