Document:

Exhibit 10.3

Form of

 

AMENDMENT TO

OFFICEMAX INCORPORATED

2007 Restricted Stock Unit Award Agreement

 

WHEREAS, OfficeMax
Incorporated (the “Company”) granted Sam Martin (“Awardee”) a Restricted Stock
Unit Award (the “Award”) on September 17, 2007, pursuant to the 2003
OfficeMax Incentive and Performance Plan; and

 

WHEREAS,
the Company and Awardee desire to amend the Award in order to comply with
Internal Revenue Code Section 409A.

 

NOW,
THEREFORE, the Award is hereby amended, effective January 1,
2009, to read as follows:

 

1.             Section 4 is amended by adding three
sentences at the end thereof to read as follows:

 

“Notwithstanding
the foregoing, to the extent any amount is payable because the continuing
entity does not continue or replace the Award and such amount constitutes
deferred compensation subject to Code Section 409A, the definition of “Change
in Control” provided in Appendix A shall apply. 
Payment shall be made as soon as practical but in no event later than March 15
of the year following the year in which the Change in Control or Qualifying
Termination (as applicable) occurred. 
However, if you are a “specified employee,” as determined pursuant to
Code Section 409A and regulations issued thereunder, to the extent amounts
are (i) payable to you upon a Qualifying Termination and (ii) such
amounts are subject to Code Section 409A, payment shall be made on the
first day following the six month anniversary of your termination of
employment.”

 

2.             The Award is amended by adding an
Appendix A at the end thereof to read as follows:

 

“APPENDIX A

 

To the
extent any amount payable under this Award constitutes deferred compensation
subject to Code Section 409A, the following definition of “Change in
Control” shall apply:

 

1.             Change in Control.  A “Change in Control” means, with respect to
OfficeMax or Subsidiary, the occurrence of any one of the following dates,
interpreted consistent with Treasury Regulation Section 1.409A-3(i)(5).

 

a.             Change in
Ownership.  The date any one Person,
or more than one Person Acting as a Group, acquires ownership of stock of
OfficeMax or Subsidiary that, together with stock held by such Person or Group,
constitutes more than 50% of the total fair market value or total voting power
of the stock of OfficeMax or Subsidiary, as the case may be.  Notwithstanding the foregoing, for purposes
of this paragraph, if any one Person, or more than one Person Acting as a
Group, is 

 

 

considered
to own more than 50% of the total fair market value or total voting power of
the stock of OfficeMax or Subsidiary, as the case may be, the acquisition of
additional stock by the same Person or Persons is not considered to cause a
Change in Control.

 

b.             Change in
Effective Control.

 

i.              The date any one
Person, or more than one Person Acting as a Group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by
such Person or Persons) ownership of stock of OfficeMax or Subsidiary
possessing 30% or more of the total voting power of the stock of OfficeMax or
Subsidiary, as the case may be. 
Notwithstanding the foregoing, for purposes of this subparagraph, if any
one Person, or more than one Person Acting as a Group, is considered to
effectively control OfficeMax or Subsidiary, as the case may be, the
acquisition of additional control of OfficeMax or Subsidiary, as the case may
be, by the same Person or Persons is not considered to cause a Change in
Control; or

 

ii.             The date a majority
of the members of OfficeMax’s Board is replaced during any one year period by
directors whose appointment or election is not endorsed by a majority of the
members of OfficeMax’s Board before the date of the appointment or election.

 

c.             Change in
Ownership of a Substantial Portion of OfficeMax’s or Subsidiary’s Assets.  The date any one Person, or more than one
Person Acting as a Group, acquires (or has acquired during the one year period
ending on the date of the most recent acquisition by such Person or Persons)
assets from OfficeMax or Subsidiary that have a total gross fair market value equal
to or more than 40% of the total gross fair market value of all of the assets
of OfficeMax or Subsidiary, as the case may be, immediately before such
acquisition or acquisitions.  For
purposes of this paragraph (c), “gross fair market value” means the value of
the assets of OfficeMax or Subsidiary, as the case may be, or the value of the
assets being disposed of, determined without regard to any liabilities
associated with such assets. 
Notwithstanding the foregoing, a transfer of assets is not treated as a
Change in Control if the assets are transferred to:

 

i.              An entity that is
controlled by the shareholders of the transferring corporation;

 

ii.             A shareholder of
OfficeMax or Subsidiary, as the case may be, (immediately before the asset
transfer) in exchange for or with respect to its stock;

 

iii.            An entity, 50% or more
of the total value or voting power of which is owned, directly or indirectly,
by OfficeMax or Subsidiary, as the case may be;

 

iv.            A Person, or more than
one Person Acting as a Group, that owns, directly or indirectly, 50% or more of
the total value or voting power of all the outstanding stock of OfficeMax or
Subsidiary, as the case may be; or

 

2

 

v.             An entity, at least
50% of the total value or voting power of which is owned, directly or
indirectly, by a Person described in clause iv.

 

2.             Definitions of “Person”
and “Acting as a Group.”  For
purposes of this Appendix, “Person” shall have the meaning set forth in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).  For
purposes of this Appendix, Persons shall be considered to be “Acting as a Group”
if they are owners of a corporation that enter into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with
OfficeMax or Subsidiary.  If a Person,
including an entity, owns stock in both corporations that enter into a merger,
consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be Acting as a Group with the other shareholders
only with respect to the ownership in that corporation before the transaction
giving rise to the change and not with respect to the ownership interest in the
other corporation.  Notwithstanding the
foregoing, Persons shall not be considered to be Acting as a Group solely
because they purchase or own stock of the same corporation at the same time, or
as a result of the same public offering.”

 

IN
WITNESS WHEREOF, the Company and Awardee have caused this
Amendment to be executed on this           
day of             ,
2008.

 

	
  OfficeMax Incorporated

  	
   

  	
  Awardee

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Sam Martin

  
	
  Its: 

  	
   

  	
   

  	
   

  

 

3Exhibit 10.4

 

EXECUTIVE
OFFICER SEVERANCE PAY POLICY

(Amended and Restated Effective January 1, 2009)

 

Eligibility

 

This
Policy applies to any officer holding the title of vice president or above as
of his/her date of termination of employment. 
Any such officer who is terminated involuntarily for any reason other
than a Disciplinary Reason (“Eligible Officer”) shall be eligible for benefits
under this Policy.

 

The
Company will have no obligation to provide any benefits under this Policy
unless and until the Eligible Officer executes and delivers to the Company a
General Waiver and Release of Claims (“Release”) in a form satisfactory to the
Company.  Nothing in this Policy alters
the at-will employment relationship between any Eligible Officer and the Company.

 

The
Company shall have the authority and discretion to interpret and construe these
eligibility provisions, and the Company’s determinations as to eligibility
shall be made in its sole and absolute discretion.

 

This
Policy shall constitute an “employee welfare benefit plan” within the meaning
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  This Policy shall constitute a “top hat” plan
that only covers a select group of management or highly compensated employees.

 

Severance
Pay

 

Subject
to the eligibility requirements of this Policy, an Eligible Officer will be
entitled to receive severance pay equal to one year’s base salary at his/her
current base salary in effect as of his/her date of termination (“Separation
Date”).  The amount due, if any, will be
reduced by any salary received during the period of time after the Eligible
Officer is notified of the termination of his/her employment and the
commencement of severance pay under this Policy.

 

Subject
to execution of the Release and the expiration of the revocation period
thereunder, the Company shall make severance payments in equal installments
beginning within 60 days of the Eligible Officer’s Separation Date and
continuing according to the Company’s normal payroll schedule, provided that
all benefit payments to an Eligible Officer must be completed within 24 months
following the Eligible Officer’s Separation Date.  In the event that the revocation period under
the Release has not expired prior to the 60th day after the Eligible Officer’s
Separation Date, such Eligible Officer’s severance pay under this Policy shall
be forfeited.

 

Notwithstanding
the preceding paragraph, if an Eligible Officer is a “specified employee,” as
defined in Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), and regulations issued thereunder, the following rules shall
apply:

 

1.             For purposes of applying the exception to
Code Section 409A for short-term deferrals, each installment shall be
treated as a separate “payment” for purposes of Code Section 409A.  Accordingly, any benefits paid within 2 1⁄2
months of the end of the taxable year containing the Separation Date shall be
exempt from Code Section 409A and paid in accordance with the first
sentence of the paragraph above.

 

 

2.             To the extent benefits are not exempt
from Code Section 409A under subparagraph (1) above, if the Eligible
Officer’s severance pay benefit otherwise payable in the first 6 months
following the Separation Date is equal to or less than two times the lesser of
the amounts described in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and
(2), such severance benefit shall be exempt from Code Section 409A and
paid in accordance with the first sentence of the paragraph above.

 

3.             To the extent a portion of the Eligible
Officer’s severance pay benefit is not exempt from Code Section 409A
pursuant to subparagraphs (1) and (2) above, such remaining severance
pay benefit will not be paid to the Eligible Officer until the first payroll
date of the 7th month following the Separation Date.  Any deferred payments will be paid in a lump
sum and shall be equal to the portion of the severance pay benefit that exceeds
the Code Section 409A limit. 
Thereafter, the remainder of the Eligible Officer’s severance pay
benefit shall be payable in installments according to the Company’s normal
payroll schedule.

 

In
the event of an Eligible Officer’s death after his Separation Date but before
he receives all benefits to which he otherwise would be entitled under this
Policy, payment of his benefits shall be made to his designated beneficiary (or
estate if no beneficiary has been designated) in a lump sum.

 

The
Company may also, at its sole discretion, continue health/vision/dental group
insurance coverages at the associate rate during the COBRA period on behalf of
the terminated executive officer for up to 12 months following his/her
Separation Date.

 

Any
payments required to meet the Worker Adjustment Retraining and Notification Act
(WARN) and/or any state legal notification requirements may be subtracted from
the severance pay which would otherwise be due under this Policy.

 

Exclusions

 

Notwithstanding
anything in this policy to the contrary, an officer is not eligible for
benefits under this Policy under the following circumstances:

 

·                                          If the officer resigns for any reason.

 

·                                          If the officer’s employment is terminated for
a Disciplinary Reason. 

 

If
the officer’s employment is not terminated involuntarily by the Company.  A transfer or other relocation of an officer’s
place of work is not a termination under this Policy if the officer continues
employment with OfficeMax or, if not, the transfer or relocation offered is to
a site within a reasonable distance of the officer’s immediately prior work
site.

 

·                                          Mandatory retirement pursuant to the Company’s
Executive Officer Mandatory  Retirement
Policy will not be deemed an involuntary termination of employment for  purposes of benefits under this Policy.

 

By
his/her acceptance of severance benefits under this Policy, an Eligible Officer
thereby waives his/her right to receive any other severance pay or salary
continuation severance benefits under any other Company plan or program or
arrangement with the Company.

 

2

 

Any
obligation of the Company to provide severance pay and/or other benefits
pursuant to this Policy shall immediately terminate if it is determined by the
Company that the Eligible Officer has breached any obligation under his/her
General Waiver and Release of claims and/or any obligation to the Company,
including but not limited to obligations under a Nondisclosure and
Non-Competition Agreement or Sign-on Award Agreement, or if the Eligible
Officer is offered another position with OfficeMax that is reasonably
consistent with his/ her education, training, prior compensation and previous
experience and is located within a reasonable distance from his/her prior
worksite.

 

Definition
of Disciplinary Reason

 

For
the purpose of this Policy, “Disciplinary Reason” includes documented unacceptable
job performance where at least two corrective action notices have been issued
to the Eligible Officer in the twelve months preceding the termination of
employment (corrective action notices to persons holding the title of Vice
President or above shall be issued only after consultation with the senior-most
Human Resources Executive Officer of the Company) and misconduct, including but
not limited to refusal to obey instructions which are issued by a superior in
the normal course of business; gross negligence; willful failure to perform the
job in a satisfactory manner; reckless disregard for or knowing violation of
any Company policy, work rule, or procedure; theft of Company or another
associate’s property; an act of embezzlement, fraud, or like violation of law;
wrongful engagement in any activity that would breach the duty of loyalty to
the Company; wrongful disclosure of confidential information of the Company; or
a violation of the Company’s Code of Ethics.

 

Plan
Administration and Interpretation

 

The
senior-most Human Resources Executive Officer of the Company is the Plan
Administrator for purposes of Section 3(16) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”).  The Plan Administrator shall have the sole
authority in the exercise of his/her discretion to interpret, apply, and
administer the terms of the Plan and to determine eligibility for benefits of
the Plan and the amount of any benefits under the Plan, and his/her
determination of any such matters shall be final and binding.  Benefits under the Plan will be paid only if
the Plan Administrator determines in his/her discretion that a participant or
beneficiary is entitled to them.  The Plan
Administrator may designate one or more individuals to carry out his/her functions
as Plan Administrator.

 

Claims
Procedure

 

Severance
benefits will be provided to each participant as provided in the Plan.  If a participant believes that he/she has not
been provided with the severance benefits to which he/she is entitled under the
Plan, then the participant may file a request for review within 90 days after
the date he/she should have received such benefits under the Plan.  The request for review must be submitted to
the Plan Administrator.  The Plan
Administrator will respond to the request for review within 90 days after it is
received setting forth, in writing, the reasons for its determination.  If the participant’s request for review is
denied, the participant may, within 60 days after receiving written notice of
such denial, file an appeal to the General Counsel of the Company, setting
forth the reason why the participant disagrees with the initial
determination.  The General Counsel shall
respond to this request for reconsideration within 60 days after it is received
setting forth, in writing, the reasons for its determination.  If the participant subsequently wishes to
file a claim against the Plan, any legal action must be filed within 90 days
after the General Counsel’s final decision. 
No action at law or in equity shall be brought to 

 

3

 

recover
benefits under this Plan until the claims procedure rights herein provided have
been exercised and the Plan benefits requested in such claims process have been
finally denied in whole or in part.

 

Plan
Termination and Amendment

 

The Company reserves the right
to amend, modify, or terminate the Plan at any time, in its sole discretion,
without prior notice to participants. 
Any such amendment or termination shall be made by the Board of
Directors of the Company or by action of a person or persons duly authorized by
such Board.  All participants shall
receive any benefits to which they have become entitled under the Plan on or
before the date the Plan terminates.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]