Document:

Exhibit 10.1

 

 

 

THIRD AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

 

 

DATED AS OF JUNE 20, 2005

 

 

AMONG

 

 

LOVING CREEK FUNDING CORPORATION,

AS THE SELLER,

 

 

OFFICEMAX INCORPORATED

(FORMERLY KNOWN AS BOISE CASCADE CORPORATION),

AS THE INITIAL COLLECTION AGENT,

 

 

ABN AMRO BANK N.V.,

AS THE AGENT AND AS THE WINDMILL PURCHASER AGENT,

 

 

WACHOVIA BANK, N.A., AS

THE BLUE RIDGE PURCHASER AGENT,

 

 

THE RELATED BANK PURCHASERS

FROM TIME TO TIME PARTY HERETO,

 

 

WINDMILL FUNDING CORPORATION, AS A CONDUIT PURCHASER,

 

 

and

 

 

BLUE RIDGE ASSET FUNDING CORPORATION, AS

A CONDUIT PURCHASER

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  PURCHASES FROM
  SELLER AND SETTLEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Sales

  	
   

  
	
  Section 1.2.

  	
  Interim
  Liquidations

  	
   

  
	
  Section 1.3.

  	
  Selection of
  Discount Rates and Tranche Periods for each Purchaser Group

  	
   

  
	
  Section 1.4.

  	
  Fees and
  Other Costs and Expenses

  	
   

  
	
  Section 1.5.

  	
  Maintenance
  of Sold Interest; Deemed Collection

  	
   

  
	
  Section 1.6.

  	
  Reduction in
  Commitments

  	
   

  
	
  Section 1.7.

  	
  Repurchases

  	
   

  
	
  Section 1.8.

  	
  Assignment
  of Purchase Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  SALES TO AND
  FROM CONDUIT PURCHASERS; ALLOCATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Purchases
  from a Conduit Purchaser

  	
   

  
	
  Section 2.2.

  	
  Purchases by
  a Conduit Purchaser

  	
   

  
	
  Section 2.3.

  	
  Allocations
  and Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  ADMINISTRATION
  AND COLLECTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Appointment
  of Collection Agent

  	
   

  
	
  Section 3.2.

  	
  Duties of
  Collection Agent

  	
   

  
	
  Section 3.3.

  	
  Reports

  	
   

  
	
  Section 3.4.

  	
  Lock-Box
  Arrangements

  	
   

  
	
  Section 3.5.

  	
  Enforcement
  Rights

  	
   

  
	
  Section 3.6.

  	
  Collection
  Agent Fee

  	
   

  
	
  Section 3.7.

  	
  Responsibilities
  of the Seller

  	
   

  
	
  Section 3.8.

  	
  Actions by
  Seller

  	
   

  
	
  Section 3.9.

  	
  Indemnities
  by the Collection Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Covenants of
  the Seller

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Indemnities
  by the Seller

  	
   

  
	
  Section 6.2.

  	
  Increased
  Cost and Reduced Return

  	
   

  
	
  Section 6.3.

  	
  Other Costs
  and Expenses

  	
   

  
	
  Section 6.4.

  	
  Withholding
  Taxes

  	
   

  
	
  Section 6.5.

  	
  Payments and
  Allocations

  	
   

  
					

 

i

 

	
  ARTICLE VII

  	
  CONDITIONS
  PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Conditions
  to Closing

  	
   

  
	
  Section 7.2.

  	
  Conditions
  to Each Purchase

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  THE
  AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Appointment
  and Authorization

  	
   

  
	
  Section 8.2.

  	
  Delegation
  of Duties

  	
   

  
	
  Section 8.3.

  	
  Exculpatory
  Provisions

  	
   

  
	
  Section 8.4.

  	
  Reliance
  by Agent

  	
   

  
	
  Section 8.5.

  	
  Assumed
  Payments

  	
   

  
	
  Section 8.6.

  	
  Notice
  of Termination Events

  	
   

  
	
  Section 8.7.

  	
  Non-Reliance
  on Agent, Purchaser Agents and Other Purchasers

  	
   

  
	
  Section 8.8.

  	
  Agent
  and Affiliates.

  	
   

  
	
  Section 8.9.

  	
  Indemnification

  	
   

  
	
  Section 8.10.

  	
  Successor
  Agent.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Termination

  	
   

  
	
  Section 9.2.

  	
  Notices

  	
   

  
	
  Section 9.3.

  	
  Payments
  and Computations

  	
   

  
	
  Section 9.4.

  	
  Sharing
  of Recoveries

  	
   

  
	
  Section 9.5.

  	
  Right
  of Setoff

  	
   

  
	
  Section 9.6.

  	
  Amendments

  	
   

  
	
  Section 9.7.

  	
  Waivers

  	
   

  
	
  Section 9.8.

  	
  Successors
  and Assigns; Participations; Assignments

  	
   

  
	
  Section 9.9.

  	
  Intended
  Tax Characterization

  	
   

  
	
  Section 9.10.

  	
  Confidentiality

  	
   

  
	
  Section 9.11.

  	
  Agreement
  Not to Petition.

  	
   

  
	
  Section 9.12.

  	
  Excess
  Funds

  	
   

  
	
  Section 9.13.

  	
  No
  Recourse

  	
   

  
	
  Section 9.14.

  	
  Limitation
  of Liability

  	
   

  
	
  Section 9.15.

  	
  Headings;
  Counterparts.

  	
   

  
	
  Section 9.16.

  	
  Cumulative
  Rights and Severability.

  	
   

  
	
  Section 9.17.

  	
  Governing
  Law; Submission to Jurisdiction

  	
   

  
	
  Section 9.18.

  	
  WAIVER
  OF TRIAL BY JURY

  	
   

  
	
  Section 9.19.

  	
  Entire
  Agreement.

  	
   

  

 

ii

 

	
  SCHEDULES

  	
  DESCRIPTION

  	 

	 
	
   

  	
   

  
	 
	
  Schedule I

  	
  Definitions

  
	 
	
  Schedule II

  	
  Committed Conduit Purchasers and
  Related Bank Purchasers and their respective Commitments

  
	 
	
   

  	
   

  
	 
	
  EXHIBITS

  	
  DESCRIPTION

  
	 
	
   

  	
   

  
	 
	
  Exhibit A

  	
  Form of Incremental Purchase
  Request

  
	 
	
  Exhibit B-1

  	
  Form of Monthly Report

  
	 
	
  Exhibit B-2

  	
  Form of Weekly Report

  
	 
	
  Exhibit B-3

  	
  Form of Daily Report

  
	 
	
  Exhibit C

  	
  Addresses and Names of Seller and Originator

  
	 
	
  Exhibit D

  	
  Lock-Boxes and Lock-Box Banks

  
	 
	
  Exhibit E

  	
  Form of Lock-Box Letter

  
	 
	
  Exhibit F

  	
  Credit and Collection Policy

  
	 
	
  Exhibit G

  	
  Accounting Calendar

  
	 
	
  Exhibit H

  	
  Opinion of Bell, Boyd & Lloyd LLC

  
					

 

iii

 

THIRD AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

 

THIRD
AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT, dated as of June 20,
2005, among Loving Creek Funding Corporation, a Delaware corporation (the “Seller”), OfficeMax Incorporated
(formerly known as Boise Cascade Corporation) (the “Initial Collection Agent”), ABN AMRO Bank N.V., as agent
for the Purchasers (the “Agent”)
and as the Windmill Purchaser Agent (“Windmill
Purchaser Agent”), Wachovia Bank, N.A., as the Blue Ridge Purchaser
Agent (“Blue Ridge Purchaser Agent”),
the other Purchaser Agents from time to time party hereto (collectively with
the Windmill Purchaser Agent and the Blue Ridge Purchaser Agent, the “Purchaser Agents”), the Related Bank
Purchasers from time to time party hereto (collectively, the “Related Bank Purchasers”), Windmill
Funding Corporation, as a Conduit Purchaser (“Windmill”)
and Blue Ridge Funding Corporation, as a Conduit Purchaser (“Blue Ridge”).  Certain capitalized terms used herein, and
certain rules of construction, are defined in Schedule I.  The Conduit Purchasers and the Related Bank
Purchasers and their respective Commitments are listed on Schedule II.

 

Reference
is made to that certain Second Amended and Restated Receivables Sale Agreement
dated as of November 17, 2000, as amended, currently in effect among
Loving Creek Funding Corporation (the “Seller”),
OfficeMax Incorporated (formerly known as Boise Cascade Corporation) (the “Initial Collection Agent”), ABN AMRO Bank
N.V., as agent for the Purchasers (the “Agent”)
and as the Windmill Purchaser Agent (“Windmill
Purchaser Agent”), Wachovia Bank, N.A., as the Blue Ridge Purchaser
Agent (“Blue Ridge Purchaser Agent”),
the other Purchaser Agents from time to time party thereto (collectively, the “Purchaser Agents”), the Related Bank
Purchasers from time to time party thereto (collectively, the “Related Bank Purchasers”), Windmill
Funding Corporation, as a conduit purchaser (“Windmill”)
and Blue Ridge Funding Corporation, as a conduit purchaser (“Blue Ridge”) (the “Original Receivables Sale Agreement”).  The Seller and the Initial Collection Agent
hereby request that certain amendments be made to the Original Receivables Sale
Agreement and, for the sake of clarity and convenience, that the Original
Receivables Sale Agreement be restated in its entirety as so amended.  This Third Amended and Restated Receivables
Sale Agreement amends and replaces in its entirety the Original Receivables
Sale Agreement, and from and after the date hereof, all references made to the
Original Receivables Sale Agreement in any Transaction Document or in any other
instrument or document shall, without more, be deemed to refer to this Third
Amended and Restated Receivables Sale Agreement.  In addition, unless otherwise amended,
restated or modified in connection with the execution of this Third Amended and
Restated Receivables Sale Agreement, all Transaction Documents executed in
connection with the Original Receivables Sale Agreement shall be in full force
and effect.

 

 

The
parties hereto agree as follows:

 

ARTICLE I

PURCHASES FROM SELLER AND SETTLEMENTS

 

Section 1.1.           Sales.

 

(a)           The Sold Interest. 
Subject to the terms and conditions hereof, the Seller may, from time to
time before the Termination Date, request that the Conduit Purchasers (or, only
if a Conduit Purchaser denies such request or is unable to fund, ratably
request that the Related Bank Purchasers for such Conduit Purchaser) make
purchases of an undivided percentage ownership interest in its right, title and
interest in the Receivables and all related Collections.  Upon any such request, subject to the terms
and conditions of this Agreement, the Conduit Purchasers may, in their sole
discretion, purchase such interest, or, if any such Conduit Purchaser decides
not to purchase such interest, the Related Bank Purchasers for such Conduit
Purchaser shall purchase such interest. 
Such interest shall be transferred to the Agent, on behalf of each
Purchaser Agent as representative of the applicable Conduit Purchaser or
Related Bank Purchaser, as the case may be. 
Any such purchase (a “Purchase”)
shall be made by each relevant Purchaser remitting funds to the Seller,
pursuant to Section 1.1(c) or by the Collection Agent remitting
Collections to the Seller pursuant to Section 1.1(d).  The aggregate percentage ownership interest
so acquired by a Purchaser in the Receivables and related Collections (its “Purchase Interest”) shall equal at any
time the following quotient:

 

	
   

  	
  I

  	
  + PRP

  
	
   

  	
  ER

  	
   

  

 

where:

 

I               =              the outstanding Investment of such Purchaser
at such time;

 

ER           =              the Eligible Receivables Balance at such
time; and

 

PRP         =              the Purchaser Reserve Percentage at such
time.

 

Except during a Liquidation
Period for a Purchaser, such Purchaser’s Purchase Interest will change whenever
its Investment, its Purchaser Reserve Percentage or the Eligible Receivables
Balance changes.  During a Liquidation
Period for a Purchaser its Purchase Interest shall remain constant, except for
redeterminations to reflect Investment acquired from or transferred to a
Purchaser under Article II or pursuant to a Transfer Agreement.  The sum of all Purchasers’ Purchase Interests
at any time is referred to herein as the “Sold
Interest”, which at any time is the aggregate percentage ownership
interest then held by the Purchasers in the Receivables and Collections.

 

(b)           Conduit Purchaser Purchase
Option and Related Bank Purchaser Commitments.  Subject to Section 1.1(d) concerning
Reinvestment Purchases, at no time will a Conduit Purchaser have any obligation
to make a Purchase.  Each Related Bank
Purchaser severally 

 

2

 

hereby agrees, subject to Section 7.2
and the other terms and conditions hereof, to make Purchases before the
Termination Date, based on the applicable Purchaser Group’s Ratable Share of
each Purchase by (and, in the case of each Related Bank Purchaser, its
Commitment Percentage of its Purchaser Group’s Ratable Share of such Purchase),
to the extent its Investment would not thereby exceed its Commitment, the
Aggregate Investment would not thereby exceed the Purchase Limit, and the
Matured Aggregate Investment would not thereby exceed the Aggregate
Commitments.  Each Purchaser’s first Purchase
and each additional Purchase by such Purchaser not made from Collections
pursuant to Section 1.1(d) is referred to herein as an “Incremental Purchase.”  Each Purchase made by a Purchaser with the
proceeds of Collections in which it has a Purchase Interest, which does not
increase the outstanding Investment of such Purchaser, is referred to herein as
a “Reinvestment Purchase.”  All Purchases hereunder shall be
made ratably by such Purchaser Group in accordance with the Commitment of such
Purchaser Group.

 

(c)           Incremental Purchases.  In
order to request an Incremental Purchase from a Purchaser, the Seller must
provide to the Agent and each Purchaser Agent an irrevocable written request
(including by telecopier or other facsimile communication) substantially in the
form of Exhibit A, by 10:00 a.m. (Chicago time) three Business Days
before the requested date (the “Purchase
Date”) of such Purchase, specifying the requested Purchase Date
(which must be a Business Day) and the requested amount (the “Purchase Amount”) of such Purchase, which
must be in a minimum amount of $1,000,000 and multiples thereof (or, if less,
an amount equal to the Maximum Incremental Purchase Amount).  All Incremental Purchases may only be
requested ratably from the Conduit Purchasers in each Purchaser Group unless, a
Conduit Purchaser, in its sole discretion, determines not to make its Ratable
Share of such Incremental Purchase (which determination shall be made within
one Business Day after the Seller’s request for an Incremental Purchase), in
which case the Seller may request such Incremental Purchase from the Related
Bank Purchasers for such Conduit Purchaser. 
Each Purchaser Agent shall promptly notify the related Purchasers from
which a Purchase is requested of the contents of such request.  If the Ratable Share of an Incremental
Purchase requested from a Conduit Purchaser and such Conduit Purchaser
determines, in its sole discretion, to make the requested Purchase, such
Conduit Purchaser shall transfer to the Seller’s Account its Ratable Share
amount of such Incremental Purchase by no later than 12:00 noon (Chicago time)
on the Purchase Date.  If a Conduit
Purchaser refuses to make a requested Purchase and the Seller requests the
Incremental Purchase from the Related Bank Purchasers for such Conduit
Purchaser three Business Days before such requested Purchase, subject to Section 7.2
and the other terms and conditions hereof, each Related Bank Purchaser shall
transfer its Commitment Percentage of its Purchaser Group’s Ratable Share of
such Purchase into the Seller’s Account by no later than 12:00 noon (Chicago
time) on the Purchase Date (which in no event will be earlier than three
Business Days after such request is made to the Related Bank Purchasers).

 

(d)           Reinvestment Purchases.  Unless
a Conduit Purchaser has provided to the Agent, each Purchaser Agent, the
Seller, and the Collection Agent a notice still in effect that it no longer
wishes to make Reinvestment Purchases (in which case such Conduit Purchaser’s
Reinvestment Purchases, but not those of its Related Bank Purchasers, shall
cease), at any time before the Termination Date when no Interim Liquidation is
in effect, on each day that any Collections are received by the Collection
Agent a Purchaser’s Purchase Interest in such Collections shall 

 

3

 

automatically be used to
make a Reinvestment Purchase by such Purchaser, but only to the extent such
Reinvestment Purchase would not cause the Purchaser’s Investment to increase
above the amount of such Investment at the start of the day plus any
Incremental Purchases made by the Purchaser on that day.  A Conduit Purchaser may revoke any notice
provided under the first sentence of this Section 1.1(d) by notifying
the Agent, its Purchaser Agent, the Seller, and the Collection Agent that it
will make Reinvestment Purchases.

 

(e)           Security Interest.  To
secure all of the Seller’s obligations under the Transaction Documents and, to
the extent of the Sold Interest, to secure the repayment of all Investment, the
Seller hereby grants to the Agent (for the benefit of the Purchasers) a
security interest in all of the Seller’s rights in the Receivables and the
Collections.

 

Section 1.2.           Interim Liquidations.  (a) Optional. 
The Seller may at any time direct that Reinvestment Purchases cease and
that an Interim Liquidation commence for all Purchasers by giving the Agent,
each Purchaser Agent and the Collection Agent at least three Business Days’
written (including telecopy or other facsimile communication) notice specifying
the date on which the Interim Liquidation shall commence and, if desired, when
such Interim Liquidation shall cease before the Termination Date (identified as
a specific date or as when the Aggregate Investment is reduced to a specified
amount).  If the Seller does not so
specify the date on which an Interim Liquidation shall cease, it may cause such
Interim Liquidation to cease at any time before the Termination Date, subject
to Section 1.2(b) below, by notifying the Agent, each Purchaser Agent
and the Collection Agent in writing (including by telecopy or other facsimile
communication) at least three Business Days before the date on which it desires
such Interim Liquidation to cease.

 

(b)           Mandatory.  If
at any time before the Termination Date any condition in Section 7.2 is
not fulfilled, the Seller shall immediately notify the Agent, each Purchaser
Agent and the Collection Agent, whereupon Reinvestment Purchases shall cease
and an Interim Liquidation shall commence, which shall only cease upon the
Seller confirming to the Agent that the conditions in Section 7.2 are
fulfilled.

 

Section 1.3.           Selection of Discount Rates and Tranche Periods for each
Purchaser Group.

 

(a)           [Reserved].

 

(b)           Conduit Purchasers.  The
Seller shall pay Funding Charges with respect to each Conduit Purchaser’s
Purchase Interest for each day that any Investment in respect of such Purchase
Interest is outstanding.  Each such
Purchase Interest will accrue Funding Charges each day based on the Pooled
Allocation.  On each Settlement Date the
Seller shall pay to the Windmill Purchaser Agent an aggregate amount equal to
all accrued and unpaid Funding Charges in respect of such Purchase Interest for
the immediately preceding Settlement Period. 
On each Settlement Date the Seller shall pay to the Blue Ridge Purchaser
Agent an aggregate amount equal to all accrued and unpaid Funding Charges in
respect of such Purchase Interest for the immediately preceding calendar
month.  Each Conduit Purchaser Agent
shall allocate the Investment of its related Conduit Purchaser to Tranche
Periods in its sole discretion.  Any 

 

4

 

Investment purchased from
such Conduit Purchaser pursuant to a Transfer Agreement shall accrue interest
at the Prime Rate and have an initial Tranche Period of three Business Days.

 

(c)           Related Bank Purchasers.  All
Investment of the Related Bank Purchasers shall be allocated to one or more
Tranches reflecting the Discount Rates at which such Investment accrues
Discount and the Tranche Periods for which such Discount Rates apply.  In each request for an Incremental Purchase
from a Related Bank Purchaser and three Business Days before the expiration of
any Tranche Period applicable to any Related Bank Purchaser’s Investment, the
Seller may request the Tranche Period(s) to be applicable to such Investment
and the Discount Rate(s) applicable thereto. 
All Investment of the Related Bank Purchasers may accrue Discount at
either the Eurodollar Rate or the Prime Rate, in all cases as established for
each Tranche Period applicable to such Investment.  Any Investment of the Related Bank Purchasers
not allocated to a Tranche Period shall be a Prime Tranche.  During the pendency of a Termination Event,
the applicable Purchaser Agent, upon notice to all other Purchaser Agents, may
reallocate any outstanding Investment of the Related Bank Purchasers to a Prime
Tranche.  All Discount accrued on the
Investment of the Related Bank Purchasers during a Tranche Period shall be
payable by the Seller on the last day of such Tranche Period or, for a
Eurodollar Tranche with a Tranche Period of more than three months, 90 days
after the commencement, and on the last day, of such Tranche Period.

 

(d)           Each Conduit Purchaser Agent shall allocate
the Investment of the related Conduit Purchaser to Tranche Periods in its sole
discretion.  If, by the time required in Section 1.3(c),
the Seller fails to select a Discount Rate or Tranche Period for any Investment
of the Related Bank Purchasers, such amount of Investment shall automatically
accrue Discount at the Prime Rate for a three Business Day Tranche Period.  Any Investment purchased from a Conduit
Purchaser pursuant to the relevant Transfer Agreement shall accrue interest at
the Prime Rate and have an initial Tranche Period of three Business Days.

 

(e)           If any Related Bank Purchaser determines (i) that
maintenance of any Eurodollar Tranche would violate any applicable law or
regulation, (ii) that deposits of a type and maturity appropriate to match
fund any of such Related Bank Purchaser’s Eurodollar Tranches are not available
or (iii) that the maintenance of any Eurodollar Tranche will not
adequately and fairly reflect the cost of such Purchaser of funding Eurodollar
Tranches, then the applicable Purchaser Agent, upon the direction of such
Related Bank Purchaser, shall suspend the availability of, and terminate any
outstanding, Eurodollar Tranche so affected. 
All Investment allocated to any such terminated Eurodollar Tranche shall
be reallocated to a Prime Tranche.

 

Section 1.4.           Fees and Other Costs and Expenses.  (a) Each
Purchaser Agent shall receive from the Seller for the ratable benefit of its
Purchaser Group such amounts as agreed to with the Purchaser in the Fee Letter
for such Purchaser Group.

 

(b)           If with respect to any Investment of any
Purchaser Group, the amount of such Purchaser Group’s Investment allocated to
any CP or Eurodollar Tranche is reduced before the last day of its Tranche
Period, or if a requested Incremental Purchase at the Eurodollar Rate does not
take place on its scheduled Purchase Date, the Seller shall pay the Early
Payment Fee to each 

 

5

 

Purchaser in the applicable
Purchaser Group that had its Investment so reduced or scheduled Purchase not
made.

 

(c)           Investment shall be payable solely from the
Sold Interest in Collections and from amounts payable under Sections 1.5
and 6.1 (to the extent amounts paid under Section 6.1 indemnify against
reductions in or non-payment of Receivables), it being the intention of the
parties that the Purchasers do not have recourse against the Seller for loss of
Investment due solely to Obligor credit risk beyond the Sold Interest in the
Receivables.  The Seller shall pay, as a
full recourse obligation, all other amounts payable hereunder, including,
without limitation, all Discount, fees described in clauses (a) and (b) above
and amounts payable under Article VI.

 

Section 1.5.           Maintenance of Sold Interest; Deemed Collection.  (a) General. 
If at any time before the Termination Date the Eligible Receivables
Balance is less than the sum of the Aggregate Investment (or, if a Termination
Event exists, the Matured Aggregate Investment) plus the Aggregate Reserve, the
Seller shall pay to the Agent an amount equal to such deficiency for
application to reduce the Investments of the Purchasers ratably in accordance
with the principal amount of their respective Investments, applied first to Prime Tranches and second to the other Tranches with the
shortest remaining maturities unless otherwise specified by the Seller.  Any amount so applied to reduce a Conduit
Purchaser’s Investment shall be deposited into an account designated by the
Purchaser Agent for the relevant Purchaser Group.

 

(b)           Deemed Collections.  If (1) on
any day the outstanding balance of a Receivable is reduced or cancelled as a
result of any defective or rejected goods or services, any cash discount or
adjustment (including any adjustment resulting from the application of any
special refund or other discounts or any reconciliation), any setoff or credit
(whether such claim or credit arises out of the same, a related, or an
unrelated transaction) or other similar reason not arising from the financial
inability of the Obligor to pay undisputed indebtedness or (2) within
thirty days of the date hereof, a Lock-Box Letter relating to the Lock Box and
Lock Box Account with respect to a Receivable has not been executed by all
appropriate parties and delivered to the Agent, the Seller shall be deemed to
have received on such day a Collection on such Receivable in the amount, in the
case of (1) above, of such reduction or cancellation and in the case of (2) above,
the entire principal balance of such Receivable.  If on any day any representation, warranty,
covenant or other agreement of the Seller related to a Receivable is not true
or is not satisfied, the Seller shall be deemed to have received on such day a
Collection in the amount of the outstanding balance of such Receivable.  All such Collections deemed received by the
Seller under this Section 1.5(b) shall be remitted by the Seller to
the Collection Agent in accordance with Section 5.1(i).

 

(c)           Adjustment to Sold Interest.  At
any time before the Termination Date that the Seller is deemed to have received
any Collection under Section 1.5(b) (“Deemed
Collections”) that derive from a Receivable that is otherwise
reported as an Eligible Receivable, so long as no Liquidation Period then
exists, the Seller may satisfy its obligation to deliver such amount to the
Collection Agent by instead notifying the Agent and the Purchaser Agents that
the Sold Interest should be recalculated by decreasing the Eligible Receivables
Balance by the amount of such Deemed Collections, so long as such adjustment
does not cause the Sold Interest to exceed 100%.

 

6

 

(d)           Receivables Retransfers.  If
the Agent shall have received Deemed Collections or if an adjustment is made to
the Sold Interest pursuant to Section 1.5(c) that in either case equals
or exceeds the outstanding balance of any Receivable, all right, title and
interest of Agent and Purchasers in and to such Receivables (including goods
related to a Receivable) shall be deemed transferred to the Seller and by the
Seller to the Originator.  Each transfer
made by the Agent under this Section shall be without recourse,
representation or warranty, express or implied, of any type or kind on the part
of the Agent and the Purchasers.  The
Seller shall bear all costs and expenses incurred by the Agent or any Purchaser
in effecting any such transfer to the Seller.

 

(e)           Payment Assumption. 
Unless an Obligor otherwise specifies or another application is required
by contract or law, any payment received by the Seller from any Obligor shall
be applied as a Collection of Receivables of such Obligor (starting with the
oldest such Receivable) and remitted to the Collection Agent as such.

 

Section 1.6.           Reduction in Commitments.  The Seller may, upon thirty
days’ notice to the Agent and the Purchaser Agents, reduce the Aggregate
Commitment in increments of $1,000,000, so long as the Aggregate Commitment at
all times equals at least the outstanding Matured Aggregate Investment.  Each such reduction in the Aggregate Commitment
shall reduce the Commitment of each Related Bank Purchaser in accordance with
its Ratable Share and shall ratably reduce the Purchase Limit so that the
Aggregate Commitment remains at least 102% of the Purchase Limit.

 

Section 1.7.           Repurchases.  At any time that the Aggregate Investment is
less than 10% of the Aggregate Commitment in effect on the date hereof, the
Seller may, upon thirty days’ notice to the Agent and the Purchaser Agents,
repurchase the entire Sold Interest from the Purchasers at a price equal to the
outstanding Matured Aggregate Investment and all other amounts then owed
hereunder.

 

Section 1.8.           Assignment of Purchase Agreements.  The
Seller hereby assigns and otherwise transfers to the Agent (for the benefit of
the Agent, each Purchaser Agent, each Purchaser and any other Person to whom
any amount is owed hereunder), all of the Seller’s right, title and interest
in, to and under each Purchase Agreement. 
The Seller shall execute, file and record all financing statements,
continuation statements and other documents required to perfect or protect such
assignment.  This assignment includes (a) all
monies due and to become due to the Seller from the Originator under or in
connection with any Purchase Agreement (including fees, expenses, costs,
indemnities and damages for the breach of any obligation or representation
related to such agreement) and (b) all rights, remedies, powers,
privileges and claims of the Seller against the Originator under or in
connection with any Purchase Agreement. 
All provisions of each Purchase Agreement shall inure to the benefit of,
and may be relied upon by, the Agent, each Purchaser Agent, each Purchaser and
each such other Person.  At any time that
a Termination Event has occurred and is continuing, the Agent, on behalf of the
Purchaser Agents and the Purchasers shall have the sole right to enforce the
Seller’s rights and remedies under each Purchase Agreement to the same extent
as the Seller could absent this assignment, but without any obligation on the
part of the Agent, any Purchaser or any other such Person to perform any of the
obligations of the Seller under each Purchase Agreement (or any of the
promissory notes executed thereunder). 
All amounts distributed to the Seller under each Purchase Agreement from

 

7

 

Receivables sold to the
Seller thereunder shall constitute Collections hereunder and shall be applied
in accordance herewith.

 

ARTICLE II

SALES TO AND FROM CONDUIT PURCHASERS; ALLOCATIONS

 

Section 2.1.           Purchases from a Conduit Purchaser.  (a) Each
Conduit Purchaser may, at any time, sell to the relevant Related Bank
Purchasers pursuant to the relevant Transfer Agreement any percentage
designated by such Conduit Purchaser of such Conduit Purchaser Investment and
its related Conduit Purchaser Settlement (each, a “Put”).

 

(b)           Any portion of any Investment of a Conduit
Purchaser and related Conduit Purchaser Settlement purchased by a Related Bank
Purchaser shall be considered part of such Related Bank Purchaser’s Investment
and related Conduit Purchaser Settlement from the date of the relevant
Put.  At the end of each applicable
Tranche Period following any purchase by a Related Bank Purchaser of any
portion of the relevant Conduit Purchaser Investment of the relevant Conduit
Purchaser, the Seller shall pay to the relevant Purchaser Agent (for the
ratable benefit of each such Purchaser) an amount equal to a portion of the sum
of (i) the Assigned Conduit Purchaser Settlement and (ii) all unpaid
Discount owed to such Conduit Purchaser (whether or not then due) to the end of
each applicable Tranche Period to which any Investment being Put has been
allocated, (iii) all accrued but unpaid fees (whether or not then due)
payable to such Conduit Purchaser in connection herewith at the time of such
purchase and (iv) all accrued and unpaid costs, expenses and indemnities
due to such Conduit Purchaser from the Seller in connection herewith, which
portion shall be calculated by dividing the amount of Investment allocated to
the applicable Tranche Period by the total amount of Investment purchased.

 

(c)           The proceeds from each Put received by a
Conduit Purchaser (other than amounts described in clauses (iii) and (iv) of
the preceding sentence) shall be used solely to pay that portion of the
outstanding commercial paper of the relevant Conduit Purchaser issued to fund
or maintain the Investment of such Conduit Purchaser so transferred.  Until used to pay commercial paper, all
proceeds of any Put pursuant to this Section shall be invested in
Permitted Investments.  All earnings on
such Permitted Investments shall be promptly remitted to the Seller.

 

Section 2.2.           Purchases by a Conduit Purchaser.  Each
Conduit Purchaser may at any time deliver to its Purchaser Agent and each
relevant Related Bank Purchaser a notification of assignment in substantially
the form of Exhibit A to the relevant Transfer Agreement.  If a Conduit Purchaser delivers such notice,
each relevant Related Bank Purchaser shall sell to such Conduit Purchaser and
such Conduit Purchaser shall purchase in full from each such Related Bank
Purchaser, the Investment of the Related Bank Purchasers on the last day of the
relevant Tranche Periods, at a purchase price equal to such Investment plus
accrued and unpaid Discount thereon. Any sale from any Related Bank Purchaser
to the relevant Conduit Purchaser pursuant to this Section 2.2 shall be
without recourse, representation or warranty except for the representation and
warranty that the Investment sold by such Related Bank Purchaser is free and 

 

8

 

clear of any Adverse Claim
created or granted by such Related Bank Purchaser and that such Related Bank
Purchaser has not suffered a Bankruptcy Event.

 

Section 2.3.           Allocations and Distributions.

 

(a)           Non-Reinvestment Periods. 
Before the Termination Date unless an Interim Liquidation is in effect,
on each day during a period that a Conduit Purchaser is not making Reinvestment
Purchases (as established under Section 1.1(d)), the Collection Agent (i) shall
set aside and hold solely for the benefit of the applicable Conduit Purchaser
(or deliver to the applicable Purchaser Agent, if so instructed pursuant to Section 3.2(a))
such Conduit Purchaser’s Purchase Interest in all Collections received on such
day and (ii) shall distribute on the last day of each CP Tranche Period to
the applicable Purchaser Agent (for the benefit of such Conduit Purchaser) the
amounts so set aside up to the amount of such Conduit Purchaser’s Purchase
Amount and, to the extent not already paid in full, all Discount thereon and
all other amounts then due from the Seller in connection with such Purchase
Amount and Tranche Period.  As provided
in Section 1.4(c) all Discount and other amounts payable hereunder
other than the Purchase Amount are payable by the Seller.  If any part of the Sold Interest in any
Collections is applied to pay any such amounts pursuant to this Section 2.3(a) and
after giving effect to such application the Sold Interest is greater than 100%,
the Seller shall pay to the Collection Agent the amount so applied to the
extent necessary so that after giving effect to such payment the Sold Interest
is no greater than 100%, for distribution as part of the Purchase Interest in
Collections.

 

(b)           Termination Date and
Interim Liquidations.  On each Wednesday during any Interim
Liquidation and on each day and after the Termination Date, the Collection
Agent shall set aside and hold solely for the account of each Purchaser Agent,
for the benefit of each Purchaser Group to the extent provided below, (or
deliver to each Purchaser Agent, if so instructed pursuant to Section 3.2(a))
and for the account of the Agent, the Sold Interest in all Collections of
Receivables subject to such Interim Liquidation received on such day and such
Collections shall be allocated as follows:

 

(i)            first, ratably to each Purchaser Group until all
Purchase Amounts of, and Discount due but not already paid to, each Purchaser
Group under the Transaction Documents has been paid in full; and

 

(ii)           second, ratably to each Purchaser Group until all
amounts owed under the Transaction Documents to such Purchaser Group have been
paid in full.

 

(iii)          third, to the Agent until all amounts owed under the
Transaction Documents to such Person have been paid in full;

 

(iv)          fourth, to each Purchaser Agent until all amounts
owed under the Transaction Documents to such Persons have been paid in full;

 

(v)           fifth, to any other Person to whom any amounts are
owed under the Transaction Documents until all such amounts have been paid in
full; and

 

9

 

(vi)          sixth, to the Seller (or as otherwise required by
applicable law).

 

Unless an Interim
Liquidation has ended by such date (in which case Reinvestment Purchases shall
resume to the extent provided in Section 1.1(d)), on the last day of each
Tranche Period (unless otherwise instructed by a Purchaser Agent pursuant to Section 3.2(a)),
the Collection Agent shall pay to the appropriate parties, from such set aside
Collections, all amounts allocated to such Tranche Period and all Tranche
Periods that ended before such date that are due in accordance with the
priorities in clauses (i) and (ii) above.  No distributions shall be made to pay amounts
under clauses (iii), (iv), (v), and (vi) above until sufficient
Collections have been set aside to pay all amounts described in clause (i) that
may become payable for all outstanding Tranche Periods.  As provided in Section 1.4(c) all
interest and other amounts payable hereunder other than Investment are payable
by the Seller.  If any part of the Sold
Interest in any Collections is applied to pay any such amounts pursuant to this
Section 2.3(b) and after giving effect to such application the Sold
Interest is greater than 100%, the Seller shall pay to the Collection Agent the
amount so applied to the extent necessary so that after giving effect to such
payment the Sold Interest is no greater than 100%, for distribution as part of
the Sold Interest in Collections.

 

ARTICLE III

ADMINISTRATION AND COLLECTIONS

 

Section 3.1.           Appointment of Collection Agent.  (a) The servicing,
administering and collecting of the Receivables shall be conducted by a Person
(the “Collection Agent”)
designated to so act on behalf of the Purchasers under this Article III.  As the Initial Collection Agent, OfficeMax
Incorporated is hereby designated as, and agrees to perform the duties and
obligations of, the Collection Agent. 
OfficeMax Incorporated acknowledges that the Agent, each Purchaser Agent
and each Purchaser have relied on OfficeMax Incorporated’s agreement to act as
Collection Agent (and the agreement of any of the sub-collection agents to so
act) in making the decision to execute and deliver this Agreement and agrees
that it will not voluntarily resign as Collection Agent nor permit any
sub-collection agent to voluntarily resign as a sub-collection agent.  At any time after the occurrence of a
Collection Agent Replacement Event the Agent may designate a new Collection
Agent to succeed OfficeMax Incorporated (or any successor Collection Agent).

 

(b)           OfficeMax Incorporated may, with the consent
of the Agent (upon the direction of the Instructing Group), delegate its duties
and obligations as Collection Agent to an Affiliate (acting as a sub-collection
agent).  OfficeMax Incorporated hereby appoints
OfficeMax Contract, Inc. as its sub-collection agent with respect to
Receivables generated by OfficeMax Contract, Inc..  Notwithstanding such delegation, OfficeMax
Incorporated shall remain primarily liable for the performance of the duties
and obligations so delegated, and the Agent, each Purchaser Agent and each
Purchaser shall have the right to look solely to OfficeMax Incorporated for
such performance.  The Agent (with the
consent of the Instructing Group) may at any time after the occurrence of a
Collection Agent Replacement Event remove or replace any sub-collection agent.

 

(c)           If replaced, the Collection Agent agrees it
will terminate, and will cause each existing sub-collection agent to terminate,
its collection activities in a manner requested by the 

 

10

 

Agent to facilitate the
transition to a new Collection Agent. 
The Collection Agent shall cooperate with and assist any new Collection
Agent (including providing access to, and transferring, all Records and
allowing the new Collection Agent to use all licenses, hardware or software
necessary or desirable to collect the Receivables).  OfficeMax Incorporated irrevocably agrees to
act (if requested to do so) as the data-processing agent for any new Collection
Agent in substantially the same manner as OfficeMax Incorporated conducted such
data-processing functions while it acted as the Collection Agent.

 

Section 3.2.           Duties of Collection Agent.  (a) The Collection Agent shall
take, or cause to be taken, all action necessary or advisable to collect each
Receivable in accordance with this Agreement, the Credit and Collection Policy
and all applicable laws, rules and regulations using the skill and
attention the Collection Agent exercises in collecting other receivables or
obligations owed solely to it.  The
Collection Agent may, prior to a Termination Event, commingle Collections with
its other funds until such amounts are required to be paid pursuant to Section 2.3.  If so instructed by the appropriate Purchaser
Agent, the Collection Agent shall transfer to the appropriate Purchaser Agent
the amount of Collections to which the appropriate Purchaser Group and the
Purchasers are entitled by the Business Day following receipt.  Each party hereto hereby appoints the
Collection Agent to enforce such Person’s rights and interests in the
Receivables, but (notwithstanding any other provision in any Transaction
Document) the Agent (at the direction of the Instructing Group) shall at all
times after the occurrence of a Termination Event have the sole right to direct
the Collection Agent to commence or settle any legal action to enforce
collection of any Receivable.

 

(b)           If no Termination Event exists and the
Collection Agent determines that such action is appropriate in order to
maximize the Collections, the Collection Agent may, in accordance with the
Credit and Collection Policy, extend the maturity of any Receivable (but no
such extension shall be for a period more than thirty (30) days) or adjust the
outstanding balance of any Receivable. 
Any such extension or adjustment shall not alter the status of a
Receivable as a Delinquent Receivable, Defaulted Receivable or limit any rights
of the Agent, any Purchaser Agent or the Purchasers hereunder.  If a Termination Event exists, the Collection
Agent may make such extensions or adjustments only with the prior consent of
the Instructing Group.

 

(c)           The Collection Agent shall turn over to the
Seller (i) any percentage of Collections in excess of the Sold Interest,
less all reasonable costs and expenses of the Collection Agent for servicing,
collecting and administering the Receivables and (ii) subject to Section 1.5(e),
the collections and records for any indebtedness owed to the Seller that is not
a Receivable.  The Collection Agent shall
have no obligation to remit any such funds or records to the Seller until the
Collection Agent receives evidence (satisfactory to the Agent) that the Seller
is entitled to such items.  The Collection
Agent has no obligations concerning indebtedness that is not a Receivable other
than to deliver the collections and records for such indebtedness to the Seller
when required by this Section 3.2(c).

 

Section 3.3.           Reports.  On or before each Reporting Date, the
Collection Agent shall deliver to the Agent a Periodic Report reflecting
information as of the close of business of the Collection Agent for the
immediately preceding Reporting Period.

 

11

 

Section 3.4.           Lock-Box Arrangements.  The Agent is hereby authorized
to give notice at any time after the occurrence of a Termination Event to any
or all Lock-Box Banks that the Agent is exercising its rights under the
Lock-Box Letters and to take all actions permitted under the Lock-Box Letters.  The Seller agrees to take any action
requested by the Agent to facilitate the foregoing.  After the Agent takes any such action under
the Lock-Box Letters, the Seller shall immediately deliver to the Agent any
Collections received by the Seller.  If
the Agent takes control of any Lock-Box Account, the Agent shall distribute
Collections it receives in accordance herewith and shall deliver to the
Collection Agent, for distribution under Section 3.2, all other amounts it
receives from such Lock-Box Account.

 

Section 3.5.           Enforcement Rights.  (a) The Agent (at the
direction of the Instructing Group) may, at any time after the occurrence of a
Termination Event, direct the Obligors and the Lock-Box Banks to make all
payments on the Receivables directly to the Agent or its designee.  The Agent may, and the Seller shall at the
Agent’s request, withhold the identity of the Purchasers from the Obligors and
Lock-Box Banks.  Upon the Agent’s request
(at the direction of the Instructing Group) after the occurrence of a
Termination Event, the Seller (at the Seller’s expense) shall (i) give
notice to each Obligor of the Agent’s ownership of the Sold Interest and direct
that payments on Receivables be made directly to the Agent or its designee, (ii) assemble
for the Agent all Records and collateral security for the Receivables and
transfer to the Agent (or its designee), or license to the Agent (or its
designee) the use of, all software useful to collect the Receivables and (iii) segregate
in a manner acceptable to the Agent all Collections the Seller receives and,
promptly upon receipt, remit such Collections in the form received, duly
endorsed or with duly executed instruments of transfer, to the Agent or its
designee on behalf of the Purchaser Agents and the Purchasers.

 

(b)           Upon the occurrence of a Termination Event,
the Collection Agent shall segregate Collections from other funds of the Seller
and hold such amounts for the Agent (for the benefit of the Purchaser Agents
and the Purchasers).  Upon the occurrence
of a Termination Event, the Seller hereby irrevocably appoints the Agent as its
attorney-in-fact coupled with an interest, with full power of substitution and
with full authority in the place of the Seller, to take any and all steps
deemed desirable by the Agent (at the direction of the Instructing Group), in
the name and on behalf of the Seller to (i) collect any amounts due under
any Receivable, including endorsing the name of the Seller on checks and other
instruments representing Collections and enforcing such Receivables, and (ii) exercise
any and all of the Seller’s rights and remedies under any Purchase
Agreement.  The Agent’s powers under this
Section 3.5(b) shall not subject the Agent to any liability if any
action taken by it proves to be inadequate or invalid, nor shall such powers
confer any obligation whatsoever upon the Agent.

 

(c)           None of the Agent, any Purchaser Agent or any
Purchaser shall have any obligation to take or consent to any action to realize
upon any Receivable or to enforce any rights or remedies related thereto.

 

Section 3.6.           Collection Agent Fee.  On or before the twentieth day
of each calendar month, the Seller shall pay to the Collection Agent a fee for
the immediately preceding calendar month as compensation for its services (the “Collection Agent Fee”) equal to (a) at
all times OfficeMax Incorporated or an Affiliate of OfficeMax Incorporated is
the Collection Agent, such 

 

12

 

consideration as is
acceptable to it, the receipt and sufficiency of which is hereby acknowledged,
and (b) at all times any other Person is the Collection Agent, a
reasonable amount agreed upon by the Agent and the new Collection Agent on an
arm’s-length basis reflecting rates and terms prevailing in the market at such
time.  The Collection Agent may only
apply to payment of the Collection Agent Fee the portion of the Collections in
excess of the Sold Interest or Collections that fund Reinvestment
Purchases.  The Agent may, with the
consent of the Instructing Group, pay the Collection Agent Fee to the
Collection Agent from the Sold Interest in Collections.  The Seller shall be obligated to reimburse
any such payment to the extent required by Section 1.5 or 2.3.

 

Section 3.7.           Responsibilities of the Seller.  The
Seller shall, or shall cause the Originator to, pay when due all Taxes payable
in connection with the Receivables or their creation or satisfaction.  The Seller shall, and shall cause the
Originator to, perform all of its obligations under agreements related to the
Receivables to the same extent as if interests in the Receivables had not been
transferred hereunder or, in the case of the Originator, under each Purchase
Agreement.  The Agent’s, any Purchaser
Agent’s or any Purchaser’s exercise of any rights hereunder shall not relieve
the Seller or the Originator from such obligations.  None of the Agent, any Purchaser Agent or any
Purchaser shall have any obligation to perform any obligation of the Seller or
of the Originator or any other obligation or liability in connection with the
Receivables.

 

Section 3.8.           Actions by Seller.  The Seller shall defend and
indemnify the Agent, each Purchaser Agent and each Purchaser against all costs,
expenses, claims and liabilities for any action taken by the Seller, the
Originator or any other Affiliate of the Seller or of the Originator (whether
acting as Collection Agent or otherwise) related to any Receivable, or arising
out of any alleged failure of compliance of any Receivable with the provisions
of any law or regulation.  Subject to Section 1.5(d),
if any goods related to a Receivable are repossessed, the Seller agrees to
resell, or to have an Originator or another Affiliate resell, such goods in a
commercially reasonable manner for the account of the Agent and remit, or have
remitted, to the Agent the Purchasers’ share in the gross sale proceeds thereof
net of any out-of-pocket expenses and any equity of redemption of the Obligor
thereon.  Any such moneys collected by
the Seller or the Originator or other Affiliate of the Seller pursuant to this Section 3.8
shall be segregated and held in trust for the Agent and remitted to the Agent
within one Business Day of receipt as part of the Sold Interest in Collections
for application as provided herein.

 

Section 3.9.           Indemnities by the Collection Agent. 
Without limiting any other rights any Person may have hereunder or under
applicable law, the Collection Agent hereby indemnifies and holds harmless the
Agent, each Purchaser Agent and each Purchaser and their respective officers,
directors, agents and employees (each an “Indemnified
Party”) from and against any and all damages, losses, claims,
liabilities, penalties, Taxes, costs and expenses (including attorneys’ fees
and court costs) (all of the foregoing collectively, the “Indemnified Losses”) at any time imposed
on or incurred by any Indemnified Party arising out of or otherwise relating
to:

 

(i)            any written representation or warranty made
by the Collection Agent (or any employee or agent of the Collection Agent) in
this Agreement, any other Transaction Document, any Periodic Report or any
other information or report delivered by the 

 

13

 

Collection
Agent pursuant hereto, which shall have been false or incorrect in any material
respect when made;

 

(ii)           the failure by the Collection Agent to comply with any applicable law, rule or
regulation related to any Receivable, or the nonconformity of any Receivable
with any such applicable law, rule or regulation;

 

(iii)          any loss of a perfected security interest (or in the priority of such
security interest) as a result of any commingling by the Collection Agent of
funds to which the Agent or any Purchaser is entitled hereunder with any other
funds; or

 

(iv)          any failure of the Collection Agent, to perform its duties or
obligations in accordance with the provisions of this Agreement or any other
Transaction Document to which the Collection Agent is a party;

 

whether arising by reason of
the acts to be performed by the Collection Agent hereunder or otherwise, excluding
only Indemnified Losses to the extent (a) such Indemnified Losses resulted
solely from negligence or willful misconduct of the Indemnified Party seeking
indemnification, (b) solely due to the credit risk of the Obligor and for
which reimbursement would constitute recourse to the Collection Agent for
uncollectible Receivables, (c) such Indemnified Losses include Taxes on,
or measured by, the overall net income of the Agent, any Purchaser Agent or any
Purchaser computed in accordance with the Intended Tax Characterization, or (d) the
Originator is the plaintiff and the Indemnified Party is the defendant unless
such Indemnified Party prevails in such legal action; provided, however, that nothing contained
in this sentence shall limit the liability of the Collection Agent or limit the
recourse of the Agent, any Purchaser Agent and each Purchaser to the Collection
Agent for any amounts otherwise specifically provided to be paid by the
Collection Agent hereunder.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

Section 4.1.           Representations and Warranties.  The
Seller represents and warrants to the Agent, each Purchaser Agent and each
Purchaser that:

 

(a)           Corporate Existence and
Power.  Each of the Seller and the Originator is a
corporation duly organized, validly existing and in good standing under the
laws of its state of incorporation and has all corporate power and authority
and all governmental licenses, authorizations, consents and approvals required
to carry on its business in each jurisdiction in which its business is now
conducted, except where failure to obtain such license, authorization, consent
or approval would not have an adverse effect on (i) its ability to perform
its obligations under, or the enforceability of, any Transaction Document, (ii) its
business or financial condition, (iii) the interests of the Agent, any
Purchaser Agent or any Purchaser under any Transaction Document or (iv) the
enforceability or collectibility of any Receivable.

 

14

 

(b)           Corporate Authorization and
No Contravention.  The execution, delivery and performance by
each of the Seller and the Originator of each Transaction Document to which it
is a party (i) are within its corporate powers, (ii) have been duly
authorized by all necessary corporate action, (iii) do not contravene or
constitute a default under (A) any applicable law, rule or
regulation, (B) its or any Subsidiary’s charter or by-laws or (C) any
agreement, order or other instrument to which it or any Subsidiary is a party
or its property is subject and (iv) will not result in any Adverse Claim
on any Receivable or Collection or give cause for the acceleration of any
indebtedness of the Seller, the Originator or any Subsidiary.

 

(c)           No Consent Required.  No
approval, authorization or other action by, or filings with, any Governmental
Authority or other Person is required in connection with the execution,
delivery and performance by the Seller or the Originator of any Transaction
Document or any transaction contemplated thereby other than filings of Uniform
Commercial Code financing statements as required herein and the filing by the
Originator with the Securities and Exchange Commission of certain of the
Transaction Documents.

 

(d)           Binding Effect.  Each
Transaction Document to which the Seller or the Originator is a party
constitutes the legal, valid and binding obligation of such Person enforceable
against that Person in accordance with its terms, except as limited by
bankruptcy, insolvency, or other similar laws of general application relating
to or affecting the enforcement of creditors’ rights generally and subject to
general principles of equity.

 

(e)           Perfection of Ownership
Interest.  Immediately preceding its sale of Receivables
to the Seller, the Originator was the owner of, and effectively sold, such
Receivables to the Seller, free and clear of any Adverse Claim.  The Seller owns the Receivables free of any
Adverse Claim other than the interests of the Purchasers (through the Agent)
therein that are created hereby, and each Purchaser shall at all times have a
valid undivided percentage ownership interest, which shall be a first priority
perfected security interest for purposes of Article 9 of the applicable
Uniform Commercial Code, in the Receivables and Collections to the extent of
its Purchase Interest then in effect.

 

(f)            Accuracy of Information.  All
information furnished by the Seller, the Originator or any Affiliate of any
such Person to the Agent, any Purchaser Agent or any Purchaser in connection
with any Transaction Document, or any transaction contemplated thereby, is true
and accurate in all material respects (and is not incomplete by omitting any
information necessary to prevent such information from being materially
misleading).

 

(g)           No Actions, Suits.  There
are no actions, suits or other proceedings (including matters relating to
environmental liability) pending or threatened against or affecting the Seller,
the Originator or any Subsidiary, or any of their respective properties, that (i) if
adversely determined (individually or in the aggregate), may have a material
adverse effect on the financial condition of the Seller or the Originator and
its Subsidiaries taken as a whole or on the collectibility of the Receivables
or (ii) involve any Transaction Document or any transaction contemplated
thereby.  None of the Seller, the 

 

15

 

Originator
or any Subsidiary is in default of any contractual obligation or in violation
of any order, rule or regulation of any Governmental Authority, which
default or violation may have a material adverse effect upon (i) the
financial condition of the Seller or the Originator and the Subsidiaries taken
as a whole or (ii) the collectibility of the Receivables.

 

(h)           No Material Adverse Change.
 Since March 31, 2005, there has been no
material adverse change in the collectibility of the Receivables or the (i) financial
condition, business, operations or prospects of the Seller or the Originator
and its Subsidiaries taken as a whole, or (ii) ability of the Seller or
the Originator to perform its obligations under any Transaction Document.

 

(i)            Accuracy of Exhibits;
Lock-Box Arrangements.  All information on Exhibits C and D
(listing offices and names of the Seller and the Originator and where they
maintain Records and Lock Boxes) is true and complete, subject to any changes
permitted by, and notified to the Agent in accordance with, Article V.  The Seller has delivered a copy of all
Lock-Box Agreements to the Agent.  The
Seller has not granted any interest in any Lock-Box or Lock-Box Account to any
Person other than the Agent and, upon delivery to a Lock-Box Bank of the
related Lock-Box Letter, the Agent will have exclusive ownership and control of
the Lock-Box Account at such Lock-Box Bank.

 

(j)            Sales by the Originator.  Each
sale by the Originator to the Seller of an interest in Receivables and their
Collections has been made in accordance with the terms of the Purchase
Agreements, including the payment by the Seller to the Originator of the
purchase price described in each Purchase Agreement.  Each such sale has been made for “reasonably equivalent value” (as such
term is used in Section 548 of the Bankruptcy Code) and not for or on
account of “antecedent debt” (as
such term is used in Section 547 of the Bankruptcy Code) owed by the
Originator to the Seller.

 

ARTICLE V

COVENANTS

 

Section 5.1.           Covenants of the Seller.  The Seller hereby covenants
and agrees to comply with the following covenants and agreements, unless the
Agent (with the consent of the Instructing Group) shall otherwise consent:

 

(a)           Financial Reporting.  The
Seller will, and will cause the Originator and each Subsidiary to, maintain a
system of accounting established and administered in accordance with GAAP and
will furnish to the Agent, each Purchaser Agent and each Purchaser:

 

(i)            Annual Financial
Statements.  Within 90 days after each fiscal year of (A) OfficeMax
Incorporated, copies of its annual audited financial statements (including a
consolidated balance sheet, consolidated statement of income, consolidated
statement of shareholders equity and consolidated statement of cash flows, with
related footnotes) certified by independent public accountants satisfactory to
the Agent and prepared on a 

 

16

 

consolidated
basis in conformity with GAAP, and (B) the Seller, the balance sheet for
the Seller and a profit and loss statement for the year then ended certified by
a Designated Financial Officer thereof, in each case prepared on a consolidated
basis in conformity with GAAP;

 

(ii)           Quarterly Financial
Statements.  Within 45 days after each (except the
last) fiscal quarter of each fiscal year of (A) OfficeMax Incorporated,
copies of its unaudited financial statements (including at least a consolidated
balance sheet as of the close of such quarter and consolidated statements of
income and cash flows for the period from the beginning of the fiscal year to
the close of such quarter) certified by a Designated Financial Officer and prepared
in a manner consistent with the financial statements described in part (A) of
clause (i) of this Section 5.l(a) and (B) the Seller, the
quarterly balance sheet for the Seller and a profit and loss statement for the
period from the beginning of such fiscal year to the close of such quarter, in
each case certified by a Designated Financial Officer thereof and prepared in a
manner consistent with clause (i) of Section 5.1(a);

 

(iii)          Reports to Stockholders. 
Promptly upon the sending, making available or filing of the same, all
debt registration statements, proxy statements, financial statements and
reports as the Originator shall send or make available to its stockholders or
to any holder of its public senior funded debt for borrowed money or filed with
the Securities and Exchange Commission, excluding filings made with the SEC
solely in respect of securities issued pursuant to employee benefit plans of
the Originator and its Subsidiaries;

 

(iv)          [Reserved]

 

(v)           Other Information.  With
reasonable promptness, such other information (including non-financial
information) as may be requested by the Agent, any Purchaser Agent or any
Purchaser (with a copy of such request to the Agent).

 

(b)           Notices. 
Immediately upon becoming aware of any of the following the Seller will
notify the Agent and each Purchaser Agent and provide a description of:

 

(i)            Potential Termination
Events.  The occurrence of any Potential Termination
Event or any Potential Collection Agent Replacement Event;

 

(ii)           Representations and
Warranties.  The failure of any representation or warranty
herein to be true (when made or, with respect to the representations and
warranties contained in Section 4.1(a)-(e), (g)(ii), (i) or (j), at
any time thereafter) in any material respect;

 

(iii)          Downgrading.  The
downgrading, withdrawal or suspension of any rating by any rating agency of any
indebtedness of the Originator or the Seller;

 

17

 

(iv)          Litigation.  The
institution of any litigation, arbitration proceeding or governmental
proceeding reasonably likely to be material to the Seller, or the Originator
and its Subsidiaries taken as a whole or the collectibility or quality of the
Receivables;

 

(v)           Judgments.  The
entry of any judgment or decree against the Seller, the Originator or any
Subsidiary if the aggregate amount of all judgments then outstanding against
the Seller, the Originator and the Subsidiaries exceeds $10,000,000; or

 

(vi)          Changes in Business.  Any
change in, or proposed change in, the character of the Seller’s or the
Originator’s business that could impair the collectibility or quality of any
Receivable.

 

If the Agent or any
Purchaser Agent receives such a notice, the Agent or such Purchaser Agent shall
promptly give notice thereof to each Purchaser Agent and each Purchaser and,
until each Conduit Purchaser has no Investment after the Termination Date, to
each CP Dealer and each Rating Agency.

 

(c)           Conduct of Business.  The Seller will perform, and will cause the
Originator and Subsidiaries to perform, all actions necessary to remain duly
incorporated, validly existing and in good standing in its jurisdiction of
incorporation and to maintain all requisite authority to conduct its business
in each jurisdiction in which it conducts business.

 

(d)           Compliance with Laws.  The Seller will comply, and will cause the Originator and Subsidiaries
to comply, with all laws, regulations, judgments and other directions or orders
imposed by any Governmental Authority to which such Person or any Receivable or
Collection may be subject, except where non-compliance will not impair the
collectibility of the Receivables or have a material adverse effect on the
financial condition or operations of the Seller or of the Originator and its
Subsidiaries taken as a whole.

 

(e)           Furnishing Information and Inspection of Records.  The Seller will furnish to the Agent, each Purchaser Agent and the
Purchasers such information concerning the Receivables as the Agent, any
Purchaser Agent or a Purchaser may request. 
The Seller will, and will cause the Originator to, permit, at any time
during regular business hours, the Agent, any Purchaser Agent or any Purchaser
(or any representatives thereof) (i) to examine and make copies of all
Records, (ii) to visit the offices and properties of the Seller for the
purpose of examining the Records and (iii) to discuss matters relating
hereto with any of the Seller’s or the Originator’s officers, directors,
employees or independent public accountants having knowledge of such
matters.  Once a year, the Agent (at the
request of any Purchaser Agent) may (at the expense of the Seller) have an
independent public accounting firm conduct an audit of the Records or make test
verifications of the Receivables and Collections.

 

(f)            Keeping Records. 
The Seller will, and
will cause the Originator to, have and maintain (A) administrative and
operating procedures (including an ability to recreate Records if originals are
destroyed), (B) adequate facilities, personnel and equipment and (C) all
Records and other information necessary or advisable for collecting the
Receivables (including Records adequate to permit the immediate identification
of each Obligor, each new Receivable and all 

 

18

 

Collections of, and adjustments
to, each existing Receivable).  The
Seller will give the Agent and each Purchaser Agent prior notice of any
material change in such administrative and operating procedures.

 

(g)           Perfection.  (i) The Seller will, and will cause the Originator to, at its
expense, promptly execute and deliver all instruments and documents and take
all action necessary or requested by the Agent (including the execution and
filing of financing or continuation statements, amendments thereto or
assignments thereof) to enable the Agent, on behalf of the Purchaser Agents and
the Purchasers, to exercise and enforce all its rights hereunder and to vest
and maintain vested in the Agent, on behalf of the Purchaser Agents and the
Purchasers, a valid, first priority perfected security interest in the
Receivables, each Purchase Agreement, and proceeds thereof free and clear of
any Adverse Claim.  The Agent will be
permitted to sign and file any continuation statements, amendments thereto and
assignments thereof without the Seller’s signature.

 

(ii)           The Seller will, and will cause the
Originator to, only change its name or identity or relocate its chief executive
office or the Records following thirty (30) days advance notice to the
Agent and the delivery to the Agent and each Purchaser Agent of all financing
statements, instruments and other documents (including direction letters)
requested by the Agent.

 

(iii)          The Seller and the Originator will at all
times maintain its chief executive offices within a jurisdiction in the USA
(other than in the states of Florida, Maryland and Tennessee) in which Article 9
of the UCC is in effect.  If the Seller
or the Originator moves its chief executive office to a location that imposes
Taxes, fees or other charges to perfect the Agent’s, the Purchaser Agents and
the Purchasers’ interests hereunder or the Seller’s interests under each
Purchase Agreement, the Seller will pay all such amounts and any other costs
and expenses incurred in order to maintain the enforceability of the
Transaction Documents, the Sold Interest and the interests of the Agent, the
Purchaser Agents and the Purchasers in the Receivables and Collections.

 

(h)           Performance of Duties.  The Seller will perform, and will cause the Originator and Subsidiary
and the Collection Agent (if an Affiliate) to perform, its respective duties or
obligations in accordance with the provisions of each of the Transaction
Documents.  The Seller (at its expense)
will, and will cause the Originator to, (i) fully and timely perform in
all material respects all agreements required to be observed by it in
connection with each Receivable, (ii) comply in all material respects with
the Credit and Collection Policy, and (iii) refrain from any action that
may impair the rights of the Agent, the Purchaser Agents or the Purchasers in
the Receivables or Collections.

 

(i)            Payments on Receivables,
Accounts.  The Seller will, and will cause the
Originator to, at all times instruct all Obligors to deliver payments on the
Receivables to a Lock-Box Account.  If
any such payments or other Collections are received by the Seller or the
Originator, it shall hold such payments in trust for the benefit of the Agent
and the Purchasers and promptly (but in any event within two Business Days
after receipt) remit such funds into a Lock-Box Account.  The Seller will cause each Lock-Box Bank to
comply with the terms of each applicable Lock-Box Letter.  The Seller will not permit the funds of any
Affiliate to be deposited into any 

 

19

 

Lock-Box Account.  If such funds are nevertheless deposited into
any Lock-Box Account, the Seller will promptly identify such funds for
segregation.  After the occurrence of a
Collection Agent Replacement Event, the Seller will not, and will not permit
any Collection Agent or other Person to, commingle Collections or other funds
to which the Agent or any Purchaser is entitled with any other funds.  The Seller shall only add, and shall only
permit an Originator to add, a Lock-Box Bank, Lock-Box, or Lock-Box Account to
those listed on Exhibit D if the Agent has received notice of such
addition, a copy of any new Lock-Box Agreement and an executed and acknowledged
copy of a Lock-Box Letter substantially in the form of Exhibit E (with
such changes as are acceptable to the Agent) from any new Lock-Box Bank.  The Seller shall only terminate a Lock-Box
Bank or Lock-Box, or close a Lock-Box Account, upon 30 days advance notice to
the Agent.

 

(j)            Sales and Adverse Claims
Relating to Receivables.  Except as otherwise provided herein, the
Seller will not, and will not permit the Originator to (by operation of law or
otherwise), create or suffer to exist any Adverse Claim upon any Receivable or
any proceeds thereof except for a lien for personal property taxes not yet due
and payable.

 

(k)           Extension or Amendment of
Receivables.  Except as otherwise permitted in Section 3.2(b) and
then subject to Section 1.5, the Seller will not, and will not permit the
Originator to, extend, amend, rescind or cancel any Receivable.

 

(l)            Change in Business or
Credit and Collection Policy.  The Seller will not make any material change
in the character of its business or in its Credit and Collection Policy.  The Seller will not permit the Originator to
make any material change in its Credit and Collection Policy.

 

(m)          Corporate Separateness.  The
Seller acknowledges that the Agent, the Purchasers and the Purchaser Agents are
entering into the transactions contemplated by this Agreement in reliance upon
the Seller’s identity as a legal entity that is separate from the
Originator.  Therefore, from and after
the date of execution and delivery of the Agreement, the Seller shall take all
reasonable steps, including all steps that the Agent or the Purchasers and the
Purchaser Agents may from time to
time reasonably request, to maintain the Seller’s identity as a separate legal
entity and to make it manifest to third parties that the Seller is an entity
with assets and liabilities distinct from those the Originator and any
Affiliates thereof (other than the Seller) and not (for purposes other than
income taxes) just a division of the Originator or any such Affiliate.  Without limiting the generality of the
foregoing and in addition to the other covenants set forth herein, Seller
covenants as follows:

 

(i)            The Seller shall at all times maintain at
least one independent director who (x) is not currently and has not been during
the five years preceding the date of the Agreement an officer, director or
employee of an Affiliate of the Seller (except for such member), (y) is not a
current or former officer or employee of the Seller and (z) is not a material
stockholder of any Affiliates of the Seller.

 

(ii)           The Seller shall not direct or participate in the management of any of
the operations of an Affiliate of the Seller.

 

20

 

(iii)          The Seller shall maintain a separate principal office through which its
business shall be conducted, which office may be located in identifiable space
within the headquarters of one of the Affiliates of the Seller.  The Seller shall have stationery and other
business forms and a telephone listing separate from that of the Affiliates of
the Seller.

 

(iv)          The Seller shall at all times be adequately capitalized in light of its
contemplated business.

 

(v)           The Seller shall at all times provide for its own operating expenses
and liabilities from its own funds.

 

(vi)          The Seller shall maintain its assets and transactions separately from
those of the Affiliates of the Seller and reflect such assets and transactions
in financial statements separate and distinct from those of the Affiliates of
the Seller and evidence such
assets and transactions by appropriate entries in books and records separate
and distinct from those of the Affiliates
of the Seller.  The Seller shall hold
itself out to the public under the Seller’s own name as a legal entity separate
and distinct from the Affiliates
of the Seller.  The Seller shall not hold
itself out as having agreed to pay, or as being liable, primarily or
secondarily, for, any obligations of the Affiliates of the Seller.

 

(vii)         The Seller shall not become liable as a guarantor or otherwise with
respect to any debt or contractual obligation of any Affiliates of the Seller.

 

(viii)        Except as otherwise specifically provided herein, the Seller shall
maintain the funds or other assets of the Seller separate from and not
commingled with those of any Affiliates of the Seller and only maintain bank
accounts or other depository accounts to which the Seller alone is the account
party, into which the Seller alone makes deposits and from which the Seller
alone (or the Agent hereunder) has the power to make withdrawals.

 

(ix)           The Seller shall not make any payment or distribution of assets with
respect to any obligation of any Affiliates of the Seller or grant an Adverse Claim on any of its
assets to secure any obligation of any Affiliates of the Seller.

 

(x)            The Seller shall not make loans, advances or
otherwise extend credit to any of the Affiliates of the Seller.

 

(xi)           The Seller shall hold regular duly noticed meetings of its members and
make and retain minutes of such meetings.

 

(xii)          The Seller shall have bills of sale (or similar instruments of
assignment) and, if appropriate, UCC-1 financing statements, with respect to
all assets purchased from any of the Affiliates of the Seller.

 

21

 

(xiii)         The Seller shall not engage in any transaction with any of the
Affiliates of the Seller, except as permitted by the Agreement and as
contemplated by the Purchase Agreement.

 

(xiv)        The Seller shall comply with (and cause to be true and correct) each of
the facts and assumptions contained in the opinion of Bell, Boyd &
Lloyd LLC attached hereto as Exhibit H.

 

ARTICLE VI

INDEMNIFICATION

 

Section 6.1.           Indemnities by the Seller.  Without limiting any other
rights any Person may have hereunder or under applicable law, the Seller hereby
indemnifies and holds harmless, on an after-Tax basis, the Agent, each
Purchaser Agent and each Purchaser and their respective officers, directors,
agents and employees (each an “Indemnified
Party”) from and against any and all damages, losses, claims,
liabilities, penalties, Taxes, costs and expenses (including attorneys’ fees
and court costs) (all of the foregoing collectively, the “Indemnified Losses”) at any time imposed
on or incurred by any Indemnified Party relating to or resulting from:

 

(i)            any representation or warranty made by the
Seller or the Originator (or any employee or agent of the Seller or the
Originator) under or in connection with this Agreement, any Periodic Report or
any other information or report delivered by the Seller or the Originator
pursuant hereto, which shall have been false or incorrect in any material
respect when made or deemed made;

 

(ii)           the failure by the Seller or the Originator to comply with any
applicable law, rule or regulation related to any Receivable, or the
nonconformity of any Receivable with any such applicable law, rule or
regulation;

 

(iii)          the failure of the Seller to vest and maintain vested in the Agent, for
the benefit of the Purchaser Agents and the Purchasers, a perfected ownership
or security interest in the Sold Interest and the property conveyed pursuant to
Section 1.1(e) and Section 1.8, free and clear of any Adverse Claim;

 

(iv)          any commingling of funds to which the Agent, any Purchaser Agent or any
Purchaser is entitled hereunder with any other funds;

 

(v)           any failure of a Lock-Box Bank to comply with the terms of the
applicable Lock-Box Letter;

 

(vi)          any dispute, claim, offset or defense of the Obligor to the payment of
any Receivable other than one based on inability to pay or arising by virtue of
the Obligor’s bankruptcy, or any other claim resulting from the sale or lease
of goods or the rendering of services related to such Receivable or the
furnishing or failure to furnish any such 

 

22

 

goods
or services or other similar claim or defense not arising from the financial
inability of any Obligor to pay undisputed indebtedness;

 

(vii)         any failure of the Seller or the Originator, or any Affiliate of any
thereof, to perform its duties or obligations in accordance with the provisions
of this Agreement or any other Transaction Document to which such Person is a
party (as a Collection Agent or otherwise);

 

(viii)        any action taken by the Agent as attorney-in-fact for the Seller
pursuant to Section 3.5(b);

 

(ix)           any environmental liability claim, products liability claim or personal
injury or property damage suit or other similar or related claim or action of
whatever sort, arising out of or in connection with any Receivable or any other
suit, claim or action of whatever sort relating to any of the Transaction
Documents; or

 

(x)            any Tax imposed upon the Agent or any
Purchaser in connection with the transactions contemplated by the Transaction
Documents;

 

excluding only Indemnified
Losses to the extent (a) a final judgment of a court of competent
jurisdiction holds such Indemnified Losses resulted solely from gross
negligence or willful misconduct of the Indemnified Party seeking
indemnification, (b) solely due to the credit risk of the Obligor and for
which reimbursement would constitute recourse to the Seller or the Collection
Agent for uncollectible Receivables or (c) such Indemnified Losses include
Taxes on, or measured by, the overall net income of the Agent or any Purchaser.

 

Section 6.2.           Increased Cost and Reduced Return.  If (i) the
adoption of any applicable law, rule or regulation, or any change therein,
or any change in the interpretation or administration thereof by any
Governmental Authority charged with the interpretation or administration
thereof, or compliance by any Funding Source, the Agent, any Purchaser Agent or
any Purchaser (collectively, the “Funding
Parties”) with any request or directive of general applicability
(whether or not having the force of law) of any such Governmental Authority or (ii) the
adoption of or any change in any accounting principles, or any change in the
interpretation thereof by any Accounting Authority applicable to a Funding
Party that would require the consolidation of a Conduit Purchaser with such
Funding Policy (a) subjects any Funding Party to any charge or withholding
on or in connection with a Funding Agreement or this Agreement (collectively,
the “Funding Documents”) or any
Receivable, (b) changes the basis of taxation of payments to any of the
Funding Parties of any amounts payable under any of the Funding Documents
(except for changes in the rate of Tax on the overall net income of such
Funding Party), (c) imposes, modifies or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement against
assets of, deposits with or for the account of, or any credit extended by, any
of the Funding Parties, (d) has the effect of reducing the rate of return
on such Funding Party’s capital to a level below that which such Funding Party
could have achieved but for such adoption, change or compliance (taking into
consideration such Funding Party’s policies concerning capital adequacy) or (e) imposes
any other condition, and the result of any of the foregoing is (x) to
impose a cost on, or increase the cost to, any Funding Party of its 

 

23

 

commitment under any Funding
Document or of purchasing, maintaining or funding any interest acquired under
any Funding Document, (y) to reduce the amount of any sum received or
receivable by, or to reduce the rate of return of, any Funding Party under any
Funding Document or (z) to require any payment calculated by reference to
the amount of interests held or amounts received by it hereunder, then, upon
demand by the Agent or the applicable Purchase Agent, the Seller shall pay to
the Agent (with respect to amounts owed to it) or the applicable Purchaser
Agent (with respect to amounts owed to it or any Purchaser in its Purchaser
Group) for the account of the Person such additional amounts as will compensate
the Agent, the Purchaser Agent or such Purchaser (or, in the case of a Conduit
Purchaser, will enable such Conduit Purchaser to compensate any Funding Source)
for such increased cost or reduction. 
Notwithstanding anything in this Section to the contrary, no Person
shall request a payment under this Section for any period commencing more
than 30 days prior to the date such Person has actual knowledge of the
circumstances giving rise to such request.

 

Section 6.3.           Other Costs and Expenses.  The Seller shall pay to the
Agent (with respect to amounts owed to it) or the applicable Purchaser Agent
(with respect to amounts owed to it or any Purchaser in its Purchaser Group) on
demand all costs and expenses in connection with (a) the preparation,
execution, delivery and amendment of the Transaction Documents, (b) the
perfection of the Agent’s rights on behalf of the Purchaser Agents and the
Purchasers in the Receivables and Collections, (c) the enforcement by the
Agent, any Purchaser Agent or the Purchasers of the obligations of the Seller
under the Transaction Documents or of any Obligor under a Receivable and (d) the
maintenance by the Agent of the Lock-Boxes and Lock-Box Accounts following a
Collection Agent Replacement Event, including fees, costs and expenses of legal
counsel for the Agent, each Purchaser Agent and each Conduit Purchaser relating
to any of the foregoing and all costs and expenses (including counsel fees and
expenses) of the Agent, each Purchaser and each Funding Source in connection
with the enforcement of the Transaction Documents or any Funding Document and
in connection with the administration of the Transaction Documents following a
Termination Event.  The Seller shall
reimburse the Agent and each Purchaser Agent for the cost of the Agent’s and
each Purchaser Agent’s auditors (which may be employees of such Person) auditing
the books, records and procedures of the Seller pursuant to Section 5.1(e).  The Seller shall reimburse each Conduit
Purchaser for any amounts such Conduit Purchaser must pay to any Funding Source
pursuant to any Funding Document on account of any Tax.

 

Section 6.4.           Withholding Taxes.  (a) All payments made by
the Seller hereunder shall be made without withholding for or on account of any
present or future taxes (other than overall net income taxes on the
recipient).  If any such withholding is
so required, the Seller shall make the withholding, pay the amount withheld to
the appropriate authority before penalties attach thereto or interest accrues
thereon and pay such additional amount as may be necessary to ensure that the
net amount actually received by each Purchaser, each Purchaser Agent and the
Agent free and clear of such taxes (including such taxes on such additional
amount) is equal to the amount that Purchaser, Purchaser Agent or the Agent (as
the case may be) would have received had such withholding not been made.  If the Agent, any Purchaser Agent or any
Purchaser pays any such taxes, penalties or interest the Seller shall reimburse
the Agent, such Purchaser Agent or such Purchaser for that payment on demand.  If the Seller pays any such taxes, penalties
or interest, it shall deliver official tax receipts evidencing that payment or
certified copies thereof to the 

 

24

 

Purchaser, Purchaser Agent
or Agent on whose account such withholding was made (with a copy to the Agent
if not the recipient of the original) on or before the thirtieth day after
payment.

 

(b)           Before the first date on which any amount is
payable hereunder for the account of any Purchaser not incorporated under the
laws of the USA such Purchaser shall deliver to the Seller and the Agent each
two (2) duly completed copies of United States Internal Revenue Service Form W-8BEN
or W-WECI (or successor applicable form) certifying that such Purchaser is
entitled to receive payments hereunder without deduction or withholding of any
United States federal income taxes.  Each
such Purchaser shall replace or update such forms when necessary to maintain
any applicable exemption and as requested by the Agent or the Seller.

 

Section 6.5.           Payments and Allocations.  If any Person seeks
compensation pursuant to this Article VI, such Person shall deliver to the
Seller and the Agent a certificate setting forth the amount due to such Person,
a description of the circumstance giving rise thereto and the basis of the
calculations of such amount, which certificate shall be conclusive absent
manifest error.  The Seller shall pay to
the Agent (with respect to amounts owed to it) or the applicable Purchaser
Agent (with respect to amounts owed to it on any Purchaser in its Purchaser
Group), for the account of such Person, the amount shown as due on any such
certificate within 10 Business Days after receipt of the notice.

 

ARTICLE VII

CONDITIONS PRECEDENT

 

Section 7.1.           Conditions to Closing.  This Agreement shall become
effective on the first date all conditions in this Section 7.1 are
satisfied.  On or before such date, the
Seller shall deliver to the Agent and each Purchaser Agent the following
documents in form, substance and quantity acceptable to the Agent and each
Purchaser Agent, as applicable:

 

(a)           A certificate of the Secretary or Assistant Secretary of each of the
Seller and Originator certifying (i) the resolutions of the Seller’s or
Originator’s (as applicable) board of directors approving each Transaction
Document to which it is a party, (ii) the name, signature, and authority
of each officer who executes on the Seller’s or Originator’s behalf a
Transaction Document (on which certificate the Agent, each Purchaser Agent and
each Purchaser may conclusively rely until a revised certificate is received), (iii) the
Seller’s and Originator’s certificate or articles of incorporation certified by
the Secretary of State of its state of incorporation, (iv) a copy of the
Seller’s and Originator’s by-laws, and (v) good standing certificates
issued by the Secretaries of State of Idaho and Delaware.

 

(b)           All instruments and other documents required, or deemed desirable by
the Agent or any Purchaser Agent, to perfect the first priority interest of the
Agent (on behalf of the Purchaser Agents and the Purchasers) in the Receivables
and Collections in all appropriate jurisdictions.

 

25

 

(c)           UCC search reports from Idaho, Delaware and Illinois.

 

(d)           Executed copies of (i) all consents and authorizations necessary
in connection with the Transaction Documents (ii) direction letters
executed by the Seller and the Originator authorizing the Agent to inspect and
make copies from the Seller’s and the Originator’s books and records maintained
at any off-site data processing or storage facilities, (iii) OfficeMax
Incorporated’s financial statements for the period ending March 31, 2005
as filed with the Securities and Exchange Commission and the Seller’s and
OfficeMax Contract, Inc.’s financial statements for the period ending March 31,
2005 as well as a certificate from the Secretary or Assistant Secretary of each
of the Seller and the Originator certifying that there has been no material
adverse change in the financial condition of the Seller or the Originator, as
applicable, after the date of such financial statements, and (iv) each
Transaction Document.

 

(e)           Favorable opinions of counsel to the Seller and the Originator covering
such matters as any Conduit Purchaser or the Agent may request.

 

(f)            Such other approvals, opinions or documents
as the Agent or any Conduit Purchaser may request.

 

Section 7.2.           Conditions to Each Purchase.  The
obligation of each Related Bank Purchaser to make any Purchase, and the right
of the Seller to request or accept any Purchase, are subject to the conditions
(and each Purchase shall evidence the Seller’s representation and warranty that
clauses (a)-(e) of this Section 7.2 have been satisfied) that on the
date of such Purchase before and after giving effect to the Purchase:

 

(a)           no Potential Termination Event shall then exist or shall occur as a
result of the Purchase;

 

(b)           the Termination Date has not occurred;

 

(c)           after giving effect to the application of the proceeds of such
Purchase, (x) the outstanding Matured Aggregate Investment would not
exceed the Aggregate Commitment and (y) the outstanding Aggregate
Investment would not exceed the Purchase Limit;

 

(d)           the representations and warranties in Section 4.1(a)-(e), (g)(ii),
(i) and (j) are true and correct in all material respects on and as of
such date (except to the extent such representations and warranties relate
solely to an earlier date and then as of such earlier date);

 

(e)           each of the Seller and the Originator is in full compliance with the
Transaction Documents (including all covenants and agreements in Article V);
and

 

(f)            the Sold Interest shall not exceed 100%.

 

26

 

Nothing in this Section 7.2
limits the obligations (including those in Section 2.1) of each Related
Bank Purchaser to any Conduit Purchaser.

 

ARTICLE VIII

THE AGENT

 

Section 8.1.                                Appointment
and Authorization.  (a) Each
Purchaser and each Purchaser Agent hereby irrevocably designates and appoints
ABN AMRO Bank N.V. as the “Agent”
hereunder and authorizes the Agent to take such actions and to exercise such
powers as are delegated to the Agent hereby and to exercise such other powers
as are reasonably incidental thereto. 
The Agent shall hold, in its name, for the benefit of each Purchaser,
the Purchase Interest of the Purchaser. 
The Agent shall not have any duties other than those expressly set forth
herein or any fiduciary relationship with any Purchaser Agent or any Purchaser,
and no implied obligations or liabilities shall be read into this Agreement, or
otherwise exist, against the Agent.  The
Agent does not assume, nor shall it be deemed to have assumed, any obligation
to, or relationship of trust or agency with, the Seller.  Notwithstanding any provision of this
Agreement or any other Transaction Document, in no event shall the Agent ever
be required to take any action which exposes the Agent to personal liability or
which is contrary to the provisions of any Transaction Document or applicable
law.

 

(b)                                 Each
Purchaser hereby irrevocably designates and appoints the respective institution
identified on the applicable signature page hereto as its Purchaser Agent
hereunder, and each authorizes such Purchaser Agent to take such action on its
behalf under the provisions of this Agreement and to exercise such powers and
perform such duties as are expressly delegated to such Purchaser Agent by the
terms of this Agreement, if any, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, no Purchaser Agent shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Purchaser or other Purchaser Agent or the Agent, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities on the part of such Purchaser Agent shall be read into this
Agreement or otherwise exist against such Purchaser Agent.

 

(c)                                  Except
as otherwise specifically provided in this Agreement, the provisions of this Article VIII
are solely for the benefit of the Purchaser Agents, the Agent and the
Purchasers, and none of the Seller or any Collection Agent shall have any
rights as a third-party beneficiary or otherwise under any of the provisions of
this Article VIII, except that this Article VIII shall not affect any
obligations which any Purchaser Agent, the Agent or the Purchaser may have to
the Seller or any Collection Agent under the other provisions of this
Agreement. Furthermore, no Purchaser shall have any rights as a third-party
beneficiary or otherwise under any of the provisions hereof in respect of a
Purchaser Agent which is not the Purchaser Agent for such Purchaser.

 

(d)                                 In
performing its functions and duties hereunder, the Agent shall act solely as
the agent of the Purchasers and the Purchaser Agents and does not assume nor
shall be deemed to have assumed any obligation or relationship of trust or
agency with or for the Seller or Collection Agent or any of their successors
and assigns. In performing its functions and duties hereunder, each Purchaser
Agent shall act solely as the agent of its respective Purchaser and does not 

 

27

 

assume nor shall
be deemed to have assumed any obligation or relationship of trust or agency
with or for the Seller, any Collection Agent, any other Purchaser, any other
Purchaser Agent or the Agent, or any of their respective successors and assigns.

 

Section 8.2.                                Delegation
of Duties.  The Agent may execute any
of its duties through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties.  The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

 

Section 8.3.                                Exculpatory
Provisions.  None of the Agent, any
Purchaser Agent or any of their respective directors, officers, agents or
employees shall be liable for any action taken or omitted (i) with the consent
or at the direction of the Instructing Group or (ii) in the absence of such
Person’s gross negligence or willful misconduct.  The Agent shall not be responsible to any
Purchaser Agent, Purchaser or other Person for (i) any recitals,
representations, warranties or other statements made by the Seller, the
Originator or any of their Affiliates, (ii) the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any Transaction
Document, (iii) any failure of the Seller, the Originator or any of their
Affiliates to perform any obligation or (iv) the satisfaction of any
condition specified in Article VII. 
The Agent shall not have any obligation to any Purchaser to ascertain or
inquire about the observance or performance of any agreement contained in any
Transaction Document or to inspect the properties, books or records of the
Seller, the Originator or any of their Affiliates.

 

Section 8.4.                                Reliance
by Agent.  (a) Each Purchaser
Agent and the Agent shall in all cases be entitled to rely, and shall be fully
protected in relying, upon any document, other writing or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person and upon advice and statements of legal counsel (including
counsel to the Seller), independent accountants and other experts selected by
the Agent.  Each Purchaser Agent and the
Agent shall in all cases be fully justified in failing or refusing to take any
action under any Transaction Document unless it shall first receive such advice
or concurrence of the Purchasers, and assurance of its indemnification, as it
deems appropriate.

 

(b)                                 The
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement in accordance with a request of the Purchasers or
the Purchaser Agents, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all Purchasers, the Agent and Purchaser
Agents.

 

(c)                                  Each
Purchaser Agent (with the consent of the Agent) shall determine with its
Purchaser Groups the number of such Purchasers (each, a “Voting
Block”), which shall be required to request or direct such Purchaser
Agent to take action, or refrain from taking action, under this Agreement on
behalf of such Purchasers. Such Purchaser Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement in
accordance with a request of its appropriate Voting Block, and such request and
any action taken or failure to act pursuant thereto shall be binding upon all
of such Purchaser Agent’s Purchasers.

 

(d)                                 Unless
otherwise advised in writing by a Purchaser Agent or by any Purchaser on whose
behalf such Purchaser Agent is purportedly acting, each party to this Agreement
may 

 

28

 

assume that
(i) such Purchaser Agent is acting for the benefit of each of the
Purchasers in respect of which such Purchaser Agent is identified as being the “Purchaser Agent” in the definition of “Purchaser
Agent” hereto, as well as for the benefit of each assignee or other
transferee from any such Person, and (ii) each action taken by such
Purchaser Agent has been duly authorized and approved by all necessary action
on the part of the Purchasers on whose behalf it is purportedly acting. Each
initial Purchaser (or, with the consent of all other Purchasers then existing,
any other Purchasers) shall have the right to designate a new Purchaser Agent
(which may be itself) to act on its behalf and on behalf of its assignees and
transferees for purposes of this Agreement by giving to the Agent written
notice thereof signed by such Purchaser(s) and the newly designated Purchaser
Agent. Such notice shall be effective when receipt thereof is acknowledged by
the Agent, which acknowledgment the Agent shall not unreasonably delay giving,
and thereafter the party named as such therein shall be Purchaser Agent for
such Purchaser under this Agreement. Each Purchaser Agent and its Purchaser(s) shall
agree amongst themselves as to the circumstances and procedures for removal and
resignation of such Purchaser Agent.

 

Section 8.5.                                Assumed
Payments.  Unless a Purchaser Agent
shall have received notice from the applicable Purchaser before the date of any
Put or of any Incremental Purchase that the applicable Purchaser will not make
available to the applicable Purchaser Agent the amount it is scheduled to remit
as part of such Put or Incremental Purchase, such Purchaser Agent may assume
such Purchaser has made such amount available to the Purchaser Agent when due
(an “Assumed Payment”) and, in reliance upon
such assumption, such Purchaser Agent may (but shall have no obligation to)
make available such amount to the appropriate Person.  If and to the extent that any Purchaser shall
not have made its Assumed Payment available to the applicable Purchaser Agent,
such Purchaser and the Seller hereby agree to pay the applicable Purchaser
Agent forthwith on demand such unpaid portion of such Assumed Payment up to the
amount of funds actually paid by the applicable Purchaser Agent, together with
interest thereon for each day from the date of such payment by the Agent until
the date the requisite amount is repaid to the applicable Purchaser Agent, at a
rate per annum equal to the Federal Funds Rate plus 2%.

 

Section 8.6.                                Notice
of Termination Events.  Neither any
Purchaser Agent nor the Agent shall be deemed to have knowledge or notice of
the occurrence of any Potential Termination Event unless the Agent or such Purchaser
Agent has received notice from any Purchaser, Purchaser Agent or the Seller
stating that a Potential Termination Event has occurred hereunder and
describing such Potential Termination Event. 
In the event that the Agent receives such a notice, it shall promptly
give notice to each Purchaser Agent whereupon each Purchaser Agent shall
promptly give notice thereof to its Purchasers, Enhancement Banks and Liquidity
Banks.  In the event that a Purchaser
Agent receives such a notice (other than from the Agent) it shall promptly give
notice thereof to the Agent and each of its affiliated Enhancement Banks and
Liquidity Banks.  The Agent shall take
such action concerning a Potential Termination Event as may be directed by the
Instructing Group (or, in the case where there are only two Purchaser Groups
and neither Purchaser Group has a majority of the Commitments, either Purchaser
Agent except if the proposed action is a waiver of the consequences of the
Potential Termination Event, in which case such waiver shall require the
consent of the Instructing Group) (or, if otherwise required for such action,
all of the Purchasers), but until the Agent receives such directions, the 

 

29

 

Agent may (but
shall not be obligated to) take such action, or refrain from taking such
action, as the Agent deems advisable and in the best interests of the
Purchasers and the Purchaser Agents.

 

Section 8.7.                                Non-Reliance
on Agent, Purchaser Agents and Other Purchasers.  Each Purchaser expressly acknowledges that
none of the Agent, the Purchaser Agents or any of their respective officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Agent or any Purchaser
Agent hereafter taken, including any review of the affairs of the Seller or the
Originator, shall be deemed to constitute any representation or warranty by the
Agent or Purchaser Agent, as applicable. 
Each Purchaser represents and warrants to the Agent and the Purchaser
Agents that, independently and without reliance upon the Agent, their Purchase
Agents or any other Purchaser and based on such documents and information as it
has deemed appropriate, it has made and will continue to make its own appraisal
of and investigation into the business, operations, property, prospects,
financial and other conditions and creditworthiness of the Seller, the
Originator, and the Receivables and its own decision to enter into this
Agreement and to take, or omit, action under any Transaction Document.  Except for items specifically required to be
delivered hereunder, the Agent shall not have any duty or responsibility to
provide any Purchaser Agent or Purchaser with any information concerning the
Seller, the Originator or any of their Affiliates that comes into the
possession of the Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates.

 

Section 8.8.                                Agent
and Affiliates.  Each of the Agent
and the Purchaser Agents and their respective Affiliates may extend credit to,
accept deposits from and generally engage in any kind of business with the
Seller, the Originator or any of their Affiliates and Wachovia may exercise or
refrain from exercising its rights and powers as if it were not the Agent.  With respect to the acquisition of the
Eligible Receivables pursuant to this Agreement, each of the Purchaser Agents
and the Agent shall have the same rights and powers under this Agreement as any
Purchaser and may exercise the same as though it were not such an agent, and
the terms “Purchaser” and “Purchasers”
shall include each of the Purchaser Agents and the Agent in their individual
capacities

 

Section 8.9.                                Indemnification.  Each Purchaser Group shall indemnify and hold
harmless the Agent and its officers, directors, employees, representatives and
agents (to the extent not reimbursed by the Seller or the Originator and
without limiting the obligation of the Seller or the Originator to do so),
ratably in accordance with its Ratable Share from and against any and all
liabilities, obligations, losses, damages, penalties, judgments, settlements,
costs, expenses and disbursements of any kind whatsoever (including in
connection with any investigative or threatened proceeding, whether or not the
Agent or such Person shall be designated a party thereto) that may at any time
be imposed on, incurred by or asserted against the Agent or such Person as a
result of, or related to, any of the transactions contemplated by the
Transaction Documents or the execution, delivery or performance of the
Transaction Documents or any other document furnished in connection therewith
(but excluding any such liabilities, obligations, losses, damages, penalties,
judgments, settlements, costs, expenses or disbursements resulting solely from
the gross negligence or willful misconduct of the Agent or such Person as
finally determined by a court of competent jurisdiction).

 

30

 

Section 8.10.                         Successor
Agent.  The Agent may, upon at least
five (5) days notice to the Seller, each Purchaser Agent and each Purchaser,
resign as Agent.  Such resignation shall
not become effective until a successor agent is appointed by an Instructing
Group and has accepted such appointment. 
Upon such acceptance of its appointment as Agent hereunder by a
successor Agent, such successor Agent shall succeed to and become vested with
all the rights and duties of the retiring Agent, and the retiring Agent shall
be discharged from its duties and obligations under the Transaction
Documents.  After any retiring Agent’s
resignation hereunder, the provisions of Article VI and this Article VIII
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Agent.

 

ARTICLE IX

MISCELLANEOUS

 

Section 9.1.                                Termination.  Each Purchaser shall cease to be a party
hereto when the Termination Date has occurred, each Purchaser holds no
Investment and all amounts payable to it hereunder have been indefeasibly paid
in full.  This Agreement shall terminate
following the Termination Date when no Investment is held by a Purchaser and
all other amounts payable hereunder have been indefeasibly paid in full, but
the rights and remedies of the Agent, each Purchaser Agent and each Purchaser
concerning any representation, warranty or covenant made, or deemed to be made,
(i) by the Seller and (ii) under Article VI and Section 8.9 shall
survive such termination.

 

Section 9.2.                                Notices.  Unless otherwise specified, all notices and
other communications hereunder shall be in writing (including by telecopier or
other facsimile communication), given to the appropriate Person at its address
or telecopy number set forth on the signature pages hereof or at such other
address or telecopy number as such Person may specify, and effective when
received at the address specified by such Person.  Each party hereto, however, authorizes the
Agent and each Purchaser Agent to act on telephone notices of Purchases, Puts,
and Discount Rate and Tranche Period selections from any person the Agent or
each Purchaser Agent in good faith believes to be acting on behalf of the
relevant party and, at the Agent’s or each Purchaser Agent’s option, to tape
record any such telephone conversation. 
Each party hereto agrees to deliver promptly to the Agent and each
Purchaser Agent a confirmation of each telephone notice given or received by
such party (signed by an authorized officer of such party), but the absence of such confirmation shall not affect the
validity of the telephone notice.  The
Agent’s or each Purchaser Agent’s records of all such conversations shall be
deemed correct and, if the confirmation of a conversation differs in any
material respect from the action taken by the Agent or such Purchaser Agent,
the records of the Agent or such Purchaser Agent shall govern absent manifest
error.  The number of days for any
advance notice required hereunder may be waived (orally or in writing) by the
Person receiving such notice and, in the case of notices to the Agent or any
Purchaser Agent, the consent of each Person to which the Agent or such
Purchaser Agent is required to forward such notice.

 

Section 9.3.                                Payments
and Computations.  Notwithstanding
anything herein to the contrary, any amounts to be paid or transferred by the
Seller or the Collection Agent to, or for the benefit of, any Purchaser or any
other Person shall be paid or transferred to the Agent or 

 

31

 

appropriate
Purchaser Agent, as specified herein. 
All amounts to be paid or deposited hereunder shall be paid or
transferred on the day when due in immediately available Dollars (and, if due
from the Seller or Collection Agent, by 12:00 Noon (Chicago time), with amounts
received after such time being deemed paid on the Business Day following such
receipt).  The Seller shall, to the
extent permitted by law, pay to each Purchaser Agent upon demand, for the
account of the applicable Person, interest on all amounts not paid or
transferred by the Seller or the Collection Agent when due hereunder at a rate
equal to the Prime Rate plus 2%, calculated from the date any such amount
became due until the date paid in full. 
Any payment or other transfer of funds scheduled to be made on a day
that is not a Business Day shall be made on the next Business Day, and any
Discount Rate or interest rate accruing on such amount to be paid or
transferred shall continue to accrue to such next Business Day.  All computations of interest, fees, and
Discount shall be calculated for the actual days elapsed based on a 360 day
year.

 

Section 9.4.                                Sharing
of Recoveries.  Each Purchaser agrees
that if it receives any recovery, through set-off, judicial action or
otherwise, on any amount payable or recoverable hereunder in a greater
proportion than should have been received hereunder or otherwise inconsistent
with the provisions hereof, then the recipient of such recovery shall purchase
for cash an interest in amounts owing to the other Purchasers (as return of
Investment or otherwise), without representation or warranty except for the
representation and warranty that such interest is being sold by each such other
Purchaser free and clear of any Adverse Claim created or granted by such other
Purchaser, in the amount necessary to create proportional participation by the
Purchasers in such recovery (as if such recovery were distributed pursuant to Section 2.3).  If all or any portion of such amount is
thereafter recovered from the recipient, such purchase shall be rescinded and
the purchase price restored to the extent of such recovery, but without
interest.

 

Section 9.5.                                Right
of Setoff.  During a Termination
Event, each Purchaser is hereby authorized (in addition to any other rights it
may have) to setoff, appropriate and apply (without presentment, demand,
protest or other notice which are hereby expressly waived) any deposits and any
other indebtedness held or owing by such Purchaser (including by any branches
or agencies of such Purchaser) to, or for the account of, the Seller against
amounts owing by the Seller hereunder (even if contingent or unmatured).

 

Section 9.6.                                Amendments.  Except as otherwise expressly provided
herein, no amendment or waiver hereof shall be effective unless signed by the
Seller and the Instructing Group.  In
addition, no amendment hereof shall, without the consent of (a) all the
Purchasers, (i) extend the Termination Date or the date of any payment or
transfer of Collections by the Seller to the Collection Agent or by the
Collection Agent to the Agent or any Purchaser Agent, (ii) reduce the rate
or extend the time of payment of Discount for any Eurodollar Tranche or Prime
Tranche, (iii) reduce or extend the time of payment of any fee payable to
the Purchasers, (iv) except as provided herein, release, transfer or
modify any Related Bank Purchaser’s Purchase Interest or change any Commitment,
(v) amend the definition of Instructing Group, Termination Event or Section 1.1,
1.2, 1.5, 1.7(a), 2.1, 2.2, 2.3, 7.2 or 9.6, Article VI, or any obligation
of the Originator thereunder, (vi) consent to the assignment or transfer
by the Seller or the Originator of any interest in the Receivables other than
transfers under the Transaction Documents or permit the Originator to transfer
any of its obligations under any Transaction Document except as expressly
contemplated by the terms of the Transaction Documents, or (vii) amend any
defined 

 

32

 

term relevant to
the restrictions in clauses (i) through (vi) in a manner which would
circumvent the intention of such restrictions or (b) the Agent and each
affected Purchaser, amend any provision hereof if the effect thereof is to
affect the indemnities to, or the rights or duties of, the Agent or any
Purchaser Agent or to reduce any fee payable for the Agent’s own account.  Notwithstanding the foregoing, the amount of
any fee or other payment due and payable from the Seller to the Agent (for its
own account), any Purchaser Agent or any Purchaser may be changed or otherwise
adjusted solely with the consent of the Seller and the party to which such
payment is payable.  Any amendment hereof
shall apply to each Purchaser equally and shall be binding upon the Seller, the
Purchasers, the Purchaser Agents and the Agent. 
If required by the Rating Agencies for the applicable Conduit Purchaser,
no material amendment hereof or assignment, termination, resignation or removal
hereunder shall be effective unless a statement is obtained from the applicable
Rating Agencies that its Rating will not be downgraded, withdrawn or suspended
as a result of such amendment assignment, termination, resignation or
removal.  Furthermore, no amendment or
waiver of clause (e) of the definition of Termination Event will be
permitted.

 

Section 9.7.                                Waivers.  No failure or delay of the Agent, any
Purchaser Agent or any Purchaser in exercising any power, right, privilege or
remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right, privilege or remedy preclude any
other or further exercise thereof or the exercise of any other power, right,
privilege or remedy.  Any waiver hereof
shall be effective only in the specific instance and for the specific purpose
for which such waiver was given.  After
any waiver, the Seller, the Purchasers, the Purchaser Agents and the Agent
shall be restored to their former position and rights and any Potential
Termination Event waived shall be deemed to be cured and not continuing, but no
such waiver shall extend to (or impair any right consequent upon) any
subsequent or other Potential Termination Event.  Any additional Discount that has accrued
after a Termination Event before the execution of a waiver thereof, solely as a
result of the occurrence of such Termination Event, may be waived by the Agent
or the related Purchaser Agent at the direction of the Purchaser entitled
thereto.

 

Section 9.8.                                Successors
and Assigns; Participations; Assignments.

 

(a)                                  Successors and Assigns. 
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.  Except as otherwise provided herein, the
Seller may not assign or transfer any of its rights or delegate any of its
duties without the prior consent of the Agent, the Purchaser Agents and the Purchasers.

 

(b)                                 Participations.  Any
Purchaser may sell to one or more Persons (each a “Participant”)
participating interests in the interests of such Purchaser hereunder and under
the applicable Transfer Agreement.  Such
Purchaser shall remain solely responsible for performing its obligations hereunder;
provided, however, that such sale
hereunder shall be with the prior written consent of the Seller unless the
Participant is party to the OfficeMax Loan Agreement, and the Seller, each
Purchaser Agent and the Agent shall continue to deal solely and directly with
such Purchaser in connection with such Purchaser’s rights and obligations
hereunder and under the Transfer Agreement. 
Each Participant shall be entitled to the benefits of Article VI
and shall have the right of setoff through its participation in amounts owing
hereunder to the same extent 

 

33

 

as if it were a
Purchaser hereunder and under the applicable Transfer Agreement, which right of
setoff is subject to such Participant’s obligation to share with the Purchasers
as provided in Section 9.4.  A
Purchaser shall not agree with a Participant to restrict such Purchaser’s right
to agree to any amendment hereto or to the applicable Transfer Agreement,
except amendments described in clause (a) of Section 9.6.

 

(c)                                  Assignments by Related Bank Purchasers.  Any Related Bank Purchaser may assign to one
or more Persons (“Purchasing Related Bank Purchasers”),
acceptable to the applicable Purchaser Agent in its sole discretion (provided that, notwithstanding the foregoing such assignment
shall be with the prior consent of the Seller unless the Purchasing Related
Bank Purchaser is party to the OfficeMax Loan Agreement) any portion of its
Commitment as a Related Bank Purchaser hereunder and under the applicable
Transfer Agreement and Purchase Interest pursuant to a supplement hereto and to
the applicable Transfer Agreement (a “Transfer Supplement”)
in form satisfactory to the applicable Purchaser Agent executed by each such
Purchasing Related Bank Purchaser, such selling Related Bank Purchaser and the
applicable Purchaser Agent.  Each
Purchasing Related Bank Purchaser shall pay a fee of Three Thousand Dollars to
the applicable Purchaser Agent.  Any
partial assignment shall be an assignment of an identical percentage of such
selling Related Bank Purchaser Investment and its Commitment as a Related Bank
Purchaser hereunder and under any applicable Transfer Agreement.  Upon the execution and delivery to the
applicable Purchaser Agent of the Transfer Supplement and payment by the
Purchasing Related Bank Purchaser to the selling Related Bank Purchaser of the
agreed purchase price, such selling Related Bank Purchaser shall be released
from its future obligations hereunder and under the applicable Transfer
Agreement to the extent of such assignment and such Purchasing Related Bank
Purchaser shall for all purposes be a Related Bank Purchaser party hereto and
shall have all the rights and obligations of a Related Bank Purchaser hereunder
to the same extent as if it were an original party hereto and to the applicable
Transfer Agreement with a Commitment as a Related Bank Purchaser, any
Investment and any related Assigned Settlement described in the Transfer
Supplement.

 

(d)                                 Replaceable Related Bank Purchaser.  If any Related Bank Purchaser (a “Replaceable Purchaser”) shall (i) petition the Seller
for any amounts under Section 6.2 or (ii) have a short-term debt rating
lower than the “A-1+” by S&P and “P-1” by Moody’s (unless such Related Bank Purchaser is also
an Enhancement Bank), the Seller or applicable Conduit Purchaser may designate
a replacement financial institution (a “Replacement Related Bank
Purchaser”) acceptable to the applicable Purchaser Agent and the
applicable Conduit Purchaser, in their sole discretion to which such
Replaceable Related Bank Purchaser shall, subject to its receipt of an amount
equal to its Investment, any related Assigned Settlement, and accrued Discount
and fees thereon (plus, from the Seller, any Early Payment Fee that would have
been payable if such transferred Investment had been paid on such date) and all
amounts payable under Section 6.2, promptly assign all of its rights,
obligations and Commitment hereunder and under the applicable Transfer
Agreement, together with all of its Purchase Interest, and any related Assigned
Settlement, to the Replacement Related Bank Purchaser in accordance with Section 9.8(c).

 

(e)                                  Assignment by Conduit Purchasers.  Each party hereto agrees and consents
(i) to Conduit Purchaser’s assignment, participation, grant of security
interests in or other transfers of 

 

34

 

any portion of, or
any of its beneficial interest in, the Conduit Purchaser’s Purchase Interest
and the Assigned Conduit Purchaser Settlement and (ii) to the complete
assignment by such Conduit Purchaser of all of its rights and obligations
hereunder to any Person, and upon such assignment such Conduit Purchaser shall
be released from all obligations and duties hereunder; provided,
however, unless such assignment is made pursuant to Section 2.1
hereof, any such assignment may not be made without the prior written consent
of the Seller.  Each Conduit Purchaser
shall promptly notify each party hereto of any such assignment.  Upon such an assignment of any portion of a
Conduit Purchaser’s Purchase Interest and the related Assigned Conduit
Purchaser Settlement, the assignee shall have all of the rights of such Conduit
Purchaser hereunder related to such Purchase Interest and Assigned Conduit
Purchaser Settlement.

 

(f)                                    Opinions of Counsel. 
If required by any Purchaser Agent or to maintain the Ratings, each
Transfer Supplement must be accompanied by an opinion of counsel of the
assignee as to such matters as such Purchaser Agent may reasonably request.

 

Section 9.9.                                Intended
Tax Characterization.  It is the
intention of the parties hereto that, for the purposes of all Taxes, the
transactions contemplated hereby shall be treated as a loan by the Purchasers
(through the Agent) to the Seller that is secured by the Receivables (the “Intended Tax Characterization”).  The parties hereto agree to report and
otherwise to act for the purposes of all Taxes in a manner consistent with the
Intended Tax Characterization.

 

Section 9.10.                         Confidentiality. 
Information provided to the Agent, each Purchaser Agent and the
Purchasers (collectively, the “Credit Parties”)
pursuant to Section 5.1(a) shall be maintained in confidence by the Agent,
each Purchaser Agent and the Purchasers in accordance with the following:

 

(a)                                  The
term “Confidential Information” means all
information designated by the Seller or the Originator as confidential, whether
of an operational, economic, or accounting nature, except information which is
now or hereafter becomes generally known in the financial community through no
fault of the Credit Party or information which was in the Credit Party’s
possession at the time of receipt from the Seller or the Originator and which
was obtained by the Credit Party from third parties lawfully in possession of
such information without any breach by such third party of a duty of
confidentiality to or for the benefit of the Seller or the Originator or by
analysis by the Credit Party of nonconfidential information possessed by
it.  Disclosures made under this
Agreement which are specific shall not be deemed to be within the foregoing
exceptions merely because they are embraced by more general information
possessed by the Credit Party which is not confidential information within the
meaning of the preceding sentence.

 

35

 

(b)                                 Each
Credit Party shall designate a specific department or departments or specific
representatives for receiving Confidential Information.

 

(c)                                  Each
Credit Party severally agrees:

 

(i)                                     not
to make any use whatsoever of the Confidential Information except in connection
with present or future credit accommodation to the Seller or the Originator or
any of their Subsidiaries or affiliates;

 

(ii)                                  not
to reveal any Confidential Information to any third parties, to any other
divisions, departments, affiliates, or subsidiaries of the Credit Party, or to
any officer or employee of the Credit Party who does not have a direct need to
know the Confidential Information in connection with present or future credit
accommodation to the Seller or the Originator or any of their Subsidiaries or
affiliates; and

 

(iii)                               to
file the Confidential Information in secure places which ensure restricted
accessibility.

 

(d)                                 Notwithstanding
the provisions of Section 9.10(c), any Credit Party may disclose the
Confidential Information, as required from time to time, in the following
circumstances:  (i) at the request or
pursuant to any requirement of any Governmental Authority to which the Credit
Party is subject or in connection with an examination of such Credit Party by
any such authority; (ii) pursuant to subpoena or other court process; (iii)
when required to do so in accordance with the provisions of any applicable
Requirement of Law; (iv) to the extent reasonably required in connection with
any litigation or proceeding to which the Credit Parties or their respective
affiliates may be party; (v) to the extent reasonably required in connection
with the exercise of any remedy hereunder; (vi) to such Credit Party’s
independent auditors and other professional advisors; and (vii) as to any
Credit Party, as expressly permitted under the terms of any other document or
agreement regarding confidentiality to which the Seller or the Originator is
party with such Credit Party; provided that
if any Credit Party is served with legal process which may require disclosure
of Confidential Information it shall promptly notify the Seller or the
Originator of such fact.

 

(e)                                  The
provisions hereof shall remain in effect for so long as this Agreement shall
remain in effect plus a period of three years thereafter.

 

(f)                                    Each
Credit Party agrees that it will periodically sign a nondisclosure agreement
reconfirming its obligations under this Section 9.10.

 

Section 9.11.                         Agreement
Not to Petition.  Each party hereto
agrees, for the benefit of the holders of the privately or publicly placed
indebtedness for borrowed money for any Conduit Purchaser, not, prior to the
date which is one (1) year and one (1) day after the payment in full of all
such indebtedness, to acquiesce, petition or otherwise, directly or indirectly,
invoke, or cause any Conduit Purchaser to invoke, the process of any
Governmental Authority for the purpose of 

 

36

 

(a) commencing
or sustaining a case against any Conduit Purchaser under any federal or state
bankruptcy, insolvency or similar law (including the Federal Bankruptcy Code),
(b) appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official for such Conduit Purchaser, or any
substantial part of its property, or (c) ordering the winding up or
liquidation of the affairs of such Conduit Purchaser.  The provisions of this Section 9.11
shall survive the termination of this Sale Agreement.

 

Section 9.12.                         Excess
Funds.  Notwithstanding any
provisions contained in this Sale Agreement to the contrary, Conduit Purchaser
shall not, and shall not be obligated to, pay any amount pursuant to this Sale
Agreement unless (i) Conduit Purchaser has received funds which may be used to make
such payment and which funds are not required to repay its commercial paper
notes when due and (ii) after giving effect to such payment, either (x) Conduit
Purchaser could issue commercial paper notes to refinance all of its
outstanding commercial paper notes (assuming such outstanding commercial paper
notes matured at such time) in accordance with the program documents governing
Conduit Purchaser’s securitization program or (y) all of Conduit Purchaser’s
commercial paper notes are paid in full. 
Any amount which Conduit Purchaser does not pay pursuant to the
operation of the preceding sentence shall not constitute a claim (as defined in
§101 of the United States Bankruptcy Code) against or corporate obligation of
Conduit Purchaser for any such insufficiency unless and until Conduit Purchaser
satisfies the provisions of clauses (i) and (ii) above. This Section 9.12
shall survive the termination of this Agreement.

 

Section 9.13.                         No
Recourse.  The obligations of each
Conduit Purchaser, its management company, its administrator and its referral
agents (each a “Program Administrator”) under
any Transaction Document or other document (each, a “Program
Document”) to which a Program Administrator is a party are solely
the corporate obligations of such Program Administrator and no recourse shall
be had for such obligations against any Affiliate, director, officer, member,
manager, employee, attorney or agent of any Program Administrator.

 

Section 9.14.                         Limitation
of Liability.  No Person shall make a
claim against the Agent, any Purchaser Agent or any Purchaser (or their
respective Affiliates, directors, officers, members, managers, employees,
attorneys or agents) for any special, indirect, consequential or punitive
damages under any claim for breach of contract or other theory of liability in
connection with the Transaction Documents or the transactions contemplated
thereby, and the Seller (for itself, the Collection Agent and all other Persons
claiming by or through the Seller) hereby waives any claim for any such damages.

 

Section 9.15.                         Headings;
Counterparts.  Article and Section Headings
in this Agreement are for reference only and shall not affect the construction
of this Agreement.  This Agreement may be
executed by different parties on any number of counterparts, each of which
shall constitute an original and all of which, taken together, shall constitute
one and the same agreement.

 

Section 9.16.                         Cumulative
Rights and Severability.  All rights
and remedies of the Purchasers, the Purchaser Agents and Agent hereunder shall
be cumulative and non-exclusive of any rights or remedies such Persons have
under law or otherwise.  Any provision
hereof that is 

 

37

 

prohibited or
unenforceable in any jurisdiction shall, in such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and without affecting such provision in any other
jurisdiction.

 

Section 9.17.                         Governing Law; Submission to Jurisdiction.  This Agreement shall be governed by, and
construed in accordance with, the internal laws (and not the law of conflicts)
of the State of New York.  The Seller
hereby submits to the nonexclusive jurisdiction of the United States District
Court for the Southern District of New York and of any New York state court
sitting in New York, New York for purposes of all legal proceedings arising out
of, or relating to, the Transaction Documents or the transactions contemplated
thereby.  The Seller hereby irrevocably
waives, to the fullest extent permitted by law, any objection it may now or
hereafter have to the venue of any such proceeding and any claim that any such
proceeding has been brought in an inconvenient forum.  Nothing in this Section 9.18 shall
affect the right of the Agent, any Purchaser Agent or any Purchaser to bring
any action or proceeding against the Seller or its property in the courts of
other jurisdictions.

 

Section 9.18.                         WAIVER OF TRIAL BY JURY. 
TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY
WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF, OR IN CONNECTION WITH, ANY TRANSACTION DOCUMENT OR ANY MATTER
ARISING THEREUNDER.

 

Section 9.19.                         Entire
Agreement.  The Transaction Documents
constitute the entire understanding of the parties thereto concerning the
subject matter thereof.  Any previous or
contemporaneous agreements, whether written or oral, concerning such matters
are superseded thereby.

 

38

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed and delivered by their
duly authorized officers as of the date hereof.

 

 

	
  ABN AMRO Bank N.V., as the Agent

  	
   

  	
  ABN AMRO Bank N.V., as the Related Bank

  
	
  and the Windmill Purchaser Agent

  	
   

  	
  Purchaser for Windmill

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
    /s/ Thomas J. Educate

  	
   

  	
   

  	
  By:

  	
    /s/ Thomas J. Educate

  	
   

  
	
    Title: 

  	
    Senior Vice President

  	
   

  	
   

  	
  Title:

  	
    Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Therese Gremley

  	
   

  	
   

  	
  By:

  	
    /s/ Therese Gremley

  	
   

  
	
    Title: 

  	
    Vice President

  	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Structured
  Finance,

  	
   

  	
  Address:

  	
  Structured
  Finance,

  
	
   

  	
  Asset
  Securitization

  	
   

  	
   

  	
  Asset
  Securitization

  
	
   

  	
  540
  West Madison Street

  	
   

  	
   

  	
  540
  West Madison Street

  
	
   

  	
  Chicago,
  Illinois 60661

  	
   

  	
   

  	
  Chicago,
  Illinois 60661

  
	
   

  	
  Attention:
  

  	
  Purchaser
  Agent–

  	
   

  	
   

  	
  Attention:
  Windmill

  
	
   

  	
   

  	
  Windmill

  	
   

  	
  Telephone: (312) 904-6263

  
	
  Telephone:
  (312) 904-6263

  	
   

  	
  Telecopy: (312) 992-1527

  
	
  Telecopy:
  (312) 992-1527

  	
   

  	
   

  
															

 

39

 

WINDMILL FUNDING
CORPORATION

 

 

	
  By:

  	
    /s/ Bernard J. Angelo

  	
   

  	
   

  
	
  Title: 

  	
    Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Global
  Securitization Services, LLC

  	
   

  
	
   

  	
  25
  West 43rd Street, Suite 704

  	
   

  
	
   

  	
  New
  York, New York 10036

  	
   

  
	
   

  	
  Attention:
  Bernard J. Angelo

  	
   

  
	
  Telephone:

  	
  (212)
  302-8330

  	
   

  
	
  Telecopy:

  	
  (212)
  302-8767

  	
   

  
	
   

  	
   

  
	
  with
  a copy to:

  	
   

  
	
   

  	
   

  
	
  ABN AMRO BANK N.V.

  	
   

  
	
  Address:

  	
  Structured
  Finance, Asset Securitization

  	
   

  
	
   

  	
  540
  West Madison Street

  	
   

  
	
   

  	
  Chicago,
  Illinois 60661

  	
   

  
	
   

  	
  Attention:
  Administrator-Windmill

  	
   

  
	
   

  	
  Telephone:
  (312) 904-6263

  	
   

  
	
   

  	
  Telecopy:
  (312) 992-1527

  	
   

  
						

 

40

 

WACHOVIA
BANK, N.A., as the Blue Ridge
 Purchaser Agent and the Related Bank
 Purchaser for the Blue Ridge Purchaser
Group

 

 

	
  By:

  	
    /s/ Gary G. Fleming, Jr.

  	
   

  	
   

  
	
    Title: 

  	
    Director

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  191
  Peachtree Street, N.E.

  	
   

  
	
   

  	
  Atlanta,
  Georgia 30303

  	
   

  
	
   

  	
  Attention:
  Michael Landry

  	
   

  
	
  Telephone:

  	
  (404)
  332-6612

  	
   

  
	
  Telecopy:

  	
  (404)
  332-5152

  	
   

  
						

 

41

 

BLUE
RIDGE ASSET FUNDING CORPORATION,
  as a Conduit Purchaser

 

 

By:  Wachovia Capital Markets, LLC, as attorney-in-fact

 

 

	
  By: 

  	
    /s/ Douglas R. Wilson, Sr.

  	
   

  
	
    Title: 

  	
    Vice President

  	
   

  
	
   

  
	
  Address:

  	
  c/o
  Wachovia Capital Markets, LLC

  
	
   

  	
  One
  Wachovia Center

  
	
   

  	
  301
  South College Street

  
	
   

  	
  Charlotte,
  NC 28288, NC 0171

  
	
   

  	
  Attention:
  Douglas R. Wilson, Sr.

  
	
  Telephone:

  	
  (704)
  374-2520

  
	
  Telecopy:

  	
  (704)
  383-9579

  
					

 

42

 

	
  LOVING CREEK FUNDING CORPORATION,

  	
   

  	
  OFFICEMAX INCORPORATED,

  
	
    as Seller

  	
   

  	
    as Initial Collection Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Matthew R. Broad

  	
   

  	
   

  	
  By:

  	
    /s/ Ted Crumley

  	
   

  
	
  Title:

  	
    President

  	
   

  	
   

  	
  Title:

  	
    Executive Vice President and CFO

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  150
  E. Pierce

  	
   

  	
  Address:

  	
  150
  E. Pierce

  
	
   

  	
  Itasca,
  Illinois 60143

  	
   

  	
   

  	
  Itasca,
  Illinois 60143

  
	
  Attention:

  	
  John
  Jennings

  	
   

  	
  Attention:

  	
  John
  Jennings

  
	
  Telephone:

  	
  (630)
  438-8760

  	
   

  	
  Telephone:

  	
  (630)
  438-8760

  
	
  Telecopy:

  	
  (630)
  438-2468

  	
   

  	
  Telecopy:

  	
  (630)
  438-2468

  
											

 

43

 

SCHEDULE I

DEFINITIONS

 

The following terms have
the meanings set forth, or referred to, below:

 

“Accounting Authority”
means any accounting board or authority (whether or not a part of government)
which is responsible for the establishment or interpretation of national or
international accounting principles, in each case whether foreign or domestic.

 

“Adverse Claim”
means, for any asset or property of a Person, a lien, security interest,
charge, mortgage, pledge, hypothecation, assignment or encumbrance, or any
other right or claim, in, of or on such asset or property in favor of any other
Person, except those in favor of the Agent.

 

“Affiliate”
means, for any Person, any other Person which, directly or indirectly, is in
control of, is controlled by, or is under common control with such Person.  For purposes of this definition, “control” means the power, directly or indirectly, to either
(i) vote ten percent (10%) or more of the securities having ordinary
voting power for the election of directors of a Person or (ii) cause the
direction of the management and policies of a Person.

 

“Agent” is
defined in the first paragraph hereof.

 

“Aggregate Commitment”
means the aggregate of all Commitments of each Purchaser Group, as such amount
may be reduced pursuant to Section 1.6.

 

“Aggregate Investment”
means the sum of the Investments of all Purchasers.

 

“Aggregate Reserve”
means, at any time, the sum of the Loss Reserve, the Dilution Reserve and the
Discount Reserve.

 

“Allocated Commercial Paper”
means commercial paper notes issued by a Conduit Purchaser for a tenor and in
an amount specifically requested by any Person in connection with a Receivable
Purchase Facility.

 

“Assigned Conduit Purchaser
Settlement” means, for each Related Bank Purchaser for a
Conduit Purchaser for any Put, the product of such Related Bank Purchaser’s
Purchased Percentage and the amount of the Conduit Purchaser Settlement being
transferred pursuant to such Put.

 

“Bankruptcy Event”
means, for any Person, that (a) such Person makes a general assignment for
the benefit of creditors or any proceeding is instituted by or against such
Person seeking to adjudicate it bankrupt or insolvent, or seeking the
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee or other similar
official for it 

 

 

or any substantial
part of its property or (b) such Person takes any corporate action to
authorize any such action.

 

“Blue Ridge” is
defined in the first paragraph hereof.

 

“Blue Ridge Related Bank
Purchasers” means the Related Bank Purchasers for Blue Ridge.

 

“Blue Ridge Purchaser Agent” means
Wachovia Bank, N.A.

 

“Blue Ridge Purchaser Group”
means Blue Ridge and the Blue Ridge Related Bank Purchasers.

 

“Break Funding Costs”
means for any Pool Funded Purchase Interest amounts payable to a Conduit
Purchaser under the applicable Receivables Purchase Facility in connection with
any prepayment or amortization if amounts payable thereunder in excess of the
amount of the investment or loan prepaid or amortized and accrued and unpaid
interest or discount thereon.

 

“Business Day”
means any day other than (a) a Saturday, Sunday or other day on which banks in
New York City or Chicago, Illinois are authorized or required to close, (b) a
holiday on the Federal Reserve calendar and, (c) solely for matters
relating to a Eurodollar Tranche, a day on which dealings in Dollars are not
carried on in the London interbank market.

 

“Charge-Off” means
any Receivable that has or should have been (in accordance with the Credit and
Collection Policy) charged off or written off by the Seller.

 

“Collection”
means any amount paid, or deemed paid, on a Receivable, including from the
proceeds of collateral securing, or any guaranty of, such Receivable or by the
Seller under Section 1.5(b).

 

“Collection Agent” is
defined in Section 3.1(a).

 

“Collection Agent Fee”
is defined in Section 3.6.

 

“Collection Agent Replacement
Event” means the occurrence of any one or more of the
following:

 

(a)                                  the
Collection Agent (or any sub-collection agent) fails to observe or perform any
material term, covenant or agreement under any Transaction Document; or

 

(b)                                 any
written representation, warranty, certification or statement made by the
Collection Agent in, or pursuant to, any Transaction Document proves to have
been incorrect in any material adverse respect when made; or

 

(c)                                  the
Collection Agent suffers a Bankruptcy Event.

 

I-2

 

“Commitment”
means, for each Related Bank Purchaser, the amount set forth on Schedule II
for such Related Bank Purchaser, and, for each Purchaser Group, the amount set
forth on Schedule II for such Purchaser Group, in each case, as adjusted
in accordance with Sections 1.6 and 9.8.

 

“Commitment Percentage”
means, for each Related Bank Purchaser in a Purchaser Group, such Related Bank
Purchaser’s Commitment divided by the total of all Commitments of all Related
Bank Purchasers in such Purchaser Group.

 

“Concentration Limit”
means (i) with respect to Obligors (including Governmental Obligors) with
senior long-term indebtedness rated BBB+ (or higher) by S&P and Baa1 (or
higher) by Moody’s, an amount not to exceed 3% of the Eligible Receivables
Balance, (ii) with respect to all Governmental Obligors in the aggregate, an
amount not to exceed 10% of the Eligible Receivables Balance and (iii) with
respect to all other Obligors (including Governmental Obligors), an amount not
to exceed 1.5% of the Eligible Receivables Balance.

 

“Conduit Purchaser”
means each of Blue Ridge, Windmill and any other Person designated as such that
from time to time becomes a party hereto.

 

“Conduit Purchaser Investment
Percentage” means a fraction, expressed as a decimal,
obtained by dividing the Investment of a Conduit Purchaser by the Investment of
all Purchasers.

 

“Conduit Purchaser Settlement”
means the sum of all claims and rights to payment pursuant to Section 1.5
or 1.7 or any other provision owed to a Conduit Purchaser (or owed to the Agent
or Purchaser Agent or the Collection Agent for the benefit of a Conduit
Purchaser) by the Seller that, if paid, would be applied to reduce Investment.

 

“CP Dealer”
means, at any time for any Conduit Purchaser, each Person such Conduit Purchaser
then engages as a placement agent or commercial paper dealer.

 

“CP Rate” means
for the Blue Ridge Purchaser Group and the Windmill Purchaser Group, with
respect to any CP Tranche Period applicable to the Blue Ridge Purchaser Group
and the Windmill Purchaser Group, as applicable, the rate equivalent to the
rate (or if more than one rate, the weighted average of the rates) at which
commercial paper notes having a term equal to such CP Tranche Period are sold
plus the amount of any placement agent or commercial paper dealer fees incurred
in connection with such sale; provided, however,
if the rate (or rates) is a discounted rate (or rates), the “CP Rate” for such CP Tranche Period shall be the rate (or,
if more than one rate, the weighted average of the rates) resulting from
converting such discount rate (or rates) to an interest-bearing equivalent
rate.

 

“Credit Agreement Eurodollar
Spread” means the incremental rate per annum applicable to
Eurodollar Rate Loans under the OfficeMax Loan Agreement.  Capitalized terms used in this definition of “Credit Agreement Eurodollar Spread” shall have the meanings
ascribed to such terms in the OfficeMax Loan Agreement.  If the OfficeMax Loan Agreement is
terminated, the Credit Agreement Eurodollar Spread shall be calculated in
accordance with the terms of the OfficeMax Loan Agreement as in effect
immediately prior to such termination.

 

I-3

 

“Credit and Collection Policy”
means the Seller’s credit and collection policy and practices relating to
Receivables attached hereto as Exhibit F.

 

“Deemed Collections” is
defined in Section 1.5(c).

 

“Default Horizon Ratio”
means, as of the last day of each Fiscal Month, the ratio of (i) the
aggregate three Fiscal Months ending on such date divided by (ii) the
Eligible Receivables Balance on such date.

 

“Default Proxy Ratio”
means at any time, an amount (expressed as a percentage) equal to a fraction,
the numerator of which is equal to the sum of Receivables that became
Charge-Offs or Defaulted Receivables during the immediately preceding Fiscal
Month and the denominator of which is the aggregate dollar amount of
Receivables generated by the Originator during the calendar month three months
prior to the immediately preceding calendar month.

 

“Defaulted Receivable”
means any Receivable (other than a Charge-Off) (a) on which any amount is
unpaid more than 61 days past its due date or (b) the Obligor of which has
suffered a Bankruptcy Event.

 

“Delinquency Ratio”
means, for any Fiscal Month, the ratio of (a) the aggregate outstanding
balance of all Delinquent Receivables during such calendar month to
(b) the aggregate outstanding balance of all Receivables during such
calendar month.

 

“Delinquent Receivable”
means any Receivable (other than a Defaulted Receivable or a Charge-Off that
has been accurately reported as such on the most recent Periodic Report) on
which any amount is unpaid more than 31 days to 60 days from the due date.

 

“Designated Account”
means OfficeMax Incorporated’s general account number 12338-24185 at Bank of
America NT & SA in San Francisco, California or such other account
designated by the Seller to the Agent with at least ten (10) days prior notice.

 

“Designated Financial Officer”
means the Treasurer, Controller or Chief Financial Officer of the Seller or the
Originator, as applicable.

 

“Dilution Reserve”
means (a) 2 times the highest Dilution Ratio over the last twelve calendar
months multiplied by (b) the Eligible Receivables Balance.

 

“Dilution Ratio”
means, for any Fiscal Month, the ratio of (a) the aggregate amount of
payments owed by the Seller pursuant to the first sentence of Section 1.5(b)
during such calendar month to (b) the aggregate amount of Collections
received during such Fiscal Month.

 

“Discount” means,
for any Tranche Period, (a) the product of (i) the Discount Rate for such
Tranche Period, (ii) the total amount of Investment allocated to the Tranche
Period, and (iii) the number of days elapsed during the Tranche Period divided
by (b) 360 days.

 

I-4

 

“Discount Rate”
means, for any Tranche Period, the CP Rate, the Eurodollar Rate or the Prime
Rate, as applicable.

 

“Discount Reserve”
means (a) 1.5% multiplied by (b) Aggregate Investment.

 

“Dollar” and “$” means lawful currency of the United States of America.

 

“Early Payment Fee”
means, if any Investment of a Purchaser allocated (or, in the case of a
requested Purchase not made by the Related Bank Purchasers for any reason other
than their default, scheduled to be allocated) to a Tranche Period for a CP
Tranche or Eurodollar Tranche is reduced or terminated before the last day of
such Tranche Period (the amount of Investment so reduced or terminated being
referred to as the “Prepaid Amount”),
the cost to the relevant Purchaser of terminating or reducing such Tranche,
which (a) for a CP Tranche means any compensation payable in prepaying the
related commercial paper or, if not prepaid, any shortfall between the amount
that will be available to a Conduit Purchaser on the maturity date of the
related commercial paper from reinvesting the Prepaid Amount in Permitted
Investments and the Face Amount of such commercial paper and (b) for a
Eurodollar Tranche will be determined based on the difference between the LIBOR
applicable to such Tranche and the LIBOR applicable for a period equal to the
remaining maturity of the Tranche on the date the Prepaid Amount is received.

 

“Eligible Receivable”
means, at any time, any Receivable:

 

(i)                                     the
Obligor of which (a) is a resident of, or organized under the laws of with
its chief executive office in, the USA; (b) is not an Affiliate of any of
the parties hereto or the Originator; (c) has not suffered a Bankruptcy
Event; and (d) is a customer of the applicable Originator in good
standing, not in default under any contract, note or other obligation owed to
the applicable Originator or the Seller and not the Obligor or any Receivable
that became a Charge-Off;

 

(ii)                                  which
is stated to be due and payable within 90 days after the invoice therefor;

 

(iii)                               which
is not a Defaulted Receivable or a Charge-Off;

 

(iv)                              which
is an “account” or “chattel
paper” within the meaning of Section 9-105 and Section 9-106,
respectively of the UCC of all applicable jurisdictions;

 

(v)                                 which
is denominated and payable only in Dollars in the USA;

 

(vi)                              which
arises under a contract that is in full force and effect and constitutes the
legal, valid and binding obligation of the related Obligor enforceable against
such Obligor in accordance with its terms subject to no offset, counterclaim,
defense or other Adverse Claim, and is not an executory contract or unexpired
lease within the meaning of Section 365 of the Bankruptcy Code;

 

I-5

 

(vii)                           which
arises under a contract that (a) contains an obligation to pay a specified sum
of money and is subject to no contingencies, (b) does not require the Obligor
under such contract to consent to the transfer, sale or assignment of the
rights and duties of the applicable Originator under such contract and (c) does
not contain a confidentiality provision that purports to restrict any Purchaser’s
exercise of rights under this Agreement, including, without limitation, the
right to review such contract;

 

(viii)                        which
does not, in whole or in part, contravene any law, rule or regulation
applicable thereto (including, without limitation, those relating to usury,
truth in lending, fair credit billing, fair credit reporting, equal credit
opportunity, fair debt collection practices and privacy); and

 

(ix)                                which
satisfies all applicable requirements of the Credit and Collection Policy and
was generated in the ordinary course of the applicable Originator’s business
from the sale of goods or provision of services to a related Obligor solely by
such Originator.

 

“Eligible Receivables Balance”
means, at any time, the aggregate outstanding principal balance of all Eligible
Receivables, less the aggregate outstanding principal balance of Eligible
Receivables which exceed the Concentration Limit.

 

“Enhancement Bank”
means any Person providing credit support to a Purchaser for such Purchaser’s
account, including pursuant to an unfunded commitment.

 

“Eurodollar Rate”
means, for any Tranche Period for a Eurodollar Tranche, the sum of (a) LIBOR
for such Tranche Period divided by 1 minus the ‘Reserve
Requirement” plus (b) the sum of (1) the Credit Agreement
Eurodollar Spread plus (2) 25 basis points (0.250%), plus (c) during
the pendency of a Termination Event, 1%; where “Reserve
Requirement” means, for any Tranche Period for a Eurodollar Tranche,
the maximum reserve requirement imposed on any Related Bank Purchaser during
such Tranche Period on “eurocurrency liabilities”
as currently defined in Regulation D of the Board of Governors of the Federal
Reserve System.

 

“Face Amount”
means the face amount of any Conduit Purchaser commercial paper issued on a
discount basis or, if not issued on a discount basis, the principal amount of
such note and interest scheduled to accrue thereon to its stated maturity.

 

“Federal Funds Rate”
means for any day, for the Blue Ridge Purchaser Group, the rate denominated and
set by Wachovia as its “Federal Funds Rate”
for such day and, with respect to the Windmill Purchaser Group, the rate
denominated and set by ABN AMRO as its “Federal Funds Rate”
for such day.  Each determination of the
Federal Funds Rate by ABN AMRO or Wachovia, as the case may be, shall be
conclusive and binding on the Seller except in the case of manifest error.

 

“Fee Letter”
means the letter agreement dated as of the date hereof among the Seller and
each Purchaser Agent for the applicable Purchaser Group.

 

I-6

 

“Fiscal Month”
means each of the periods set forth on Exhibit G.

 

“Funding Agreement”
means this Agreement, each Transfer Agreement and the portion of the Program
LOC (as defined in the Transfer Agreement).

 

“Funding Charges”
means, for each day, the sum of (i) discount accrued on Pooled Commercial Paper
on such day, plus (ii) any and all accrued commissions in respect of placement
agents and commercial paper dealers in respect of such Pooled Commercial Paper
for such day, plus (iii) issuing and paying agents’ fees incurred on such
Pooled Commercial Paper for such day, plus (iv) other costs associated with
funding small or odd-lot amounts with respect to all Receivable Purchase
Facilities which are funded by Pooled Commercial Paper for such day, minus (v)
any accrual of income net of expenses received on such day from investment of
collections received under all Receivable Purchase Facilities funded with
Pooled Commercial Paper, minus (vi) any payment received on such day net of
expenses in respect of Break Funding Costs related to the prepayment of any
Purchase Interests held by a Conduit Purchaser pursuant to the terms of any
Receivable Purchase Facilities funded substantially with Pooled Commercial
Paper.

 

“Funding Source” means
any Enhancement Bank, Liquidity Bank or other insurance company, bank or other
financial institution providing liquidity, back-up purchase or credit for any
Conduit Purchaser.

 

“GAAP” means
generally accepted accounting principles in the USA, applied on a consistent
basis.

 

“Governmental Authority”
means any (a) Federal, state, municipal or other governmental entity,
board, bureau, agency or instrumentality, (b) administrative or regulatory
authority (including any central bank or similar authority) or (c) court,
judicial authority or arbitrator, in each case, whether foreign or domestic.

 

“Governmental Obligor” means
an Obligor that is a government or a governmental subdivision or agency.

 

“Incremental Purchase”
is defined in Section 1.1(b).

 

“Initial Collection Agent”
is defined in the first paragraph hereof.

 

“Instructing Group”
means all the Purchaser Agents.

 

“Intended Tax Characterization” is
defined in Section 9.9.

 

“Interim Liquidation”
means any time before the Termination Date during which no Reinvestment
Purchases are made by any Purchaser, as established pursuant to Section 1.2.

 

“Investment” means,
for each Purchaser, (a) the sum of (i) all Incremental Purchases by
such Purchaser and (ii) the aggregate amount of any payments or exchanges
made by, or on

 

I-7

 

behalf of, such
Purchaser to any other Purchaser under Article II minus (b) all Collections,
amounts received from other Purchasers under Article II, and other amounts
received or exchanged and, in each case, applied by the Agent or such Purchaser
to reduce such Purchaser’s Investment.  A
Purchaser’s Investment shall be restored to the extent any amounts so received
or exchanged and applied are rescinded or must be returned for any reason.

 

“LIBOR” means,
with respect to any Related Bank Purchaser, for any Tranche Period for a
Eurodollar Tranche or other time period, the rate per annum (rounded upwards,
if necessary, to the next higher one hundred-thousandth of a percentage point)
for deposits in Dollars for a period equal to such Tranche Period or other
period, which appears on Page 3750 of the Telerate Service (or any successor
page or successor service that displays the British Bankers’ Association
Interest Settlement Rates for Dollar deposits) as of 11:00 a.m. (London,
England time) two Business Days before the commencement of such Tranche Period
or other period.  If for any Tranche Period
for a Eurodollar Tranche no such displayed rate is available (or, for any other
period, if such displayed rate is not available or the need to calculate LIBOR
is not notified to the Purchaser Agent for such Related Bank Purchaser at least
3 Business Days before the commencement of the period for which it is to be
determined), such Purchaser Agent shall determine such rate based on the rates
such Purchaser Agent is offered deposits of such duration in the London
interbank market.

 

“Limited Guaranty”
means that certain Amended and Restated Limited Guaranty dated June 26,
2000 from OfficeMax Incorporated for the benefit of the Agent and the
Purchasers.

 

“Liquidation Period”
means, for any Conduit Purchaser, all times when such Conduit Purchaser is not
making Reinvestment Purchases pursuant to Section 1.1(d) and, for all
Purchasers, all times (x) during an Interim Liquidation and (y) on and after
the Termination Date.

 

“Liquidity Bank”
means any commercial lending institution that is at any time a Purchaser or
purchaser under any Transfer Agreement.

 

“Lock-Box”
means each post office box or bank box listed on Exhibit D, as revised
pursuant to Section 5.1(i).

 

“Lock-Box Account”
means each account maintained by the Collection Agent at a Lock-Box Bank for
the purpose of receiving or concentrating Collections.

 

“Lock-Box Agreement”
means each agreement between the Collection Agent and a Lock-Box Bank
concerning a Lock-Box Account.

 

“Lock-Box Bank”
means each bank listed on Exhibit D, as revised pursuant to Section 5.1(i).

 

“Lock-Box Letter”
means a letter in substantially the form of Exhibit E (or otherwise
acceptable to the Agent) from the Seller and the Collection Agent to each
Lock-Box Bank, acknowledged and accepted by such Lock-Box Bank and the Agent.

 

I-8

 

“Loss Reserve”
means, at any time (i) the greater of (a) .12 and (b) the
product of (1) 2.5 multiplied by (2) the highest three month rolling
average Default Proxy Ratio during the previous 12 months multiplied by
(3) the Default Horizon Ratio calculated at the end of such period
multiplied by (ii) the Eligible Receivables Balance.

 

“Loss-to-Liquidation Ratio”
means, for any calendar month, the ratio of the outstanding balance of
Charge-Offs during such Fiscal Month to the aggregate amount of Collections
during such Fiscal Month.

 

“Matured Aggregate Investment”
means, at any time, the Matured Value of a Conduit Purchaser’s Investment plus
the total Investments of all other Purchasers then outstanding.

 

“Matured Value”
means, of any Investment, the sum of such Investment and all unpaid Discount,
fees and other amounts scheduled to become due (whether or not then due) on
such Investment during all Tranche Periods to which any portion of such
Investment has been allocated.

 

“Maximum Incremental Purchase
Amount” means, at any time, the lesser of (a) the
difference between the Purchase Limit and the Aggregate Investment then
outstanding and (b) the difference between the Aggregate Commitment and
the Matured Aggregate Investment then outstanding.

 

“Moody’s” means
Moody’s Investors Service, Inc.

 

“Obligor”
means, for any Receivable, each Person obligated to pay such Receivable and
each guarantor of such obligation.

 

“OfficeMax Loan Agreement”
means the Loan and Security Agreement, dated on or about June 23, 2005, as
amended, restated, supplemented or otherwise modified from time to time, by and
among OfficeMax Incorporated, OfficeMax Contract, Inc., OfficeMax North
America, Inc., Bizmart, Inc., and Bizmart (Texas), Inc., Honolulu Paper Company
Limited, and Reliable Express Corporation, as Borrowers, OfficeMax Corp.,
Picabo Holdings, Inc., OfficeMax Nevada Company, OfficeMax Southern Company, as
Guarantors, the Lenders and Issuing Banks from time to time party thereto, Bank
of America, National Association, as Syndication Agent, General Electric
Capital Corporation and Wells Fargo Retail Finance, Inc., as Documentation
Agent, Wachovia Capital Markets, LLC and Banc of America Securities LLC, as
Joint Lead Arrangers, Wachovia Capital Markets, LLC, as the Sole Bookrunner.

 

“Originator”
means OfficeMax Contract, Inc.

 

“Periodic Report”
means, for any Reporting Date, (i) during any Monthly Reporting Period, a
report reflecting the information as of the close of business of the Collection
Agent for the immediately preceding Fiscal Month, containing the information
described on Exhibit B-1 (with such modifications or additional information as
requested by the Agent or the Instructing Group), (ii) during any Weekly
Reporting Period, a report reflecting the information as of the close of
business of the Collection Agent for the immediately preceding calendar week, 

 

I-9

 

containing the
information described on Exhibit B-2 (with such modifications or additional
information as requested by the Agent or the Instructing Group) and (iii)
during any Daily Reporting Period, a report reflecting the information as of
the close of business of the Collection Agent for the second preceding calendar
day, containing the information described on Exhibit B-3 (with such
modifications or additional information as requested by the Agent or the
Instructing Group); provided, however, during
an Interim Liquidation the Collection Agent shall deliver a report containing
the information described on Exhibit B-2 to the Agent on Tuesday of each week.

 

“Permitted Investments”
means (a) evidences of indebtedness, maturing within thirty (30) days
after the date of purchase thereof, issued by, or guaranteed by the full faith
and credit of, the federal government of the USA, (b) repurchase
agreements with banking institutions or broker-dealers the short-term unsecured
obligations of which is rated at least “A-1+” (or the equivalent) by S&P
and at least “P-1” (or the equivalent) by Moody’s registered under the
Securities Exchange Act of 1934 which are fully secured by obligations of the
kind specified in clause (a), (c) money market funds (i) rated not
lower than the highest rating category from Moody’s and “AAA m” or “AAAm-g,”
from S&P or (ii) which are otherwise acceptable to the Rating Agencies
or (d) commercial paper issued by any corporation incorporated under the
laws of the USA and rated at least “A-1+” (or the equivalent) by S&P and at
least “P-1” (or the equivalent) by Moody’s.

 

“Person” means
an individual, partnership, corporation, association, joint venture,
Governmental Authority or other entity of any kind.

 

“Pool Funded Purchase Interest”
means each investment or loan of a Conduit Purchaser under a Receivables Purchase
Facility funded with Pooled Commercial Paper.

 

“Pooled Allocation”
means, for each Pool Funded Purchase Interest, an amount each day equal to the
product of (i) the Pooled Percentage Share of such Purchase Interest on such
day multiplied by (ii) the aggregate amount of Funding Charges for such day.

 

“Pooled Commercial Paper”
means commercial paper notes of a Conduit Purchaser except (A) Allocated
Commercial Paper, and (B) Specially Pooled Paper.

 

“Pooled Percentage Share”
means, for each Pool Funded Purchase Interest, a fraction (expressed as a
percentage) the numerator of which is equal to the Investment associated with
such Pool Funded Purchase Interest and the denominator of which is equal to the
aggregate amount of all outstanding investment (or comparable terms used in any
Receivable Purchase Facility) held by a Conduit Purchaser which is funded
substantially with Pooled Commercial Paper.

 

“Potential Collection Agent
Replacement Event” means any Collection Agent Replacement
Event or any event or condition that with the lapse of time or giving of
notice, or both, would constitute a Collection Agent Replacement Event.

 

I-10

 

“Potential Termination Event”
means any Termination Event or any event or condition that with the lapse of
time or giving of notice, or both, would constitute a Termination Event.

 

“Prime Rate”
means for any period, the daily average during such period of (a) the greater
of (i) for the Blue Ridge Purchaser Group, that interest rate denominated and
set by Wachovia as its “Prime Rate”  from time to time as an interest rate basis
for borrowings and for the Windmill Purchaser Group, that interest rate
denominated and set by ABN AMRO Bank N.V. as its “Prime Rate”  from time to time as an interest rate basis
for borrowings plus 0.75% per annum, and (ii) the Federal Funds Rate plus 0.50%
plus (b) during the pendency of a Termination Event, 2.00% per annum.  The Prime Rate for the Blue Ridge Purchaser
Group is but one of several interest rate basis used by Wachovia.  Wachovia lends at interest rates above and
below the Prime Rate.   The Prime Rate
for the Windmill Purchaser Group is but one of several interest rate basis used
by ABN AMRO Bank N.V.  ABN AMRO Bank N.V.
lends at interest rates above and below the Prime Rate.

 

“Purchase” is
defined in Section 1.1(a).

 

“Purchase Agreement”
means the Receivables Purchase Agreement dated as of November 17, 2000
among the Seller and OfficeMax Contract, Inc.

 

“Purchase Amount”
is defined in Section 1.1(c).

 

“Purchase Date”
is defined in Section 1.1(c).

 

“Purchased Percentage”
means, for any Put, for each Related Bank Purchaser, its Commitment Percentage
or such lesser percentage as is necessary to prevent the Purchase Price of such
Purchaser from exceeding its Unused Commitment.

 

“Purchase Interest”
means, for a Purchaser, the percentage ownership interest in the Receivables
and Collections held by such Purchaser, calculated when and as described in Section 1.1(a);
provided, however, that (except for
purposes of computing a Purchase Interest or the Sold Interest in Section 1.5
or 1.7) at any time the Sold Interest would otherwise exceed 100% each
Purchaser then holding any Investment shall have its Purchase Interest reduced
by multiplying such Purchase Interest by a fraction equal to 100% divided by
the Sold Interest otherwise then in effect, so that the Sold Interest is
thereby reduced to 100%.

 

“Purchase Limit”
means $200,000,000.

 

“Purchaser Agent” means
the Blue Ridge Purchaser Agent, the Windmill Purchaser Agent or any other
person who becomes a party to this Agreement as a “Purchaser
Agent.”

 

“Purchaser Group”
means, for each Conduit Purchaser, such Conduit Purchaser, its Related Bank
Purchasers, (if any) and its related Liquidity Banks and Enhancement Banks.

 

I-11

 

“Purchaser Reserve Percentage”
means, for each Purchaser, the Reserve Percentage multiplied by a fraction, the
numerator of which is such Purchaser’s outstanding Investment and the
denominator of which is the Aggregate Investment.

 

“Purchasers”
means the Conduit Purchasers and the Related Bank Purchasers.

 

“Put” is
defined in Section 2.l(a).

 

“Ratable Share”
means, for each Purchaser Group, such Purchaser Group’s aggregate Commitments
divided by the aggregate Commitments of all Purchaser Groups.

 

“Rating Agency”
means, for any Conduit Purchaser, Moody’s, S&P and any other rating agency
such Conduit Purchaser chooses to rate its commercial paper notes.

 

“Ratings”
means, for any Conduit Purchaser, the ratings by the Rating Agencies of such
Conduit Purchase of the indebtedness for borrowed money of such Conduit
Purchaser.

 

“Receivable”
means each obligation of an Obligor to pay for merchandise sold or services
rendered by OfficeMax Contract, Inc. that is sold to the Seller pursuant to
each Purchase Agreement and includes the Originator’s rights to payment of any
interest or finance charges and in the merchandise (including returned goods)
and contracts relating to such Receivable to the extent necessary to enforce
the Collection of any Receivables, all security interests, guaranties and
property securing or supporting payment of such Receivable, all Records and all
proceeds of the foregoing.  During any
Interim Liquidation and on and after the Termination Date, the term “Receivable” shall only include receivables existing on the
date such Interim Liquidation commenced or Termination Date occurred, as
applicable.  Deemed Collections shall
reduce the outstanding balance of Receivables hereunder, so that any Receivable
that has its outstanding balance deemed collected shall cease to be a
Receivable hereunder after (x) the Collection Agent receives payment of such
Deemed Collections under Section 1.5(b) or (y) if such Deemed Collection
is received before the Termination Date, an adjustment to the Sold Interest
permitted by Section 1.5(c) is made.

 

“Receivable Purchase Facility”
means any receivables purchase agreement, loan agreement or other similar
contractual arrangement to which a Conduit Purchaser is a party relating to the
transfer, purchase or financing of receivables or other assets.

 

“Records” means,
for any Receivable, all contracts, books, records and other documents or
information (including computer programs, tapes, disks, software and related
property and rights) relating to such Receivable or the related Obligor.

 

“Reinvestment Purchase”
is defined in Section 1.1(b).

 

“Related Bank Purchasers”
means the Persons listed as such (and their respective Purchase Commitments)
for each Conduit Purchaser as listed on Schedule II hereto.

 

I-12

 

“Reporting Date”
means, (i) during any Monthly Reporting Period, (as defined in Reporting
Period) the 20th day of each Fiscal Month, (ii) during any Weekly Reporting Period
(as defined in Reporting Period), Tuesday of each calendar week and (iii)
during any Daily Reporting Period, (as defined in Reporting Period) each
calendar day.

 

“Reporting Period”
shall be determined according to the following table based upon the unsecured
debt rating of the Collection Agent:

 

	
  S&P Rating

  	
   

  	
  Moody’s Rating

  	
   

  	
  Reporting Period

  
	
  Above BBB- and Baa3

  	
   

  	
  Above BBB- and Baa3

  	
   

  	
  Monthly

  
	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  Monthly

  
	
  BB+

  	
   

  	
  Ba1

  	
   

  	
  Monthly

  
	
  BB

  	
   

  	
  Ba2

  	
   

  	
  Monthly

  
	
  BB-

  	
   

  	
  Ba3

  	
   

  	
  Weekly

  
	
  Below BB- or below Ba3 or rating suspended or
  withdrawn by either S&P or Moody’s

  	
   

  	
  Below BB- or below Ba3 or rating suspended or
  withdrawn by either S&P or Moody’s

  	
   

  	
  Daily

  

 

For purposes of the
foregoing, if one of the two ratings established by Moody’s and S&P shall
be (i) one category lower than the other, the Reporting Period shall be
determined by reference to the higher of the two ratings, and (ii) two or more
categories lower than the other, the Reporting Period shall be determined by
reference next above that of the lower of the two ratings.

 

“Requirement of Law”
means, as to any Person, any law (statutory or common), treaty, rule or
regulation or determination of an arbitrator or of a Governmental Authority, in
each case applicable to or binding upon the Person or any of its property or to
which the Person or any of its property is subject.

 

“Reserve Percentage” means,
at any time, the quotient obtained by dividing (a) the Aggregate Reserve
by (b) the Eligible Receivables Balance.

 

“Seller” is
defined in the first paragraph hereof.

 

“Settlement Date”
means the 20th day of each Fiscal Month.

 

“Settlement Period”
means the period from and including each Settlement Date to but not including
the next succeeding Settlement Date.

 

“Sold Interest”
is defined in Section 1.1(a).

 

“Special Transaction Subaccount”
means the special transaction subaccount established for this Agreement
pursuant to Windmill’s depositary agreement.

 

I-13

 

 

“Specially Pooled Paper” means
the aggregate of all commercial paper notes of a Conduit Purchaser issued in
connection with Receivables Purchase Facilities designated from time to time by
the Agent (in its sole discretion). 
Specially Pooled Paper will not include Pooled Commercial Paper or
Allocated Commercial Paper at any time.

 

“S&P” means Standard &
Poor’s Ratings Group.

 

“Subordinated Note” means each
revolving promissory note issued by the Seller to the applicable Originator
under the applicable Purchase Agreement.

 

“Subordination Agreement” means
the Subordination Agreement dated as of November 17, 2000 between OfficeMax
Contract, Inc. and the Seller.

 

“Subsidiary” means any Person of
which at least a majority of the voting stock (or equivalent equity interests)
is owned or controlled by the Seller or the Originator or by one or more other
Subsidiaries of the Seller or the Originator. 
Cuban Electric Company, a Florida corporation, shall not be deemed to be
a “Subsidiary” so long as neither the
Originator nor any other Subsidiary shall have outstanding any investment in
said corporation (other than investments existing on December 31, 1972) or
any guaranty of the indebtedness of any corporation.

 

“Taxes” means all taxes, charges,
fees, levies or other assessments (including income, gross receipts, profits,
withholding, excise, property, sales, use, license, occupation and franchise
taxes and including any related interest, penalties or other additions) imposed
by any jurisdiction or taxing authority (whether foreign or domestic).

 

“Termination Date” means the
earliest of (a) the Business Day designated by the Seller with no less than
thirty (30) Business Days prior notice to the Agent, (b) the occurrence of a
Termination Event and (c) June 19, 2006.

 

“Termination Event” means the
occurrence of any one or more of the following:

 

(a)           any representation, warranty,
certification or statement made by the Seller or the Originator in, or pursuant
to, any Transaction Document proves to have been incorrect in any material
respect when made; or

 

(b)           the Collection Agent, the Originator
or the Seller fails to make any payment or other transfer of funds hereunder
when due (including any payments under Section 1.5(a)); or

 

(c)           the Seller fails to observe or
perform any covenant or agreement contained in Sections 3.3, 5.1(b),
5.1(e), 5.1(g), 5.1(i) or 5.1(j) of this Agreement or the Originator fails to
perform any covenant or agreement in Section 6 of each Purchase Agreement;
or

 

I-14

 

(d)           the Seller or the Collection Agent
(or any sub-collection agent) fails to observe or perform any other term,
covenant or agreement under any Transaction Document, and such failure remains
unremedied for ten Business Days; or

 

(e)           the Seller, the Originator or any
Subsidiary suffers a Bankruptcy Event; or

 

(f)            the average of the Delinquency Ratio
as of the last Business Day for the most recent three Fiscal Months exceeds 6%,
the Dilution Ratio as of the last Business Day for the most recent three Fiscal
Months exceeds 6% or the Loss-to-Liquidation Ratio as of the last Business Day
for any Fiscal Month exceeds 1%; or

 

(g)           (i) the Seller, the Originator
or any Affiliate, directly or indirectly, disaffirms or contests the validity
or enforceability of any Transaction Document or (ii) any Transaction
Document fails to be the enforceable obligation of the Seller or any Affiliate
party thereto; or

 

(h)           any event occurs or condition exists
which constitutes an event of default under the OfficeMax Loan Agreement; or

 

(i)            a Collection Agent Replacement Event
has occurred and is continuing; or

 

(j)            the average Turnover Rate for the
most recent three calendar month period exceeds 45 days; or

 

(k)           has not received an executed Lock-Box
Letter with regard to Lock-Box Number 101705, Account Number 8738007922 within
30 days hereof.

 

Notwithstanding the foregoing, a failure of a
representation or warranty or breach of any covenant described in clause (a),
(c) or (d) above related to a Receivable shall not constitute a Termination
Event if the Seller has been deemed to have collected such Receivable pursuant
to Section 1.5(b) or, before the Termination Date, has adjusted the Sold
Interest as provided in Section 1.5(c) so that such Receivable is no longer
considered to be outstanding.

 

“Tranche” means a portion of the
Investment of a Conduit Purchaser or of the Related Bank Purchasers or of the
Related Bank Purchasers allocated to a Tranche Period pursuant to
Section 1.3.  A Tranche is a (i) CP
Tranche, (ii) Eurodollar Tranche or (iii) Prime Tranche depending whether
Discount accrues during its Tranche Period based on a (i) CP Rate, (ii)
Eurodollar Rate, or (iii) Prime Rate.

 

“Tranche Period” means a period
of days ending on a Business Day selected pursuant to Section 1.3, which
(i) for a CP Tranche shall not exceed 270 days, (ii) for a LIBOR Tranche shall
not exceed 180 days, and (iii) for a Prime Tranche shall be the period of time
from the date on which the Seller selects or is deemed to have selected a Prime
Tranche until the effective date of any election it makes to convert such
Tranche, or portion thereof, to a LIBOR Tranche or CP Tranche.

 

I-15

 

“Transaction Documents” means
this Agreement, each Fee Letter, each Purchase Agreement, the Limited Guaranty,
each Subordinated Note, each Subordination Agreement, and all other documents,
instruments and agreements executed or furnished in connection herewith and
therewith.

 

“Transfer Agreement” means
(i) the Liquidity Asset Purchase Agreement dated the date hereof among
Blue Ridge, Wachovia Bank, N.A., in its capacity as the Blue Ridge Purchaser
Agent, administrative agent for Blue Ridge, and as a Liquidity Bank and the
other Liquidity Banks from time to time party thereto, (ii) the Transfer
Agreement dated the date hereof among Windmill, ABN AMRO Bank N.V., in its
capacity as the Windmill Purchaser Agent and the Agent for Windmill, and as a
Liquidity Bank and the Enhancer, and the other Liquidity Banks from time to time
party thereto.

 

“Transfer Supplement” means an
agreement among the parties hereto pursuant to which an existing Purchaser
Group adds a new Purchaser.

 

“Turnover Rate” means, for any
period for which it is calculated, (A) (1) the Receivables Balance at the
beginning of such period divided by (2) the Collections (other than Deemed
Collections) during such period multiplied by (B) the number of days in such
period.

 

“UCC” means, for any state, the
Uniform Commercial Code as in effect in such state.

 

“Unused Aggregate Commitment”
means, at any time, the difference between the Aggregate Commitment then in
effect and the outstanding Matured Aggregate Investment.

 

“Unused Commitment” means, for
any Related Bank Purchaser at any time, the difference between its Commitment
and its Investment then outstanding.

 

“USA” means the United States of
America (including all states and political subdivisions thereof).

 

“Windmill” is defined in the
first paragraph hereof.

 

“Windmill Related Bank Purchasers” means
the Related Bank Purchasers for Windmill.

 

“Windmill Purchaser Agent” means
ABN AMRO Bank N.V.

 

“Windmill Purchaser Group” means
Windmill and the Windmill Related Bank Purchasers.

 

The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms. 
Unless otherwise inconsistent with the terms of this Agreement, all
accounting terms used herein shall be interpreted, and all accounting
determinations hereunder shall be made, in accordance with GAAP.  Amounts to be calculated hereunder shall be
continuously recalculated at the time any information relevant to such
calculation changes.

 

I-16

 

Schedule II

 

Related
Bank Purchasers and

Purchase Commitments of Related Bank Purchasers

and Purchaser Groups

 

	
  CONDUIT PURCHASER

  	
   

  	
  NAME OF RELATED BANK

  PURCHASER

  	
   

  	
  COMMITMENTS OF RELATED

  BANK PURCHASERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blue
  Ridge

  	
   

  	
  Wachovia Bank, N.A.

  	
   

  	
  $

  	
  102,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Windmill

  	
   

  	
  ABN AMRO Bank
  N.V.

  	
   

  	
  $

  	
  102,000,000

  	
   

  
								

 

Purchaser Group Commitments

 

	
  PURCHASER GROUP

  	
   

  	
  COMMITMENT

  	
   

  
	
  Blue
  Ridge Purchaser Group

  	
   

  	
  $

  	
  102,000,000

  	
   

  
	
  Windmill
  Purchaser Group

  	
   

  	
  $

  	
  102,000,000

  	
   

  

 

 

Exhibit A

to

Third Amended and Restated Receivables Sale Agreement

 

Form
of Incremental Purchase Request

 

 

                 ,
200  

 

ABN AMRO Bank N.V., as
Agent

Asset Securitization,
Structured Finance

540 West Madison Street

Chicago, Illinois 60661

Attn:  Purchaser Agent-Windmill

 

Wachovia Bank, N.A., as
Purchaser

Agent for the Blue Ridge
Purchaser Group

191 Peachtree Street,
N.E.

Atlanta, Georgia  30303

Attn:  Michael Landry

 

Re:          Third Amended and
Restated Receivables Sale Agreement dated as of June 20, 2005 (the “Sale Agreement”) among Loving Creek Funding Corporation
(the “Seller”), OfficeMax Incorporated
(formerly known as Boise Cascade Corporation) (the “Initial
Collection Agent”), ABN AMRO Bank N.V., as agent for the Purchasers
(the “Agent”) and as the Windmill Purchaser
Agent (“Windmill Purchaser Agent”), Wachovia
Bank, N.A., as the Blue Ridge Purchaser Agent (“Blue Ridge
Purchaser Agent”), the other Purchaser Agents from time to time
party thereto (collectively, the “Purchaser Agents”),
the Related Bank Purchasers from time to time party thereto (collectively, the “Related Bank Purchasers”), Windmill Funding Corporation, as
a conduit purchaser (“Windmill”) and
Blue Ridge Funding Corporation, as a conduit purchaser  (“Blue Ridge”)

 

Ladies and Gentlemen:

 

The undersigned Seller under the above-referenced Sale Agreement hereby
confirms it has requested an Incremental Purchase of $                      
by the Conduit Purchasers under the Sale Agreement. [In the
event a Conduit Purchaser is unable or unwilling to make the requested
Incremental Purchase, the Seller hereby requests an Incremental Purchase of $                        
by the Related Bank Purchasers for such Conduit Purchaser under the Sale
Agreement at the [Eurodollar Rate with a Tranche Period of               
months.] [Prime Rate]].

 

 

Attached hereto as Schedule I is information relating to the
proposed Incremental Purchase required by the Sale Agreement.  If on the date of this Incremental Purchase
Request (“Notice”), an Interim Liquidation is in
effect, this Notice revokes our request for such Interim Liquidation so that
Reinvestment Purchases shall immediately commence in accordance with
Section 1.1(d) of the Sale Agreement.

 

The Seller hereby certifies that both before and after giving effect to
[each of] the proposed Incremental
Purchase[s] contemplated hereby and the use of
the proceeds therefrom, all of the requirements of Section 7.2 of the Sale
Agreement have been satisfied.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Loving
  Creek Funding Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  
	
   

  	
  Title

  	
   

  	
   

  

 

A-2

 

Schedule I

to

Incremental
Purchase Requests

 

Summary
of Information Relating to Proposed Sale(s)

 

	
   

  	
   

  	
  1.             Dates,
  Amounts, Purchaser(s), Proposed Tranche Periods

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A1

  	
   

  	
  Date of Notice

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A2

  	
   

  	
  Measurement Date (the
  last Business Day of the month immediately preceding the month in which the
  Date of Notice occurs)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A3

  	
   

  	
  Proposed Purchase Dates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (each of which is a Business
  Day)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A4

  	
   

  	
  Respective Proposed Incremental
  Purchase on each such Purchase Date

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
  (each Incremental Purchase
  must be in a minimum amount of $1,000,000 and multiples thereof, or, if less,
  an amount equal to the Maximum Incremental Purchase Amount)

  	
   

  	
  (A4A)

  	
   

  	
  (A4B)

  	
   

  	
  (A4C)

  	
   

  	
  (A4D)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A5

  	
   

  	
  Proposed Allocation among
  Purchasers (Pro Rata) Conduit Purchasers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name of

  Related Bank

  Purchaser

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A6

  	
   

  	
  Used Aggregate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commitment Amount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (after such Incremental
  Purchases)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  

 

A-3

 

Each proposed Purchase Date must be a Business Day and must occur no
later than two weeks after the Measurement Date set forth above.  The choice of Measurement Date is a risk
undertaken by the Seller.  If a selected
Measurement Date is not the applicable Purchase Date, the Seller’s choice and
disclosure of such date shall not in any manner diminish or waive the
obligation of the Seller to assure the Purchasers that, after giving effect to
the proposed Purchase, the actual Sold Interest as of the date of such proposed
Purchase does not exceed 100%.

 

A-4

 

Exhibit C

 

Addresses
and Names of Seller and the Originator

 

1.             Locations.  (a) The chief executive office of the Seller
and the Originator are located at the following address:

 

Loving Creek
Funding Corporation

150 E. Pierce

Itasca, Illinois  60143

 

OfficeMax
Contract, Inc.

150 E. Pierce

Itasca, Illinois  60143

 

The addresses set forth above for Seller and OfficeMax
Contract, Inc. have been the address of their respective chief executive
offices at all times since the inception of each such corporation.

 

(b)           The following are all the locations
where the Seller and the Originator directly or through its agents maintain any
Records:

 

Same as (a) above

 

2.             Names.  The following is a list of all names
(including trade names or similar appellations) used by the Seller and the
Originator or any of its divisions or other business units that generate
Receivables:

 

None

 

 

Exhibit D

 

Lock
Boxes and Lock-Box Banks

 

	
  Bank

  	
   

  	
   

  	
   

  	
   

  
	
  OfficeMax
  Contract, Inc.

  	
   

  	
  Lock-Box
  Number

  	
   

  	
  Collection
  Account

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America – Los Angeles, California

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mellon Bank – Pittsburgh, Pennsylvania

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Northern Trust – Chicago, Illinois

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wachovia Bank – Atlanta, Georgia

  	
   

  	
   

  	
   

  	
   

  

 

 

Exhibit E

 

to
Third Amended and Restated 

Receivables Sale Agreement

 

Form
of Lock Box Letter

 

 

[Name of Lock Box Bank]

 

Ladies and Gentlemen:

 

Reference is made to the lock-box numbers
                             
and the associated lock-box demand deposit account number                           
maintained with you (such lock-boxes and associated lock-box demand deposit
account, collectively, the “Accounts”),
each in the name of OfficeMax Contract, Inc. (“OfficeMax
Contract”).  OfficeMax
Contract hereby confirms it has sold all Receivables (as defined below) to
Loving Creek Funding Corporation (the “Seller”).

 

In connection with the Third Amended and Restated Receivables Sale
Agreement, dated as of June 20, 2005 (as amended, supplemented or otherwise
modified from time to time, the “Receivables Sale
Agreement”), among Loving Creek Funding Corporation (the “Seller”), OfficeMax Incorporated (formerly known as Boise
Cascade Corporation) (the “Initial Collection Agent”),
ABN AMRO Bank N.V., as agent for the Purchasers (the “Agent”)
and as the Windmill Purchaser Agent (“Windmill Purchaser Agent”),
Wachovia Bank, N.A., as the Blue Ridge Purchaser Agent (“Blue Ridge
Purchaser Agent”), the other Purchaser Agents from time to time
party thereto (collectively, the “Purchaser Agents”),
the Related Bank Purchasers from time to time party thereto (collectively, the “Related Bank Purchasers”), Windmill Funding Corporation, as
a conduit purchaser (“Windmill”) and
Blue Ridge Funding Corporation, as a conduit purchaser (“Blue Ridge”),
the Seller has assigned to the Agent for the benefit of the Purchasers an
undivided percentage interest in the accounts, chattel paper, instruments or
general intangibles (collectively, the “Receivables”)
under which payments are or may hereafter be made to the Accounts, and has
granted to the Agent for the benefit of the Purchasers a security interest in
its retained interest in such Receivables. 
As is the customary practice in this type of transaction, we hereby
request that you execute this letter agreement.  All references herein to “we”
and “us” refer to OfficeMax Contract and the
Seller, jointly and severally.  Your
execution hereof is a condition precedent to our continued maintenance of the
Accounts with you.

 

We hereby transfer exclusive dominion and control of the Accounts to
the Agent, subject only to the condition subsequent that the Agent shall have
given you notice that a “Collection Agent
Replacement Event” has occurred and is continuing under the
Receivables Sale Agreement and of its election to assume such dominion and
control, which notice shall be in substantially the form attached hereto as
Annex A (the “Agent’s Notice”).

 

 

At all times prior to the receipt of the Agent’s Notice described
above, all payments to be made by you out of, or in connection with the
Accounts, are to be made in accordance with the instructions of the Seller or
its agent.

 

We hereby irrevocably instruct you, at all times from and after the
date of your receipt of the Agent’s Notice as described above, to make all
payments to be made by you out of, or in connection with, the Accounts directly
to the Agent, at its address set forth below its signature hereto or as the
Agent otherwise notifies you, or otherwise in accordance with the instructions
of the Agent.

 

We also hereby notify you that, at all times on and after the date of
your receipt of the Agent’s Notice as described above, the Agent shall be
irrevocably entitled to exercise in our place and stead, and without having to
obtain any consents from us, any and all rights in connection with the
Accounts, including, without limitation, (a) the right to specify when payments
are to be made out of, or in connection with, the Accounts and (b) the right to
require preparation of duplicate monthly bank statements on the Accounts for
the Agent’s audit purposes and mailing of such statements directly to an
address specified by the Agent.  At all
times on and after the date of your receipt of the Agent’s Notice, neither we
nor any of our affiliates shall be given any access to the Accounts.

 

The Agent’s Notice may be personally served or sent by telex, facsimile
or U.S. mail, certified return receipt requested, to the address, telex or
facsimile number set forth under your signature to this letter agreement (or to
such other address, telex or facsimile number as to which you shall notify the
Agent in writing).  If the Agent’s Notice
is given by telex or facsimile, it will be deemed to have been received when
the Agent’s Notice is sent and the answerback is received (in the case of telex)
or receipt is confirmed by telephone or other electronic means (in the case of
facsimile).  All other notices will be
deemed to have been received when actually received or, in the case of personal
delivery, delivered.

 

By executing this letter agreement, you acknowledge the existence of
the Agent’s right to dominion and control of the Accounts and its ownership of
and security interest in the amounts from time to time on deposit therein and
agree that from the date hereof the Accounts shall be maintained by you for the
benefit of, and amounts from time to time therein held by you as agent for, the
Agent on the terms provided herein.  The
Accounts are to be entitled “Loving Creek Funding Corporation and ABN AMRO Bank N.V., as Agent for the Purchasers” with
the subline OfficeMax Contract, Inc. 
Except as otherwise provided in this letter agreement, payments to the
Accounts are to be processed in accordance with the standard procedures
currently in effect.  All service charges
and fees in connection with the Accounts shall continue to be payable by us
under the arrangements currently in effect.

 

By executing this letter agreement, you (a) irrevocably waive and agree
not to assert, claim or endeavor to exercise, (b) irrevocably bar and estop
yourself from asserting, claiming or exercising and (c) acknowledge that you
have not heretofore received a notice, writ, order or other form of legal
process from any other party asserting, claiming or exercising, any right of
set-off, banker’s lien or other purported form of claim with respect to the
accounts or any funds from time to time therein.  Except for your right to payment of your
service charge and fees and 

 

E-2

 

to make deductions for returned items, you shall have
no rights in the Accounts or funds therein, except deductions for service
charges, fees and returned or misplaced items. 
To the extent you may ever have any additional rights, you hereby
expressly subordinate all such rights to all rights of the Agent.

 

You may terminate this letter agreement by canceling the Accounts
maintained with you, which cancellation and termination shall become effective
only upon thirty (30) days prior written notice thereof from you to the Agent
in the absence of fraud or abuse. 
Incoming mail addressed to the Accounts (including, without limitation,
any direct funds transfer to the Accounts) received after such cancellation
shall be forwarded in accordance with the Agent’s instructions.  This letter agreement may also be terminated
upon written notice to you by the Agent stating that the Receivables Sale
Agreement is no longer in effect.  Except
as otherwise provided in this paragraph, this letter agreement may not be
terminated without the prior written consent of the Agent.

 

This letter agreement contains the entire agreement between the parties
with respect to the subject matter hereof, and may not be altered, modified or
amended in any respect, nor may any right, power or privilege of any party
hereunder be waived or released or discharged, except upon execution by you, us
and the Agent of a written instrument so providing.  The terms and conditions of any agreement
between us and you (a “Lock-Box Service
Agreement”) (whether now existing or executed hereafter) with respect
to the lock-box arrangements, to the extent not inconsistent with this letter
agreement, will remain in effect between you and us.  In the event that any provision in this
letter agreement is in conflict with, or inconsistent with, any provision of
any such Lock-Box Service Agreement, this letter agreement will exclusively
govern and control.  Each party agrees to
take all actions reasonably requested by any other party to carry out the
purposes of this letter agreement or to preserve and protect the rights of each
party hereunder.

 

OfficeMax Contract agrees to indemnify, defend and hold harmless you
and your affiliates, directors, officers, employees, agents, successors and
assigns (each, an “Indemnitee”) from and against
any and all liabilities, losses, claims, damages, demands, costs and expenses
of every kind (including but not limited to costs incurred as a result of items
being deposited in the Account and being unpaid for any reason, reasonable
attorney’s fees and the reasonable charges of your in-house counsel) incurred
or sustained by any Indemnitee arising out of your performance of the services
contemplated by this Lock-Box Letter, except to the extent such liabilities,
losses, claims, damages, demands, costs and expenses are the direct result of
your gross negligence or willful misconduct. 
The provisions of this paragraph shall survive the termination of this
Lock-Box Letter.

 

In the event OfficeMax Contract becomes subject to a voluntary or
involuntary proceeding under the United States Bankruptcy Code, or if you are
otherwise served with legal process which you in good faith believe affects
funds in the Account you may suspend disbursements from the Account otherwise
required by the terms hereof until such time as you receive an appropriate court
order or other assurances satisfactory to you establishing that the funds may
continue to be disbursed according to the instructions contained in this
Lock-Box Letter.

 

E-3

 

This letter agreement and the rights and
obligations of the parties hereunder will be governed by and construed and
interpreted in accordance with the laws of the state of New York.  This letter agreement may be executed
in any number of counterparts and all of such counterparts taken together will
be deemed to constitute one and the same instrument.

 

Please indicate your agreement to the terms of this letter agreement by
signing in the space provided below. 
This letter agreement will become effective immediately upon execution
of a counterpart of this letter agreement by all parties hereto.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  OfficeMax
  Contract, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Loving
  Creek Funding Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

E-4

 

Accepted and confirmed as
of

the date first written
above:

 

 

By:  ABN
AMRO Bank N.V., as Agent

 

 

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  
					

 

 

Address of notice:

 

ABN AMRO Bank N.V.

Structured Finance, Asset
Securitization

540 West Madison Street

Chicago, Illinois 60674

Attention:  Purchaser Agent-Windmill

Telephone Number:  (312) 904-6263

Telecopy Number:    (312) 992-1527

 

 

Acknowledged and agreed
to as of the date first written above:

 

[Name of Bank]

 

 

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

Address for notice:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

E-5

 

Annex A to

Lock-Box Letter

 

[Name of Bank]

 

	
  Re:

  	
  Loving Creek Funding Corporation

  
	
   

  	
  Lock Box Numbers

  
	
   

  	
  Lock-Box Account Number

  

 

Ladies and Gentlemen:

 

Reference is made to the letter agreement dated                                   
(the “Letter Agreement”) among OfficeMax
Contract, Inc., Loving Creek Funding Corporation, the undersigned, as Agent,
and you concerning the above-described lock-boxes and lock-box account
(collectively, the “Accounts”).  We hereby give you notice that a “Collection Agent Replacement Event” has occurred and is
continuing under the Receivables Sale Agreement (as defined in the Letter
Agreement) and of our assumption of dominion and control of the Accounts as
provided in the Letter Agreement.

 

We hereby instruct you not to permit any other party to have access to
the Accounts and to make all payments to be made by you out of or in connection
with the Accounts directly to the undersigned upon our instructions, at our
address set forth above.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  ABN
  AMRO Bank N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

cc:           Loving Creek Funding
Corporation

 

E-6

 

Exhibit G

OfficeMax, Inc.

Accounting Calendar - Fiscal 2005

December 26, 2004 through December 31, 2005

 

	
  First Quarter

  

 

	
   

  	
   

  	
   

  	
   

  	
  S

  	
   

  	
  M

  	
   

  	
  T

  	
   

  	
  W

  	
   

  	
  T

  	
   

  	
  F

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  1

  
	
  2

  	
   

  	
  Jan

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  
	
  3

  	
   

  	
  period

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  
	
  4

  	
   

  	
  1

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
   

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  
	
  6

  	
   

  	
  Feb

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  
	
  7

  	
   

  	
  period

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  
	
  8

  	
   

  	
  2

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
   

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  
	
  10

  	
   

  	
   

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  
	
  11

  	
   

  	
  Mar

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  
	
  12

  	
   

  	
  period

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  
	
  13

  	
   

  	
  3

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  

 

	
  Second Quarter

  

 

	
   

  	
   

  	
   

  	
   

  	
  S

  	
   

  	
  M

  	
   

  	
  T

  	
   

  	
  W

  	
   

  	
  T

  	
   

  	
  F

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
   

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  1

  	
   

  	
  2

  
	
  15

  	
   

  	
  Apr

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  
	
  16

  	
   

  	
  period

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  
	
  17

  	
   

  	
  4

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
   

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  
	
  19

  	
   

  	
  May

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  
	
  20

  	
   

  	
  period

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  
	
  21

  	
   

  	
  5

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
   

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  
	
  23

  	
   

  	
   

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  
	
  24

  	
   

  	
  Jun

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  
	
  25

  	
   

  	
  period

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  
	
  26

  	
   

  	
  6

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  

 

	
  Third Quarter

  

 

	
   

  	
   

  	
   

  	
   

  	
  S

  	
   

  	
  M

  	
   

  	
  T

  	
   

  	
  W

  	
   

  	
  T

  	
   

  	
  F

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
   

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  1

  	
   

  	
  2

  
	
  28

  	
   

  	
  Jul

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  
	
  29

  	
   

  	
  period

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  
	
  30

  	
   

  	
  7

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
   

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  
	
  32

  	
   

  	
  Aug

  	
   

  	
  31

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  
	
  33

  	
   

  	
  period

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  
	
  34

  	
   

  	
  8

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
   

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  
	
  36

  	
   

  	
   

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  
	
  37

  	
   

  	
  Sep

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  
	
  38

  	
   

  	
  period

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  
	
  39

  	
   

  	
  9

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  

 

	
  fourth quarter

  

 

	
   

  	
   

  	
   

  	
   

  	
  S

  	
   

  	
  M

  	
   

  	
  T

  	
   

  	
  W

  	
   

  	
  T

  	
   

  	
  F

  	
   

  	
  S

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
   

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  1

  
	
  41

  	
   

  	
  Oct

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  
	
  42

  	
   

  	
  period

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  
	
  43

  	
   

  	
  10

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
   

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  
	
  45

  	
   

  	
   

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  
	
  46

  	
   

  	
  Nov

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  
	
  47

  	
   

  	
  period

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  
	
  48

  	
   

  	
  11

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
   

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  
	
  50

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  
	
  51

  	
   

  	
  Dec

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  
	
  52

  	
   

  	
  period

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  
	
  53

  	
   

  	
  12

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31Exhibit 10.1

 

SEPARATION
AGREEMENT AND GENERAL RELEASE

 

Betsy D. Holden (“Holden”) has been employed by
Kraft Foods Inc. (“Kraft”) as President, Global Marketing & Category
Development in Northfield, Illinois. 
Holden and Kraft have mutually agreed to end Holden’s employment
relationship and Kraft has offered Holden benefits as set forth in this
Agreement, certain of which benefits are greater than what Holden is entitled
to receive, and Holden has decided to accept Kraft’s offer.  Holden and Kraft acknowledge that Holden
received a letter from Louis C. Camilleri, Chairman of Kraft, dated December 16,
2003 (the “Letter”), which specifies that Holden would be entitled to receive
certain payments upon the occurrence of certain events.  Holden agrees that the terms of this
Agreement amend and clarify the Letter and replace and supercede the Letter to
the extent of any inconsistency or duplication. 
Therefore, Holden and Kraft both agree and promise as follows:

 

1.                                       Holden
will not have to report for regular work after June 30, 2005.  This will be her last day of active
employment.  She will resign from the
Kraft Board of Directors effective June 30, 2005. In partial consideration
for her promises set forth in this Agreement, Holden will receive separation
payments (the “Separation Payments”) to be paid by Kraft at her current
bi-weekly base salary from July 1, 2005 through June 30, 2007,
subject to the provisions of paragraph 2 below (“Separation Payment Period”).  Payments made before 2006 will be made in
termination and cancellation of Holden’s rights to receive Separation Payments
during 2005 under the Letter or this Agreement. 
During the Separation Payment Period, Holden will be eligible to receive
Kraft medical, dental, life, long-term disability and personal accident
insurance coverage pursuant to the terms of these Kraft benefit plans as if she
were an employee and to participate in the Kraft Thrift and Retirement Plans
(both qualified and non-qualified, basic and supplemental) pursuant to the
terms of those plans, and Separation Payments will be included in determining
Holden’s final average compensation under the Retirement Plans.  Holden will not be eligible to receive Kraft
short-term disability insurance coverage or business accident coverage after June 30,
2005.  If Holden were to die while
receiving compensation under paragraph 1 hereof, Kraft agrees to pay Holden’s
surviving spouse (or estate if no surviving spouse) the remaining portion of
her Separation Payments and any incentive payments described in paragraph 3
below in a lump sum, and Holden’s surviving spouse (or other beneficiary
designated in accordance with the terms of the Retirement Plans) would receive
a 100% Joint and Survivor benefit as defined by the Retirement Plans.  Prior to execution of this Agreement, Kraft
will provide Holden with a complete description of the compensation and
benefits (including any underlying assumptions) payable under this Agreement.

 

2.                                       For
purposes of retiree medical insurance eligibility, five (5) years will be added
to Holden’s age.   The Separation Payment
Period will continue through at least November 1, 2005 at which point
Holden will be eligible for retiree medical insurance.  Thereafter, between November 1, 2005 and
June 30, 2007, if Holden obtains employment (through which she is provided
with group health benefits), then the remaining portion of her Separation
Payments through June 30, 2007, less applicable deductions, will be paid

 

 

to Holden in a single lump sum if such
lump-sum payment would not create adverse tax consequences under section 409A
of the Internal Revenue Code of 1986, as amended (otherwise, such amounts will
be paid in accordance on Kraft’s regular payroll cycles).  If Kraft makes such a lump-sum payment,
Holden’s Separation Payments will end and her Kraft benefit eligibility will
terminate pursuant to the terms of the Kraft plans. The lump sum payment by
Kraft shall not affect Holden’s receipt of the incentive payments described in
paragraph 3 below.  If, however, Holden
obtains new full-time employment with a for-profit entity and continues to
receive Separation Payments, all pension accruals and Thrift Plan participation
will cease as of the effective date of the new employment.

 

3.                                       Subject
to the provisions of paragraph 7 below, Holden will receive a payment in lieu
of a 2005 annual incentive award under the Kraft Management Incentive Plan (“MIP”),
to be paid at her target percentage (90% of base pay)  and pro-rated for the period from January 1,
2005 through June 30, 2005.  This
payment, less required deductions, will be made in July 2005.  In addition, Holden will receive a payment in
lieu of a 2004-2006 Long-Term Incentive Plan 
(“LTIP”) payment, to be paid at her target percentage (200% of base
pay),  and prorated from January 1,
2004 through June 30, 2005.   This
payment, less required deductions, will be made in July 2005.

 

4.                                       Holden
will forfeit any right, title and interest in the  unvested option shares of the Kraft Foods
Inc. performance-enhanced stock option grant issued on June 12, 2001.  Holden will also forfeit any right, title and
interest in the Kraft Foods Inc. restricted stock grants issued in 2003, 2004
and 2005.  Kraft will make Holden a
payment in lieu of her 2003, 2004 and 2005 Kraft Foods Inc. restricted stock
grants based on a pro-rata number of shares in accordance with Kraft’s
practice.  The value of such payment will
be based on 64,674 shares multiplied by the average of the trailing 20-day
close price of Kraft’s stock price from June 30, 2005.  This payment will be made to Holden by July 30,
2005.

 

5.                                       Holden
will be eligible for continued financial counseling in accordance with current
practice through the end of the Separation Payment Period.  In
addition, Kraft will transfer ownership of Holden’s company car to her on June 30,
2005.  Holden will be responsible for all
future financial obligations related to the car, including but not limited to,
all insurance, maintenance and repairs. 
At her request, Holden will
also be eligible to receive executive outplacement through the end of her
Separation Payment Period, which will include office and secretarial support.
Kraft will reimburse Holden for her reasonable professional fees incurred by
her in connection with the negotiation and documentation of this Agreement, provided,
however, that Kraft’s obligation to pay for outplacement and professional fees,
combined, shall not exceed a maximum of $100,000.

 

6.                                       Holden
will be entitled to exercise any vested stock options that she holds in Altria
Group, Inc. (formerly Philip Morris Companies Inc.) and Kraft Foods
Inc.  stock pursuant to the terms of the
applicable option grant.  For purposes of
exercising vested outstanding stock options, Holden will be treated as a
retiree.

 

7.                                       As
consideration for Kraft’s in lieu of payments to Holden of the MIP and LTIP
awards, Holden agrees that she will not engage in Prohibited Conduct from the
date

 

 

of this Agreement through February 15,
2007.  Prohibited Conduct shall be:  (1) becoming employed by, acting as an
agent or director, or being retained as a consultant in any capacity to, any of
the companies listed below without the written consent of the Executive Vice
President  Global Human Resources of
Kraft Foods Inc., or designee, which consent shall not be unreasonably
withheld; or (2) soliciting, directly or indirectly, any employee of Kraft
to leave Kraft and to work for any of the companies listed below, whether as an
employee, independent contractor or in any other capacity.

 

The companies are:  Kellogg
Company, General Mills, Inc., ConAgra Foods, Inc.,  Sara Lee Corporation, Campbell Soup Company,
and H.J. Heinz Company,  or any
subsidiaries, affiliates or subsequent parent or merger partner if any of these
companies are acquired or merge.

 

Should Holden engage in Prohibited Conduct she will be obligated to pay
back the following monies to Kraft:  if
the breach occurs prior to February 15, 2006, Holden will pay Kraft the
MIP and LTIP payments she received in July 2005; if the breach occurs
after February 15, 2006 but before February 15, 2007 Holden will pay
Kraft the LTIP payment she received in July 2005.

 

8.                                       Except
as provided in this Agreement, Holden agrees to return all company property in
her possession, including documents, manuals, handbooks, notes, keys and any
other articles she has used in the course of her employment, no later than June 30,
2005.

 

9.                                       Holden
acknowledges that during the course of her employment with Kraft, she was
entrusted with certain marketing, financial, product, manufacturing, technical
and other proprietary information and material which are the property of
Kraft.  Holden agrees that, from the date
of this Agreement and following the Separation Payment Period, she will not
communicate or disclose to any third party, or use for her own account, without
the written consent of Kraft, any of the aforementioned information or
material, except as required by legal process or unless and until such
information or material becomes generally available to the public through no
fault of Holden.  Nothing herein shall
preclude Holden from using her general knowledge and expertise to fulfill job
responsibilities with a new employer.

 

10.                                 Holden
will not be entitled to receive any additional compensation or benefits which
are not provided for in this Agreement. 
Holden understands that the arrangements provided for in this Agreement
exceed those to which she would be entitled under Kraft’s existing policies.

 

11.                                 Holden
agrees to keep the terms and substance of this Agreement confidential, and that
she will not disclose the terms of this Agreement or matters out of which it
arises to anyone, including the media, except her immediate family, her
financial advisors, her attorneys, or as may be required by law; provided,
however, that Holden may disclose the terms of the non-compete/non-solicitation
provisions of paragraph 7 and the confidentiality provisions of paragraph 9 to
any prospective employer.

 

 

12.                                 Holden
agrees that, in discussing her relationship with Kraft and its affiliated and
parent companies and their business and affairs, she will not disparage,
discredit or otherwise treat in a detrimental manner Kraft, its affiliated and
parent companies or their officers, directors and employees.  Kraft agrees that, in discussing its
relationship with Holden, it will not disparage or discredit her or otherwise
treat her in a detrimental way.  Kraft
and Holden agree to issue a mutually agreed upon press release announcing her
resignation from Kraft.

 

13.                                 Holden
agrees to fully cooperate with Kraft and its affiliated and parent companies in
the defense of any matter in which she was involved during her employment and
to make herself reasonably available as required by Kraft or its affiliated and
parent companies or their counsel, subject to Holden’s other commitments.  In the event such a matter arises, Kraft or
its affiliated or parent companies will be solely responsible for all costs and
fees which may be incurred and will continue to indemnify Holden to the fullest
extent permitted by law for all actions taken by her as an employee and/or
officer of Kraft.  If time incurred by
Holden on Kraft’s behalf becomes substantial, Kraft shall pay Holden a fee for
her time and effort, such fee to be mutually determined by Kraft and Holden
prior to Holden’s participation.

 

14.                                 In
the event either Holden or Kraft contests the interpretation or application of
any of the terms of this Agreement, the complaining party shall notify the
other in writing of the provision that is being contested.  If the parties cannot satisfactorily resolve
the dispute within thirty (30) days, the matter will be submitted to
arbitration.  An arbitrator will be
chosen pursuant to the American Arbitration Association’s (“AAA”) National Rules for
the Resolution of Employment Disputes from a panel submitted by the AAA
Chicago, Illinois office and the hearing shall be held at a mutually agreeable
location in the Chicago metropolitan area. 
The arbitrator’s fees and expenses and filing fees shall be borne
equally by Holden and Kraft.  The
arbitrator shall issue a written award which shall be final and binding upon
the parties.

 

15.                                 Holden
is aware of her legal rights concerning her employment with Kraft.  In consideration for the benefits being
provided to Holden hereunder, Holden (for herself, her heirs, legal representatives
and assigns) hereby waives, and generally releases Kraft, its affiliated
companies and their officers, directors, agents, and employees from, and agrees
not to sue them for any claims or causes of action arising out of her
employment relationship with Kraft or the separation from that employment that
exists to date.  This includes, but is
not limited to, all claims under Title VII of the Civil Rights Act of 1964, the
Age Discrimination in Employment Act, the Older Workers Benefit Protection Act,
the Employee Retirement Income Security Act, or any other federal, state or
local law dealing with employment discrimination, and claims for breach of
contract and wrongful discharge; provided, however, that this release shall not
waive any rights that Holden may have to benefits under any Kraft or Altria
sponsored employee benefit plan, or any rights Holden may have to insurance
protection and/or indemnification for all actions taken by Holden while an
employee and/or officer of Kraft.  In
consideration for the above release, Kraft, on behalf of itself and its
affiliated companies, and their officers, directors, agents and employees,
hereby waives, and generally releases Holden from, and

 

 

agrees not to sue her for any claim arising
out of her employment relationship with Kraft or the separation from employment
that exists to date.

 

16.                                 By
signing below Holden acknowledges that she has thoroughly read this
Agreement.  She also acknowledges that
she has been advised to consult an attorney prior to executing this Agreement
and that she has 21 days to review this Agreement before signing it, and an
additional 7 days after signing it to revoke it.  In addition, Holden agrees that she has full
understanding and knowledge of the terms and conditions of this Agreement, and
that she understands that these terms will be final and binding upon Holden and
upon Kraft 7 days from the execution of this Agreement.

 

 

	
  /s/ Betsy D. Holden

  	
   

  	
   

  	
  Date:

  	
  June 24, 2005

  	
   

  
	
  BETSY D. HOLDEN

  	
   

  	
   

  

 

The undersigned hereby certifies that Betsy D. Holden appeared before
me and signed this document and verified that she signed this Agreement
voluntarily.

 

 

	
  /s/ Yolanda Kozicz

  	
   

  	
   

  	
  Date:

  	
  June 24, 2005

  	
   

  
	
  Notary Public

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  October 17, 2007

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED FOR KRAFT FOODS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Terry M. Faulk

  	
   

  	
   

  	
   

  
	
   

  	
  Terry M. Faulk

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice President, Global Human Resources

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  June 24, 2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]