Document:

Exhibit 10.3

 

OFFICEMAX INCORPORATED

Nonstatutory Stock Option Award Agreement

 

This
Nonstatutory Stock Option Award (the “Award”), is granted October 4, 2005
(the “Award Date”), by OfficeMax Incorporated (“OfficeMax”) to Don Civgin (“Awardee”
or “you”) pursuant to the 2003 OfficeMax Incentive and Performance Plan (the “Plan”)
and the following terms of this agreement (the “Agreement”):

 

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

 

2.             You
are hereby awarded a nonstatutory stock option to purchase up to 50,200 shares
of Stock at a price of $30.70 per share (the “Grant Price”).

 

3.             On
each of the first three anniversaries of the Award Date, if you are then
employed with OfficeMax, the Option shall become exercisable with respect to
one-third of the shares of Stock subject to the Option.  If you terminate employment for any reason
before the third anniversary of the Award Date, any portion of the Option which
is not then exercisable pursuant to this section 3 will be forfeited upon
your termination of employment.

 

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

 

(a)           the
tenth anniversary of the Award Date;

(b)           five
years after your termination of employment as a result of your retirement
(after attaining age 55 and completing 10 years of service with OfficeMax),
death, or total and permanent disability, provided that you have not, as of the
date of the exercise of the Option, commenced Employment with any Competitor
(see paragraph 8 below);

(c)           three
months after your termination of employment for any other reason, subject to
paragraph 5.

 

5.             The
Option shall be canceled immediately if you are terminated for “disciplinary
reasons,” as that term is defined in the Executive Officer Severance Pay Policy
(or any successor policy).

 

6.             In
the event of a Change in Control prior to the third anniversary of the Award
Date, the continuing entity may either continue this Award or replace this
Award with an award of at least equal value with terms and conditions not less
favorable than the terms and conditions provided in this Agreement, in which
case the new award will vest according to the terms of the applicable award
agreement.  If the continuing entity does
not so continue or replace this Award, or if you experience a “qualifying
termination”, the Option shall become fully vested and exercisable immediately
upon the Change in Control, or, in the case of your termination, upon the date
of termination.  “Change in Control” and “qualifying
termination” shall be defined in an agreement providing specific benefits upon
a change in control or in the Plan.

 

 

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

 

(a)           broker
assisted exercise;

(b)           Stock
already owned by you; or

(c)           cash.

 

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

 

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

 

You must sign this Agreement and return it to
OfficeMax’s Compensation Department on or before October 31, 2005, or the
Award will be forfeited.  Return your
executed Agreement to:  Pam Delaney,
OfficeMax, 150 Pierce Road, Itasca, IL 
60143, or fax your signed form to 630-438-2460.

 

 

	
  OfficeMax Incorporated

  	
  Awardee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Matt Broad

  	
   

  	
  By:

  	
  /s/ Don CivginExhibit 10.4

 

OFFICEMAX INCORPORATED

NONDISCLOSURE AND NONCOMPETITION AGREEMENT

 

THIS AGREEMENT is made as of this 3rd day of October, 2005 by and
between OfficeMax Incorporated, a Delaware corporation (“OfficeMax”), which
term includes any and all affiliates and subsidiaries), and Don Civgin (the “Employee”).

 

In consideration of the mutual covenants contained herein, including
without limitation OFFICEMAX’s employing Employee, OFFICEMAX providing Employee
with OFFICEMAX’s confidential information and trade secrets, OFFICEMAX
providing training to Employee, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Confidential
Information/Trade Secrets.  OFFICEMAX
shall provide Employee with certain OFFICEMAX confidential information and
trade secrets (“Confidential Information”). 
Confidential Information includes, without limitation, the names,
addresses, price lists, purchasing histories and requirements of customers and
potential customers; location, region, and company financial reports, sales and
service manuals and bulletins; cost information and patterns; floor plans and
drawings of facilities; marketing strategies; acquisition and expansion plans;
and other similar information. 
Confidential Information shall also include, without limitation, all
letters, memoranda, notes, tables, spreadsheets, and other similar documents,
whether in hard-copy or electronic form, created or generated by or on behalf
of Employee using the information, or any part thereof, described in the
previous sentence.  Employee recognizes
that such information is the confidential information and trade secrets of
OFFICEMAX, and agrees not to divulge such information to any person, firm, or
institution except as such disclosure is necessary to discharge his duties to
the Company.  Further, upon termination
of employment with OFFICEMAX, Employee will continue to treat Confidential
Information as private and privileged, and will not, either for Employee’s own
purposes or as an employee of or for the benefit of any other entity or person,
use such information or disclose it to any person, firm, or institution.

 

2.                                       Return
of Property.  On termination of
Employee’s employment with OFFICEMAX, Employee will immediately surrender to
OFFICEMAX, in good condition, all (a) Confidential Information; and (b) all
letters, notes, memoranda, program design specifications, and all other similar
items which relate to customers or potential customers of OFFICEMAX that
Employee obtained from OFFICEMAX files or databases, are supplied to Employee
by OFFICEMAX, or generated by Employee from OFFICEMAX data and that are in
Employee’s possession, custody, or control wherever located including all
reproductions or copies of such materials, whether in hard-copy or electronic
form; and (c) and all tangible property of OFFICEMAX, including but not
limited to computers, handheld electronic devices, cellular telephones,
briefcases, samples, merchandise, and furniture.

 

3.                                       Noncompetition.  In exchange for OFFICEMAX’s employment of
Employee, and its agreement to provide Employee Confidential Information and
senior executive separation benefits under certain circumstances as agreed, for
a period of 12 months after termination of Employee’s employment with
OFFICEMAX, whether such termination is voluntary or involuntary (or for a
period of 12 months after a final judgment or injunction enforcing this
covenant), Employee agrees not to, directly as an employee or indirectly as a
consultant or contractor,

 

 

without the prior written consent of OFFICEMAX, be employed in the same
or similar capacity as Employee was employed by OFFICEMAX immediately prior to
termination of his or her employment, by another business entity or person
whose principal activity is the sale or distribution of office supplies, office
furniture, computer consumables or related office products or services, in the
Territory (as defined below).  For
purposes hereof, the Territory shall be all of North America.

 

In agreeing to this restriction, Employee specifically acknowledges the
substantial value to OFFICEMAX of Confidential Information and Employee’s
intimate knowledge of OFFICEMAX’s business and agrees that such constitutes
goodwill and a protectable interest of OFFICEMAX.

 

4.                                       Non-Solicitation.  In addition to the foregoing and not in
limitation thereof, for all periods beginning upon the date hereof and ending
two years from the date of Employee’s termination of employment with OFFICEMAX
for whatever reason, Employee agrees that he/she shall not directly or
indirectly, for Employee’s benefit or on behalf of any other party (other than
OFFICEMAX):

 

(a)                                  solicit
or attempt to solicit any customer of OFFICEMAX for the purpose of selling or
distributing office supplies, office furniture, computer consumables or related
office products or services.  For
purposes hereof, a customer of OFFICEMAX shall mean any person or business to
whom OFFICEMAX sold or distributed office supplies, office furniture, computer
consumables or related office products and services during the last two years
Employee was employed by OFFICEMAX.

 

(b)                                 solicit
or discuss potential employment opportunities with any employee of OFFICEMAX
(other than for opportunities with OFFICEMAX) or induce or attempt to induce
any employee of OFFICEMAX to leave the employ of OFFICEMAX, or in any way
interfere with the relationship between OFFICEMAX and any employee thereof
without the prior express written consent of OFFICEMAX.

 

(c)                                  offer,
hire or cause to be offered or hired any person who was employed by OFFICEMAX
at any time during the 12 months prior to the termination of Employee’s
employment with OFFICEMAX.

 

(d)                                 induce
or attempt to induce any supplier, or other business relation of OFFICEMAX to
cease doing business with OFFICEMAX or in any way interfere with the
relationship between any such supplier or business relation and OFFICEMAX
(including without limitation making any negative statements or communications
about OFFICEMAX).

 

5.                                       Non-Disparagement.  Employee agrees that during and after his
employment with the Company he shall not make any public statements that
disparage the Company, its respective affiliates, employees, officers,
directors, products or services. 
Notwithstanding the foregoing, statements made in the course of sworn
testimony in administrative, judicial or arbitral proceedings (including,
without limitation, depositions in connection with such proceedings) shall not
be subject to this Section 5.

 

6.                                       Severability.  In case any one or more of the terms
contained in Section 3, in subsections (a), (b), (c), or (d) of Section 4,
or Section 5 shall for any reason become invalid, illegal, or
unenforceable, such invalidity, illegality, or unenforceability shall not
affect any other terms herein, but such terms shall be deemed deleted and such
deletion shall not affect the

 

 

validity of the other terms of this Agreement.  In addition, if any one or more of the terms
contained in Section 3, in subsections (a), (b), (c), or (d) of Section 4,
or Section 5 shall for any reason be held by a court of competent
jurisdiction to be excessively broad or unreasonable with regard to duration,
scope, or area, the terms shall be construed in a manner to enable it to be
enforced to the maximum extent permitted by applicable law, and any such court
shall have the power to modify such term.

 

7.                                       Enforcement.  Employee understands that the breach of this
Agreement will cause immediate, irreparable, and immeasurable injury to
OFFICEMAX, and therefore agrees that in addition to any other rights OFFICEMAX
has in order to enforce this Agreement, OFFICEMAX shall be entitled to
injunctive relief without bond or other security by any competent court to
enjoin and restrain the breach of this Agreement.

 

8.                                       Employment-at-Will.  This Agreement is not intended to modify the
at-will relationship between OFFICEMAX and Employee, nor does it create an
employment contract between OFFICEMAX and Employee.  Employee’s employment with OFFICEMAX is
at-will.  This means that both Employee
and OFFICEMAX are free to terminate the employment relationship within such
party’s discretion at any time.  No
supervisor or other company representative, except the Senior Vice President of
Human Resources, has the authority to alter this relationship and then only if
the agreement is in writing, signed by both parties, and is specific to
Employee.  Employee should never
interpret any company representative’s or supervisor’s remarks as a guarantee
of continued employment.  Nothing herein
alters this at-will relationship.

 

9.                                       Assignment.  This Agreement shall be freely assignable by
OFFICEMAX.

 

10.                                 Attorneys’
Fees.  In the event OFFICEMAX
utilizes the services of in-house or outside attorneys for the purposes of
enforcing any of the provisions of this Agreement, OFFICEMAX shall be entitled
to recover its attorneys’ fees, costs, and expenses of such enforcement
efforts, in addition to all damages and other remedies recoverable by
OFFICEMAX.

 

11.                                 Survival.  Any respective obligations of OFFICEMAX or
Employee hereunder which by their nature would continue beyond termination or
resignation of Employee’s employment with OFFICEMAX will survive such
termination or resignation.

 

12.                                 Modification.  This Agreement may not be modified orally,
but only by a writing signed by the party against whom enforcement of any such
modification is sought.

 

13.                                 Integration.  This Agreement expresses the entire agreement
and understanding of the parties and supersedes all prior, and contemporaneous
oral, agreements, commitments, and understandings pertaining to the subject
matter hereof.

 

14.                                 Waiver.  The failure of either party to enforce at any
time or for any period of time any of the provisions of this Agreement will not
be construed to be a waiver of such provisions or of its right thereafter to
enforce such provision and each and every provision thereafter.

 

 

15.                                 Governing
Law.  For enforcement purposes, this
Agreement shall be governed and construed according to the laws of the state of
Illinois, without giving effect to any conflict of laws provisions.

 

EMPLOYEE HAS READ THIS AGREEMENT and signs
it with the understanding that the terms contained herein are a condition of
Employee’s employment with OFFICEMAX and (1) control Employee’s use of
certain information and know-how during and after his/her employment with
OFFICEMAX, (2) restrict Employee’s employment opportunities upon
termination of his/her employment with OFFICEMAX, and (3) restrict
Employee’s ability to solicit customers, employees and suppliers of OFFICEMAX.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

 

 

	
  OFFICEMAX INCORPORATED

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Matt Broad

  	
   

  	
  By:

  	
  /s/ Don Civgin

  	
   

  
	
  Its:

  	
   EVP

  	
   

  	
   

  	
       Don Civgin

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